Laurence Baynham (Data#3)
Data#3 hailed another stellar six months with cloud and managed services driving revenue of $1.2 billion for the first half of FY23, rising 16.7 per cent.
According to Data#3, around 65 per cent of revenue is recurring, meaning under term-based contracts.
In addition, the company's post-tax profit for the year ended 31 December 2022 still represents a 38 per cent rise year-on-year for the Australian Securities Exchange- (ASX) listed company.
In terms of services revenue, Data#3’s consulting arm and people solutions division both showed strong revenue growth, rising by 22.8 per cent to $15.9 million and 22.5 per cent to $36.5 million, respectively.
Project services gained a 10 per cent uplift to $36.3 million, but support services, which account for $65 million, saw a dip of 6 per cent.
Software, which makes up the bulk of revenue at $766.5 million, saw 18 per cent growth, as did infrastructure revenue, which hit revenue of $242 million. According to Data#3, the latter was driven by demand for public and private cloud solutions.
The half-year report also revealed that staff and operating costs rose to $97 million, $10 million more than in the same period a year ago.
According to Data#3, the company has continued to increase headcount, predominantly in its growing services teams.
“This ability to attract and retain talent in a highly competitive industry reflects the company’s leading market position and attractiveness as a place to work,” the company told shareholders.
Data#3 also said it was benefiting from its specialist recruitment business, Data#3 People Solutions, which “presents a key differentiator in the market”.
“We are very pleased with the strong first half performance, which saw solid contributions across our business units and regions,” CEO and managing director Laurence Baynham said.
“This was underpinned by particularly strong growth in our software and infrastructure businesses, reflecting momentum in our large integration projects, as well as good execution of our strategy to grow our services businesses and recurring revenue base.
“We continue to manage costs well and drive operating leverage, while still investing in growth.”
