Megaport Erupts the Tech Sector

Information Technology favourite Megaport is charging today showing off over a 25% increase in early trade after the company delivered EBITDA profit for the first time in the company’s history.

The highlights of the unaudited results in the quarterly report include:

  • Monthly Recurring Revenue (MRR) grew 13% on the previous quarter to $10.7 million

  • Underlying MRR jumped 10% to $10.7 million

  • Total revenue jumped 10% on the previous quarter to $30.6 million

  • Normalised EBITDA of $1 million, up 126% on the previous quarter

  • Cash on hand of $82.5 million

Megaport delivered EBITDA profit in the fourth quarter, a first for the company. This compared to a loss of $3.8 million on the third quarter of FY22. Canada and Japan becoming profitable earlier than scheduled contributed to this result.

Underpinning the strong monthly recurring revenue growth was strong port sales and a 7% boost in the average revenue per port to $1,120 per month. Net new port sales jumped by 6% to 9,545.

Customers also increased 4% during the quarter to 2,643. Megaport sold 1,447 new services during the quarter, up 6% on the prior quarter.

Multi-cloud connections on the Megaport platform also increased, with 9% more Megaport Cloud Routers (MCR) sold in the June quarter. In total, 14% of the company’s customers have now taken up the MCR offering. Megaport enabled 16 new data centres during the quarter, and four of these were in Mexico.

Megaport CEO Vincent English said:

“During the fourth quarter of fiscal year 2022 Megaport drove steady underlying revenue growth. Uptake of core products, as well as monthly recurring revenue growth, were strong in the quarter.

This is driven by customers continuing to increase the number of service providers they securely connect through our platform as they undertake global digital transformation initiatives…”