Interconnection services provider Megaport has recorded strong growth for the first quarter of the 2016-2017 financial year, with an increase in revenues of 91% on the back of “organic growth, acquisitions and execution of key strategic partnerships”.
Revenue for the quarter was $1.8 million, with total monthly recurring revenue at the end of the quarter being $794,000, an increase of $486,000, or 158% quarter-on-quarter.
Megaport chief executive Denver Maddux says the first quarter of fiscal year 2017 showed “tremendous growth for Megaport”.
“Our organic revenue has grown considerably due to the increased uptake of direct cloud interconnection,” he says.
“Megaport specialises in delivering these services. Partnerships with data centre operators, internet exchanges, and other channel partners forged in the previous fiscal year are generating revenue.
{loadposition peter}“Our European acquisitions have contributed not only to our revenue but to our ecosystem of service providers and strategic data centres. Combined, we have nearly doubled our revenue run rate from the previous quarter. Our partnership, acquisition, and local go to market strategies are coming together to capture market share.”
On its global expansion, and region-by-region progress, Megaport reports that:
● Asia-Pacific: Total data centres are 40 with the addition of new data centres in Perth and Sydney. The Australia and New Zealand business units are operating EBITDA positive.
● North America: Total data centres are 33 with the addition of new data centres in Portland and Las Vegas where Megaport is the first elastic interconnection provider in those cities.
● Europe: Nine new data centres are active with the addition of data centres in Amsterdam, Dublin, London, and Stockholm. They combine for a total of 57 data centres across Europe. The region is operating EBITDA positive.
“We continued an excellent trajectory as we launched new data centres, acquired another business, and added talented people throughout Europe. Our partnership with Digital Realty Trust positions us, and Digital Realty, to serve the needs of enterprises on a broader scale,” Maddux says.
“Partnerships continue to drive Megaport into new cities where the demand for direct cloud connectivity is growing. With 4Degrees, we will have the ability to service the needs of enterprises in Quebec. Our Open Alliance agreement continues to provide an excellent framework for expanding the Megaport footprint cost-effectively and enabling data centre operators to differentiate their services with elastic interconnection and cloud exchange.”