DXN (DXN) H2 2024 earnings summary

Executive summary

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

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

• FY24 marked a transformational year with a strategic shift to modular manufacturing, exit from the non-profitable Sydney data centre, and board refresh including new CFO and Company Secretary.

• Over 80 modular data centre modules delivered globally, including the largest order in company history and first orders from a global internet company.

Financial highlights

• Group revenue rose 63.5% year-over-year to $10.8m in FY24, driven by a 202% increase in modular manufacturing order intake.

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

• 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 $3m.

• Data centre operations contributed $2.8m in revenue, with $2.63m excluding the exited Sydney DC.

Outlook and guidance

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

• Entering FY25 with $8.9m in modular manufacturing contracts and over $1m in new contracts signed since year end.

• Recurring revenue from Darwin and Hobart DCs expected to exceed $2m in FY25.

• Positive EBITDA expected in FY25; new services to include DCaaS and lease options for blue chip customers.

• Anticipates continued growth driven by digital infrastructure, AI, and machine learning, especially in Asia Pacific.