MP1 -16.33%: any sign of weakness in the Tech sector has been treated harshly recently, and connectivity company Megaport was no exception today despite maintaining FY24 guidance. The company hit record quarterly EBITDA of $15m which compares to the $1m EBITDA in 1Q23 and up 27% on the prior quarter. Cashflow was also positive at $5.6m however it was the slow growth in customer numbers that had the market concerned. Annualized Recurring Revenue (ARR) was up 6% QoQ, largely driven by a 5% benefit from FX, and Customer Ports was up just 1%. Cost control has improved the underlying business substantially in the last 6 months however stagnating the top line growth had the market concerned.
MM remains neutral MP1
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