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The Kogan.com Ltd (ASX: KGN) share price is lower today. The negative price movement comes as the Australian Competition and Consumer Commission (ACCC) examines the practices of online marketplaces such as Kogan.

At the time of writing, shares in the online retailer are trading for $11.42 – down 1.17%. The S&P/ASX 200 Index (ASX: XJO) is currently 0.87% higher.

Let’s take a closer look at today’s news.

Kogan in ACCC crosshairs

The ACCC says it will look into the “pricing practices, the use of data, the terms and conditions imposed on third-party sellers,” of places like Kogan, as well as the Amazon.com, Inc (NASDAQ: AMZN) and eBay Inc (NASDAQ: EBAY) Australian branches.

It will also look into consumer-focused issues, such as the ability of consumers to leave reviews, the complaints handling process, and the usage and storage of data.

Investors may not be keen on the oversight Kogan is facing, and it reflects in the Kogan share price.

“These online marketplaces are an important and growing segment of the economy, so it is important that we understand how online marketplaces operate and whether they are working effectively for consumers and businesses,” ACCC Chair Rod Sims said.

“But we would expect the marketplace to operate fairly for businesses and consumers alike and comply with consumer laws and competition laws.”

In March 2019, Kogan launched ‘Kogan Marketplace’. It’s a platform for third-party sellers to list their goods on sale at Kogan. It had gross sales of $1.1 billion in 2021.

Online shopping saw a huge surge in demand as COVID forced people to stay home. Online purchases grew by 57% in 2020 year-on-year, and Australians spent a record $50.5 billion online in 2020. Non-food online sales accounted for 14.2 per cent of total non-food sales in May 2021, up from 10.9 per cent in February 2020.

Kogan has previously been in trouble with the ACCC. The government agency took Kogan to court, alleging it had mislead consumers about a discount promotion. The company was ordered to pay a fine of $350,000 for the affair.

Motley Fool Australia reached out to Kogan for comment, but none was received before publication.

Kogan share price snapshot

Over the past 12 months, the Kogan share price has fallen about 35%. That equates to a 55-point difference between the company and the ASX 200 – and not in Kogan’s favour.

Since the beginning of the year, however, the Kogan share price has increased by roughly 10%.

Kogan.com has a market capitalisation of $1.2 billion.

The post Kogan (ASX:KGN) share price falls as ACCC launches inquiry appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended eBay and has recommended the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short October 2021 $70 calls on eBay. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Amazon. 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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The Newcrest Mining Ltd (ASX: NCM) share price is slipping in morning trade, down 1%.

Below we look at the ASX gold and mineral producer’s quarterly report for the 3 months ending 30 June.

What quarterly update did Newcrest report?

Newcrest’s share price is slipping despite the company reporting that strong fourth quarter results enabled it to deliver on its production and cost guidance for the full 2021 financial year.

Gold production came in at 542,000 ounces, up 6% on the previous quarter. The company credited the strong performance of its Cadia and Telfer mines for the increase. Its Lihir mine saw production fall by 4%, with some unplanned downtime in the autoclaves and lower head grade, as well as recovery rates dragging on output.

Newcrest also reported 38,000 tonnes of copper production for the quarter.

Higher copper prices along with increased copper and gold sales volumes at several of its mines helped drive down the All-In Sustaining Cost (AISC) to $797 per ounce in the June quarter, $96 per ounce lower than the prior quarter.

The AISC margin (what Newcrest sells the gold for minus what it costs to produce it) came it at 55% for the June quarter, or $984 per ounce.

The company achieved this despite increased cost for treatment, refining and transportation, and royalties.

For the full 2021 financial year, Newcrest reported an AISC of $905 per ounce, which works out to an AISC margin of 49%, or $884 per ounce.

Newcrest had forecast gold production for FY21 to come in 1,950,000 ounces and 2,150,000 ounces. With the strong quarter, it’s met guidance with FY21 production of 2,093,322 ounces of gold produced. This was down from the 2,171,118 ounces of gold produced in FY20.

