MOQdigital continues to increase its cloud offerings across Australia and wider markets, aiming to “build, develop, and acquire” further capabilities in the year ahead.
Illustrated through financial results detailed by holding company, MOQ, the business increased revenue by 75 per cent to $29.4 million for the first six months of FY2017.
As a result, the “strong momentum” places the company on track to deliver its revised revenue target of $52 to $57 million (from $50 to $55 million) for FY2017, alongside 22 to 25 per cent overall gross margin.
From a strategic perspective, the publicly-listed IT service provider is continuing to “build, develop, and acquire” complimentary cloud-focused technology businesses in an attempt to capitalise on the digital economy.
Looking ahead, the company “remains acquisitive” with “positive growth” in its business, vendor retention and alignment, including an expanded Australia and New Zealand presence, coupled with recurring revenue from its Software-as-a-Service managed services business.
“FY17 is a year of executing on our strategy, winning new business, marking strategic investments, and consolidating operations,” a company statement read.
As reported by ARN, an aggressive expansion strategy delivered a 989 per cent surge in revenue for the company during the previous financial year, along with a net loss of $528,406.
During 2017, the company will also continue to invest and a build out capabilities in the New South Wales and Queensland markets, backed up increased demand for managed services and the development of in-house products, tools, and applications.
In addition, the company’s strategic focus will be based on its recurring revenue via its managed services and commercialised solutions such as its Skoolbag SaaS product.
Furthermore, MOQ attributed the “very strong overall” results for 1H FY17 to its professional services and technology segments in particular.
Specifically, the company cited sales momentum in as “extremely pleasing to date” with new customer opportunities and existing clients “reacting positively” to its managed services market offering.
During the period, the company secured a three-year managed services contract with Toga Group, renewed a “significant” three-year managed services contract for a financial services customer, and deployed a “large” retail store application integration professional services project Australia-wide.
From an acquisition perspective, the integration of the Tetran business into MOQDigital is “progressing well”, with multiple back-office functions and roles being consolidated to “assist operational efficiency”.
Consequently, the management team will continue to assess operational and cost efficiencies across the business as the merged entities reach an “appropriate level” of integration maturity.
Following the integration of the business, which also includes Breeze, Director, Don Francis, and CTO, Mick Badran, have stepped down from executive roles at the company, with Francis remaining as a non-executive director.
MOQ said both positions are not being replaced in the immediate future.
As explained in the report, the first six months of trading to 31 December 2016 incorporated trading results for the full period from Tetran and Skoolbag, two acquisitions completed by MOQ in May and April 2016 respectively.
The Tetran business is being integrated into MOQ, while Skoolbag operates independently.