A buoyant quarterly update from Megaport halted the company’s recent share slide yesterday in a timely fashion.
The shares had fallen 10% from its most recent high of $18.64 on June 30 to $16.45 on Wednesday on fears the sector was cooling.
But Thursday’s update with its news of record fourth-quarter growth seems to have done the job in changing investor sentiment towards the $2.59 billion company.
The shares ended up 0.4% at $16.61.
Megaport said monthly recurring revenue (MRR) for the June quarter jumped 11% from March to $7.5 million. Underlying MRR grew $667,000 for the quarter – a record high for the company – and total revenue for the quarter was $22.7 million, up 16% compared to the March quarter.
CEO Vincent English said the company deployed 15 new data centres to achieve its full year goal of 405 installed data centres.
Total enabled data centres was 761 at the end of the quarter, an increase of 19, or 3% from March. .
“With accelerating adoption of all Megaport services, our customers are taking advantage of the power of the Megaport platform as a whole,” Mr English said in the statement.
“More customers are ordering ports on extended terms to support their long-term transformation and to connect to critical services.
“Ultimately, Megaport’s Network as a Service platform drives greater value to our customers so they can grow their services to satisfy digital demands as their businesses grow.”
“This has been a very strong finish to a challenging year,” he said.
Megaport had $136 million in cash on hand at the end of June.
