Azure, O365 continues to fuel rhipe's growth

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Azure, O365 continues to fuel rhipe's growth

rhipe has continued to post revenue and sales growth on the back of strong demand for Microsoft Azure and Office 365.

In an ASX announcement (pdf), the distributor revealed that Azure achieved 33 percent sales growth and 24 percent revenue growth in the half year ended 31 December 2019 largely due to demand from Azure and O365. Growth from rhipe’s Asian operations and ongoing changes to vendor incentives and competition also contributed to the growth.

Revenue came in at $26.6 million for the period, up from $21.5 million in H1 2019, while software products and services sales are at $152.7 million, up from $114.7 million. Profit after tax grew to $3.3 million, up seven percent year on year.

Office365 seats also grew to 547,000, up 97,000 since 30 June 2019 and up 192,000 since 31 December 2018. Annual recurring sales for the software suite rose 50 percent to $71 million, compared to $47 million the previous year.

rhipe said growth in operating profit (up 18 percent to $6.6 million) has allowed for continued investments in the business, with increases in the company’s overall headcount. The licensing businesses has grown from 150 staff in June 2019 to 186 in December 2019, while the solutions business grew from 163 employees to 199 towards the end of H1 2020.

The company has maintained its FY2020 $16m operating profit guidance.

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