Megaport Limited Streaks High On Solid September Quarter Results

Megaport Limited (ASX: MP1) jumped on September quarter results that posted 19% increase in revenue for the period. At the time of writing, the Megaport’s stock has gone up as much as 4.335% or $0.150 to trade at $3.610 (23 October 2018, 12:33 PM AEST).

Cloud connectivity provider Megaport Limited has shown solid performance in the first quarter of Fiscal Year 2019. The September quarter’s revenue, customers and monthly recurring revenue all have outperformed the previous quarter on the back of expanded partnerships of the company and higher investment in sales resources, particularly in North America.

In FY19’s first quarter ended 30 September 2018 the company has achieved total revenue of $6.86 million, up 19% on previous June quarter. The monthly recurring revenue (MRR) for September 2018 has increased 20% or $400,000 on QoQ to $2.4 million. Customers have increased from 1,038 in previous June quarter to 1,161 in September quarter driven by 13 additional data centres outcomes. The continuous growth trajectory of Megaport outlines the extended network footprints and service reach of the company. 

The company is currently focused to increase its partnership with data centres operators globally. Due to which during September quarter 2018, it has inked a new partnership with many data centres operators including Cavern Technologies, DataBank, DataMSP and STT GDC. This translates the company’s expansion into global market including three regions that it operates into.

Megaport told that in Asia Pacific, the company holds total of 63 data centres including four sites added in 1Q FY19 across Adelaide, Canberra, and Hong Kong. Whereas in North America, the company has added nine new sites across Nashville, Orlando, Houston, Minneapolis, Pittsburgh, Tampa, Dallas, Charlotte, and Kansas City, taking total data centres in North America to 109. In Europe it has total of 62 data centres while total cloud on-ramps  of the company are 109 including 1 addition made in September quarter.

With the ecosystem of over 300 service providers, the company promises to meet the immediate demand for direct connectivity through 109 cloud onramps, 79 unique data operators and massive network of partners.

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Going forward the company plans to expand its footprints in enterprise-rich location such as Minneapolis, Tampa and Pittsburgh, stated Mr. English. He added that in these cities’ interconnection capabilities, particularly for cloud, have been underserved.

Recently the company has renewed its terms of agreement with Chief Executive Officer Mr. Vincent English under which the change represents the hike in Mr. English’s salary which has been increased to $438,000 per annum. The change is said to take place with effect from 1 July 2018, subject to shareholder’s approval.

The company further proposes to issue 2,000,000 options to Mr. English at an exercise price of $3.60. The proposed issue is to be made in two trances however, the proposal remains pending to shareholder’s approval at 2018 AGM of the company.

The Annual General Meeting of the company is scheduled to be held on 23 November 2018 at Brisbane. The stock of Megaport Limited has seen a performance change of attractive +34.63% over the past one year while it currently trading at $3.610.

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