NEXTDC sees record revenue and earnings from strong sales

Colocation provider NEXTDC has reported record revenue and earnings thanks to strong sales from its key partner, network and enterprise segments.

In the financial year ended 30 June 2023, the ASX-listed firm reported revenue of $362.4 million, up 25 per cent year over year from $291 million.

Underlying earnings before tax was $193.7 million, up 15 per cent from last year, while net profit after tax was $9 million, compared to a loss of $25.6 million in FY 2022.

The results were buoyed by a 47 per cent increase in contracted utilisation to 122.2 megawatts, thanks to record sales in NEXTDC’s key partner, network and enterprise segments.

“We are pleased to deliver another record result in FY23, with strong growth in revenue, underlying EBITDA and contracted utilisation," NEXTDC chief executive Craig Scroggie said.

"The company is accelerating its development activities to grow our inventory in line with elevated customer demand,” Scroggie added.

“With liquidity of approximately $2.3 billion, NEXTDC is exiting FY23 in a strong financial position to be able to take advantage of the opportunities presented by the exponential tailwinds of enterprise modernisation and cloud computing, in addition to the unprecedented acceleration of AI-driven applications driving one of the most powerful computational transformations in our lifetime.”

NEXTDC also revealed it brought on 207 new customers during the period to hit a total of 1820 for the period, and added 1203 interconnections to reach a total of 17,816.

Looking ahead, NEXTDC expects revenue of between $400 million to $415 million in FY 2024 and underlying EBITDA of between $190 million to $200 million.

“FY24 represents a critical investment year for NEXTDC to expand and enhance its market-leading platform capabilities, making the necessary investments to leverage the next decade of growth, both domestically and internationally," Scroggie said.

“At the core of the future growth of AI and cloud computing lies the pivotal role of the underlying digital infrastructure."

"This technological backbone, encompassing our data centres and networks, establishes the very foundation upon which the remarkable capabilities of both AI and cloud rely, and this moment in time is an inflection point for the company," he added.

“The scalability, speed, and reliability of these technologies are intricately tied to the strength of this digital foundation."

"As the insatiable demand for computational power from AI and cloud intensifies, the seamless synergy between these technologies and our digital infrastructure becomes paramount, giving us great confidence that these investments will position the company for extraordinary future growth," Scroggie concluded.