Victor Tsaccounis (Hubify)
Recurring revenue now accounts for more than 60 per cent of overall revenue for telco and IT managed services provider Hubify, according to its 2021 financial year results.
Over the last 12 months to 30 June, the group has seen revenue rise 15.4 per cent to $18.8 million, earnings before tax, interest, tax, depreciation and amortisation (EBITDA) grow 18.6 per cent to $2.1 million and net profit before tax (NPBT) step up 24.7 per cent to $1.24 million.
Recurring revenue grew 36.8 per cent to $11.2 million and now makes up 60 per cent of overall revenue. Annualised recurring revenue increased 63.5 per cent to $13.9 million for the 2021 financial year ending 30 June.
Hubify CEO Victor Tsaccounis said the strong revenue result was driven by continued organic growth in its high margin, core business divisions and contributions from accretive acquisitions made during the period.
“As a result, gross margins improved to 76.7 per cent (from 70.7% in FY20)...notwithstanding the adverse impact of some COVID-related headwinds in some of our business units,” he said.
Tsaccounis added he sees significant opportunities in selling its managed services and cyber security products into its existing telco customer base, with initial cross-sell rates in the past few months, offering greater confidence in this strategy.
“While organic growth remains a key focus for the company, we also remain very committed to pursuing further accretive acquisitions in the near term,” he said.
“We remain confident in continued organic growth in our core business units and we see significant upside in the cross-sell opportunities from recent acquisitions which are already showing early signs of success.”
During the past 12 months, Hubify has executed multiple acquisitions, including Red Telecom, Net Hoster, ICNE and Smile.
