NEXTDC Shares Surge After Reporting Record FY23 Results

NEXTDC Limited (ASX: NXT), a leading Data Centre-as-a-Service provider, has witnessed a remarkable surge in its share price following the release of its impressive financial results for the fiscal year ending June 30, 2023 (FY23).

Source: Kapitales Research

The company reported substantial growth across key financial metrics:

• Total revenue surged by AU$71.3 million (25%) to reach AU$362.4 million, surpassing its FY23 guidance of AU$350 – AU$360 million.
• Underlying EBITDA grew by AU$24.6 million (15%) to AU$193.7 million, exceeding the FY23 guidance of AU$192 – AU$196 million.
• Operating cash flow increased by AU$9.3 million (8%) to AU$126.5 million.
• Capital expenditure saw an AU$85.6 million (14%) rise to AU$690.4 million, within the FY23 guidance range of AU$670 – AU$720 million.

NEXTDC CEO and Managing Director, Craig Scroggie, emphasized the company's robust position to capitalize on the growing demand for enterprise modernization, cloud computing, and AI-driven applications. The company's liquidity stood at A$2.3 billion at the end of FY23, providing a strong financial foundation for expansion.

Further, NEXTDC reported significant business growth:

• Contracted utilisation increased by 47% to 122.2MW.
• Customer numbers surged by 13% to 1,820.
• Interconnections grew by 7% to 17,816, contributing to 7.1% of FY23 recurring revenue.

In light of these strong results, NEXTDC provided optimistic guidance for FY24:

• Total revenue is projected to range from AU$400 million to AU$415 million.
• Underlying EBITDA is anticipated to be between AU$190 million and AU$200 million.
• Capital expenditure is expected to fall between AU$850 million and AU$900 million.

Mr. Scroggie highlighted NEXTDC's strategic investments in digital infrastructure, positioning the company for remarkable future growth amid the increasing demand for computational power from AI and cloud technologies.

Investor sentiment has surged following the announcement, with NEXTDC shares experiencing a significant uptick in value. As the company's growth trajectory continues, it remains poised to play a pivotal role in shaping the digital economy.

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