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- Megaport (MP1) shares fall as the cloud connectivity company reports its quarterly results
- Receipts from customers grew over the period, but it wasn’t enough to cover its expenses, with negative cashflow of $6.27 million recorded
- Its largest payments were spent on product manufacturing and operations as well as staffing costs
- Investing activities spent a total of $8.97 million, with majority of the funds being directed towards property, plant, and equipment
- At the end of the quarter, the company’s cash position was sitting at $88.8 million, a fall from the initial $104.63 million it held at the beginning of the period
- Shares took a 17.1 per cent hit and are trading at $10.58 each
Megaport (MP1) shares have fallen today as the cloud connectivity company reports its quarterly results.
Receipts from customers grew over the period, but it wasn’t enough to cover its expenses, with negative cashflow of $6.27 million recorded
Its largest payments were spent on product manufacturing and operations as well as staffing costs.
Investing activities spent a total of $8.97 million, with majority of the funds being directed towards property, plant, and equipment.
Movements in the exchange rate also saw a decline in funds by $1.12 million.
At the end of the quarter, the company’s cash position was sitting at $88.8 million, a fall from the initial $104.63 million it held at the beginning of the period.
In more positive news for Megaport, revenue for the quarter moved 5 per cent higher to $27.5 million, with annualised recurring revenue (ARR) at $114 million.
Monthly recurring revenue (MRR) climbed 6 per cent from the previous quarter and is now sitting at $9.5 million.
It also saw a record average number of services per port of 2.88, reflecting growing usage of its network by customers.
Looking ahead, the company recently launched its products and services in Mexico. It will partner with KIO Networks to launch in two metro areas within the country.
Chief Executive Officer Vincent English said entry into Mexico will provide an opportunity to address the need for cloud connectivity within the Latin American market.
“Our partnership with KIO Networks gives us an edge in-market and our recent hires within Mexico are well-positioned to capture the opportunity to enable secure, multicloud connectivity as adoption of public and hybrid cloud architectures continue to grow,”
“The Megaport team is energized and focused on delivering a solid fourth quarter performance and setting our business up for great momentum heading into Fiscal year 2023,” he concluded.
Shares took a 17.1 per cent hit today and were trading at $10.58 each at 12:52 pm AEST.
