Data#3 cloud services business drives strong growth

Data#3 cloud services business drives strong growth

Net profit and revenue rise up

Laurence Baynham - CEO, Data#3

Laurence Baynham - CEO, Data#3

Credit: Data#3

Data#3’s cloud services business has contributed to the company’s growth in the first half of 2020 financial year, ending December 31. 

Total revenue increased 11.6 per cent to $718.9 million, which included $251.9 million in public cloud-based revenue, up 76.5 per cent. 

Net profit was up 41.5 per cent in the first half to $8.7 million. Total gross margin slightly decreased from 12.8 per cent to 12.3 per cent, which the publicly listed company said was due a shift in sales mix, with strong growth in software licensing and public cloud revenues, and a decrease in consulting revenue.

“The market is growing as digital transformation fuels the overall information technology spend, and we have seen sustained large project activity,” Data#3 CEO and managing director Laurence Baynham said. 

“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.”

Baynham added the strong first half performance and pipeline of opportunities in the second half provided confidence in meeting its full year financial objective and sustainable earnings growth.

Data#3 chairman Richard Anderson further added the results reflected its ongoing successful implementation strategies over a number of years, supported by a positive market environment. 

In December, Data#3 revealed it landed a project with Wesley Mission Queensland to modernise its network in another step towards its digital transformation journey.

It also scored another project win with iNova Pharmaceuticals in implementing a cloud and mobility solution to create a more consistent and secure IT environment.

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