Public cloud revenue played a significant role for Data#3 as it reported its results for the 2022 financial year, which saw revenue rise 12.1 per cent to $2.2 billion.
Public cloud revenue shot up 31.3 per cent to $1 billion, due to organisations and government departments migrating to cloud-based infrastructure.
As for its services portfolio, consulting revenue rose 50 per cent to $26.6 million, project services was up 5 per cent to $66.6 million, support services were up 66.6 per cent to $160.1 million and people solutions rose by 8.7 per cent to $62.3 million.
Other arms of the business varied in terms of growth – software solutions pulled in $1.4 billion in revenue, up 14.8 per cent, while infrastructure solutions dropped 5.7 per cent to $440.3 million, mainly due to supply chain constraints.
Its audited net profit before tax came in at $44 million, up 19.1 per cent — roughly the same as its unaudited results, which it posted a month ago.
Meanwhile, consolidated net profit after tax reached $30.3 million, an increase of 19.1 per cent.
“We are pleased to deliver another record result, underpinned by our leading market position built up over 45 years, the strength of our supplier relationships and customer base, and our exceptional team,” said Data#3 chairman Richard Anderson.
“In line with our strategy, it reflects the growing contribution from our higher-value services offerings, demonstrating the growing demand for our solutions especially for large infrastructure and digital transformation projects.
“The result would have been even stronger were it not for a significant order backlog as global supply chain delays persist, although this gives us a fast start to FY23,” he added.
Indeed, Data#3’s unaudited results for FY22 revealed it experienced an inflated product backorder at year-end to the tune of $6 million, following the traditionally expected spike in demand during the fourth quarter of the year.
This backorder profit is expected to be realised in the first half of FY23. As a point of comparison, its product backorder in FY21 was only $3 million.
“Through excellent working relationships with its global vendor partners, Data#3 has secured critical deliveries for customers, thereby mitigating some of these supply chain delays,” the solution provider said in a statement to the Australian Securities Exchange (ASX).
“Supply constraints for various product sets are expected to continue well into FY23, and Data#3 is well placed to manage the best possible outcome for its customers.”
Data#3 CEO and managing director Laurence Baynham said the solution provider’s pipeline is continuing to experience a steady increase of large integration projects from corporate and public sector customers.
“Our services growth strategy will improve our overall margin profile while complementing our growing software and infrastructure business units,” he said.
“The backlog from FY22 has again provided a fast start to the current year and we are well positioned to capitalise on opportunities this provides. In line with previous years, we continue to expect to deliver sustainable earnings growth.”