Transitioning its business towards a services model has paid off for Data#3, after it saw net profit jump 40.9 per cent to $10.6 million, EBITDA increase 39.3 per cent to $17 million and revenue climb 4.4 per cent to $870.5 million for the 2015 financial year.
In a statement, Data#3 CEO, Laurence Baynham, said the results reflected the company’s strategy of transitioning from a product to a service-centric approach.
“We have repositioned the business to take advantage of our global partners’ investments in public Cloud. In FY15 this represented significant growth with public Cloud revenues exceeding $47 million,” Baynham said.
He highlighted two of the strongest geographies for Data#3 during FY15 were Queensland and Western Australia. Last year, Data#3 also set up a dedicated team to look after the education market, which was a dominant vertical for the services provider.
"We've got a solid strategy in place, but what will determine our success is how we execute it," he said. "We see growth opportunities in public Cloud and services - it's the fastest growing part of our business today."
To help achieve its growth objectives for FY16, Baynham said it would be focused on gaining more market share from its competitors by focusing on its differentiation in verticals, applications, services and its consulting business, with a particular focus on the public Cloud market.
During the financial year, Data#3 staff costs increased 5.3 per cent to $97.8 million, adding 128 employees to its books, which included 74 from its Business Aspect acquisition.
Baynham said economic conditions would continue to pose a challenge in FY16 as traditional technology investments would remain flat.
“However, we are seeing digital disruption as a high priority for commercial and public sector organisations, and this is attracting increased investment,” he said. “Data#3 has access to a very large marketplace and is well positioned to address these emerging opportunities.”
Baynham said it would keep an eye on further acquisitions that can add value to the business and shareholders.