Megaport lays off 35 staff, losses narrow

Megaport lays off 35 staff, losses narrow

The tech stock narrowed its full-year net loss by 12 per cent to $48.5 million from the year-earlier $55 million. Earnings before interest, taxes, depreciation, and amortization fell 23 per cent to $10.2 million, but turned positive in the fourth quarter.

It was during this quarter in early July, when chief executive Vincent English laid off 35 employees, citing the need to reduce costs and prepare for rising prices and inflation.

In the company’s announcement on Tuesday, Megaport said it had paid the employees out $1.6 million.

However, management is keen to point out Megaport’s positioning in a world where enterprises move steadily from on-premise data storage infrastructure to the cloud.

Megaport, which facilitates the communication of data between various cloud ports, reported an 8 per cent bump in direct network costs, thanks to 26 new data centers plugging into the network over the year as well as capacity upgrades on intra-regional routes.

Total customers jumped to 2,643 from 2,285 with average revenue per port lifting to $1,120 from $974.

In the past year, Megaport rolled out its Virtual Edge product and partnered with big-name clients Cisco and VM-Ware, which are selling the service to thousands of their customers.

Since launch, Megaport has signed up 73 Virtual Edge customers and reported an average monthly revenue of $12,000 per customer across 17.9 services, the company said. Megaport has $82.5 million in cash.