Megaport adds another 21 datacentres

For the quarter ending March 31, Megaport reported customer receipts falling to AU$4.5 million, while revenue rose to AU$5.14 million.
Written by Corinne Reichert, Contributor

Australian interconnection services provider Megaport has revealed a decrease in its receipts from customers for the quarter ended March 31, from AU$5.2 million to AU$4.5 million, with the company attributing this to "the timing of cash flows".

However, revenue was up by 10 percent quarter on quarter, from AU$4.68 million to AU$5.14 million.

"The third quarter saw continued investment in network expansion through new datacentre deployments and network partnerships," Megaport CEO Vincent English said.

"This, combined with new products like Megaport Cloud Router and the addition of Salesforce to our service provider Ecosystem, positions Megaport to further leverage our first-mover advantage and capture the market's increasing need for on-demand, direct cloud connectivity enabled by our network-as-a-service model."

Megaport spent the same on network operating costs to continue expanding its network, at AU$3.6 million, but capex was AU$5 million, up from AU$2.3 million last quarter, "reflecting the addition of 21 new datacentres and the 100GB upgrade to the network infrastructure in North America".

As of the end of March, Megaport had 206 datacentres: 54 in the Asia-Pacific region, after adding two new sites in Brisbane and Perth during the quarter; 91 in the Americas, after adding 15 sites in New York, San Francisco, Boston, Austin, Sacramento, Philadelphia, St Louis, Phoenix, and Columbus; and 61 in Europe, after adding four sites in London, Amsterdam, and Stockholm, as well as a cloud on-ramp with Salesforce in Frankfurt.

Megaport had 106 total connected cloud on-ramps globally by the end of the quarter, having added four during the period. It now has 951 customers, after adding 91; 2,520 ports, after adding 261; and 5,731 services, after adding 690 during the quarter.

"Megaport's ongoing expansion into new datacentres in markets like Austin, Sacramento, and St Louis enable us to support enterprises in locations that have been underserved by direct connectivity to public cloud services," English added.

Megaport spent AU$116,000 on R&D during the March quarter, which it is estimating will rise to AU$127,000 next quarter.

Vincent added that Megaport saw "significant interest" in its recent share placement and share purchase plan, announced last month in an attempt to raise AU$60 million in order to "deliver connectivity to a broader customer base outside of the current footprint".

The equity will be used to bolster its Megaport Cloud Router (MCR) service, the company said at the time, as well as for upgrading network capacity, accelerating expansion into new markets and locations, and funding costs across staff, marketing, and operations.

Megaport's virtual cloud router was launched in January, with the company at the time saying the product removes the need for customers to own or manage physical infrastructure and routers or have a datacentre presence.

Megaport earlier this week also announced support for Google's Cloud Partner Interconnect.

"Scalable connectivity to Google Cloud Platform ensures that cloud-enabled applications perform to meet mission-critical business requirements," English said on Wednesday.

"Google Cloud brings tremendous value to the Megaport Ecosystem and empowers our customers to address a wide variety of business needs. We have been working with Google Cloud since our inception and we are excited to grow and evolve our integration to ensure the next generation of business growth."


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