Why this exciting tech share zoomed higher today

The Megaport Ltd (ASX:MP1) share price has zoomed higher on Tuesday after advising of a strong first quarter. Should you invest in this exciting tech share?

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One of the best performers on the local market on Tuesday has been the Megaport Ltd (ASX: MP1) share price.

In morning trade the shares of the leading provider of elastic interconnection services are up 6.5% to $3.69.

Why are Megaport’s shares zooming higher?

This morning Megaport released its global update for the first quarter of FY 2019. According to the release, the company continued its growth trajectory with another solid performance which included new and expanded data centre partnerships.

During the first quarter Megaport saw its monthly recurring revenue grow an impressive 20% on the previous quarter to $2.4 million.

This was driven by a 6% quarter on quarter rise in its data centre footprint to 234, a 12% quarter on quarter increase in customer numbers to 1,161, and a 10% quarter on quarter lift in total ports to 3,026.

Megaport’s chief executive officer, Vincent English, appeared to be rightfully pleased with the way the company was performing.

He said: “During the first quarter of Fiscal Year 2019, organic customer growth outpaced previous quarters as did new monthly recurring revenue. This is the outcome of investments we have made in our sales engine and the fruition of key partnerships which have opened channel opportunities. Meanwhile, we continue to grow our service footprint to cities where we can target a wider addressable market. We have deployed our SDN to 13 more locations via new and existing data centre partners as we continue to leverage our first-mover advantage”.

Before adding that: “With 109 cloud onramps, Megaport is the most cloudconnected SDN-based interconnection fabric in the world. This positions Megaport to help scale the massive growth of cloud services as digital transformation in the enterprise space accelerates.”

Should you invest?

While it certainly is a high risk investment at this stage, I am a massive fan of Megaport and believe it is well positioned to benefit greatly from the cloud computing boom over the next decade.

This could make it worth considering as a long-term buy and hold investment along with data centre operators such as NEXTDC Ltd (ASX: NXT) and Macquarie Telecom Group Ltd (ASX: MAQ).

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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