Presidio (PSDO) had a hit and slight miss today. The IT solutions provider's security revenues are growing fast, but Presidio's overall Q4 2017 revenues were a bit weaker than Wall Street expected, according to results released today.
Presidio's total revenue fell $24.6 million or 3.3% to $729.3 million in the quarter. The company blamed the revenue dip mainly on the shift to subscription software sales and some digital infrastructure revenue weakness in the government sector.
On the bright side, the company's security revenue surged 38.4% to $98.4 million in the three months ended June 30, 2017. Not by coincidence, Presidio will be featured as a Top 100 Managed Security Services Provider for 2017 when that list debuts September 28. Research for that list was compiled before Presidio disclosed today's results.
On another relatively good note, Presidio's cloud revenue rose 11.9 percent to $134 million in Q4. Key areas of momentum included multi cloud and IT transformation, converged and hyper-converged infrastructure (HCI), data center modernization and associated services to support new multi cloud infrastructure in all market sectors. Still, it's unclear how much of that cloud revenue was recurring vs. traditional CapEx project revenues.
For fiscal year 2018, president expects to grow total revenues around 5.5 percent and earnings in the single digit range, according to CEO Bob Cagnazzi.
Presidio is an IT services bellwether of sorts. The Cisco, Dell EMC and VMware partner has been evolving from traditional IT consulting and network integration toward managed and hybrid cloud IT services.