Bulletproof expecting double-digit revenue boost for FY17

Cloud services company Bulletproof is expecting to see 14 percent growth in revenue by the end of the 2016-17 financial year.
Written by Tas Bindi, Contributor

Bulletproof Group reported on Thursday that it is on track to deliver improved financial results in the 2016-17 financial year, thanks to product investment and marketing strategies.

The Australian Securities Exchange-listed cloud services provider informed the market that full-year revenue is expected to reach AU$54 million, up 14 percent from the 2015-16 financial year. Half-year revenue is expected to reach AU$24 million, an 11 percent increase over the first half of the previous financial year.

Bulletproof said that the half-year results are somewhat impacted by customer-side project reductions and delays, but expects these delayed projects to deliver strongly in the second half of the 2016-17 financial year.

During the first half of the financial year, Bulletproof's management has been working on initiatives to "consolidate, right-size, and re-skill" the company's engineering and administration teams. Part of this has involved reducing the company's headcount by 30 to improve operating efficiency.

These initiatives, along with other cost savings, are expected to deliver AU$4.5 million in underlying earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation, and amortisation (EBITDA) benefit on an annual basis from the second half of the 2016-17 financial year. As such, Bulletproof expects to see underlying EBITDA of AU$6 million by the end of the current financial year.

The company's CEO Anthony Woodward told ZDNet that the forecast is largely based on recurring annual revenue generated from existing customers, with 14 percent growth expected to come from its customers increasing their spend, and new customers coming on board.

In the first half of the 2016-17 financial year, Bulletproof introduced a number of new products and services to its multi-cloud portfolio. This includes Microsoft Azure-based support services and consulting services.

"We're seeing enterprise customers increasingly move more of their workloads to the cloud in different areas of their business, and that's really what's driving the multi-cloud strategy. Different parts of their workloads are better suited to different parts of the cloud landscape, and so having offerings across a wider range of that cloud landscape is more appealing to those customers," Woodward said.

"We now have secure private cloud, managed and supported Amazon Web Services, and also Microsoft Azure to offer to customers like that. Those are the kinds of things we see building our revenue over coming periods."

Bulletproof experienced its fastest revenue growth in the 2015-16 financial year, delivering AU$47.2 million in revenue, up 69 percent on the previous financial year. Approximately one third was driven by organic growth, the company reported in August.

The company completed its acquisition of Infoplex in October 2015, which it said contributed to its growth in the 2015-16 financial year. It's expected that the Infoplex platform will provide in excess of AU$8 million in revenue by the end of the current financial year.

Similarly, Bulletproof expects its acquisition of Cloud House, completed earlier this year, will contribute revenue in excess of NZ$3.5 million for FY17.

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