Commenting on the update and the company’s growth outlook, Newcrest’s CEO, Sandeep Biswas said:

We have made significant progress advancing our multiple organic gold and copper growth options during the quarter. At Red Chris and Havieron we commenced decline development works which are the critical path to reaching commercial production. We are also on track to release the outcomes of several of our exciting growth studies through the remainder of the calendar year which we believe will help articulate the future potential of our business.

Newcrest also noted it’s pursuing its goal of net zero carbon emissions by 2050, and its record as an industry leader in low injury rates.

Newcrest share price snapshot

With the price of gold down 12% in the past year, Newcrest’s share price has struggled, currently down 24% over past 12 months. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 21% in that same time.

Year-to-date the Newcrest share price is down 4%.

The post Newcrest (ASX:NCM) share price slides on quarterly update appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The R3D Resources Limited (ASX: R3D) share price might be catching the eye of investors on Thursday.

The former investor relations company’s shares appear to be up 250% to 19 cents in late morning trade.

What’s actually happening with the R3D Resources share price?

The R3D Resources share price hit the ASX boards this morning following the successful completion of the reverse takeover of Tartana Resources.

It listed on the ASX boards today after raising $4.25 million at $0.20 per share.

As a result, the R3D Resources share price is actually trading 5% lower today and not 250% higher.

What is Tartana Resources?

Tartana Resources is a company which was established in 2007 with a portfolio of copper-gold exploration and mining assets in the Chillagoe Region in North Queensland.

Management notes that the objective of the acquisition is to grow R3D Resources into a significant copper-zinc producer through exploring and developing these assets.

This is quite the transition for R3D Resources. Until very recently, the company was an Australian-based investor relations company listed on the ASX under the name of R3D Global. It was delisted last year after a long period of underperformance and COVID-19 disruption.

It explained: “R3D’s existing businesses have been dramatically curtailed with the advent of the Covid-19 pandemic and continue to retain an uncertain outlook. Accordingly, the Company’s directors have determined that it is in the best interests of the Company that it diversifies its operations through the acquisition of Tartana Resources, providing an alternate business opportunity to benefit the Company’s shareholders.”

Upon listing today, the company’s Managing Director, Dr Stephen Bartrop, said: “We look forward to recommencing exploration activities shortly. Our projects are first class, and we thank the existing and new shareholders for their support. We look forward to the journey ahead.”

Shareholders will no doubt be hoping the company fares much better as a mining company than it did as an investor relations company.

The post Is the R3D Resources (ASX:R3D) share price really up 250% today? appeared first on The Motley Fool Australia.

More reading

• Newcrest (ASX:NCM) share price slides on quarterly update
• Why the Bank of Queensland (ASX:BOQ) share price is climbing today
• Why Netflix stock fell nearly 5% on Wednesday
• Why the Piedmont Lithium (ASX:PLL) share price is rocketing 15% higher today
• Santos (ASX:STO) share price jumps on record quarterly sales

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Bank of Queensland Limited (ASX: BOQ) share price is pushing higher this morning. This comes after the leading regional bank advised it has reshuffled its board of directors.

At the time of writing, Bank of Queensland shares are up 1.47% to $8.98.

What did Bank of Queensland announce?

In today’s statement, Bank of Queensland announced that former ME Bank director Deborah Kiers will join the board. This follows the completed acquisition of the Melbourne-based bank on 1 July 2021.

The appointment of Ms Kiers will add further value to the Bank of Queensland board, bringing a wealth of experience within the industry. As such, Ms Kiers will take up the role of independent non-executive director, supporting the integration program of ME Bank.

Bank of Queensland chair Patrick Allaway commented:

We are very pleased to welcome Deborah to the board following the successful acquisition of ME Bank. It is customary for a new director to join following an acquisition and I am pleased by the breadth of corporate experience Deborah brings along with an understanding of the ME Bank business.

