The Megaport Ltd (ASX: MP1) share price has just soared 11.64% to a new 52-week high of $10.36 after the company released its FY23 4Q report on Thursday.
For the first time ever, Megaport has reported a positive net cash quarterly result.
The ASX tech share is the top mover among ASX 200 shares today. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.74% to 7,456.6 points.
Let’s see what the company had to say.
Megaport share price soars on ‘transformational’ metrics
Here are the highlights of 4Q FY23:
- Normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $11.8 million in 4Q
- Normalised FY23 EBITDA of $20.2M, within the upgraded guidance range of $19 million to $21 million
- Reported FY23 EBITDA of $25.2M, also within the upgraded guidance range of $24 million to $26 million
- Net Cash $33.3 million, up $2.3 million over the quarter
- Annual recurring revenue (ARR) $178.6 million, up 6% on the March quarter and up 39% on June 2022
Megaport says it “achieved transformational improvements in EBITDA and net cash flow” during the quarter.
This led to the company upgrading its guidance on 11 July, which sent the Megaport share price skyrocketing by more than 25%.
What did management say?
Megaport said significant top-line revenue growth and a continued focus on cost control have driven its improved financial performance.
In its statement, the company said:
The revenue growth was driven by the full impact of the Cloud VXC repricing for a full quarter and organic growth in recurring revenue.
The strong net cash flow generated saw repayments of $2.4M made to the vendor financing facility.
The Board has decided to terminate its $25M HSBC debt facility due to a lack of requirement and to reduce costs.
What’s next?
Megaport will release its official FY23 full-year results on 22 August.
The tech company says it will also provide detailed FY24 guidance no later than 22 August.
It expects this guidance to be higher than the previous guidance of $41 million to $46 million.
The company said:
Megaport expects to be Net Cash positive for FY24 after taking into account the planned incremental growth in sales headcount and planned capital expenditure.
Megaport also released an investor presentation today.
Megaport share price snapshot
The ASX tech share is up 66.5% in the year to date compared to a 7.4% bump for the ASX 200.
