Contract extension to further boost WhiteHawk’s rapid revenue growth
WhiteHawk Limited (ASX:WHK), the first global online cyber security exchange enabling small-to-medium businesses to take smart action against cybercrime, fraud and disruption, has been awarded a fiscal 2021 option extension of US$1.5 million (A$2.1M) under an existing 7 year contract.
As previously noted, the contract with a US Federal government Department was for a 1 year contract with 6 option years, and WhiteHawk has been advised that the option for the next financial year has now been exercised, which is worth US$1.5 million to the company over the 2021 financial year.
Reflecting WhiteHawk's capabilities, the US$1.5 million extension is an increase on the US$400,000 in revenue awarded to the company under the contract for the 2020 financial year.
The focus of this contract for WhiteHawk has evolved from cyber risk technical and management services, scoped at US$400,000 to US$750,000 per year, to now lead developer of a comprehensive online Cyber Security Marketplace, with an automated cyber risk review and solution option mapping, for a breadth of US Federal Government entities.
This is an important development for WhiteHawk as revenues across the group are rapidly ramping up, having more than doubled to approximately US$585,000 in the first half of 2020.
On an annualised basis, this was broadly in line with the company’s revenues for 2019 which were just above US$1 million.
Consequently, on a year-on-year basis this contract alone represents about 150% of the previous year’s revenues.
Paves the way for further government option year contract extensions
From an operational perspective, the award underlines WhiteHawk's product capability and service level execution to perform on all current contracts to achieve further government option year contract extensions and to engage with future customers seamlessly and effectively throughout the current global pandemic.
It is worth noting that this comes just a fortnight after the company announced the automation and scaling of two key product lines, the Cyber Risk Scorecard and CMMC that were added to the online maturity model, enabling scalability across thousands of companies, an added attraction for organisations looking to extend contracts.
Terry Roberts, Executive Chair of WhiteHawk, highlighted the benefits of the group’s real-time, end- to-end automated product offerings in saying, “We are discovering that our unique end-to-end automated approach to identifying, prioritising and mitigating cyber risks via an easily assessable online platform is increasingly attractive to both government and industry alike as it provides near real-time servicing of their stakeholder organisations or clients.”