Bulletproof boasts record annual revenue growth

Anthony Woodward - Co-founder and CEO, Bulletproof

Australian Cloud services provider, Bulletproof Group (ASX:BPF), has boasted record annual growth, with its full-year financial results highlighting a 69 per cent boost in revenues to $47.2 million for the year ending June.

According to the company, 31 per cent of its revenue growth was organic, with much of its new business flowing on from recent acquisitions, including managed private Cloud services business, Infoplex, and AWS Advanced Consulting Partner, Cloud House.

At the same time, Bulletproof conceded that its underlying net profit after tax (NPAT) grew slower than revenue when compared to the previous year, rising by 51 per cent to $825,013.

The company told investors this was due to customer delays during the latter part of the financial year.

Much of the company’s growth came from its recurring Cloud services revenues – including managed public, private, and hybrid Cloud – which saw a 65 per cent jump in revenue to $37.1 million, representing almost 80 per cent of Bulletproof’s company revenue.

Meanwhile, the ASX-listed company’s professional services business recorded an 86 per cent surge in revenue for the year, rising to $6.5 million.

According to the results, the company increased its customer count to more than 750, which included big players like Cloud accounting software company, Xero.

However, the company reported relatively flat growth earnings in before interest and tax (EBIT), recording a rise of two per cent, to $900,000.

The company told investors that this was due in part to impacts from “customer-side” delays on some project work during the latter part of the period.

It also cited a “trend for some more advanced customers to reduce holistic management services on their recurring Cloud revenues as they seek specific value addition,” as an another element impacting recurring margins during the period.

Across the Tasman, the company pointed to its acquisition of Cloud House in February this year as a new point of entry into the New Zealand Cloud services market.

“While some customer side-delays affected project revenues towards the end of FY16, Overall revenue continues to build as cross-synergies are realised and the cross-Tasman relationship drives new customer and product wins,” the company’s financial report stated.

The company told investors that it expects to generate revenues of around $60 million in FY16-17, representing a 30 per cent increase on the year ending June 2016.

However, it warns that the first half of the financial year ending 2017 is likely to see lower earnings than the same period last year, indicating potential delays relating to product offering transitions and a lag in professional services business performance.

“As we consolidate our acquired assets and drive margins from the wider business, we expect to see better profitability growth into future periods,” Bulletproof CEO, Anthony Woodward, said.