The total revenue for the half year included $251.9 million of public cloud-based revenues - up 76.5% - and Data#3 says it has also delivered strong earnings growth at the top end of previous guidance.
Data#3 (ASX: DTL) also reports that net profit before tax increased by 40.6% to $12.7 million, with net profit after tax (excluding minority interests) increasing by 41.5% to $8.7 million - and earnings per share increasing by 41.5% to 5.65 cents.
The results also reveal that total gross profit increased by 7.7% to $88.6 million, while total gross margin decreased slightly from 12.8% to 12.3%, reflecting what the company says was a shift in sales mix, “with strong growth in Software Licensing & public cloud revenues, and a decrease in consulting revenue”.
“We are very pleased with the first half performance, maintaining the longer-term growth trend,” said Data#3 Chief Executive Officer & Managing Director Laurence Baynham.
“The market is growing as digital transformation fuels the overall information technology spend, and we have seen sustained large project activity.
“The current period result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and we are delighted with the rapid growth in our cloud-based business.
“The strong first half performance and pipeline of opportunities for the second half give us confidence that we will achieve our full year financial objective, being to deliver sustainable earnings growth over time,” Baynham concluded.
Data#3’s Chairman Richard Anderson said: “The results reflect the ongoing successful implementation of the company’s strategies over a number of years, supported by a continued positive market environment.”
Data#3’s 1H FY20 – growth across all key metrics:
• Total revenue up 11.6% to $718.9 million, including $251.9 million of public cloud revenues
• NPBT up 40.6% to $12.7 million
• NPAT (excluding minority interests) up 41.5% to $8.7 million
• EPS up 41.5% to 5.65 cents per share
• Interim fully franked dividend up 41.7% to 5.10 cents per share
• Strong balance sheet with no material debt