Megaport (MP1) H2 2024 earnings summary

Executive summary

• Achieved a substantial financial turnaround in FY24, with revenue up 28% year-over-year to $195.3M and first-ever net profit after tax of $9.6M, reversing a prior year loss.

• EBITDA rose to $57.1M, up 182% year-over-year, with margin expanding to 29% from 16% in FY23, reflecting profitable, efficient growth.

• Net cash flow turned positive at $28.0M, improving by $62.5M year-over-year, with closing net cash of $61.2M and cash at bank of $72.4M.

• Major reinvestment in go-to-market and product innovation, resulting in record sales of new access products and Virtual Edge solutions.

• Expanded product portfolio and geographic reach, including launches of Global WAN, Internet, AI Exchange, and 400G backbone upgrades.

Financial highlights

• Gross profit increased 32% year-over-year to $136.8M, with gross margin improving to 70%.

• EBITDA reached $57.1M, up 127%–182% year-over-year, with margin at 29%.

• Net profit was $9.6M, compared to a $9.8M loss in FY23.

• Net cash flow improved by $62.5M, with closing cash at $72.4M and net cash at $61.2M.

• Annual Recurring Revenue (ARR) reached $203.9M in June 2024, up 14% year-over-year.

Outlook and guidance

• FY25 revenue guidance set at $214M–$222M, with EBITDA expected between $57M–$65M.

• Focus on accelerating ARR growth, product innovation, and global expansion, including 400G backbone rollout.

• Ongoing investments in go-to-market, product development, and network capacity to drive long-term growth.