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Megaport has recorded its first ever positive net profit after tax for a full financial year, pulling in $9.6 million for the 12 months to 30 June.
This result for its 2024 financial year is up approximately 198.3 per cent year-on-year from FY23’s net loss of $9.8 million.
Announced in a report to the Austrlaian Securities Exchange (ASX), the network-as-a-service provider also said its total revenue was up 28 per cent to $195.3 million, gross profit was up 32 per cent to $136.8 million and earnings before interest, tax, depreciation and amortisation (EBITDA) reached $57.1 million, up 182.7 per cent.
A year ago, the provider’s FY24 guidance pointed to EBITDA of $46 million.
“These improvements in EBITDA reflect the full year impact of the pivot to profitable, efficient growth in FY24, delivering a robust financial turnaround, while also reinvesting for future growth,” Megaport said in a statement to the ASX.
Megaport CEO Michael Reid said the provider “[executed] a massive financial turnaround” during FY24, with $200 million in annual recurring revenue achieved, which was labelled as “a tremendous milestone”.
“This fiscal turn around set the stage for us to profitably invest in GTM, product, engineering and our ecosystem, building the platform for profitable growth over the next three years and beyond,” he said.
In the financial year ahead, Megaport expects revenue between $214 million and $222 million, while EBITDA is expected to be within $57 million and $65 million.
“In fiscal 2025, Megaport will continue to leverage and grow our high-speed global backbone and 100G connectivity, expand into new markets and geographic locations, and prepare for additional capacity augmentations to meet the rising demand from AI,” Reid added.
“With updated speed and pricing to improve our competitiveness on a global scale, we plan on continuing the rapid pace at which we innovate and expand our product sets, with a focus on low touch, incremental, high-revenue products.”
Megaport’s financial turnaround was previously seen in February, where it announced its half-yearly profit of $4.4 million for the period ending 31 December 2023.