Megaport share price charges 12% higher to lead the ASX 200 amid stellar Q4 report

The company intends to provide improved FY24 guidance within the next month.

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Key points

  • The Megaport share price has just soared 11.64% to a new 52-week high of $10.36 after the company released its FY23 4Q report
  • The June quarter is Megaport's first positive net cash quarter 
  • Megaport will provide updated and improved FY24 guidance on or before its FY23 full-year results are released on 22 August 

The Megaport Ltd (ASX: MP1) share price has just soared 11.64% to a new 52-week high of $10.36 after the company released its FY23 4Q report on Thursday.

For the first time ever, Megaport has reported a positive net cash quarterly result.

The ASX tech share is the top mover among ASX 200 shares today. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.74% to 7,456.6 points.

Let's see what the company had to say.

Megaport share price soars on 'transformational' metrics

Here are the highlights of 4Q FY23:

Megaport says it "achieved transformational improvements in EBITDA and net cash flow" during the quarter.

This led to the company upgrading its guidance on 11 July, which sent the Megaport share price skyrocketing by more than 25%.

What did management say?

Megaport said significant top-line revenue growth and a continued focus on cost control have driven its improved financial performance.

In its statement, the company said:

The revenue growth was driven by the full impact of the Cloud VXC repricing for a full quarter and organic growth in recurring revenue.

The strong net cash flow generated saw repayments of $2.4M made to the vendor financing facility.

The Board has decided to terminate its $25M HSBC debt facility due to a lack of requirement and to reduce costs.

What's next?

Megaport will release its official FY23 full-year results on 22 August.

The tech company says it will also provide detailed FY24 guidance no later than 22 August.

It expects this guidance to be higher than the previous guidance of $41 million to $46 million.

The company said:

Megaport expects to be Net Cash positive for FY24 after taking into account the planned incremental growth in sales headcount and planned capital expenditure.

Megaport also released an investor presentation today.

Megaport share price snapshot

The ASX tech share is up 66.5% in the year to date compared to a 7.4% bump for the ASX 200.

Motley Fool contributor Bronwyn Allen 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.

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