Here’s why Megaport (ASX:MP1) total revenue jumped 8% in Q2

  • January 19, 2021 12:41 PM AEDT
  • Team Kalkine
    Team Kalkine
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Here’s why Megaport (ASX:MP1) total revenue jumped 8% in Q2

Summary

  • Megaport (ASX:MP1) reported an 8 per cent rise in total revenue to A$18.7 million in 2Q FY21 compared to the previous quarter of the same fiscal year. 
  • Monthly recurring revenue (MRR) recorded an 8 per cent QoQ rise to A$6.3 million in December 2020. 
  • Megaport also said that Rodney Foreman had been appointed as the chief revenue officer of the company.

Megaport (ASX:MP1) on Tuesday reported an 8 per cent rise in total revenue to A$18.7 million in 2Q FY21 compared to the previous quarter of the same fiscal year. The technology company continued growth in monthly recurring revenue (MRR) and reported an 8 per cent QoQ rise to A$6.3 million in December 2020. 

Image Source: Shutterstock

In December 2020, Megaport achieved 2,043 customers, up 3 per cent QoQ, 6,691 ports, and total services of 19,278, both up 6 per cent QoQ, and 382 Megaport Cloud Routers, up 11 per cent QoQ. Both underlying growth in MRR and total revenue rose 10 per cent, with reported growth figures negatively impacted by the continued appreciation in the Australian dollar, particularly against the US dollar, Megaport said in its latest trading update.

The company reported positive net cash from operations of A$0.9 million for the given quarter. At the end of December 2020, the company’s cash position was A$144.8 million. Total services at the end of the quarter were 19,278, an increase of 1,133, or 6 per cent QoQ. The average revenue per port in December 2020 was A$934, an increase of $21, or 2 per cent QoQ.  

Image Source: Shutterstock

The capital expenditure was A$3.3 million, against A$4.2 million in the previous quarter, a fall of $0.9 million QoQ. Payments worth A$0.9 million in this quarter are related to new sites under development, A$0.3 million to Megaport Virtual Edge (MVE) hardware equipment and a further A$0.8 million held in inventory for future expansion. 

READ MORE: Megaport (MP1) Reports Record Growth During September 2020 Quarter

What company says

Commenting on the financial results, Megaport’s Chief Executive Officer, Vincent English, said that the company was excited about the upcoming release of Megaport Virtual Edge. The release is expected to allow more businesses to access Megaport’s leading ecosystem of service providers from more locations globally. 

In a separate announcement, Megaport said that Rodney Foreman had been appointed as the chief revenue officer of the company.

Stock performance

Shares of Megaport were trading at A$12.67, down 0.32, or 2.46 per cent, at 10:48 AM (AEDT) on Tuesday, 19 January 2021, against the previous closing on Monday, 18 January 2021.

READ MORE: Megaport Shares the Results of Share Purchase Plan

 

 


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