Why the WhiteHawk (ASX:WHK) share price is crashing 8% lower

The WhiteHawk share price dropped 8% today as the company released its final report. We take a closer look.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The WhiteHawk Ltd (ASX: WHK) share price crashed lower today as the company announced its preliminary final report.

Shares in the online cybersecurity small-cap were down 7.69%, trading at 30 cents at market close.

Why is the WhiteHawk share price crashing lower?

Shares in the company were trading lower today amid the ASX market-wide sell-off. The fall in WhiteHawk share price may also have been triggered by the company's report for the year ended 31 December 2020.

During the year, WhiteHawk invoiced for US$2.1 million, recognising US$1.9 million revenue for 2020. This was up 83.5% on the company's revenue for 2019. However, the increase was not enough to stop the company from posting a loss of US$1.81 million, down 34.2% on the previous corresponding period.

During the 2020 calendar year, WhiteHawk also executed a number of important contracts. Notably with the United States Department of Homeland Security for US1.5 to $1.8 million, starting in October last year.

Furthermore, the company continued its transition to produce a cybersecurity exchange as a tailorable platform as a service (PaaS).  On this front, the company formed an initial partnership with a global insurance group and requested a quote from a US manufacturer association.

WhiteHawk finished 2020 with a cash balance of $2.4 million without any debt.

Outlook

Looking ahead, the company stated that it was strategically positioned for continued growth in 2021.

WhiteHawk is working on growing revenue through two primary paths.

As mentioned, PaaS enables users to manage cyber threats. The other stream will come from the company's embedded SaaS offering. This aims to prevent financial fraud, identity theft and mobile device security among other things.

On the sales front, the company claims to have 40 ongoing engagements in the pipeline, of which 5 to 10 should be executed this year.

About the WhiteHawk share price

WhiteHawk recently underwent the due diligence to become an ESG (environment, social, governance) registered company. This is a new standard in measuring the sustainability and ethical impact that a company makes.

The WhiteHawk share price has performed well in the last year, gaining 408%.

Should you invest $1,000 in Mydeal.com.au Limited right now?

Before you buy Mydeal.com.au Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Mydeal.com.au Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Interest rates written on top of pictures of houses on a computer.
Share Market News

3 ASX 200 consumer discretionary stocks to benefit from a rate cut

With an RBA rate cut expected this afternoon, it could be positive news for these three stocks. 

Read more »

Miner looking at a tablet.
Opinions

3 reasons why the Fortescue share price could still be a buy

Let’s dig into why this mining giant could be a solid buy.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A decent session is expected for Aussie investors today.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »