Megaport ramps up revenue for FY19 but outgoings continue to outstrip

Total revenue sits at AU$35 million for the full year but there is AU$46 million in outgoings, leaving the company burning through cash.
Written by Chris Duckett, Contributor

Australian interconnection services provider Megaport has reported its fourth quarter earnings for fiscal year 2019, with the company seeing overall revenue improve 78% to AU$35 million for the full year, and monthly recurring revenue increasing 82% to AU$3.6 million compared to last year's results.

Megaport said it had 300 installed data centres by June 30, which was in increase of 36% year-on-year, as well as 528 enabled data centres, which is a new category for the company.

For the full fiscal year, Megaport grew customer numbers by 44% to 1,490, and total services jumped 76% to 11,561.

Looking at the fourth quarter, the company increased its data centre footprint by 14% compared to last quarter, grew its customer base by 9%, and total services by 11%. Consequently, its revenue increased by 22% quarter-on-quarter to AU$11 million, and monthly recurring revenue went up 16%.

In its half-yearly results released in February, the company broke up its revenue and profit numbers by region, but did not provide any such data for the full year.

Megaport said at the time that APAC was the only region to not make a loss.

During the year, Megaport maintained AU$74 million in cash and cash equivalents, but only due to raising AU$64 million from the share market that helped make up for the AU$27 million loss from operating activities and AU$19 million spent on new infrastructure.

"We will continue to strengthen and add data centre partnerships to expand our footprint and service reach into new markets and countries in the coming quarters," CEO Vincent English said.

Before revenue comes into considerations, the company is set to spend AU$26 million in outgoings for the next quarter.

(Image: Megaport)

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