A tech stock that went up in 2022

In 2022 the Samp;P/ASX All Technology index declined by 33%. One of its constituents that defied the trend was Data#3 (ASX:DTL) rising 15% over the course of the year.

Data#3 provide IT services to corporate and public sector customers. They work with clients to provide IT infrastructure such as cloud solutions, cyber security, data and analytics and connectivity through projects and ongoing support. This includes partnering with leading equipment and software vendors. They are the number one partner in Australia for Microsoft, Cisco and HP and a top five partner for Dell.

Outperformance was not limited to 2022. They have been a very strong performer over the past five years. In that time, revenue has doubled and the share price has increased 3.5 times. They are now a $2 billion company in terms of revenue and $1 billion in terms of market capitalisation with over 1,300 staff.

Revenue growth has been very strong over the last six years with compound annual revenue growth of 14.3% p.a.. This includes revenue sourced from public cloud work which has increased by more than a factor of 10 over that period to be worth over $1 billion.