This ASX 200 tech stock is smashing the benchmark on Wednesday. Here's why

Investors are sending the ASX 200 tech stock soaring today. But why?

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S&P/ASX 200 Index (ASX: XJO) tech stock Data#3 Limited (ASX: DTL) is smashing the benchmark returns today.

Shares in the business technology solutions company closed yesterday trading for $8.64. In early afternoon trade on Wednesday, shares are swapping hands for $9.15 apiece, up 5.8%.

That's a big stretch better than the 0.5% losses posted by the ASX 200 at this same time.

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Data#3's outperformance today follows the release of the company's full-year financial results for the year ended 30 June (FY 2024).

Read on for the highlights.

ASX 200 tech stock lifts off on record sales

  • Record gross sales of $2.8 billion, up 7.6% from FY 2023
  • Statutory revenue of $815.7 million, up 0.4% year on year
  • Gross profit of $270.1 million, up 7.8% from FY 2023
  • Final fully franked dividend of 12.9 cents per share, up 8.4% from the prior final dividend

What else happened with Data#3 during the year?

Other key financial metrics that look to be boosting the ASX 200 tech stock today include the 17.0% year on year increase in net profit after tax (NPAT), which came in at $43.3 million.

And earnings before interest and tax (EBIT) were up 5% from FY 2023 to $53.5 million

CEO Brad Colledge said that achieving sales and earnings growth "in a challenging economic environment and without compromising gross margins, was a considerable achievement for our company".

Colledge noted that Data#3's Software Solutions and Services businesses both "continued to perform strongly", up 11.0% and 9.6% respectively, with recurring gross sales increasing to 67%.

With the final dividend of 12.9 cents, Data#3 has delivered 25.5 cents per share in fully franked dividends over the financial year. That's up 16.4% from the prior year and represents a payout ratio of 91.1%.

What did management say?

Commenting on the results boosting the ASX 200 tech stock today, Colledge said, "We are pleased to report record gross sales of $2.8 billion and gross profit growth of 7.8% to $270.1 million for FY24."

And these results could have been even stronger.

According to Colledge:

Sales growth was impacted by delayed customer decision making across some areas of our business this financial year, and our Infrastructure Solutions business was down 3.6% on the prior period as customers consumed orders made in advance of requirements following pandemic related supply chain challenges in the preceding years.

Infrastructure Solutions when combined with its related maintenance services grew by 2%, reflecting customers renewing support contracts on existing equipment and an increase in software related to the management of infrastructure.

What's next for the ASX 200 tech stock?

Looking at what could impact the ASX 200 tech stock in the year ahead, as in the past, Data#3 didn't provide specific FY 2025 guidance.

However, Colledge said, "Data#3 is well placed to continue to deliver sustainable growth as it leverages the adoption of Generative AI and the flow-on opportunities for both devices and services."

He added:

Our pipeline at the start of FY25 is strong, sales activity is increasing, and we are well placed to capitalise on the market growth opportunities including in the areas of security, cloud and data centre.

Investments by the public sector in new infrastructure projects should also help to grow our pipeline across all lines of business.

Data#3 share price snapshot

With today's intraday boost in the Data#3 share price factored in, the ASX 200 tech stock is up 22% over 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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