DC Two Limited (ASX: DC2) (“DC Two” or the “Company”), a vertically integrated revenue generating data centre, cloud, and software business, is pleased to provide its quarterly report and Appendix 4C cash flow statement for the period ended 30 June 2023.

Executive management is pleased to provide a progress update on the Company’s previously reported strategy which shows continued growth to develop and return value to shareholders.

Highlights:

• Continued growth in quarterly cash receipts, increasing by ~77% vs Q4 FY22
• Operating expenses for the quarter down by ~74% vs Q4 FY22
• Revenue for the quarter excluding DC Modular business up by 176% vs Q4 FY22, with total revenue for the quarter increasing by 22% to ~$2.1m
• Acquisition of cyber security expert Thomas Cyber completed after year end
• Progression of the sale of the Company’s non-core assets
• Management issued performance rights linked to reducing cash burn and increasing share price to ensure focus on creating significant value for shareholders
• Company continues to assess opportunities for growth in critical technology sectors as it expands it’s operations toward cloud microservices power by AI

The Company has continued it’s transition to the next stage of growth (ASX: 31 October 2022), building it’s unique technology offering into the broader cloud microservices sector powered by AI.

This strategy has delivered another strong quarter outlined by the following quarterly results compared to Q4 FY22:

• Cash receipts for the quarter of $2.4m, increasing by ~77%
• Operating expenses down by ~74%
• Total revenue for the quarter of ~$2.1m, up by 22%
• Revenue for the quarter excluding DC Modular business up by 176%

Moving into the first half FY24, the Company plans to continue to cross-sell services between it’s existing business units and the recently acquired Thomas Cyber to drive further organic growth. The Company’s existing management team have been issued performance rights under the Employee Share Incentive Plan (ESIP), with targets linked to reducing cash burn and increasing the share price to ensure focus is on creating significant value for shareholders.

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