As a director with ME Bank since July 2020, and having been chair of the ME Bank board’s People and Culture sub-committee, I know she will bring valuable perspectives on the ME heritage, underscoring for us the unique ME Bank value proposition and culture.

Ms Kiers has more than 26 years’ experience in providing strategic advice to international boards and executive teams. In addition, she has spent almost 10 years as the managing director of business management consulting company JMW Consultants.

Currently, Ms Kiers is also serving as a non-executive director, chair and committee member for global institutional investment manager, IFM Investors. She is also a non-executive director for the Tiverton Agriculture Impact Fund.

Director retirement

The inclusion of Ms Kiers has led to the rotation of directors within the Bank of Queensland group. As such, Kathleen Bailey-Lord will retire from the company as a non-executive director.

Mr Allaway went on to further add:

I want to acknowledge the insight and wise counsel Kathleen has provided to the board and her contribution as a member of the Transformation and Technology; People, Culture & Remuneration; Audit; Risk; and Nomination and Governance committees. Kathleen’s wide experience and strategic thinking has contributed in shaping the business and cultural transformation to date.

The board changes will take effect from 5 August 2021. Ms Kiers’ appointment will be voted on by shareholders at the annual general meeting on 7 December 2021.

Bank of Queensland share price review

Since hitting a decade-low during April 2020, Bank of Queensland shares have moved on an upwards trajectory. Over the past 12 months, the company’s share price has accelerated more than 40%, and is up almost 20% year-to-date.

Bank of Queensland commands a market capitalisation of roughly $5.7 billion, with 640 million shares outstanding.

The post Why the Bank of Queensland (ASX:BOQ) share price is climbing today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Netflix (NASDAQ: NFLX) fell by as much as 4.8% on Wednesday morning following the media-streaming specialist’s second-quarter earnings report. Netflix beat some financial targets while falling short on others, and the market focused on the unsatisfactory pieces of the puzzle. The stock was down by 4.1% as of 1:25 p.m. EDT.

So what

Second-quarter revenues rose 19% year over year to $7.34 billion, slightly above management’s guidance of $7.30 billion and Wall Street’s consensus estimate of $7.32 billion. Earnings jumped 90%, landing at $2.97 per diluted share. Here, the guidance target pointed to $3.16 per share and the average analyst wanted to see roughly $3.15 per share. Netflix’s operating profits also came in just below management’s official target, while its 1.54 million net new paying subscribers exceeded the official goal of 1 million.

Looking ahead to the third quarter, Netflix forecast that it would add 3.5 million net new subscribers, below the Street’s consensus estimate of at least 5 million new accounts. Management also said that it will roll out a range of games as a free add-on to its video-streaming plans, turning every Netflix-capable device into a potential gaming platform.

Now what

It’s no surprise to see the Netflix bears focusing on a soft bottom-line reading and a modest forecast for next quarter’s subscriber growth. At the same time, the company’s second-quarter profits were low for all the right reasons, reflecting a 10% increase in content costs and 39% higher marketing expenses. The company is putting its back into building and promoting a better video service. That’s exactly what I was hoping to see in this report.

Wednesday’s share price haircut makes sense from a certain point of view — one in which solid short-term profits matter more than fantastic long-term returns. Netflix is doing everything right at the moment. Opportunistic investors should see this price drop as a wide-open buying window.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Netflix stock fell nearly 5% on Wednesday appeared first on The Motley Fool Australia.

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Anders Bylund owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Piedmont Lithium Inc (ASX: PLL) share price has returned from its trading halt and is rebounding on Thursday morning.

At the time of writing, the lithium developer’s shares are up almost 15% to 78.5 cents.

Why is the Piedmont Lithium share price rocketing higher?

The catalyst for the rise in the Piedmont Lithium share price today has been the release of a response to an ASX Price Query.

This query is in response to a 20% decline in the Piedmont Lithium share price on Wednesday before being hurried into a trading halt.

That selloff was driven by reports that the company has not applied for a state mining permit or a necessary zoning variance in Gaston County in the United States. The report also suggests that officials may block the project due to environmental concerns.

How did the company respond?

The company acknowledged the media speculation regarding upcoming local zoning and other approvals. And while it wasn’t able to comment directly on the matter, it provided investors with some information which appears to have settled their nerves.

It advised that it had a formal engagement with Gaston County on Tuesday, which it described as a “constructive work session meeting.”

In addition, it has communicated with the Gaston County Board of Commissioners that it plans to submit a mine permit application in August. After which, it plans to complete a definitive feasibility study in September and then an economic impact study in October.

Management also intends to continue engaging with Gaston County and the local community in an open and transparent manner. This will be via town hall and small group meetings over the next few months.

Finally, the company confirmed that it has not received any official notification from the Gaston County or the State of North Carolina regarding its upcoming rezoning and mine permit applications.

The Piedmont Lithium share price has more than doubled in value in 2021.

The post Why the Piedmont Lithium (ASX:PLL) share price is rocketing 15% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Piedmont Lithium Inc. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Santos Ltd (ASX: STO) share price jumped after it posted record sales revenue for the June quarter.

Call it a “peacock” moment for the ASX gas producer as it structs its stuff to woo over Oil Search Ltd (ASX: OSH).

The Santos share price jumped 2.6% to $6.74 in early trade but a lift in the oil price overnight is also boosting the fortunes of the sector.

The Woodside Petroleum Limited (ASX: WPL) share price added 2% to $22.33 while Oil Search share price gained 3% to $4.16 at the time of writing.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) advanced by 0.9% on positive leads from Wall Street.

Santos share price having a peacock moment

Santos unveiled its highest ever quarterly sales of US$1.1 billion ($1.5 billion). This in turn has led to the company declaring a record first half sale revenue of US$2 billion.

Management also tightened its 2021 full year production and sales guidance to the top end of its previous forecast.

Production is now expected to range between 87 million barrels of oil equivalent (mmboe) and 91 mmboe. This compares to the earlier guidance of 84 mmboe to 91 mmboe.

Sales volumes are also getting a boost. The updated guidance is for 100 mmboe to 105 mmboe versus previous estimates of 98 mmboe to 105 mmboe.

Santos share price bolstered by lower cost estimates

To add a bit more kick to the quarterly report, Santos lowered its upstream production costs forecasts too. This is now expected to come in at $7.90 to $8.30 boe. That’s down from $8 to $8.50 boe.

The record quarterly sales were achieved even as second quarter production fell 9% to 22.5 mmboe compared to the previous quarter.

Production decline offset by other strong positives

The drop was due to the completion of the 25% sell down in Bayu-Undan and Darwin LNG to SK E&S on 30 April.

Offsetting this was stronger gas production in Western Australia and Queensland, and higher gas prices.

The average LNG price rose to US$7.52 per Metric Million British Thermal Unit (MMBtu) in the June quarter from US$6.12 per MMBtu in the March quarter.

Demand for domestic gas was also strong with the average gas price hitting US$4.74 per gigajoule (GJ) from US$4.54 per GJ in the previous three months.

Santos share price fails to impress

Santos made no mention of its merger proposal with Oil Search. But the messaging in the quarter was clearly aimed at the target as much as its own shareholders.

Santos chief executive Kevin Gallagher said Santos had delivered another strong quarter. Its performance stands in contrast to the turmoil within Oil Search.

But as I wrote yesterday, the outperformance of the Oil Search share price compared to Santos share price since the merger was announced makes it harder for the suitor to consummate the deal.

Santos will need to offer a bigger engagement ring. This is especially after it reported US$270 million in free cash flow for the quarter and US$572 million for the first half.

The post Santos (ASX:STO) share price jumps on record quarterly sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Santos Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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If you have an ASX share in your portfolio that’s returned your original investment 13 times over, would you sell it?

The thinking for many investors might be “it’s had a good run”. There can’t be much mileage left, right?

Wrong. That’s false logic, according to one fund manager.

“Selling a stock can be the biggest mistake there is, especially when you come across a great business, run by first class people,” said Celeste Funds Management analyst Eric Nguyen in a memo to clients.

“Opportunities to compound wealth over decades in a high quality business are rare and when you find one, it pays to make the most of it.”

He then showed off an example from his own fund.

The ASX share that’s multiplied 70 times since listing 

ARB Corporation Limited (ASX: ARB) floated in 1987 at 65 cents per share, according to Nguyen, which equated to a market capitalisation of just $6.6 million.

“In its first year ARB generated $14 million in revenues and less than $1 million in profit after tax.”

On Wednesday afternoon the ARB share price closed at $45.58. That’s more than 70 times the listing price.

“Patient execution of the strategy has seen ARB join a rarefied club of microcaps that have gone on to become ASX 200 listed companies,” said Nguyen.

“FY20 reported sales were $465 million with earnings of $57 million.”

Celeste bought into ARB in 2004 when the stock price was $3.41 and has held onto it. That’s more than a 13-multiple return for Nguyen’s team.

Beneficiary of lifestyle changes

ARB is an international seller of 4-wheel-drive car accessories.

Nguyen quoted US statistics that showed light trucks only consisted of 30% of total vehicles sold in 1987, whereas that had grown to 76% by last year.

It’s not just the US experiencing that trend towards utes, SUVs and all-wheel drives. 

The top-selling car in Australia in the last four years has been the Toyota Hilux ute. The Ford Range ute is not far behind in second place.

They’re not just for tradespeople anymore. You now see plenty of utes parked in corporate car parks next to executive BMWs and Mercedes.

But of course, if there is a lucrative market segment, competitors are bound to pop up. But Nguyen reckons this hasn’t affected ARB.

“Market expectations for FY21 are for year on year sales growth of 21%, to $564 million, delivering $94.4 million in net profit, 65% growth on FY20,” he said.

“Management have driven efficiencies in their local manufacturing operation, moved some production to a company owned facility in Thailand and made several astute investments.”

So aren’t ARB shares expensive now?

The rise of COVID-19 last year quickly sent ARB’s share price up as investors realised Australians would divert their overseas holidays budget to domestic recreation.

The stock hit a low of $10.81 during the March 2020 crash but has more than quadrupled since.

Nguyen admitted this makes it now overpriced in many eyes.

“Given the scepticism around the longevity of this growth and the pull-forward effect brought upon by these factors, many have argued that the company is over-earning and — at a 40% EV/EBITDA premium to the ASX Small Ordinaries Index — it may be expensive.”

But if this is how ARB stocks are evaluated, Nguyen said they would always have been considered “optically expensive”.

“When Celeste first built a position in the company in 2004, ARB was trading on a 40% EV/EBITDA premium to the market, and at the time the share price of $3.41 looked expensive on FY 2004 earnings,” he said.

“The real point, however, was to assess underlying earnings over the next 5 to 10 years and on that trajectory, ARB looked to offer compelling value.”

And this remains the case now, which is why Nguyen’s team will still be holding onto ARB.

“ARB has an articulated product and partner strategy to significantly grow sales and earnings over the next 5+ years,” he said.

“ARB continues to meet the Celeste investment process and we believe remains a compelling long-term investment opportunity for our investors well into the future.”

The post Obscure 13-bagger ASX share we’re not selling: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. 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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The Zip Co Ltd (ASX: Z1P) share price is under pressure on Thursday morning.

In morning trade, the buy now pay later (BNPL) provider’s shares are down 6% to $7.13.

Why is the Zip share price tumbling?

The catalyst for the weakness in the Zip share price on Thursday has been the release of its quarterly update.

According to the release, Zip delivered another record performance during the fourth quarter of FY 2021. The company reported a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million. Positively, this was driven by record monthly revenue of $44.8 million in June, which annualises at $537.2 million.

