Megaport Limited (ASX: MP1) today announced its quarterly results for the period ended 31 March 2019. The revenue for the period has gone up by 8% to $8.96 million while the total monthly recurring revenue reached $3.11 million, an increase of 15% on a quarter-to-quarter basis.
The company stated that “it continues growth trajectory with solid 3Q FY19 performance, including new and expanded Ecosystem partnerships while growing total services by 19% and increasing Monthly Recurring Revenue by 15% in the quarter.”
In 3Q Fiscal 2019, Megaport continued to expand its market shares in the new regions while deepening its network footprints in the existing metros. As a result, the company achieved 1,367 customers, generated $3.1 million of Monthly Recurring Revenue (MRR), and reached a total of 465 Enabled Data Centres. This represents a 7% QoQ growth of customers with an increase of 15% in MRR since December 2018.
Megaport’s Chief Executive Officer, Vincent English, stated that “Throughout the third quarter of Fiscal Year 2019, Megaport drove increased services adoption across the platform to 19% from the previous quarter and generated $3.1M in March 2019, up 15% compared to December 2018.”
During the quarter, Megaport has staged several new cloud networks including access to newly launched Cloud Region by Oracle in Toronto. The company has also joined hands with HGC Global Communications, Nutanix and NTT Malaysia, thereby strengthening its leadership position in the Ecosystem of cloud providers. These industry-leading integration would enable its customers to have greater alternatives through direct and on-demand connections to hyperconverged services including Xi Cloud.
On 14 March 2019, Megaport completed a $50 million fully underwritten share placement to sophisticated, institutional, professional and experienced investors. Coupled up with a further $10 million raised via a Share Purchase Plan, scheduled to close on 26 April 2019, these proceeds will reportedly be used to accelerate expansion to new locations and new markets, undertake capacity upgrades, fund innovation and development of new technology, and fund operating costs and general working capital requirements.
Vincent added that the focus area of the company remains the expansion and deepening of its Ecosystem in order to address the growing requirement for direct cloud connectivity. Megaport targets to expand its new data centres and partner with key regional networks at a rapid pace as it would enable the company to accelerate its first-mover advantage with reach to more customers.
At the end of March 2019, the company’s cash position was $73.8 million including bank term deposits but excluding the up to $10 million in proceeds from the Share Purchase Plan.
Megaport’s quarterly results got applauded on the Australian Securities Exchange as the stock price surged up by 9.959% in a day-trade. MP1 closed near to its 52-week high levels at $5.410 on 17 April 2019.
Over the past 12 months, the stock has witnessed a positive price change of 32.97% including an attractive upside of 29.13% in the past three months.