A quick brief before we get to Megaport (MP1)…
To date, the golden star stocks are averaging 15% highs reached in 4 weeks! Last week’s choice KGN (KOGAN) did not jump out of the blocks, but with a record 4 million in sales on Black Friday reported in the Australian, this week could see a stronger performance!
Our Hot Stock this week is Megaport (MP1). Fundamentally a great story (read below) and a fairly recent new 3YR Growth story that is starting to make us some money. Add in a very Bullish chart and MP1 wins this week’s accolade.
The growth we have seen so far is phenomenal with 151% growth achieved in FY17 and key revenue per port up 59% to $667. The growth in services points to overall customer usage on the network, which drives the revenues per port and monthly recurring revenues (the gross margins are also very attractive at ~50%). The partnerships established with cloud service providers like Oracle, Google and Microsoft demonstrate the attractiveness of the product and its capabilities. We also love companies like these because of their global scaleability opportunities, meaning top and bottom line growth can accelerate without seeing a material increase in costs.
We expect FY18 to deliver another strong year of growth with new locations, partners, and enterprises while focusing on reducing cash burn and applying prudent cost management (that’s one of our issues with growing companies and it’s nice to see that being a priority!) Recent capital raising has positioned the company for FY18 and beyond.