Rhipe posts steady growth driven by Microsoft Cloud Solutions Providers program

Cloud distie Rhipe’s FY21 financial results show a 20 percent year over year growth in revenue for the company, growing $55.8 million to $66.8 million.

EBITDA grew 44 percent from $11.6 million to $16.6 million. Profit after tax was $7 million, a 46 percent increase from FY20’s $4.8 million.

This comes on the back of sales growing from $325.2 million to $376.9 million, up 16 percent with software licensing sales rising 14 percent to $356.5 million, and services sales up 51 percent to $20.4 million.

In the company’s ASX release, it highlighted that two-thirds of the growth in licensing came through the Microsoft Cloud Solutions Provider program that sees it providing over 840,000 Office 365 licenses to partners – a 33 percent increase over the same period last year.

Employee numbers grew by 34 percent to 537 seats, 287 of which are based in The Philippines and 164 in Australia. 

Australia remains the company’s largest market and growth for the period mirrored the previous period at 19 percent. Growth in Asia dropped from 47 percent in FY20 to 22 percent in FY21.

Rhipe made two acquisitions this year, New Zealand-based MSP Parallo in September 2020, and cybersecurity specialist distributor EMT’s Asia and Australia operations in April 2021.

The two additions brought contributions to profit were $721,000 from Parallo and $940,000 from EMT.

The company also faces acquisition itself by Norwegian cloud services provider Crayon for $400 million. Rhipe's board recommends  shareholders to vote in favour of the deal.

The chairman and CEO’s report in the full financial report stated, “The business continues to be resilient and despite some margin decline in our traditional cloud licensing sales, the Rhipe services business and our recent acquisitions of Parallo and EMT have all been strong financial contributors. 

“On behalf of the Rhipe board and management team we would like to thank our dedicated staff for a fantastic FY21. It has been an incredibly difficult year in the midst of an ongoing global pandemic, particularly so for our team members in Asia. Our deepest sympathies for the hardship endured and thanks to you all for your ongoing dedication and hard work.”