Megaport delivers ‘record’ HY performance with 12% revenue growth

Cloud connectivity provider Megaport has seen a “record” performance in the first half of its 2025 financial year, with revenue rising 12 per cent, to $106.8 million, compared to the first half of FY24.

This is according to its financial results for the half year to 31 December, which also highlighted gross profit also increasing by 12 per cent, to $74.7 million.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) were down 9 per cent, to $27.6 million and net profit after tax (NPAT), which reached $4.4 million in the first half of FY24, was down 80 per cent to $886,000.

Various costs impacting its bottom line include a 28 per cent increase in employee expenses, reaching $35.6 million, marketing expenses jumping up 79 per cent, to $2 million, travel expenses rising 64.8 per cent, to $2 million, and equity-settled employee costs and related tax costs growing 51.5 per cent, to $8.5 million.

Additionally, the company also saw less in income tax benefits compared to the same period a year prior, dropping 64.6 per cent, to $1.9 million.

Despite this, Megaport CEO Michael Reid said the company achieved “top-line revenue growth across all regions while making ongoing investments to drive sustainable, long-term growth”.

Splitting the revenue into its regional segments, The Americas brought in $60.8 million in revenue during the half year, a 12.9 per cent increase compared to this time last year. Meanwhile, Asia Pacific accounted for $28.5 million, rising 10.5 per cent, and Europe made $17.5 million, an increase of 12.7 per cent.

“The improved growth in annual recurring revenue during the half year, particularly in the Americas, gave us the confidence to make incremental, opportunistic investments in key go-to-market roles,” Reid added.

Those roles include those within sales executives, channel managers and customer success teams.

As a result of its revenue growth, Megaport updated the lower end of its revenue guidance for its full year results from $214 million to $216 million, with the upper end of $222 million unchanging.

The raising of the lower end, the company claimed, reflects revenue growth across all its regions and early signs that its net revenue retention may be stabilising, with an improvement of 1 percentage point to 107 per cent since June 2024.

Its EBITDA guidance meanwhile is unchanged at a range of $57 million to $65 million.

Megaport’s results for the first half of FY25 come months after it announced in August 2024 it had recorded its first ever positive NPAT for a full financial year, pulling in $9.6 million for the 12 months to 30 June.