In morning trade the Megaport Ltd (ASX: MP1) share price has sunk lower despite the release of a solid first quarter update.
At the time of writing the shares of the leading provider of elastic interconnection services are down 8% to $9.43.
How did Megaport perform in the first quarter?
Megaport has started FY 2020 strongly, reporting Monthly Recurring Revenue (MMR) of $4.1 million. This was a 13% quarter on quarter increase and a 71% increase over the prior corresponding period.
Revenue for the period was $12.03 million, an increase of 10% from the last quarter. Megaport's average revenue per port lifted 3% to $914.
This was driven by the continued expansion of its network footprint to new markets while deepening its reach within existing metros. During the quarter Megaport reached a milestone of 304 installed locations and 535 enabled locations globally.
Also supporting its growth was expanded partnerships with CyrusOne and EdgeConnex in Europe and the expansion of the Megaport Cloud Router (MCR) service footprint. The latter enables greater reach and control of cloud-to-cloud traffic and virtual routing capabilities. Another positive was the addition of new SAP onramps in Sydney, Frankfurt, and Ashburn.
Megaport's chief executive officer, Vincent English, was pleased with the strong start to FY 2020.
He said: "Megaport came out of the gates for the first quarter of Fiscal Year 2020 with a strong Monthly Recurring Revenue (MRR) performance of $4.1M, up 13% from the previous quarter. Meanwhile, we have continued to focus on making new services available to our customers and partners alike by deploying additional MCR infrastructure to support virtual routing functions across a wider service footprint."
"The addition of new SAP onramps is in response to the growing demand for SAP-enabled applications within AWS, Microsoft Azure, and Google Cloud environments. Several recent customer wins, including Karma Automotive and Zuellig Pharma, have taken advantage of Megaport's ability to unlock similar SAP-powered multicloud architectures," he added.
Elsewhere on the market today, the Catapult Group International Ltd (ASX: CAT) share price has pushed higher following a Vector update and the Medical Developments International Ltd (ASX: MVP) share price has stormed higher following the release of a Penthrox update.
