The NEXTDC Ltd (ASX: NXT) share price has edged higher on Friday following the release of its annual general meeting presentation.
At the time of writing, the data centre operator's shares are up slightly to $12.82.
What did NEXTDC talk about at its annual general meeting?
The company started by giving investors a reminder of how it performed in FY 2020.
In FY 2020 NEXTDC delivered a 14% increase in revenue to $205.2 million and a 23% lift in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million.
This was driven by increasing demand from new and existing customers, which led to contracted utilisation rising 33% to 70MW and interconnections lifting 19% to 13,051
NEXTDC CEO, Craig Scroggie, commented: "I would like to emphasise the significance of the growth in our contracted utilisation which is up by 33% to 70MW. We experienced a record level of sales during the reporting period with contracted utilisation increasing by 17.4MW or 33%, a number which represents by far the single largest sales performance in the company's 10-year history."
"This included the announcement of significant new contract wins in Victoria and New South Wales, with Victoria in particular exhibiting very strong growth in customer demand, both in the form of contract wins as well as future customer commitments to expansion options and reservations," he added.
FY 2021 outlook.
At the event the company also provided an update on its outlook for FY 2021. However, no changes have been made to its guidance for the financial year.
NEXTDC continues to expect data centre services revenue of $242 million to $250 million. This will be up 21% to 25% on FY 2020 and is expected to be driven by strong growth in recurring data centre services revenue, underpinned by long-term customer contracts.
The company's underlying EBITDA guidance remains $125 million to $130 million. This represents year on year growth of 20% to 24%. Management notes that its second-generation facility performance is driving scale and earnings growth Furthermore, operational excellence continues to deliver efficiencies in energy management and purchasing.
International expansion?
Based on comments at its meeting, NEXTDC could soon be operating in international markets.
Mr Scroggie commented: "Our company continues its disciplined expansion, and we remain focussed on developing our people, our systems and our processes to take full advantage of the exponential opportunities ahead. We will also continue to invest on exploring opportunities for regional expansion. We have offices in Singapore and Tokyo where we continue to work with key customers and talk to respective governments about potential expansion in the region."
