Continued strong demand for its core services, particularly cyber security, have allowed Nexion to deliver record revenue of $1.1m in October.
This places the company well on track to exceed its already impressive September 2022 quarter, which represented its sixth consecutive quarter of growth.
The company has raised invoices and received purchase orders representing $1.1m in October 2022, the highest amount in one month, since inception. Invoiced Revenue in the September quarter hit $2.1m, up 13.9% from the previous quarter and 80.02% from the previous corresponding quarter.
Adding further interest for Nexion Group (ASX:NNG), the new orders in October include several new enterprise customers investing in technology upgrades, especially for network security using products it supplies and supports.
A possible driver for this growth could be due to the spate of very high-profile cyber security failures seen in Australia over the past couple of months.
These included Optus’ massive data breach that saw the telco scrambling to plug the holes while both Medibank and Woolworths’ subsidiary MyDeal also experienced their own failures.
“The Nexion team continues to deliver rapid revenue growth and establish its place in the local and global market. The Q1 result was outstanding and the October sales number of $1.1M illustrates the team’s capability to deliver,” chief executive officer Paul Glass said.
Recurring revenues
Nexion is an information technology service provider that offers network, compute, and data storage as-a-service that integrates with Public Cloud services to form the company’s hybrid cloud solution – NEXION OneCloud.
Its mission critical enterprise IT services are provided under long-term recurring contracts that, due to their essential nature, form the foundation of customers’ daily business operations.
This is clearly highlighted by the company reporting recurring revenue of $1.79m in the September 2022 quarter, an increase of 12.6% from the previous quarter, and provides a strong base for the company to deliver further growth considering the strong demand for its security, cloud, networking, and satellite services.
