Megaport grows across North America

During the quarter, Megaport expanded into Boston, Canada, and Kansas City, with the company attributing its Q1 results to strong growth in North America.

Australian interconnection services provider Megaport has published its quarterly financial results, with CEO Vincent English saying the company saw a particularly strong quarter from its North American business.

"Key channel partnerships have contributed significantly to total revenue in the region. We will build on this momentum in the coming quarters as our ecosystem continues to grow," English said.

"As part of our expansion strategy, we have extended to Tier 2 markets that have previously been underserved from a cloud access perspective. We have also seen the number of direct connections to cloud providers increase by 56 percent quarter over quarter."

In its ecosystem expansion update, Megaport said it now has 52 datacentres in APAC, having added Adelaide and Wellington during the period; 65 in the Americas, after adding Kansas City and establishing a new cloud region with AWS Canada and a direct connect location in Boston this quarter; and 56 datacentres in Europe after connecting London with Hong Kong on a global multi-cloud interconnection.

Revenue during the quarter to September 30 was AU$4.15 million, up 19.6 percent year on year, with customers increasing by 6 percent quarter on quarter to a total of 783.

As of the end of the quarter, Megaport had 173 datacentres enabled across the globe, up from 165 in the previous quarter; 2,064 ports, up from 1,829 in June; and 4,422 total services, up from 3,764 in June. Average revenue per port for September was AU$636.

Megaport spent AU$71,000 on research and development (R&D) during the quarter, and is estimating an R&D spend of AU$85,000 in the next quarter.

"Having pivoted to a demand-based expansion model, we expect to launch in more Tier 2 markets where enterprises house critical IT assets ready for the jump to cloud," English added.

"We connect to a total of 67 onramps across the top five global cloud providers. Our strong relationship with cloud service providers positions Megaport to be a leading partner for extending the reach of their services and reducing the barrier to adopting cloud by a greater number of enterprises."

Megaport additionally signed a partnership with NTT in Singapore, as well as entering datacentre partnerships with QTS, Stream, and ForTrust, and activating its first Europe-based Oracle Cloud onramp in Frankfurt.

During the quarter, it also chose former Twitter Global Network lead Tim Hoffman as its new chief technology officer from October 1.

Hoffman has responsibility over Megaport's network operations, network architecture, software development, product, and procurement segments, and reports directly to English, who was appointed as CEO following the resignation of former CEO Denver Maddux earlier this year.

Megaport's full-year financial results revealed a net loss of AU$29.9 million, up slightly on last 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.

Megaport's Asia-Pacific business unit generated 47 percent of its revenue, while Europe made up 41 percent and North America 12 percent.

During 2017, Megaport has opened a new connectivity route between Los Angeles and Sydney; added Oracle services after entering a global partnership with the cloud giant to provide customers with North America-based cloud services via Oracle FastConnect; and opened a new connectivity route between Los Angeles and Hong Kong, as well as a secondary path between Singapore and Hong Kong.

Megaport additionally switched on its link on the transatlantic AE Connect 13TB subsea cable connecting New York, London, and Dublin under a partnership with the cable's owner, Aqua Comms, at the same time.

In a bid to also move into the South American market, Megaport's United States subsidiary signed a deal with Seaborn Networks in February, giving it access to a fibre-optic subsea cable system between the US and Brazil to expand its services to customers in Latin America.

In return, Seaborn will be able to provide its South American customers with Megaport's SDN-enabled interconnection services via an online portal, as well as exclusively offer Megaport-enabled "broadband on demand" for connecting internationally.

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