What's got ASX 200 tech share Megaport (ASX:MP1) marching higher today?

Megaport shares are edging up after the company's half-yearly earnings results…

| More on:
A group of six work colleagues gather around a computer in an office situation and discuss something on the screen as one man points and others look on with interest

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Megaport share price is edging into the green in afternoon trade
  • The company reported mixed half-yearly results this morning
  • Revenue and profit were up, while net assets and cash balance fell 

The Megaport Ltd (ASX: MP1) share price is climbing into the green today after the company reported its H1FY22 financial results.

The ASX 200 technology share is currently trading at $13.45, a gain of 1.51%. It marks a recovery after the company's share price dropped as low as $12.87 in early morning trade.

For perspective, the S&P ASX All Technology Index (ASX: XTX) is up 2.52% so far today.

Let's take a look at what today's financial results reveal.

Megaport share price climbs amid half-yearly results

The highlights of Megaport's half-year (H1FY22) results include:

  • Revenue increased 42% on the previous corresponding period (PCP) ending 31 December 2020, to $51.2 million
  • Monthly recurring revenue of $9.2 million, a 46% improvement on December 2021
  • Profit after direct costs of $30.9 million, a 69% leap on the PCP
  • Net loss of $20.2 million, down from a $38.4 million loss in the PCP
  • Net assets of $174.3 million, down 3% on the previous half
  • Cash balance of $104.6 million, down 23% on the previous half

What else happened in the half?

Megaport is a leading global provider of elastic interconnection services using software-defined networking. In December 2021, the company hit a milestone of 768 data centres in 138 cities. 420 are in North America, 140 in the Asia-Pacific, and 208 in Europe.

Another highlight outlined in Megaport's results today was the company's Megaport Virtual Edge product going live on the Cisco Systems (NASDAQ: CSCO) global price list.

In August, Megaport acquired 100% of artificial intelligence (AI) cloud technology company InnovoEdge.

Overall, the company gained three new software-defined wide area network (SD-WAN) partners. Megaport also launched the PartnerVantage programme, enabling its partners to sell Megaport services.

Megaport has expanded its network footprint to 411 locations where installation has taken place and 768 locations where the network is enabled.

Management comment

Commenting on the results, Megaport chief executive officer Vincent English said:

In addition to strong service uptake across the board, the team drove Megaport Cloud Router (MCR)sales to surpass 600 installed MCRs globally.

With the increased adoption of multicloud architectures, Megaport customers use MCR to enable cloud-to-cloud connections with ease and bill nearly double for Megaport services compared to port-only customers.

We have aligned our business, through innovation, network footprint, product positioning, and partner-building to be The Edge. The team will stay focused for the remainder of the fiscal year on executing our plan and achieving our revenue and EBITDA targets

What's next for Megaport?

Megaport is continuing to integrate InnovoEdge services with its own platform. This will allow more automation and greater control of its network and IT resources.

The company will establish a presence in Mexico, taking the total platform to 24 countries and 139 cities around the world.

Megaport share price recap

The Megaport share price has gained less than 1% in the past year but is down more than 28% year to date.

In the past month, the company's shares have fallen almost 25%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned almost 6% over the past year, losing more than 3% over the last month.

Megaport has a market capitalisation of about $2.1 billion based on today's share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Earnings Results

Sayona Mining share price jumps despite $32m half-year loss

The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday. At the time of writing, the lithium…

Read more »