Megaport Limited (ASX: MP1) is an information technology company based out in Brisbane, Australia with other offices located in Los Angeles, USA and Berlin, Germany. It is the global leader in providing Elastic Interconnection services which enable its customers to connect their network to services such as Peering on the Internet Exchange, Virtualised Cloud Networking, and Cloud Connectivity across the Megaport Network using Software Defined Networking (SDN).
These services are directly controlled through mobile devices, computer, or MP1’s open API. It has a portfolio of over 1,200 customers in over 240 data centers globally. MP1 has partnered with many cloud computing companies such as Alibaba, Oracle, AWS, Microsoft, Google, IBM, and Salesforce.
Today, the company has reported the revenue performance for the North America region for the first half of Fiscal Year 2019. During 1H 2019, the company reported a surge of 80% in its North America monthly recurring revenue (MRR) in six months increasing from $0.55 million in June 2018 to $1.0 million at the end of December 2018. This achievement shows the MRR in North America doubling in the last eight months. The company launched its operations in North America in April 2016.
During FY18, the company reported 100 Megaport locations which were 61 in FY17. In FY18, the revenue from North America accounted for 27% of the total revenue. The company reported an increase in revenue by 314% in FY18 being reported at $5.4 million in FY18 as compared to $1.3 million in FY17.
The company further reported a normalized EBITDA of $-8.54 million with a net loss of $8.42 million. It made additions of $8.22 million to non-current assets with the total assets totaling up to $14.86 million.
The company has signed several partnership agreements with businesses like Digital Realty, AMS-IX, EdgeConnex and CyrusOne to benefit the network.
The company’s Chief Executive Officer, Vincent English stated that the company had achieved an outstanding result which validates the huge investment that the company has made in the North American market. Its investment in sales resources coupled with its continued expansion of network footprint has enabled the company to achieve such revenue.
The cloud on-ramp choices along with the capabilities enabled by Megaport Cloud Route has made the process of rapidly connecting to the services that the customers need on demand very easy and comfortable. He further added that the company is delighted with the performance in North America and it is committed to capturing the massive opportunity for cloud interconnection within the North American market and the global market.
The Company is expected to release its quarterly global market update and Appendix 4C on Thursday, 17 January 2019.
The stock of Megaport Limited generated a positive return of 8.24% during the past year. The company’s shares settled at $3.870 with a surge of 5.163% during the day’s trade. The company has ~118.66 million shares outstanding with the market cap of circa $436.67 million.