Australian-owned distributor Dicker Data has generated $1.18 billion in annual revenue and $36.6 million in profit in what chief executive and chairman David Dicker has called “a very satisfying outcome”.
The results, posted to the ASX on Monday, represent the company’s most successful year yet, according to Dicker.
“It’s six years since we first listed on the ASX with an IPO share price of 20 cents and a market cap of $25m,” the chief executive wrote to investors.
“As I write this, our share price is $2.32 with market capitalisation of $371 million. A pretty good result for a company not considered a growth stock…”
The company’s total revenue climbed 10 percent to $1.18 billion for the year ending 31 December 2016, up from $1.07 billion the previous year. Gross profit grew six percent to $109 million from $103 million. Earnings before interest, tax and depreciation were up $2.7 million to $45 million and operating profit was up 25 percent to $36.5 million.
The company attributed its $108 million revenue increase to strong existing and new vendor performance. The addition of eight new vendors in 2016, including xRM, Skykick, Maaxcloud, Corent Technology and Gumbaya, represented $25.1 million in revenue, adding to $32.5 million generated from vendors added in 2015 and $51.1 million brought in from existing vendors. Dicker Data also started officially trading as a Microsoft Indirect CSP partner in September 2016.
Moving forward, Dicker Data has reported plans to continue strengthening enterprise and midmarket capabilities across ANZ, with vendors new and traditional expected to drive new opportunities.
The distributor also reinforced its interest in the internet of things as new potential revenue streams, as well as those created by the increasingly conjoined industries of telecommunications and IT.
“We are seeing convergence of traditional telco channel and IT which represents great cross-sell opportunities for our ecosystem partners. This is driven by customers implementing hybrid IT strategies across their organisation. Leveraging Dicker Data’s strength and capabilities, we are well-positioned to support and grow this partner community,” the report stated.
“We are continuing to invest in our rapidly growing “as a service” recurring revenue streams. Dicker Data’s stated position as a leading cloud aggregator continues to gain momentum in driving cloud adoption.”
The company’s total assets as of 31 December 2016 were $365 million.
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