The Megaport Ltd (ASX: MP1) share price has fallen sharply by 22% to $9.23 in Thursday morning trade, following the release of its FY 2024 results.
FY 2024 Financial Highlights:
- Revenue: Increased by 28% to $195.3 million.
- Annual Recurring Revenue (ARR): Rose 14% to $203.9 million.
- Gross Profit: Up 32% to $136.8 million.
- EBITDA: Soared 182% to $57.1 million.
- Net Cash Flow: Positive at $28 million, marking a $62.5 million improvement from FY 2023.
Performance Overview:
- Revenue Growth: The 28% rise in total revenue was driven by a 4% increase in customer logos and an 11% boost in total services.
- Earnings Surge: EBITDA surged by 182%, reflecting a significant financial turnaround.
- Net Cash Flow: Positive cash flow of $28 million resulted in a net cash position of $61.2 million.
Management Commentary:
CEO Michael Reid highlighted the company’s strong performance, noting the achievement of over $200 million in ARR and a substantial increase in EBITDA. He praised the "tremendous milestone" and the company's ability to turn around its financials, setting the stage for future growth investments.
Despite these achievements, the share price has taken a hit due to less favorable FY 2025 guidance.