The strongest growth was achieved in the United States with its QuadPay business reporting a 107% year on year increase in revenue to $64.3 million. This was supported by a 39% lift in revenue in the ANZ and a modest contribution by its fledgling UK business.

However, whilst this was strong in comparison to the prior period, its growth is slowing quarter on quarter. Revenue may have doubled year on year but it was only up 13% since the third quarter. And while this is a growth rate that many companies would be envious of, not all companies trade on such sky high multiples.

Also potential weighing on the Zip share price was its revenue to TTV ratio. That stood at 7.2% at the end of the fourth quarter, down from 7.65% in FY 2020.

What were the drivers of its growth?

Driving Zip’s growth in the fourth quarter were further increases in transactions, customer numbers, and merchants on its platform.

Zip revealed a 230% year on year increase in transaction numbers to 14.2 million for the three months, an 87% lift in customer numbers to 7.3 million, and an 84% rise in merchants to 51,300.

In respect to customer numbers, Zip now has 4.4 million in the United States, 2.8 million in the ANZ region, and approximately 70,000 in the UK.

It will be looking to add to these customer numbers in the first quarter of FY 2022 following launches in Canada and Mexico. Management notes that the Canadian market represents a US$436 billion ecommerce market, whereas Mexico has an ecommerce market estimated to be worth US$13.8 billion.

It is also expecting to complete the acquisition of Twisto Payments during the first quarter and Twisto during the second. This will expand its offering onto mainland Europe and into the Middle East.

Management commentary

Zip’s Managing Director and Global CEO, Larry Diamond, said: “Another outstanding set of results, including over 100% YoY growth in both revenue and TTV for the group, with record numbers delivered across the business in all regions.”

“In addition to the very strong financial performance, we continued executing on our global BNPL expansion strategy across both the developed and emerging markets. We are now a truly global player with a presence in 12 markets, and this is a real point of difference as we target global retailers and fulfill our mission to become the first payment choice everywhere, every day,” he added.

Despite today’s decline, the Zip share price is still up an impressive 27% in 2021.

The post Zip (ASX:Z1P) share price sinks 6% following Q4 update appeared first on The Motley Fool Australia.

More reading

• Here are 3 top trading ASX 200 shares this Wednesday
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• Why Afterpay, ANZ, JB Hi-Fi, & Zip shares are pushing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Megaport Ltd (ASX: MP1) share price is on the move on Thursday morning.

At the time of writing, the elastic interconnection services provider’s shares are up 2.5% to $16.19.

Why is the Megaport share price rising?

Investors have been bidding the Megaport share price higher today following the release of its fourth quarter update.

According to the release, the company reported a $735,000 or 11% quarter on quarter increase in its monthly recurring revenue (MRR) to $7.5 million for the three months ended 30 June.

This led to total quarterly revenue increasing 16% quarter on quarter or 34% on the prior corresponding period to $22.7 million.

This growth was underpinned by the addition of 168 new customers during the quarter. Management notes that this is a record number of organic customer additions for any quarter. At the end of the period, Megaport had a total of 2,285 customers, up 8% quarter on quarter.

In addition, the company drove record net increases in the quarter across all major operating metrics. This includes achieving 652 new Ports and 80 new Megaport Cloud Routers. This brought their totals to 7,689 (up 9%) and 502 (up 19%), respectively.

Positively, long-term deal commitments reached a record in the quarter, with 46% of net new Ports being acquired with committed terms of between 12 and 36 months. Management advised that this represents a growing trend of customers using Megaport to connect long-term IT solutions.

Cashflow improving

Also giving the Megaport share price a boost today was its improving cashflow. Megaport recorded net cash outflow from operations of just $202,000. This compares to a cash outflow of $4.9 million in the prior quarter.

Management advised that this reflects the company’s progress in achieving EBITDA break even on a run rate basis in June 2021. At the end of the period, Megaport had a cash balance of $136.3 million.

Following today’s gain, the Megaport share price is up 14% in 2021.

The post Megaport (ASX:MP1) share price rises on strong Q4 update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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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