Data centre and channel partnerships have lead to record growth for Australian interconnection company, Megaport (ASX:MP1), in the first quarter of its financial year.
The company posted a revenue increase of 91 per cent for the last quarter, amounting to a figure of $1.8 million, which the company attributed to organic growth and acquisitions.
Megaport CEO, Denver Maddux, said the company’s organic revenue had grown considerably due to the increased uptake of direct cloud interconnection.
“Partnerships with data centre operators, internet exchanges, and other channel partners forged in the previous fiscal year are generating revenue” he added.
“Our European acquisitions have contributed not only to our revenue but to our ecosystem of service providers and strategic data centres. Combined, we have nearly doubled our revenue run rate from the previous quarter. Our partnership, acquisition, and local go to market strategies are coming together to capture market share.”
In August, Megaport closed the acquisition of Peering GmbH (ECIX) for a total cash price of $1.9 million. The total cash outflow for the last quarter was $1.4 million for partial settlement of the acquisition and related expenditure.
The company now has presence in 40 data centres across the Asia-Pacific region, including the addition of new data centres in Perth and Sydney.
In addition, the company doubled its global port count in the three months from 736 in June 2016 to 1409 in September.
For the first time, the company’s Asia-Pacific and Europe business units have generated a profit after direct network costs and capital raising initiatives in the quarter added net $30 million to the books.
Megaport has also executed a global strategic agreement to provide interconnectivity services for Digital Realty.
Under the agreement, Megaport will power Digital Realty’s Service Exchange platform with elastic interconnection services which is due to launch on November 4. The deal means Digital Realty customers in 24 data centres across 15 cities including in Australia will have access to the Megaport global fabric of data centres and service providers.
“Our partnership with Digital Realty Trust positions us, and Digital Realty, to serve the needs of enterprises on a broader scale,” said Maddux.
“There has been a significant investment to provide the seamless integration between Digital Realty’s Service Exchange and the Megaport fabric via the Megaport API. We will enable a seamless experience for Digital Realty customers as they manage their global cloud and elastic interconnection needs through the same interface they manage their data centre needs.”Megaport’s share price was $2.60 at time of writing.