Ann: 1HFY22 Market Update, page-4

Sitting in his mum’s Irish kitchen at 2am….
I wonder if Vince English had a celebratory Guiness nightcap on hand ?
Maybe a Jameson.

Big thanks  to those posters yesterday who nutshelled this company so spectacularly

cheers

https://www.afr. com/technology/megaport-revenue-jumps-ceo-expects-to-breakeven-in-six-months-20220209-p59uya


Megaport revenue jumps, CEO expects to break even in six months
Jessica SierJournalist
Feb 9, 2022 – 2.41pm

Telco infrastructure company Megaport is riding the COVID-induced digital transformation wave, booking a sharp jump in revenue over the first half and expecting to break even within six months.

Megaport, which is a network-as-a-service provider, reported a 42 per cent rise in revenue to $51.2 million for the half year ending December 31, up from $36 million 12 months earlier. Monthly recurring revenue rose 46 per cent to $9.2 million.

Losses narrowed to $20.2 million for the half-year period, with the company booking 170 new customers.

The growth was largely driven by its expanding data centre footprint in the United States, growth in customers and ports, and the company’s foray into software-defined wide area network (SD-WAN) solutions.

“We’re only just starting to open our wings now,” Vincent English, chief executive of Megaport, said from his mother’s kitchen table in Ireland, where it was 2am.
“We’ll be break even by the end of the financial year, in six months’ time.”

Megaport has $104 million in the bank and no debt.

During the half, Megaport rolled out its Virtual Edge product and partnered with big-name clients Cisco and VM-Ware, who are selling the service to thousands of their customers.
“It’s only been out for five months and the uptake has been good, better than I anticipated,” Mr English said.

However, he noted the complexity of training the sales teams within the likes of Cisco and VM-Ware, saying it would take time and resources to build out the sales function completely.

Shares in Megaport rose 2 per cent in trading on Wednesday, fetching $13.47 in the afternoon. Megaport has been caught up in widespread technology stock sales this year, with the share price down 29 per cent since the start of January.

RBC analysts maintained their outperform rating on the stock, pointing out Megaport’s organic growth is 10 times the size of its nearest competitor, Packetfabric, which has 200 customers to Megaport’s 2000.

In a note to clients, Jonathan Atkin said the new Virtual Edge product provided upside to the firm’s estimates, with incremental revenue largely set to flow through to earnings as the product leverages Megaport’s existing network.
“Megaport Virtual Edge revenue expected to begin contributing meaningfully in FY23,” the analyst wrote.