WHK Confirm US$400k SaaS Sales via New Sales Channel
PUBLISHED: 15-04-2020 10:21 a.m.
In news out today, the Next Tech Stock’s top Pick of the Year, WhiteHawk Ltd (ASX:WHK) announced that it has established a new sales partnership that is already bringing in new revenues.
WHK has partnered with a major global consulting firm to sell its new product line — the Cyber Risk Program.
While we can’t name the consulting firm for privacy reasons, this partnership (an additional sales channel) has generated annual SaaS subscriptions exceeding US$400,000 (A$622K) already this year.
Cyber Risk Program acts as a “second set of expert eyes” to identify and mitigate cyber risks to an organisation’s revenue and reputation.
Cyber Risk Program is a software as a service (SaaS) product incorporating Whitehawk’s Cybersecurity Exchange online platform, its automated Cyber Risk Scorecards, and virtual consultations.
This new product is scoped remotely and implemented virtually, to any company anywhere in the world. Plus, it allows for rapid scale remotely during current pandemic related lockdown.
The company has an increasingly impressive portfolio of systems and services that have led to cybersecurity contracts with multiple US federal government departments and US Defence Industrial Base (DIB) companies, as well as major US financial institutions, insurance groups, and utility companies.
Additionally, the current global COVID-19 pandemic look to be an opportunity for the company as cybercrime looks to be increasing with remote work places especially at risk, and in need of adequate cyber security solutions.
The Next Tech Stock’s top Pick of the Year, WhiteHawk Ltd (ASX:WHK) still has our support into 2020 with a significant shareholding in the company. With a sub-$10 million market capitalisation, there is huge potential upside on offer here as the company looks to be back on track, signing new partnerships and bringing in new revenues.
Share price: A$0.05 (at 6 April)
Market Capitalisation: A$7.95 million
Cash: $1.53 million + $393k (receivables) as 31 December 2019
Here’s why I like WhiteHawk:
WhiteHawk Limited (ASX: WHK) is the first global online cybersecurity exchange and AI driven cyber risk mitigation company enabling small to mid-sized businesses (SMBs) to take smart action against cybercrime.
WhiteHawk has established the first cybersecurity solutions marketplace for small to mid-sized businesses enterprises (those with revenues of up to US$1billion). This is based on a platform architecture that is Artificial Intelligence (AI)-driven, with a focus on identifying, prioritising, and mitigating cyber risks for businesses of all sizes.
Further, WHK also provides cyber-risk consulting to US federal government departments, Fortune 500 companies and other large institutions that involves continuously monitoring, prioritising, validating, and mitigating cyber risks.
As announced this morning, the company recently commenced a new sales-enhancing partnership to promote its new remotely deployable Cyber Risk Program technology.
Recently developed, the Cyber Risk Program is a software as a service (SaaS) product that incorporates Whitehawk’s Cybersecurity Exchange online platform, its Automated Cyber Risk Scorecards, and Virtual consultations so that it can be remotely delivered to any organisations in the world, with speed, efficiency and impact.
The Cyber Risk Program
WhiteHawk’s Cyber Risk Program acts as a second set of expert eyes in identifying and mitigating cyber risks to an organisation’s revenue and reputation, with reports tailored and delivered to the Chief Information Officer or to an executive team, Chief Executive Officer, and Board of Directors.
WhiteHawk has already commenced selling this new product line, in particular via its new partnership with the global consulting firm.
To date, WhiteHawk has secured several subscriptions for its new Cyber Risk Program from this sales channel with initial annual subscriptions exceeding US$400,000 (A$622k).
The Cyber Risk Program is also being marketed and sold through all WhiteHawk sales channels, across government and industry sectors.
When customers take up an annual subscription of the Cyber Risk Program, they receive quarterly Cyber Risk Scorecards on individual business lines, continuous cyber risk monitoring and alerting, real-time red team and dark net assessments, and executive level reporting and action planning from WhiteHawk.
Terry Roberts, Executive Chair of WhiteHawk, said, “CEOs and Boards have been asking what they should be focused on from a Digital Age Risk perspective and so we developed this continuous, virtual new product, which costs less and is a hundred-fold more comprehensive than any cyber risk consulting service.
“In only a few months, WhiteHawk is already seeing positive growth with this product line. As with our other product lines, the Cyber Risk Program is executed via cloud based and online platforms, SaaS services and virtual consultations, which can be sold and implemented during this most challenging global environment.
“CIOs, CEOs, executive teams and Boards don’t have to miss a beat to be on top of their Digital Age Risks.”
The following video details WHK’s Cyber Risk Radar:
Today’s news of WHK’s new sales partnership comes as many organisations are seeing a rise in pandemic related cybercrime and fraud schemes, meaning that a continuous risk monitoring, prioritisation and mitigation approach is needed more than ever.
This will bode well for WHK’s new sales channel through the global consulting firm, while the wider cybersecurity market will be one sector that benefits from the pandemic.
It makes sense: the COVID-19 virus is resulting in more employees working from home on their personal networks, raising the chance for exposure to malicious actors.
As Forbes reports “Cybercriminals continue to exploit the coronavirus pandemic. The FBI has warned of a significant spike in coronavirus scams, adding to concerns about an ‘unprecedented wave’ of cyber-attacks.”
On 24 March, WhiteHawk updated the market on the impacts of COVID-19 to the business, asserting that it is well positioned to continue to support its current customers and to engage with future customers amid the current global pandemic.
The WhiteHawk Cyber Risk Radar, Cyber Risk Program, Scorecards and online Cybersecurity Exchange have each been piloted and scaled and continue to be implemented virtually and effectively to customers anywhere in the world.
Management confirmed that the company has a strong cash position, and the business is well-funded into 2021 with existing contracts and a strong sales pipeline.
WhiteHawk has sufficient cash to operate well into 2021 and has existing revenue generating contracts and a strong sales pipeline in the United States. This spans diverse sectors including US federal government, US financial sector, US Defense and Industrial Base (DIB) and the US manufacturing sector.
WhiteHawk held a cash balance as at 31 December 2019 of US$1.5 million, combined with additional working capital facilities from RiverFort Global comprising a A$400,000 loan and a A$1.5 million combined placement and equity.
Today’s news of the growth in customer contracts and the first revenues from this news sales channel through the global consulting firm, demonstrate that the pandemic is not slowing WHK down.
We’ll be closely watching for further announcements and potential new contracts in the near-term, and as long-term shareholders ourselves, we remain particularly optimistic around the prospects in 2020 of our 2019 Pick of the Year.