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Megaport (ASX:MP1) reports steady growth for March quarter

ASX News, Telecommunication
ASX:MP1      MCAP $1.236B
22 April 2021 14:00 (AEDT)

IT services provider Megaport (MP1) enjoyed general steady growth across most of its key metrics over the March quarter.

The ASX-lister reported an 8 per cent increase in monthly recurring revenue on the previous quarter to help bring Megaport’s total revenue for the quarter ended March 31 $19.6 million, marking a five per cent increment on Q2 Fy21.

Customer receipts, however, fell 22 per cent on the previous quarter to clock in at $20.2 million following on from what the company described as a “record high” of $25.8 million in the previous quarter.

The company managed to keep cash outflows subdued compared to the previous period stemming from cost-saving initiatives, settlement timings, lower staff costs and a modestly reduced marketing spend.

Network operating cash outflows were $8.7 million compared to $10.7 million in the previous quarter.

Megaport rounded off the quarter with roughly $141.5 million in cash and equivalents.

In terms of operational activities over the period, Megaport announced the launch of Megaport Virtual Edge, which it describes as an on-demand vendor-neutral
Network Function Virtualization service that enables branch-to-cloud connectivity on Megaport’s global software network.

Megaport shares are up a solid 7.26 per cent trading at $12.55 at 1:18 pm AEST.

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