Megaport (MP1) H2 2024 earnings summary

Executive summary

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

• Gross profit rose 32% to $136.8 million, outpacing revenue growth, and EBITDA surged 182% to $57.1 million, with margin expanding to 29% from 16% in FY23.

• Delivered maiden net profit before and after tax, and achieved first-ever positive net cash flow of $28 million, including a $5.5 million one-off receipt, a $62.5 million improvement year-over-year.

• Annual recurring revenue exceeded $200 million in Q4, reaching $203.9 million, with continued expansion in high-value services and customer base.

• Growth was broad-based across all regions, supported by reinvestment in go-to-market and product innovation.

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 margin improved to 70% (up from 68% in FY23), reflecting pricing changes and cost discipline.

• 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, with FY25 expected at $27–$30 million, including $6 million in network licensing.

• Vendor financing liability reduced to $11.2 million from $15.2 million year-over-year.

Outlook and guidance

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

• Focus remains on profitable, efficient growth, with continued investment in go-to-market, product innovation, and global expansion, including 400G backbone rollout.

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