Specialist distributor Westcon-Comstor has announced record results for FY23 on the back of strong demand for its cybersecurity and networking offerings and an acceleration in its shift to a software and subscription-based recurring revenue model.
In the year to 28 February 2023, Westcon-Comstor increased total revenue by 18.3% to a record $3.42 billion – its second consecutive year of double-digit growth – and increased adjusted EBITDA by 21% to $95.1 million.
In the context of the strategic planning cycle introduced by Westcon-Comstor in FY18, these represent a five-year CAGR of 8% and more than 30% respectively.
Gross margins for FY23 averaged 9.6% globally.
Revenue from Westcon-Comstor’s networking portfolio was up by 19% at $1.76
billion, while income from its cybersecurity solutions rose 17% to $1.33 billion.
Software, services and subscription- based recurring revenues now account for 42% of total revenue, compared to 31% in FY19.
David Grant, CEO at Westcon-Comstor, said: “These results demonstrate our ability to thrive amid challenging macro-economic conditions. We’re delighted to have reached so many new milestones in 2023, including accelerating our own digital transformation with the recent successful launch of our PartnerCentral marketplace (see last month’s issue). We’re particularly pleased to have seen industry-beating performance in cybersecurity and networking, while our growth in software and services underlines our position at the forefront of the shift to a subscription-based, recurring revenue XaaS future.”
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