ASX 200 tech stock Megaport leaps on open then plunges on half-year results

The ASX 200 tech share was up more than 7% in early trade before plunging to a 5% loss.

| More on:
A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.

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 leapt in early trade before diving into the red
  • The ASX 200 tech share released its half-year results this morning
  • With a net loss of $9.2 million in 1H FY23, Megaport will not pay any dividends

S&P/ASX 200 Index (ASX: XJO) tech stock Megaport Ltd (ASX: MP1) is on a bit of a rollercoaster on Thursday. 

The tech company, which provides Network as a Service (NaaS) solutions, closed yesterday trading for $6.19 per share. In early morning trade shares were swapping hands for $6.63 apiece, up 7.1%.

In later morning trade, those fortunes reversed, with the ASX 200 tech stock now trading for $5.85, down 5.5%.

Here's what investors are considering.

Megaport share price seesaws on results

This morning Megaport released its results for the half-year ended 31 December (1H FY23).

(Note that all the figures quoted are in US dollars.)

The ASX 200 tech share is seeing some wild price swings and is currently deep in the red despite reporting revenue of US$47.4 million, a 27% increase compared to 1H FY22.

Monthly recurring revenue (for the last month of the reported period) increased 11% to $8.3 million.

Profits after direct network costs and partner commissions came in at $31.1 million, up 38% from the prior corresponding period.

While net losses improved from the $14.7 million reported in 1H FY22, 1H FY23 still saw the company report a net loss of $9.2 million.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) leapt from a loss during the corresponding half-year, to $2.3 million for the current reporting period.

As of December, the ASX 200 tech stock had 2,739 customers across 802 enabled data centres in 150 cities. The company has been broadening its footprint, reporting it reached 138 cities in 2021.

The Megaport share price could be under some pressure with the reported reduction in its cash and cash equivalents balance to $39.2 million. That's down from $56.9 million on 30 June 2022.

The board did not declare any dividends.

How has the ASX 200 tech stock been tracking?

As you can see in the chart below, it's been a difficult year for the ASX 200 tech stock. Over the past 12 months, the Megaport share price is down 57%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Doctor doing a telemedicine using laptop at a medical clinic
Earnings Results

Polynovo share price surges after 57% revenue gain in FY24

Global sales continue to grow for Polynovo.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Earnings Results

Paladin Energy share price in focus on quarterly production data

The uranium producer had a reasonably constructive quarter.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

ASX 200 stock jumps 10% on strong FY24 results

How did this KFC restaurant operator perform in FY 2024?

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just slashed its final dividend by 23%

This retailer had a tough time during the 12 months. Here's how it performed.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »