Insights

Megaport (ASX:MP1) share price rises on strong Q4 update

This tech share continued its solid growth in the fourth quarter…
The post Megaport (ASX:MP1) share price rises on strong Q4 update appeared first on The Motley Fool Australia. –

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.

Should you invest $1,000 in Megaport right now?

Before you consider Megaport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Megaport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Brokers name 3 ASX shares to buy today

Megaport (ASX: MP1) share price up on the back of a record quarter
Why Alkane, Audinate, Megaport, & Zip shares are rising today

ASX 200 midday update: Zip rockets, AMP asset sale

3 ASX shares looking pretty cheap right now: expert

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!