Data#3 posts strong FY2023 from multi-cloud, storage and networks

Managed services provider Data#3 has posted a strong 2023 financial year following growth in its multi-cloud, storage and networks sales.

The ASX-listed MSP reported revenue of $2.5 billion, up 16.9 percent year over year, and net profit after tax of $37 million, up 22.4 percent from the previous year.

The revenue growth was fuelled by continued strong growth in multi-cloud revenue and revenue from storage and networks, as well as the sale of other products that facilitate customer investment in cloud solutions.

Services revenue also saw strong growth during the period.

“FY23 was another strong year for Data#3, demonstrated by the record result in what was a challenging economic environment."

"Our revenue growth was three times greater than the wider IT sector as we continue to capture market share, a testament to our market leading position, full lifecycle service offering, the strength of our vendor relationships and track record in delivering large scale infrastructure and digital transformation projects,” Data#3 chief executive Laurence Baynham said.

“We made excellent progress in delivering against our key strategic priorities including growing services, growing vendor incentives, and growing security solutions.

“Meanwhile we are seeing new solutions emerging in artificial intelligence (AI) which are creating substantial opportunities across our customer solutions."

"As we enter this new era of generative AI, we are already seeing rapid product development incorporating cloud, hybrid work, security, connectivity and data analytics."

"Microsoft is the global industry leader and as their leading partner in the region we are at the forefront of this change as our customers’ enabling technology is increasingly AI-driven,” Baynham said.

Data#3 added the results were underpinned by its long-standing supplier relationships and customer base, citing partner award wins from some of its vendor partners during the period.

The company is also seeing growing demand for its offerings, specifically for large infrastructure and digital transformation projects.

“We expect technology, and specifically digital transformation, to play a leading role in Australia’s economic future, underpinned by growing demand for security, multi-cloud and AI services," Baynham added.

“We continue to experience a steady increase in the pipeline of large integration project opportunities across our corporate and public sector customers and are seeing strong revenue growth in our high margin Managed Services and Consulting businesses, complementing our growing Software and Infrastructure business units.

“With our leading market position, strong supplier relationships, long-term customer base and experienced team we are confident in our outlook as we enter FY24, despite some expected slowdown in general economic activity."

"The industry is rapidly progressing, and we are well positioned to benefit," the Data#3 chief executive said.