Nextdc - Future is Cloudy (Spot the Dad joke) with plenty of options yet to play out
NXT's FY21 result was slightly better than guidance and our forecasts. FY22 revenue and EBITDA guidance is in line with market expectations. For both years growth was/is expected to be 20-30% pa. It was a good year and a good outlook.
Both MWs billing and MWs contracted jumped ~5MW in 2H21 to 50MW and 75MW respectively, ahead of our forecast.
Business as usual and 10MW contracted but not yet billing underpins EBITDA growth for the next two years. The 30-40% pa growth in Cloud Service Provider revenue (to June 21) reinforces our view that demand is high, and options should get exercised, soon. We make minor EBITDA upgrades. Add retained.
NXT Price at posting:
$13.92 Sentiment: Buy Disclosure: Held
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) with plenty of options yet to play out
(20min delay)