The Megaport Ltd (ASX: MP1) share price has edged lower on Thursday following the release of its second quarter update.
At the time of writing the shares of the global leader in elastic interconnection are down 1.5% to $10.71.
How did Megaport perform in the second quarter?
Megaport continued its strong form in the second quarter and delivered Monthly Recurring Revenue (MRR) of $4.6 million. This represents growth of 12% quarter on quarter and 68% on the prior corresponding period.
Total revenue increased by 15% quarter on quarter or 75% on the prior corresponding period to $13.82 million.
This was driven by a lift in both customer numbers and enabled data centres to 1,679 and 552, respectively, following its continued expansion into new markets and the deepening of its reach within existing metros.
This trend looks set to continue in the coming quarter. Following its recent expansion into Japan with an initial footprint in Tokyo, it now has plans to expand into Osaka in the first quarter of calendar year 2020.
Megaport's chief executive officer, Vincent English, was pleased with the second quarter.
He said: "Megaport drove strong revenue momentum throughout the second quarter of Fiscal Year 2020 with Monthly Recurring Revenue (MRR) performance of $4.6M, up 12% from the previous quarter.We continue to see strong uptake of Megaport Cloud Router (MCR) with 130% year over year growth as customers use our platform to harness the power of multicloud connections.
Looking ahead, Mr English expects the recent capital raising to support its growth plans.
"Our successful capital raising this quarter will support the development of new technologies for Megaport's platform to deliver more value to our customers and partners while unlocking new data-driven use cases. We are very focused on achieving profitability and are executing a strong disciplined approach towards costs and cash recovery with our cash receipts up 24% in the quarter; as well as continued improvement in EBITDA quarter on quarter," he added.
