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- IT services provider Megaport (MP1) has reported an increase in total ports and customers for the September quarter
- Total ports increased by 10 per cent to 6,333 – a port is the physical point of connection between a company’s network and the Megaport network
- Megaport also reported 1,980 customers by the end of the period – marking a 7 per cent increase
- The billion-dollar business attributes much of the growth to North America who contributed to 63 per cent of customer growth and 58 per cent of the growth in ports
- Customer receipts came in at $17.2 million however, Megaport burnt through a significant amount of operational expenditure – most of which went towards staff and admin costs
- Megaport ended the quarter with $152.8 million in cash compared to $166.8 million at the start
- Megaport’s shares have dropped 14.1 per cent to trade for $14.43
Megaport (MP1) has posted strong September quarterly results with North America being the main driver of growth.
The billion-dollar company reported a 10 per cent quarter-on-quarter increase of total ports to 6,333 with the average revenue per port in September alone sitting at $913. A port is the physical point of connection between an organisation’s network and the Megaport network.
Megaport also achieved a 7 per cent increase in customers and by the end of the quarter, 1980 customers were signed on.
The increase in ports and customers was largely driven by North America. The continent contributed to 63 per cent of the growth in new customers, 58 per cent of the growth in ports, and 61 per cent of the growth in new services.
“Megaport remains committed to driving value for our customers, partners, and shareholders. We are constantly evolving our platform so our customers can more easily connect with the services they need to power their business,” CEO Vincent English said.
The company also installed 385 data centres by the end of the quarter – an increase of 5 per cent.
Monthly Recurring Revenue (MRR) increased by 2 per cent to $5.8 million for the month of September. Total revenue for the quarter was $17.3 million – another slight 2 per cent increase on the July quarter.
“Our investments in North America, in terms of network footprint and commercial capabilities, yielded excellent results this quarter and contributed significantly to our record quarterly Port and customer performance,” Vincent added.
Megaport received around $17.2 million from customer receipts however the company burnt through a significant amount of operational expenditure – most of which went towards staff and administration costs.
The company also spent over $10.6 million on product manufacturing and operating costs which is a $2.8 million quarter-on-quarter increase.
At the end of the September quarter, Megaport had $152.8 million in cash compared to $166.8 million at the beginning of the quarter.
Megaport’s shares have dropped 14.1 per cent to trade for $14.43 at 2:48 pm AEDT.
