Business needs for IT solutions boost Megaport's (ASX:MP1) revenue

Company News

by Lauren Evans

Long-term deal commitments helped Megaport (ASX:MP1) post a 8 per cent jump in revenue for the December quarter to $26.6 million, compared to the prior period.

Customers were looking for long-term IT solutions to help businesses connect at a rapid pace. The software company also added 123 new customers. 

Megaport drove strong monthly recurring revenue growth by 7 per cent to $9.2 million. Annualised recurring revenue now sits at $110 million.

The company said long-term deal commitments formed a majority of net new additions in the quarter, with 64 per cent of net new Ports being acquired with committed terms of between 12 and 36 months.

Megaport signed partnership agreements with two global value added distributors, Arrow and TD SYNNEX in the quarter.

“In the second quarter, we continued to stay very focused on executing to achieve our targets and aligning the business for greater channel growth,” said chief executive officer Vincent English.

“In addition to delivering the strongest second quarter for new customers and Ports, the team also delivered key new partnerships in the indirect channel and technology alliance space.”

Shares in Megaport (ASX:MP1) are down 11.5 per cent at $16.16. 

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