Enterprise software company Data#3 Limited (ASX: DTL) has just released an impressive FY21 result with a record-breaking $1.9 billion in annual revenue.
The market has reacted positively to the results with its shares finishing over 12% higher by the day’s end.
FY21 result highlights
Data#3’s $1.9 billion in FY21 revenue was an increase of 20.3% compared to FY20.
Public cloud revenue was the key driver behind the uptick in revenue, up 36.2% to $791.6 million. Management said this was due to governments and major organisations continuing to migrate to cloud-based infrastructure.
Its infrastructure segment was also a strong performer, with revenue up 13% to $466.8 million.
This result was pleasing considering the company had to manage a global supply shortage of computer chips. This caused a significant backlog of orders that could not be invoiced by the year’s end.
Net profit after tax came in at $25.4 million, up 7.5% on the pcp. A fully franked dividend of 15 cents per share was declared, an increase of 7.9%.
Management commentary
On the result, Data# 3 Chief Executive Officer and Managing Director Laurence Baynham said: “We knew that FY21 would be challenging after a record profit performance in FY20. Our goal is to provide our shareholders with sustainable earnings growth, and we are pleased to announce that we delivered another record result.
The result reflects improving services profitability and demonstrates the inherent strength and relevance of our solution offerings in a rapidly evolving market. Our pre-tax profit would have been approximately $3 million higher if it was not for the global supply delays in computer chips. The large backlog underpins a fast start to FY22.”
Data#3’s future outlook
Management seems optimistic about the company’s future, saying that it expects the Australian IT market to grow at a record rate this year.
The business is experiencing a steady increase in its project pipeline and it expects further margin expansion as it continues to execute on its services growth strategy.
The start of FY22 has already been busy as a result of the backlog from FY21.
No earnings guidance was provided, but management said its goal is to deliver sustainable earnings growth.
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