One of the best performers on the market on Wednesday has been the Megaport Ltd (ASX: MP1) share price.
In late morning trade the shares of the provider of elastic interconnection services across data centres globally are up 10% to an all-time high of $5.41.
Why is Megaport storming higher?
This morning Megaport released its global update for the third quarter and revealed that it has had another quarter of strong growth.
During the quarter Megaport continued to expand its network footprint to new markets while deepening its reach within existing metros. At the end of the period, its total installed data centres reached 264, an increase of 19 or 8% over the last three months.
It also furthered its leadership position in cloud networking by enabling several new cloud on-ramps globally including access to Oracle's newly launched Cloud Region in Toronto. In addition to this, Megaport bolstered its Ecosystem of cloud providers with a new partnership with Nutanix.
This ultimately led to a 7% increase in customer numbers to 1,367, and an 8% quarter on quarter lift in revenue to $8.96 million. The company finished the period with Monthly Recurring Revenue (MRR) 15% higher at $3.11 million.
Megaport's chief executive officer, Vincent English, was pleased with the company's performance during the quarter.
He said: "We continued to maintain our focus on deepening our Ecosystem and expanding our footprint to address the growing need for direct cloud connectivity. Our approach of rapidly expanding to new data centres and partnering with key regional networks enables us to reach more customers and accelerate our first-mover advantage. With our industry-leading integration with Nutanix, our customers are empowered with greater choice through direct, scalable and on-demand connections to hyperconverged services like Xi Cloud."
Should you invest?
Whilst its shares are starting to look fully valued now, I continue to believe that Megaport could be a great buy and hold investment due to its exposure to the cloud computing boom and first-mover advantage.
This could make it worth considering along with data centre providers Macquarie Telecom Group Ltd (ASX: MAQ) and NEXTDC Ltd (ASX: NXT).
