Cloud software expert Rhipe is on the Up with a continued revenue run
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Cloud software expert rhipe is reaping the benefits of Asian investments — reporting a 22 per cent increase in half-year revenue.
The company (ASX:RHP) said it has expanded in South East Asia and Korea, and invested in the Microsoft cloud program for Office365, and its own ability to use Microsoft’s public cloud Infrastructure platform, Microsoft Azure.
Revenue rose to $88.3 million in the first half of fiscal 2018, from $75.5 million in same period in 2017.
Profit increased to $1.1 million from $15,000 in the same period in fiscal 2017, marking a step into profitability.
Rhipe shares rose 5.7 per cent on Monday morning to $1.02.
The company has had a good run on the ASX since reaching a nadir of 33.5c in May last year.
Its fortunes began to lift after winning a global licence partnership with Microsoft in June, becoming once of eight such partners and the only one in the Asia Pacific.
Rhipe shares began a long-term downward spiral in May 2015 not long after it was initiated into the Microsoft cloud family and only turned that around in the middle of last year.
“The significant majority of rhipe’s revenue growth during the half year ended 31 December 2017 is in the form of monthly subscription based licensing revenue generated from more than 2,500 technology service provider customers across Asia Pacific,” the company told investors.
During the last six months rhipe invested $300,000 in South Korea after it gained licenses for two Microsoft products. They signed the first customers there in the latter months of 2017.