The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What's next?

It's head above the clouds for Aussie Broadband shares…

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The Aussie Broadband Ltd (ASX: ABB) share price has been a standout performer, surging almost 40% in the past month.

The winning spree is continuing on Tuesday, with the company's shares this morning leaping to an all-time high of $4.14.

At the time of writing, they have partially retreated to $3.95, still a gain of 5.33% on yesterday's closing price.

Aussie Broadband share price rallies after FY21 results

The Aussie Broadband share price is on the rise after the company released its FY21 results on Monday.

Despite a well-rounded FY21 performance, Monday's trading session proved to be a volatile one for the Aussie Broadband share price.

At the morning bell, it opened 4% higher to an intraday high of $3.84, before selling pressure dragged it well into negative territory, down 2.4% to lows of $3.60 by lunchtime.

Aussie Broadband shares finished the bumpy session 1.63% higher at $3.75.

While its shares might have whipsawed back and forth, the company delivered a strong FY21 performance and an uplift in market share across internet and mobile services. Highlights include:

What's next for Aussie Broadband?

Looking ahead, Aussie Broadband managing director Phillip Britt commented, "We will continue our marketing and sales focus on organic growth of our residential and business/enterprise segments, as well as exploring new channels for growth. We will continue to review merger and acquisition opportunities that are aligned with our strategy and culture and would deliver value for our shareholders."

Britt highlighted the company's fibre build as a catalyst to drive cost savings and growth.

"We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure but also through the opportunity to directly connect customers to our own network," Britt said.

According to the results, the fibre build will be complete this financial year. The company said more than 1,200 km of Aussie Broadband-owned fibre will be in the ground on completion.

The fibre build is expected to result in more than $15 million per year saving in backhaul charges from FY23 onwards.

Changing to be solutions focused

Aussie Broadband aspires to become a "one-stop-shop" for customers' communications and IT requirements. Instead of selling connections to customers or third parties, the company said it wants to become an "expert [in] design, advice and implementation of solutions".

The company's results highlight a number of solutions-focused products under development. This could see the company branch out into cloud services, managed hardware and security in the near term.

Aussie Broadband share price snapshot

The Aussie Broadband share price has delivered a four-fold increase from its initial public offering price of $1.

From a year-to-date perspective, the company's shares have almost doubled from their closing price of $2.00 on 31 December 2020.

Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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