Megaport continues double digit revenue growth citing IBM Cloud partnership

Megaport has clocked AU$4.68 million in quarterly revenue, saying its IBM Cloud partnership will allow it to provide scalable connectivity to support blockchain, artificial intelligence, analytics, and IoT.
Written by Corinne Reichert, Contributor

Australian interconnection services provider Megaport has published its financial results for the second quarter of FY18, citing its partnership with IBM Cloud as partially driving what it called a "strong" result.

"The addition of new service providers like IBM Cloud allows us to provide the scalable connectivity that supports the future wave of AI, analytics, blockchain, and Internet of Things," Megaport CEO Vincent English said.

During the three-month period ended December 31, Megaport said it also launched services in Denver and Hamilton, achieved Amazon Web Services (AWS) Networking Competency status, and entered into datacentre partnerships with Cyxtera and IO Data Centres.

"Megaport's service footprint and ecosystem continues to grow through new datacentre partnerships, which enables us to bridge the gap between cloud onramps and enterprise datacentres," English added.

During the quarter, Megaport clocked AU$4.68 million in revenue, up 12.7 percent quarter on quarter, with an average revenue per port of AU$707 in December thanks to customers using more than one cloud provider.

As of December 31, Megaport had 185 datacentres, up from 173 in Q2; 860 customers, up from 783; 2,259 ports, up from 2,064; and 5,041 services, including ports, Virtual Cross Connections (VXCs), and Internet Exchange (IX), up from 4,422 the previous quarter.

Datacentres in the Asia-Pacific region numbered 52 as of December, thanks to the addition of Hamilton; IBM Direct Link being enabled in Sydney and Melbourne; and adding new cloud onramps with AWS Direct Connect in Perth.

The Americas have 76 Megaport datacentres with the addition of Denver; IBM Direct Link being enabled in Dallas, San Jose, Toronto, and Ashburn; and adding new cloud onramps with AWS Direct Connect in Denver and Microsoft ExpressRoute in Denver.

In Europe, Megaport now has 57 datacentres in total thanks to enabling IBM Direct Link in London, Amsterdam, and Frankfurt; and adding new cloud onramps with Oracle Cloud Infrastructure FastConnect in Frankfurt.

According to English, this makes Megaport the "leading network-as-a-service provider", adding that the company will continue its expansion throughout Q3.

During the first quarter of the financial year, Megaport had additionally signed a partnership with NTT in Singapore; entered datacentre partnerships with QTS, Stream, and ForTrust; activated its first Europe-based Oracle Cloud onramp in Frankfurt; and chose former Twitter Global Network lead Tim Hoffman as its new chief technology officer.

As of October 1, Hoffman has had responsibility over Megaport's network operations, network architecture, software development, product, and procurement segments, reporting directly to English, who was appointed as CEO following the resignation of former CEO Denver Maddux last year.

Megaport's full-year financial results revealed a net loss of AU$29.9 million for FY17, up slightly on the previous year's AU$21.3 million net loss, on revenue of AU$10.7 million, which jumped from just AU$2.7 million a year previously.

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