Data-Centre-as-a-Service (DCaaS) provider, NEXTDC Limited, has recorded it's first period of positive EBITDA thanks to strong growth in net sales.
The milestone was announced as part of the company's financial results for the half-year ended 31 December 2014 (1H15) which also saw similar growth in operating cash flow.
Financial highlights for the half included:
- Datacentre revenue up 134 per cent to $26.7 million (1H14: $11.4 million)
- New sales up 164% to 2.5MW (1H14: 940kW)
- First period of positive EBITDA achieved of $3.0 million (1H14: $3.4 million loss)
- First period of positive operating cash flow achieved of $2.2 million (1H14: $3.9 million outflow)
- Statutory net loss of $5.8 million, compared to $7.3 million net loss in the half-year ended 31 December 2013
- Cash and term deposits of $62.3 million at December 31, 2014.
Commenting on the results, NEXTDC CEO, Craig Scroggie said: "The half-year ended December 2014 represents a pivotal period with NEXTDC generating its first positive EBITDA as well as operating cash flows. We are starting to see the benefits of the inherent leverage of the company's scalable infrastructure start to flow through to earnings and operating cash flows."
First half sales and operational milestones were:
- 2.5MW of power contracted (1H14: 940kW), including 1.0MW to a major international customer for S1 Sydney
- Interconnection (cross connects) up 118% to 2,198 at 31 December 2014 (31 Dec 2013: 1,006).
- Annualised contracted recurring revenue up 48% to $51.8 million (31 December 2013: $35.1 million)
- Annualised unweighted pipeline up 35% to $172 million (31 December 2013: $127 million)
- Commenced adding additional capacity in S1 and P1
- Admitted to the Federal Government Data Centre Facilities Supplies Panel
- Project Plus is expected to increase the originally planned network capacity of 35MW to approximately 42MW
Based on the NEXTDC's 1H15 performance, current utilisation levels and expected new client contracts in 2H15, the company updates its previous guidance and expected the following outcomes for FY15:
- Total new sales between 3.4MW and 4.0MW (FY14: 2.1MW)
- Datacentre revenue between $55 million and $60 million (FY14: $30.4 million)
- Capital investment on plant and equipment of between $35.0 million and $42.0 million
- Fixed costs, excluding power and consumables, of between $44.0 million and $46.5 million (FY14: $42.6 million)
- FY15 EBITDA of between $6 million and $8 million (FY14: $16.1m underlying EBITDA loss)
- This guidance excludes any further incremental large whitespace deals.
Scroggie said in a statement, "We are very proud of the achievements in the first half and equally excited by the attractive growth opportunities that are inherent in the companys scalable infrastructure. We expect to build on the first half results and deliver continued solid revenue growth, positive EBITDA and operating cash flows in the second half."