KUALA LUMPUR (May 24): Cloudpoint Technology Bhd's (KL:CLOUDPT) net profit for the first quarter ended March 31, 2024 (1QFY2024) rose 23% to RM3.70 million, versus RM3.01 million a year earlier, on the back of a jump in revenue to RM34.66 million from RM19.40 million.

Earnings per share rose to 0.70 sen from 0.67 sen.

The company did not declare any dividend.

In a statement on Friday, Cloudpoint executive director and chief executive officer Choong Wai Hoong said the company had successfully onboarded one of the top banks in the country, extending its reach to five of the top six banks nationwide.

“We are optimistic that our project-based revenue will maintain its strong trajectory throughout the year, driven by several potential data centre technology refresh contracts on the horizon.

“This is further spurred by rising demand for cybersecurity solutions, as our clients increasingly seek artificial intelligence-based solutions for threat prevention, detection, and threat hunting,” he said.

Choong said Cloudpoint’s digital applications and cloud services segment is also beginning to make more significant contributions, with several new projects scheduled for implementation this year, positioning this segment for substantial growth.

He said the momentum in project-based revenue is expected to naturally drive growth in Cloudpoint's recurring revenue, as clients typically enter into service and maintenance contracts following project completion.

Choong said the data centre market in Malaysia is booming, fuelled by substantial investment from global data centre providers and hyperscalers.

“We aim to position Cloudpoint as a key player in this rapidly expanding landscape.

“We are investing in enabling Cloudpoint to become a comprehensive and end-to-end solutions provider for data centre and cloud services. Cloudpoint aims to offer our customers a seamless experience from sourcing and building, to managing their infrastructure through a single provider,” Choong added.

At the midday break on Friday, Cloudpoint had dipped 1.27% or one sen to 78 sen, with 4.42 million shares traded. Its market capitalisation stood at RM411.85 million.