Megaport shares soar over 20% on revenue guidance upgrade
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The news: Megaport shares rocketed at the start of trading after the network as a service provider upgraded its full-year revenue guidance.
The numbers: Megaport shares were up 22.4% to $11.68 at 11am AEDT, extending gains of nearly 60% since the turn of the year.
The company upgraded its full-year revenue guidance from between $214 million and $222 million to between $216 million and $222 million.
Megaport reported first-half annual recurring revenue of $226.6 million, up 18% compared to the prior corresponding period. Net revenue retention (NRR) increased 1% to 107% since June 2024, which the company said pointed to "early signs of stabilisation". Total revenue grew 12% to $106.8 million year on year.
The context: E&P analyst Paul Mason said the results are "a bit mixed overall". He noted that revenue was in line with market estimates, while NRR stabilisation "might be received quite well".
Megaport also flagged a $1.5 million "opportunistic investment" in key go-to-market roles, which Mason said may boost the stock today.
The sources: ASX announcement, E&P research
