The Megaport Ltd (ASX: MP1) share price is climbing into the green today after the company reported its H1FY22 financial results.
The ASX 200 technology share is currently trading at $13.45, a gain of 1.51%. It marks a recovery after the company’s share price dropped as low as $12.87 in early morning trade.
For perspective, the S&P ASX All Technology Index (ASX: XTX) is up 2.52% so far today.
Let’s take a look at what today’s financial results reveal.
Megaport share price climbs amid half-yearly results
The highlights of Megaport’s half-year (H1FY22) results include:
- Revenue increased 42% on the previous corresponding period (PCP) ending 31 December 2020, to $51.2 million
- Monthly recurring revenue of $9.2 million, a 46% improvement on December 2021
- Profit after direct costs of $30.9 million, a 69% leap on the PCP
- Net loss of $20.2 million, down from a $38.4 million loss in the PCP
- Net assets of $174.3 million, down 3% on the previous half
- Cash balance of $104.6 million, down 23% on the previous half
What else happened in the half?
Megaport is a leading global provider of elastic interconnection services using software-defined networking. In December 2021, the company hit a milestone of 768 data centres in 138 cities. 420 are in North America, 140 in the Asia-Pacific, and 208 in Europe.
Another highlight outlined in Megaport’s results today was the company’s Megaport Virtual Edge product going live on the Cisco Systems (NASDAQ: CSCO) global price list.
In August, Megaport acquired 100% of artificial intelligence (AI) cloud technology company InnovoEdge.
Overall, the company gained three new software-defined wide area network (SD-WAN) partners. Megaport also launched the PartnerVantage programme, enabling its partners to sell Megaport services.
Megaport has expanded its network footprint to 411 locations where installation has taken place and 768 locations where the network is enabled.
Management comment
Commenting on the results, Megaport chief executive officer Vincent English said:
In addition to strong service uptake across the board, the team drove Megaport Cloud Router (MCR)sales to surpass 600 installed MCRs globally.
With the increased adoption of multicloud architectures, Megaport customers use MCR to enable cloud-to-cloud connections with ease and bill nearly double for Megaport services compared to port-only customers.
We have aligned our business, through innovation, network footprint, product positioning, and partner-building to be The Edge. The team will stay focused for the remainder of the fiscal year on executing our plan and achieving our revenue and EBITDA targets
What’s next for Megaport?
Megaport is continuing to integrate InnovoEdge services with its own platform. This will allow more automation and greater control of its network and IT resources.
The company will establish a presence in Mexico, taking the total platform to 24 countries and 139 cities around the world.
Megaport share price recap
The Megaport share price has gained less than 1% in the past year but is down more than 28% year to date.
In the past month, the company’s shares have fallen almost 25%.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned almost 6% over the past year, losing more than 3% over the last month.
Megaport has a market capitalisation of about $2.1 billion based on today’s share price.
The post What’s got ASX 200 tech share Megaport (ASX:MP1) marching higher today? appeared first on The Motley Fool Australia.
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More reading
- Own Megaport (ASX: MP1) shares? Here’s what to watch when the company reports tomorrow
- 2 excellent ASX growth shares analysts rate very highly
- ‘Plenty of bargains’ following ASX tech shares sell-off: expert
- Why has ASX tech share Megaport (ASX:MP1) tumbled 31% in a month?
- Why did ASX 200 tech shares get annihilated today?
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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