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- Data centre connectivity company Megaport (MP1) has reported growth across all operating metrics in its December quarterly report
- In the second quarter of the 2022 financial year, Megaport posted monthly recurring revenue growth (MRR), up $600,000 or seven per cent quarter-on-quarter, to $9.2 million
- Receipts from customers were $28.7 million, a nine per cent increase on the previous quarter
- New customers have reportedly increased by 123 to 2455 which represents a quarter-on-quarter gain of five per cent
- The company said new customer and port growth is the strongest second quarter performance it has ever seen
- Shares are trading 14.7 per cent lower today at $15.58 each
Shares in data centre connectivity company Megaport (MP1) have slumped following its December quarterly report.
The company said it experienced growth across all operating metrics over the previous quarter.
In the second quarter of the 2022 financial year, Megaport posted monthly recurring revenue growth (MRR), up $600,000 or seven per cent quarter-on-quarter, to $9.2 million in December.
Underlying MRR grew $518,000 for the quarter while total revenue for the quarter was $26.6 million, up eight per cent compared to 1Q FY22.
New customers have reportedly increased by 123 to 2455 which represents a quarter-on-quarter gain of five per cent.
Total ports also grew by five per cent with 8523 total ports recorded by the end of the quarter.
Megaport said long-term deal commitments formed a majority of net new additions in the quarter with 64 per cent of net new Ports being acquired with committed terms of between 12 and 36 months.
The company said new customer and port growth is the strongest second-quarter performance it has ever seen.
In its operating activities, Megaport recorded receipts from customers were $28.7 million, a nine per cent increase on the previous quarter. The company attributes the higher collections to revenue growth and the continued improvement in collections.
Network operating cash outflows were $10.3 million, a three per cent increase on the previous quarter. MP1 said this reflects a stable cost base despite increases in revenue.
Capital expenditure decreased by 62 per cent to $4.1 million. $2.3 million of this related to core and capacity upgrades of the existing network; $1.4 million was for vendor financed equipment purchases.
Cash and bank balances at the end of the quarter were $104.6 million which is estimated to last 24 quarters.
Chief Executive Officer Vincent English is pleased with the results.
“In the second quarter, we continued to stay very focused on executing to achieve our targets and aligning the business for greater channel growth,” he said.
“In addition to delivering the strongest second quarter for new customers and Ports, the team also delivered key new partnerships in the indirect channel and technology alliance space.”
Shares were trading 11.16 per cent lower today at $16.16 each at 11.08 am AEDT.
