Managed services provider Data#3 has continued the trend of IT channel companies outperforming in the midst of the COVID-19 pandemic.
The company posted double digit growth in revenue, earnings, profit and its dividend on the back of strong demand for public cloud services and software licences.
In the 12 months ended 30 June 2020, Data#3’s revenue grew 14.9 percent to $1.6 billion, while net profit grew 30.5 percent to $23.6 million. Earnings per share was also up 30.5 percent to 15.35 cents per share. The company also issued a dividend of 13.9 cents per share, a 29.9 percent increase.
Public cloud was a strong performer, with revenues increasing 60.4 percent from $362.2 million to $581 million. It also helped reduce gross margin from 12.3 percent to 11.6 percent, along with growth in software licensing sales.
Digital transformation projects were also growth drivers for Data#3’s core infrastructure, software and services businesses, especially with the shifts in customer priorities in response to the COVID-19 pandemic.
Managing director Laurence Baynham said, “We are delighted with the performance of the consolidated Data#3 business, which delivered another record result in what has been an extraordinary year.”
“The result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and the growth in public cloud was a particular highlight.”
Baynham added the company’s non-financial measures indicate that the Data#3’s underlying health “has continued to strengthen” with staff and customer satisfaction surveys yielding high results and with the company netting a number of local and international awards.
Looking ahead, the company expects to play a major role in Australia’s recovery from the pandemic.
“Our expectation is that technology will play a major role in Australia’s economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities,” Baynham added.
“The timing of the recovery is less certain, and consequently we are unable to provide meaningful commentary on our FY21 outlook at this stage. Our long-term financial goal remains to deliver sustainable earnings growth.”