The Dicker Data Ltd (ASX: DDR) share price is in the green today amid the company's market update.
Shares in the technology business are up 2.37% at the time of writing, currently trading at $10.80 apiece.
Let's take a look at what Dicker Data reported to the market today.
Revenue surges nearly 30%
Highlights of the unaudited financial update for the first nine months to 30 September include:
- Total revenue of $2,234.9 billion, up 29.9% on prior corresponding period (pcp)
- EBITDA of $92 million, an 8.9% gain on the pcp
- Net operating profit before tax of $76.7 million, a 0.1% gain on the pcp
- Gross profit margin year to date of $92 million.
What else?
Dicker Data reported strong revenue growth in the year to date. Revenue for the third quarter was $774.5 million, a 9% increase on the pcp.
Underpinning this revenue growth was a surge in demand and new, exclusive vendor partnerships.
Of this revenue, 82% was derived in Australia, while New Zealand contributed the other 18%.
Net profit before tax was relatively flat compared to the prior corresponding period. Rising interest rates, freight costs, and higher depreciation and amortisation from recent acquisitions impacted total profitability. Salary costs also increased, but overall accounted for 4.8% of revenue.
The company said it is "pleased" with its Q3 performance, especially given the higher-than-normal growth in the third quarter of 2021.
Dicker Data also provided an update on its recent capital raise to expand its Kurnell warehouse in NSW. Construction is due to commence in December 2022 and the project is due for completion in June 2023.
Management comment
Commenting on the news, CEO and chairman David Dicker said:
A very pleasing increase in sales year on year. While profit didn't do as well, remaining flat, but that in comparison to with what was a very big previous year. Almost feels like a gain. With all the increases in costs, and other factors navigated, we have a very good platform for the future.
Outlook for remainder of the year
The company has a "buoyant" outlook for the fourth quarter of 2022. Demand across all technology remains strong. Dicker said hybrid cloud is the model of choice for most Australian and New Zealand businesses, aligning with the company's cloud strategy and technology portfolio.
The company sees cybersecurity as a growth opportunity, especially given recent attacks on major companies in Australia.
Share price snapshot
The Dicker Data share price has fallen 28% in the past year, while it has lost 27% in the year to date. However, in the past week, Dicker Data shares have soared 13.7%.
Dicker Data has a market capitalisation of more than $1.9 billion based on the current share price.
