ASX 200 tech stock Megaport leaps on open then plunges on half-year results

S&P/ASX 200 Index (ASX: XJO) tech stock Megaport Ltd (ASX: MP1) is on a bit of a rollercoaster on Thursday. 

The tech company, which provides Network as a Service (NaaS) solutions, closed yesterday trading for $6.19 per share. In early morning trade shares were swapping hands for $6.63 apiece, up 7.1%.

In later morning trade, those fortunes reversed, with the ASX 200 tech stock now trading for $5.85, down 5.5%.

Here’s what investors are considering.

Megaport share price seesaws on results

This morning Megaport released its results for the half-year ended 31 December (1H FY23).

(Note that all the figures quoted are in US dollars.)

The ASX 200 tech share is seeing some wild price swings and is currently deep in the red despite reporting revenue of US$47.4 million, a 27% increase compared to 1H FY22.

Monthly recurring revenue (for the last month of the reported period) increased 11% to $8.3 million.

Profits after direct network costs and partner commissions came in at $31.1 million, up 38% from the prior corresponding period.

While net losses improved from the $14.7 million reported in 1H FY22, 1H FY23 still saw the company report a net loss of $9.2 million.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) leapt from a loss during the corresponding half-year, to $2.3 million for the current reporting period.

As of December, the ASX 200 tech stock had 2,739 customers across 802 enabled data centres in 150 cities. The company has been broadening its footprint, reporting it reached 138 cities in 2021.

The Megaport share price could be under some pressure with the reported reduction in its cash and cash equivalents balance to $39.2 million. That’s down from $56.9 million on 30 June 2022.

The board did not declare any dividends.

How has the ASX 200 tech stock been tracking?

As you can see in the chart below, it’s been a difficult year for the ASX 200 tech stock. Over the past 12 months, the Megaport share price is down 57%.

The post ASX 200 tech stock Megaport leaps on open then plunges on half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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