Westcon-Comstor Revenue Hits Record Levels

Westcon-Comstor revenue for the first half of its 2023 fiscal year hit $1.85 billion, an all-time record for the IT distributor.

Westcon grew almost 15% year-over-year in revenue for its fiscal 2024 half-year, which ended Aug. 31. It earned $1.61 billion in revenue in the first half of the previous year. The company, which operates in Europe, Asia Pacific, the Middle East and Africa, posted a gross profit of more than 33%, with an EBITDA of $59.7 million.

Westcon-Comstor's David Grant

“We’re excited to report an excellent financial performance for H1 FY24 as we maintain our growth trajectory across all regions and accelerate our transformation into the world’s leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions," CEO David Grant said.

In addition to the Westcon-Comstor revenue record, the distributor touted the growth in its software and services business. Earlier this year Westcon channel partners reported that they were "only part way through the journey" of moving to software/services, and the latest earnings show the progress. Software and services revenue grew 17% year-over-year. Moreover, they represent 45% of Westcon-Comstor revenue.

“Looking ahead, our shift to software and services means we are ideally placed to thrive in the subscription-based, everything-as-a-service (XaaS) platform economy of the future," Grant said. "By continuing to innovate and add value at a strategic level, we will enable our channel partners to unlock new opportunities as together we embark on the next wave of our digital transformation.”

The vast majority – 90% – of Westcon-Comstor revenue stems from cybersecurity and networking. For example, the Comstor side of the business exclusively focuses on Cisco. Prominent vendors at Westcon-Comstor include Proofpoint and Okta.

The distributor launched a cloud and collaboration business last fall.

Grant said his company is weathering the storm of macroeconomic conditions such as supply chain challenges and sticky inflation.

"These results illustrate our ongoing ability to deliver solid, double-digit growth against a challenging macroeconomic backdrop, driven by our digital leadership within technology distribution and unique data-driven approach," he said.

Weston-Comstor's Erna de Ruijter-Quist

In the meantime, the distributor announced Erna de Ruijter-Quist as its new chief people officer. She most recently worked at Sage as its executive vice president of people.