Megaport Shares Slump to Two-Year Low After Third-Quarter Revenue Update

By Stuart Condie

SYDNEY--Megaport Ltd.'s shares have tumbled to a two-year low after the pace of the Australian tech services company's revenue growth continued to stall in its fiscal third quarter.

The ASX-listed company on Thursday reported monthly recurring revenue for the three months through March of 9.5 million Australian dollars (US$7.1 million), up 3% from the second quarter. Stripping out the impact of currency moves, it grew 6% on quarter, the same pace seen in the second quarter and down from 11% in the first quarter.

Megaport's shares were 18% lower at A$10.41 and on course for their lowest close since April 8, 2020. The stock was the worst performing ASX 200 component and is down 44% so far in 2022.

The interconnectivity service provider--whose customers include Zoom Video Communications Inc., Uber Technologies Inc. and eBay Inc.--creates a virtual platform and leases so-called port access to technology customers.

It sold 1,577 new services in the third quarter at an average of 2.88 a port, which it said reflected increasing network usage by customers. Average revenue for each port in March was A$1,049, down 2.3% from the previous three months.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

April 20, 2022 23:17 ET (03:17 GMT)

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