ASX-listed colocation services company AUCloud has reported revenue growth for the first half of FY 2022, following gains from customers and partners during the period.
AUCloud is a sovereign cloud infrastructure-as-a-service (IaaS) provider hosted within NextDC data centres, offering services to the Australian Government, defence, intelligence and Critical National Industry (CNI) communities, and recently in the enterprise space. NextDC also owns around 20 percent of the company.
In the six months ended 31 December 2021, the company reported revenue of $2.5 million, up 73 percent from $1 million year over year. IaaS revenue was $2.1 million, up 94.5 percent from $1.1 million in 2021.
AUCloud also posted a loss before tax of $6.3 million, up from a loss of $5.4 million last year. EBITDA came in at a loss of $4.1 million, up from $3.6 million.
The revenue growth was credited to an 87 percent increase in IaaS consumption revenue, as well as a one-off payment from an implementation with the Australian Electoral Commission. AUCloud added that impacts from the COVID-19 pandemic, particularly on the conversion of total contract value (TCV) to IaaS revenue, have reduced as activity levels are normalising.
Also contributing to growth are a number of renewed customer contracts during the period and contributions from channel partners. The growth was also countered by the loss of a contract with the Australian National University, who was winding down its virtual desktop infrastructure (VDI) as a service contract during the period.
Looking ahead, AUCloud revealed it is “well advanced” in its deployment of its first platform in Brisbane, with a targeted completion sometime in the second half of FY2022.
The company also said it expects to see increased demand for secure, sovereign cloud services, citing the persisting “industry tailwinds”. Its forecast expects growth from new and existing customers, the company scaling up operations, continued investment in security, engineering and operations employees, and plans to expand the executive team.
Some upcoming expenses in the pipeline is expected to be around $3 million to $5 million, specifically for a new cloud platform zone inside NextDC’s Brisbane (B2) facility (forecast to be in operation by Q4 of FY22), the initiation of Melbourne and Adelaide environments and the expansion of new software-as-a-service product offerings.
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