H1 FY25 Half Year Results Announcement
| Stock | Megaport Ltd (MP1.ASX) |
|---|---|
| Release Time | 20 Feb 2025, 8:25 a.m. |
| Price Sensitive | Yes |
Megaport Ltd reports record H1 FY25 results
- Annual Recurring Revenue up 18% to $226.6M
- Revenue increased 12% to $106.8M
- Net Cash Flow of $15.7M, up $3.2M
- Investments made in go-to-market, product and innovation
Megaport Ltd (ASX:MP1) reported its half-year financial results for the period ended 31 December 2024, delivering continued improvements in Annual Recurring Revenue (ARR), Gross Profit, and Net Cash Flow. ARR grew to $226.6M, up 18% compared to the prior corresponding period, driven by Net Revenue Retention of 107% and strong net new logo additions. Total revenue for H1 FY25 was $106.8M, up 12% compared to H1 FY24. Gross Profit increased 12% to $74.7M, with the gross margin remaining stable at 70%. The company generated Net Cash Flow of $15.7M, up $3.2M compared to H1 FY24. Megaport made strategic investments in go-to-market roles, including Sales Executives, Channel Managers, and Customer Success teams, to drive future growth. The company also continued to execute on its product innovation and network expansion strategy, deploying a 400G backbone, adding 82 new data centres, 4 new IX locations, 25 new cloud on-ramps, and entering 2 new countries. Megaport's new compute platform and the launch of products like 100G MCRs, high-speed NAT Gateway, and Managed Cross Connects are expected to drive further innovation. The company updated its FY25 Revenue guidance to $216M to $222M, representing growth of 11% to 14% compared to FY24. The EBITDA and capital expenditure guidance remained unchanged.
FY25 Revenue is expected to be in the range of $216M to $222M, representing growth of 11% to 14% compared to FY24 Revenue of $195.3M. The FY25 EBITDA guidance of $57M to $65M and capital expenditure guidance of $27M to $30M remain unchanged.
Megaport continues to execute on its strategy for long-term growth, making investments in go-to-market, product and innovation to drive sustainable performance. The company is laying the foundations for future success through initiatives like the deployment of its 400G backbone, new data centre expansions, cloud on-ramp additions, and the launch of its new compute platform and products.