Rhipe has seen its revenues and profits soar in the first half of FY2021 on the back of its strong licensing and services businesses.
In the half year ended 31 December 2020, the distributor posted revenue of $30.5 million, up 15 percent year over year, and operating profit of $8.8 million, up 34 percent.
The growth was driven by Microsoft Office365 licenses, with 720.000 seats at the end of the half including some 11,000 seats in Japan. The number of seats are up 90,000 since 30 June 2020.
Rhipe also saw its expenses grow 3 percent to $19 million despite having lower
headcount, marketing and travel costs due to investments in the solutions business.
Looking ahead, Rhipe is optimistic that the growth will continue and also increase investments in key growth pillars.
“Due to Rhipe’s extensive reseller base across many countries, Rhipe’s business has proven very resilient to the impacts of COVID-19 with a strong financial result in the first half of 2021,” the announcement read.
“Rhipe expects these results to continue in the second half of the financial year and, as a result, Rhipe plans to increase investments in several key growth pillars of our business in order to drive further growth in 2022 and beyond.
“Rhipe is now targeting full year operating profit for the financial year to 30 June 2021 of $17.5 million which would represent growth of almost 27 percent compared to the prior year.”