Megaport Ltd (ASX: MP1) shares edged 1.3% higher to $7.89 in trade today despite the variable internet connectivity business posting a widening loss of $33.5 million for the financial year ending June 3o, 2019, which compares to a loss of $24.5 million in the prior year.
The shares have soared thanks to Megaport delivering 78% revenue growth to $35.1 million with the business reporting what it describes as a "profit before direct network costs" of $11.9 million over the fiscal year. By comparison the same profit metric would have been just $2.4 million in fiscal 2018.
Total monthly recurring revenue for June 2019 was $3.6 million to suggest Megaport is positioned to deliver another big year of growth in FY 2020.
The group's loss came about as it has been investing heavily for growth and to expand its operating network with 79 new data centres connected over the period to take the existing total to more than 300.
It also reports it has 528 "enabled" data centres which means data centres "that can be connected directly to Megaport equipment within Installed Data Centres by means of a dark fibre campus cross connect."
It also lifted total customers 44% to 1,490 with total ports sold up 49% to 4,069.
Over the fiscal year the company raised $60 million and has $74.9 million cash on hand to mean it's well positioned to invest for growth. It also remains in a big growth sector thanks to the rise of the cloud and enterprise demand for adjustable bandwidth.
Other small-cap tech shares to watch include EML Payments Ltd (ASX: EML) and Serko Ltd (ASX: SKO).
