Megaport jumps 16pc after losses narrow, cost cuts
Key Points
- Why it matters: investors are betting Megaport will benefit from AI
- Megaport has cut costs over the last year to beef up its balance sheet
- New CEO Michael Reid says growth will come from a new go-to-market strategy
Cloud connectivity provider Megaport has reined in spending over the past year, narrowing its losses and swinging to a positive cashflow for the first time, with newly installed chief executive Michael Reid pointing to a new go-to-market strategy as cause for the company’s revised guidance.
Shares in Megaport increased 17 per cent on Tuesday to $12.15 as investors cheered the company’s 40 per cent jump in revenue to $153 million, up from $109.7 million a year earlier.
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