Ann: Global Update, page-9

Looking very promising.  

I expect the rate of geo-expansion in the States will start to slow and the key levers will soon become # customers/#services, # ports and average spend per service in that market. So building out the frequency of use/density on the fabric rather than the fabric itself. Not saying there is not more DCs to expand to but the rate at which MP1 expands will slow.

It would also not bother me if growth in DCs in Europe was not large if they were increasing the frequency/density. Both would be nice though. 

Looking at MP1's website it looks like they are in the market for a Euro Marketing Manager to address this - https://jobs.lever.co/megaport/44cc6179-9297-413b-9e80-40e4e929a956

I personally would like to see more growth in Hong Kong and Singapore as key markets (at the DC level).

In terms of valuation I think 20x current revenue as a multiple is not outrageous right now. I haven't formed my own forecasts as yet but dinyang posted earlier today that at current growth rates we are looking at $32-36m for FY19. On a ~$427m maket cap that is a forward revenue multiple of 12x. 

Nige456 - it's not uncommon to expect 9x 12 month forward revenue multiple for a tech company sitting at around a 45% growth rate based on CapIQ comparables sets.  We are expecting to do much higher growth than this over the next 12 months if we remain on current track ~107%?.  

Exciting companies building a network effect like MP1 should be commanding these multiples.

Hopefully Vincent and Steve Loxton will instil the financial discipline required below the top line.