Megaport shares are tumbling today despite a solid set of FY21 results on Tuesday.
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The Megaport Ltd (ASX: MP1) share price has tanked 4.86% to $17.03 after dipping to an intraday low of $16.65, despite no price-sensitive announcements on Wednesday.
Shares in the network as a service (NaaS) provider have taken a turn for worse after a positive full-year results announcement on Tuesday.
Let’s take a look.
How did Megaport perform in FY21?
Megaport delivered a well-rounded result with “consistent increases in all metrics across all regions in FY21”.
Revenue was up 35% to $78.28 million, monthly recurring revenue lifting 32% to $7.5 million and customers increased 24% to 2,285.
This growth was underpinned by the continued global expansion of its data centres, lifting 11% year-on-year to 405 locations.
Encouragingly, the company revealed breakeven earnings before interest, tax, depreciation and amortisation (EBITDA) in the month of June. However, it still reported a net loss of $55 million for FY21.
The company retained a solid cash position of $136.3 million to fund its growth and development.
Megaport acquires InnovoEdge
In addition to financial results, Megaport also yesterday announced its acquisition of InnovoEdge, an “AI-powered multi-cloud and edge application orchestration company”, for US$15 million in cash and script.
Management said the acquisition would “help the company drive greater functionality” across its NaaS platform.
About the Megaport share price
The Megaport share price experienced a similar scenario after the release of its half-year results on 10 February.
Its shares opened 7.33% higher to $14.20 on the day of the results but had tumbled 24.86% to $10.67 by 29 March.
Megaport shares have rallied 20.4% year-to-date and are up 28.65% in the last 12-months.
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Motley Fool contributor Kerry Sun 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.