Tech company Megaport has achieved a record-breaking net cash flow in the fourth quarter, leading to a surge in its share price. The company’s shares jumped 11.64% to reach a new 52-week high of $10.36 after releasing its FY23 4Q report on Thursday.
For the first time ever, Megaport reported a positive net cash quarterly result, attributing it to transformational improvements in EBITDA and net cash flow during the quarter. This prompted the company to upgrade its guidance on July 11, causing the share price to skyrocket by over 25%.
Megaport credited its significant top-line revenue growth and continued cost control focus for its improved financial performance. The company’s strong net cash flow allowed it to make repayments of $2.4 million to the vendor financing facility. Additionally, the Board decided to terminate its $25 million HSBC debt facility due to a lack of requirement and to reduce costs.
Megaport plans to release its official FY23 full-year results on August 22, along with detailed guidance for FY24, which is expected to surpass the previous guidance of $41 million to $46 million. The company also released an investor presentation alongside the news.
Year to date, Megaport’s ASX tech share has surged by 66.5%, while the ASX 200 experienced a more modest 7.4% increase.
In summary, Megaport’s exceptional net cash flow results during Q4 have propelled its share price to new heights. The company’s strong financial performance, driven by top-line revenue growth and cost control measures, has enabled it to make significant repayments and terminate unnecessary debt facilities. Investors eagerly await the official FY23 full-year results and the higher FY24 guidance expected from Megaport.