Australian interconnection services provider Megaport remains very much in an expansion phase, as the company is projecting cash outflow of AU$19.5 million in the first quarter of FY19, which in a matter of three months almost eclipses the AU$23.6 million outflow from operating activities experienced over the course of FY18.
In delivering its fourth quarter update to June 30, the company showed a 85 percent increase in yearly revenue to AU$19.75 million, and a 63 percent jump in monthly recurring revenue to AU$2 million.
Across the 2018 fiscal year, Megaport has seen a 75 percent increase in services, 51 percent boost in ports, 41 percent jump in customers, and a 34 percent increase in the number of datacentres it is located in. Of the 221 locations it is now present in, 100 are in North America, 62 are in Europe, and 59 are located in Asia Pacific.
“One of Megaport’s top priorities is to expand our Network as a Service footprint to extend the reach of cloud services to the locations enterprises currently manage their on-premises infrastructure,” CEO Vincent English said. “This allows us to make it very easy for IT decision makers to adopt a multicloud architecture while they are undertaking their digital transformation journey without the need to re-engineer their physical deployments.”
At the end of the fourth quarter, the company had cash and bank balances of AU$56.3 million, thanks to raising over AU$74 million from share placements during the year.
For its fourth quarter, its revenue of AU$5.8 million was barely outstripping the individual line items of product manufacturing and operating costs at AU$5.4 million and staff costs of AU$5.4 million, which resulted in cash outflow just under AU$7 million from its operating activities.
Over the fiscal year, the company made AU$19.5 million in revenue, but had cash outflow of AU$23.6 million from operating activities, as well as AU$16 million leaving the business thanks to asset purchases.
For its next quarter, Megaport is expecting AU$19.5 million to flow out of the business, with operating and staff costs to sit around the same numbers registered for the fourth quarter.
For the quarter ending March 31, Megaport reported customer receipts falling to AU$4.5 million, while revenue rose to AU$5.14 million.
Following the launch of its virtual cloud router service, Megaport is aiming to raise AU$50 million in a placement and AU$10 million in a share purchase plan to extend its network and services.
The Megaport Cloud Router will allow customers to connect to multiple cloud services across the globe without needing a datacentre presence or physical infrastructure.
Megaport has clocked AU$4.68 million in quarterly revenue, saying its IBM Cloud partnership will allow it to provide scalable connectivity to support blockchain, artificial intelligence, analytics, and IoT.
During the quarter, Megaport expanded into Boston, Canada, and Kansas City, with the company attributing its Q1 results to strong growth in North America.
Megaport has announced the appointment of Tim Hoffman as its new CTO, who it said will bring experience in scaling network infrastructure globally.
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