Data3 Reports Record Sales Amid Economic Pressures

Highlights:

• Record Sales Growth: Data3 Limited (ASX: DTL) achieved record gross sales of $2.8 billion for FY24, marking a 7.6% year-over-year increase despite economic challenges like inflation and constrained corporate spending.
• Cybersecurity Expansion: The recent launch of Data3's Security Operations Centre (SOC) in Brisbane strengthens its cybersecurity services, offering advanced monitoring and support for clients facing complex cyber threats.
• AI Leadership and Profit Growth Forecast: As a participant in Microsoft’s Copilot Early Adopter Program, Data3 is leading AI integration initiatives, with projected pre-tax profit growth for the first half of FY25 between $31 to $33 million, backed by a strong project pipeline and debt-free status.

Growth in Key Sectors and New Cybersecurity Initiatives Fuel Success

At the time of writing, Data3 Limited (ASX: DTL) has reported record gross sales of $2.8 billion for FY24 at its Annual General Meeting, reflecting 7.6% year-over-year growth. This growth comes despite challenges like inflation and corporate spending constraints. Headquartered in Brisbane, Data3 delivers a broad spectrum of technology services, including software, cloud, cybersecurity, and data solutions, serving industries such as government, healthcare, and finance.

Strong Performance Across Divisions

The company's notable revenue increase was powered by its Software Solutions and Managed Services sectors, which saw respective growth rates of 11% and 12%. This momentum was further strengthened by demand for its cybersecurity solutions, highlighted by the recent launch of a state-of-the-art Security Operations Centre (SOC) in Brisbane. The SOC provides high-standard security support for clients managing advanced cyber risks.

AI Integration and Innovation

In addition to cybersecurity, Data3 is at the forefront of artificial intelligence integration. Through its partnership with Microsoft, Data3 is one of the global participants in the Copilot Early Adopter Program, which provides AI assessments for clients. This initiative is part of Data3’s commitment to innovation and includes supporting organisations with AI readiness while maintaining strict data governance.

Outlook and Financial Strength

Data3 is projecting pre-tax profit growth of $31 to $33 million for the first half of FY25, driven by a strong project pipeline across Australia and Fiji. The company’s debt-free status and increasing interest income also position it well for sustained growth in the coming fiscal periods. CEO Brad Colledge underscored Data3's commitment to leveraging digital solutions and continued investments to support client success amidst economic challenges.

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