Rhipe has updated its outlook for the 2019 financial year following revenue and profit growth in the first quarter.
The distributor increased its profit guidance to between $10.5 million and $11.5 million from its previous forecast of $10 million on the back of its surging Microsoft CSP program.
Revenue for the three months ending 30 September came in at $55 million, up 30 percent from $42 million last year, while profit was at $2.8 million, up 133 percent from $1.2 million.
The company saw its Microsoft CSP Office 365 seat count reach 325,000, up from the 260,000 seats at the end of the 2018 financial year, while the annualised run rate for Microsoft CSP Azure came in at $10.7 million, compared to $7 million in June.
“The strong start to FY 2019 gives the board confidence to increase guidance for the FY 2019 operating profit,” Rhipe chairman Mike Hill told shareholders.
“We would like to thank our vendor partners for their continued support of Rhipe, in particular Microsoft which represent a significant share of revenue and helping us to meet our mutual growth objectives.”
Rhipe also saw a 24 percent increase in gross profit to $9.8 million, a 91 percent boost in EBITDA at $2.1 million and a slight bump in operating expenses to $7 million.
The company also maintains that growth in the public cloud market will further drive licence revenue growth, and that revenue for its solutions business will continue to support total revenue and margin growth.
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