Cloud and Digital Revenues Drive Presidio’s Second Quarter Growth

Presidio (NASDAQ:PSDO), cloud and security company announced a 9.8 percent increase in year-over-year revenues, with figures reaching US$803.2 million. Its three core revenue streams contributed to this growth as each of its cloud, security and digital streams generated over nine percent growth.

As quoted in the press release:

Financial Highlights for the Fiscal Fourth Quarter Ended June 30, 2019

• Revenue – Total revenue was $803.2 million, an increase of 9.8% over prior year, with product revenue up 10.5% and service revenue up 6.7%. Total revenue growth in the quarter was driven by an increase in all three solution areas. Cloud revenue grew 10.5%, Security revenue grew 9.5% and Digital Infrastructure revenue grew 9.8%. The investments in our public cloud initiative, as well as growth in our managed services offerings, drove our recurring revenue in the fourth quarter up 48.3% over the prior year, and recurring revenue now represents 8.0% of our total revenue. We continued to experience accelerating growth in our backlog orders believed to be firm which totaled $787 million as of June 30, 2019, an increase of 34% compared to the prior year period.

• Gross Margin – Our gross margin percentage, product gross margin percentage, and service gross margin percentage were 20.9%, 21.1%, and 20.1%, respectively, as compared to 20.6%, 20.8%, and 19.7% in the prior year. Product margin expansion was led by improved hardware margins and a higher revenue mix of software recognized on a net basis. Service margin expansion was driven by Presidio led services.

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