Megaport Earnings: Investing in Marketing Supports High Revenue Growth

In its third-quarter sales update, no-moat Megaport reported its fourth consecutive quarter of positive cash flow and eighth quarter of positive adjusted EBITDA. It also said it expects capital expenditures for the full year to be around a third below last year, despite the business being around 30% larger. Management upgraded its full-year EBITDA guidance to AUD 57 million at the midpoint, from AUD 54 million, while leaving its revenue and capex guidance unchanged. We maintain our AUD 15 fair value estimate.