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Date : 10/08/2021

Megaport Shares Surge On ASX After Strong FY21 Results

Megaport Ltd. engages in the provision of software-defined networking based elastic interconnection services. Its products include Port, MCR, Megaport Marketplace, and MegaIX. It operates through the following geographical segments: Asia-Pacific, North America, and Europe, Middle East, & Africa . The company was founded by Bevan Andrew Slaterry in 2013 and is headquartered in Brisbane, Australia.

Why are Megaport Shares rising on ASX today?

This morning, MP1 shares were upbeat as Megaport delivered record performance in Fiscal Year 21, highlighted by annual revenue increasing 35% to $78.28 million and customers growing 24% to 2,285. The Company also launched Megaport Virtual Edge with support for SD-WAN connectivity to transform edge connectivity. Some of the highlights from MP1 earnings announcement were:

  • MRR for the month of June 2021 was $7.5M, an increase of $1.8M, or 32%% YoY.
  • Installed Data Centres at the end of June 2021 increased by 39, or 11% YoY to 405 locations.
  • Enabled Data Centres at the end of June 2021 increased by 92, or 14% YoY to 761 locations.
  • Customers increased by 443, or 24% YoY to a total of 2,285.
  • Ports increased by 1,922, or 33% in the fiscal year to 7,689.
  • MCRs increased 195, or 64% in the fiscal year to 502.
  • Total Services increased by 5,000, or 30% in the fiscal year to 21,712, including a 31% increase in VXCs to 12,029.
  • Average Revenue per Port in June 2021 decreased by $2 or 0% YoY to $978.
  • The business generated a profit after direct network costs during the fiscal year of $42.1M, an increase of $12.6M, or 43% YoY.
  • Net loss for the full year was $55.0M.
  • At the end of June 2021, the Company’s cash position was $136.3M.

Megaport’s Chief Executive Officer, Vincent English, said, “Our investment in innovation and products supported big growth in Fiscal Year 2021. Megaport Cloud Router, our virtual routing service that creates cloud-to-cloud connections on demand, grew 64% in the period. MCR drives greater service adoption across our platform and provides our customers the agility they need to  power their digital transformation. Our revenue numbers were also bolstered bystrong new customer growth as a result of investments made in our commercial team and focus on growing our channel. ”

In light of the solid FY2021 performance, MP1 shares ended the day in the green as the MP1 share price surged by 3.05% to $17.9 a share.

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