It has been another positive day of trade for the Megaport Ltd (ASX: MP1) share price following the release of its latest global update.
The shares of the leading provider of elastic interconnection services were up as much as 9% to $4.15 in morning trade.
They have since pulled back a touch, but still sit 4.5% higher at $3.98 at the time of writing.
What was in the update?
This morning's update revealed that Megaport's growth trajectory continued in the second quarter with another solid performance.
During the period the company increased its reported revenue by 21% to $8.3 million and monthly recurring revenue by 14% quarter on quarter.
One catalyst for this was an increase in customers by 10% quarter on quarter to a total of 1,277. The continued expansion of its network footprint to new markets while deepening its reach within existing ones was a driver of its customer growth.
New partnerships with data centre operators include DataMSP, eStruxture, Linxdatacenter, OneAsia, and Root. Further, its partnership with Orixcom has extended the reach of Megaport's services into Dubai, where leading cloud service providers are investing in infrastructure to support regional demand.
Other key metrics were positive during the quarter as well. Total installed data centres increased 5%, total ports rose 11%, total services lifted 14%, and the average revenue per port increased 3% to $812. All figures are in comparison to the previous quarter.
Should you invest?
I think that Megaport is one of the most exciting tech shares at the small end of the market and a great way to gain exposure to the cloud computing boom along with data centre operators NEXTDC Ltd (ASX: NXT) and Macquarie Telecom Group Ltd (ASX: MAQ).
However, as with NEXTDC, a lot of future growth has been built into its shares already, making it a high risk option for investors.
