Megaport (MP1) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of $195.3 million, up 28% year-over-year, with strong growth across all regions and segments, and delivered first-ever net profit after tax of $9.6 million, reversing a prior year loss.

• EBITDA surged to $57.1 million, up 182% year-over-year, with margin expanding to 29% from 16% in FY23, reflecting a significant financial turnaround and operational efficiency.

• Net cash flow turned positive at $28 million, a $62.5 million improvement year-over-year, with closing net cash at $61.2 million, up 84% from the previous year.

• Annual recurring revenue exceeded $200 million in Q4, reaching $203.9 million, a major milestone supported by expansion in high-value services and customer base.

• Growth was broad-based, supported by reinvestment in go-to-market, product innovation, and leadership overhaul.

Financial highlights

• North America led with $110.8 million revenue (57% of total, up 30%), Asia Pacific $52.6 million (27%, up 21%), EMEA $31.9 million (16%, up 31%).

• Gross profit rose 32% to $136.8 million, with gross margin improving to 70%.

• Direct network costs increased 4% year-over-year; partner commissions up 24% reflecting renewed channel engagement.

• Cash at bank nearly doubled to $72.4 million; current ratio improved to 2.3 from 1.5.

• CapEx was historically low at $19.4 million in FY24; FY25 expected at $27–$30 million, including $6 million in network licensing.

Outlook and guidance

• FY25 revenue guidance: $214–$222 million; EBITDA guidance: $57–$65 million.

• Focus on accelerating ARR growth, product innovation, and global expansion, including 400G backbone rollout and capacity expansion to meet rising demand, especially from AI.

• Ongoing strategic investments in network, product, and sales teams to drive long-term growth.

• Guidance assumes AUD/USD rate of 0.668; FX fluctuations may impact revenue, costs, and cash flow.