The Megaport Ltd (ASX: MP1) share price is falling lower today following the company's release of a business update this morning. At the time of writing, the Megaport share price is trading just under 2% lower at $14.22.
What did Megaport announce?
In the September quarter of 2020, Megaport had quarter-on-quarter (QoQ) recurring revenue growth of 2%. Total recurring revenue for the quarter was $5.8 million.
Other highlights from the September quarter included:
- 5% growth in total installed data centres compared with the previous quarter.
- 9% QoQ growth in cloud on ramps.
- 5% normalised monthly recurring revenue growth from the previous quarter.
- 7% growth in total customers during the quarter.
- 10% growth in total ports during the quarter.
- 9% QoQ growth in total number of services.
Megaport also announced that it is working to integrate its platform with various networking technologies, including Cisco Systems Inc's (NASDAQ: CSCO) SD-WAN. According to Megaport, this will extend the reach of its platform.
Megaport also stated that its normalised group profit after direct network costs has continued to expand as revenue growth has been larger than growth in direct network costs. The company stated that its normalised profit after direct network costs was 55% in the 2020 financial year.
About the Megaport share price
Megaport is a technology company that offers network as a service through its data centres. It has been listed on the Australian Stock Exchange since 2015.
In the September 2020 quarter, Megaport had revenue of $17.3 million, an increase of 2% QoQ. Megaport had cash on hand of $152.8 million at 30 September 2020.
The Megaport share price is up 132.73% since its 52-week low of $6.11, it has increased 36.6% since the beginning of the year. The Megaport share price is up 70.1% since this time last year.
