The move toward a cloud platform appears to be paying off for Terremark (Nasdaq: TMRK) a 28-year-old managed service provider. Financial results show a 13 percent year-over-year increase for the quarter ending Dec. 31. Perhaps more promising is the growth in the number of customers and bookings. Cloud computing services grew at 30 percent and the company added 46 new customers organically and 191 from the acquisition of storage provider, DS3 DataVaulting. As a result, bookings skyrocketed to $37.6 million for the quarter, while total revenue for the quarter ended December 31, 2009 were $74.3 million.
EBITDA grew by 8 percent for the quarter to $19.8 million. Full year income from operations was $18.9 million for the nine months ended December 31, 2009
On the conference call, CEO Manuel Medina told investors last night, “we are at the forefront of a major shift in the way IT is procured and delivered and I couldn’t be more pleased with how we are positioned in this transformation. A highly differentiated suite of IT infrastructural services from the network to the cloud ideally positions us to capture this growing market opportunity.”
Among the promising developments to come out of the conference call, Medina revealed that some of Terremark’s longtime data center customers, such as HR Block, have started ordering cloud services. The company also won cloud contracts from IBM and Pitney Bowes.
Seeking Alpha published a transcript of the conference call.