• USD ARR up 9.7% qoq and 50.4% yoy. All metrics heading in the right direction.
• Very strong cashflows considering the backdrop. Q1 is traditionally weak due to the payment of subscriptions, insurance, and staff bonuses. There was also a record number of new hires during the period as the company invest in growth. Staffing costs has been front loaded to make an impact in 2023, and is expected to stabilise for the rest of the year.
• Gross margins will remain strong for the year is expected to be around the area of 2H 2022 which was 69%.
• Quickbooks Online backup started monetising in early April, and take up is above internal expectations.
• Government version of Microsoft 365 backups launching soon.
• Running with a heap of tail winds at the moment. Cybersecurity, regulation, tight labour market (companies asking more from MSPs, and MSPs wanting to leverage more easy products that are not staff intensive).

What stands out to me is Charif’s clarity on what the company is trying to achieve. That is, expanding existing and building out new product offerings to leverage the existing distribution networks (MSPs), sales and support teams. They’re not really doing anything new, just feeding and building out the existing business model. All things are firing at the moment.