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Megaport aiming for EBITDA break-even by end of FY21

Goal comes as company burns through another AU$2 million for its fourth quarter.
Written by Chris Duckett, Contributor

Megaport CEO Vincent English has used the delivery of the company's fourth quarter results to state it will have non-negative earnings before interest, tax, depreciation, and amortisation (EBITDA) in a year's time.

"Profitability remains a company-wide priority. We will focus on achieving EBITDA breakeven by the close of fiscal year 2021 by driving further customer growth across all regions," English said.

"With our SDN reaching over 700 enabled data centres across 23 countries, we are well positioned to capture the demand for elastic interconnection to support the ever-increasing surge of data powered by the digital economy."

In dollar terms, the company reported it had taken in AU$17 million in revenue for the fourth quarter ended June 30, up 12% on the same time last year, with AU$5.7 million of that being monthly recurring revenue, up 4%.

For the full year, revenue was AU$58 million, up 66% on the AU$35 million posted last year.

Once operational costs are taken into account, Megaport burned through AU$2 million and AU$23.4 million in cash for the fourth quarter and full year, respectively. The company still has almost AU$167 million in cash and cash equivalents at year-end.

As of June 30, Megaport now has 16,700 total services consisting of 1,840 customers and 5,770 ports. The company has enabled its services in almost 670 data centres worldwide and has a point of presence in 366 data centres.

On Thursday, Superloop also reported a trading update. Superloop was spun out of Megaport in 2014.

For the fiscal year, Superloop said it hit the middle of its EBITDA guidance, at AU$13.5 million, from a 37% year-on-year increase in revenue to AU$107 million.

The company said it saw 46% year-on-year growth in fibre connectivity sales, improving from AU$11.2 million last year to AU$16.4 million.

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