DXN (DXN) H2 2024 earnings summary

Executive summary

• Designs, manufactures, and operates prefabricated modular data centres and regional edge data centres, with a focus on rapid deployment and high security for mission-critical infrastructure.

• Operates two data centres in Hobart and Darwin, serving telco, government, and enterprise clients on long-term contracts.

• Board refreshed in FY24, with new CFO and Company Secretary appointed.

Financial highlights

• Group revenue rose 63.5% year-over-year to $10.8m in FY24, up from $6.58m in FY23.

• Positive EBITDA of $0.64m, a turnaround from a $4.96m loss in FY23; underlying EBITDA was $1.2m.

• Net loss reduced by 76% to $2.3m, compared to $9.6m loss in FY23.

• Operating cash flow improved to $1.3m in 2H24 from negative $0.9m in 1H24; closing cash at $2.98m.

• Gross profit increased 57% to $5.9m.

Outlook and guidance

• FY25 revenue guidance of $16.0m, a 48% increase on FY24.

• $8.9m in module orders from FY24 and $1.5m new orders since year end; $2.5m run rate revenue from data centres.

• Positive EBITDA expected in FY25; new services to include DCaaS (data centres as a service) and lease options for blue chip customers.

• Additional sales hires planned to accelerate deal flow; investment in high-density modules for AI industry.