Managed cloud services reinforces Bulletproof half-year revenue

​Bulletproof has seen its total revenue increase by 46.5 percent to AU$11.9 million for the six months ending December 2014, off the back of strong managed cloud services uptake.
Written by Leon Spencer, Contributor

Australian cloud services provider Bulletproof has seen its total revenue for the half year ending December 2014 increase by 46.5 percent to AU$11.9 million, compared to the previous year's AU$8.1 million in revenue for the same period, according to its latest financial results.

Bulletproof, which is a premier consulting partner with Amazon Web Services in Australia and New Zealand, reported that underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for the half year was AU$1.2 million, a 19.8 percent increase from the AU$0.97 million the company reported the prior year.

Profit after tax from continuing operations of the consolidated group was AU$0.81 million, an improvement of 119 percent from the AU$1.16 million loss it recorded for the same period the previous year.

However, the company reported an underlying net loss after tax of AU$0.57 million for the six-month period, which was larger than the previous year's underlying net loss of AU$0.23 million for the corresponding period.

The company told shareholders that the six-month period saw continued strong organic growth in managed cloud services revenue, with those revenues now representing 42 percent of monthly recurring revenues.

Bulletproof's AU$4.2 million of managed cloud services revenue for the period was a substantial step up from the AU$0.8 million it reported for the first half in FY14.

The company has drawn upon this figure to assert its position in the local cloud services landscape, suggesting that the growth is well above market growth trends of 25 percent to 30 percent annually.

"We are really excited to have delivered such strong growth for the period. It reflects the way our managed cloud business is tracking the transformation that public cloud services bring to the industry," Bulletproof CEO Anthony Woodward told investors.

Bulletproof took on 22 cloud consulting employees following its acquisition of cloud consulting company Pantha Corp in December last year, which had a history of doing business with Bulletproof.

The company indicated that early signs have shown strong demand from within Bulletproof's existing customer base for consulting services. Bulletproof expects that the resulting business will see customers increasing their managed services spend with Bulletproof.

"With the addition of our recent acquisition, we bring a comprehensive service suite to the market. Businesses are increasingly looking for a consulting service to help them select, plan, implement, and manage their move to the cloud," said Woodward.

With the acquisition, Bulletproof also brought on a director of product development, which is expected to allow the company to invest in the development of managed application platform products.

These products will focus on the applied infrastructure management and automation that Bulletproof claims is critical to its customers' cloud usage.

Looking forward, Bulletproof's consulting and professional services division is expected to deliver increased revenue following an investment in additional staff for the division during the half.

The company also expects FY15 to continue to grow strongly through the second half for a positive full-year result, following the pattern it saw in FY14, where second-half revenue and EBITDA grew as a result of investment during the first half.

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