Why the Data#3 (ASX:DTL) share price just stormed to a record high

The Data#3 Limited (ASX:DTL) share price has been on fire in 2020 and just hit a record high. Here's why it is up 74% since the start of the year…

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The Data#3 Limited (ASX: DTL) share price has continued its positive run and charged higher again on Wednesday.

At one stage the information technology services and solutions provider's shares stormed as much as 6% higher to a record high of $6.63.

When the Data#3 share price reached that level, it meant it was up a remarkable 74.5% since the start of the year.

Why is the Data#3 share price at a record high?

Investors have been fighting to get hold of the company's shares this year following a very strong performance in FY 2020 despite the pandemic.

For the 12 months ended 30 June 2020, Data#3 reported a 14.9% increase in revenue to $1.6 billion and a 30.5% lift in net profit after tax to $23.6 million.

A key driver of its growth was revenue from its public cloud business. It reported revenue of $581 million, up over 60% year on year. This means that over one-third of its revenue is now coming from this business.

The company's Chief Executive Officer and Managing Director, Laurence Baynham, commented: "We are delighted with the performance of the consolidated Data#3 business, which delivered another record result in what has been an extraordinary year. The result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and the growth in public cloud was a particular highlight."

What about the future?

While the company wasn't able to provide guidance for the year ahead because of the pandemic, management appears very confident on its future.

Mr Baynham explained: "Our expectation is that technology will play a major role in Australia's economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities."

Judging by its share price performance in 2020, it appears as though investors are equally confident that this will be the case.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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