Megaport shares tumble after reiterating guidance
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More news: Shares in Megaport have tumbled more than 10% to $7.50 after the information technology services provider disappointed investors by reaffirmed its muted full-year revenue and earnings guidance ahead of its annual general meeting.
The company, which trades at a very high valuation and reported strong growth in FY24, expects full-year earnings in the range of $57 million to $65 million, compared to $57.1 million last year.
FY25 revenue is expected to be in the $214 million to $222 million range, up from $195.3 million last year.
Megaport reaffirms full-year guidance
The news: Information technology services provider Megaport has reaffirmed its full-year revenue and earnings guidance ahead of its annual general meeting.
The numbers: The company expects full-year earnings before interest, tax depreciation and amortisation (EBITDA) in the range of $57 million to $65 million, while FY25 revenue is likely to be in the $214 million to $222 million range. In FY24, Megaport reported earnings of $57.1 million and revenue of $195.3 million.
The context: Megaport chief executive Michael Reid said early trends indicate a continuation of the revenue growth trajectory into FY26.
The Brisbane-based tech firm said its robust balance sheet position and strong cash generation had allowed it to reinvest back into the business, with strategic hiring of go-to-market roles in the first quarter.
What they said: “We will continue to evaluate opportunities to reinvest in FY26 provided it supports our relentless focus on net revenue retention and new logos, accelerating annual recurring revenue growth,” Reid said.
The source: ASX announcement
