Megaport Ltd. · ASX:MP1
Megaport — Investor Presentation (February 2024)
30 slides from Megaport's investor presentation, Feb 20, 2024
Slide 1: Investor Presentation FY24 Half Year Results
Investor Presentation FY24 Half Year Results
Slide 2: Delivered continued improvements in EBITDA, Costs, and Net Cash Flow
Delivered continued improvements in EBITDA, Costs, and Net Cash Flow as well as record Annual Recurring Revenue COMPANY 1H FY24 BUSINESS OUTLOOK HIGHLIGHTS RESULTS UPDATE & GUIDANCE 1H FY24 RESULTS INVESTOR PRESENTATION
Slide 3: 1H FY24 Financial Highlights
1H FY24 FINANCIAL HIGHLIGHTS REVENUE GROSS PROFIT1 EBITDA2 NET CASH FLOW3 $95.1M $66.6M $30.1M $12.5M $24.4M $20.1M $26.7M $40.8M +35% +43% +785% n.m. 1H FY23: $70.7M 1H FY23: $46.5M 1H FY23: $3.4M 1H FY23: $(28.3M) 1. Gross Profit is revenue less direct network costs (comprising data centre power a
Slide 4: 1H FY24 Revenue Performance
1H FY24 REVENUE PERFORMANCE NORTH AMERICA ASIA PACIFIC EMEA GLOBAL $53.8M $25.8M $15.5M $95.1M 57% of global revenue 27% of global revenue 16% of global revenue $14.3 M 36% $5.5M 27% $4.6M 42% $24.4M 35% 1H FY23: $39.5M 1H FY23: $20.3M 1H FY23: $10.9M 1H FY23: $70.7M Note: Growth rates are calculate
Slide 5: EBITDA: Highest on Record
EBITDA1: HIGHEST ON RECORD Improvement in 1H FY24 EBITDA1 demonstrates the rapid turnaround achieved in margins and profitability 1. Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) represents operating results excluding equity-settled employee and related costs, foreign exchange g
Slide 6: Net Cash Flow
NET CASH FLOW 1H FY24 NET CASH FLOW1 $12.5M $40.8Mvs 1H FY23 CASH AT BANK NET CASH POSITION2 $62.5M $45.8M as at 31 Dec 2023 as at 31 Dec 2023 1. Net Cash Flow is defined as the movement in Net Cash, which is cash at bank less debt including the vendor financing liability, and excludes proceeds from c
Slide 7: The financial results demonstrate profitable, efficient growth and strong cash generation
The financial results demonstrate Megaport’s delivery of profitable, efficient growth and strong cash generation COMPANY 1H FY24 BUSINESS OUTLOOK HIGHLIGHTS RESULTS UPDATE & GUIDANCE 1H FY24 RESULTS INVESTOR PRESENTATION
Slide 8: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS Revenue up 35% vs 1H FY23, driven by organic growth and the Cloud VXC price increase. 1H FY24 1H FY23 Change Change Consolidated Profit & Loss $’M AUD $’M AUD $’M AUD % Direct network costs (DNC) increased 12% vs 1H FY23, reflecting costs Revenue 95.1 70.7 24.4 35% previously
Slide 9: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS Employee costs1 decreased by Operating Expenses 1H FY24 1H FY23 Change Change $3.0M, a reflection of a lower $’M AUD $’M AUD $’M AUD % headcount and accrued bonuses expected to be paid in RSUs2. Employee costs1 27.5 30.5 (3.0) (10%) Employee costs were 29% of revenue, down f
Slide 10: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS Operating cash inflows of $25.9M 1H FY24 1H FY23 Change Change for 1H FY24 resulted from both the Consolidated Cash Flow strong revenue growth and lower $’M AUD $’M AUD $’M AUD % operating costs from the cost out EBITDA1 30.1 3.4 26.7 n.m. program, and reflected the improveme
Slide 11: Capital Expenditure
CAPITAL EXPENDITURE 39.8 Megaport continues to invest in developing its network and product 29.1 offerings with capital expenditure including capitalised wages, purchases 20-22 of property, plant, and equipment, and utilisation of inventory purchased in 8.3-10.3 prior years. Capitalised wages includ
Slide 12: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS Consolidated Financial Position 31 December 2023 30 June 20231 $’M AUD $’M AUD Cash at bank at the 1H FY24 was $62.5M, reflecting a strong close to Cash 62.5 48.5 the half year. Other current assets 35.0 30.0 The amount owing under the vendor financing was $16.7M (vs $15.2M a
Slide 13: Operating Leverage December Month
OPERATING LEVERAGE DECEMBER MONTH Group Gross EBITDA2 Margins for Margin1 Margin the month Dec-23 70% 31% Dec-22 69% 6% Dec-21 61% (13%) Dec-20 54% (15%) Dec-19 53% (30%) 》 Operating leverage is evident as revenue growth has outstripped cost growth 1. Gross Margin reflects revenue less direct network
Slide 14: Underlying metrics have continued to grow
Underlying metrics have continued to grow, with the impact of the recent investment in the Go-to-Market engine not yet evident COMPANY 1H FY24 BUSINESS OUTLOOK HIGHLIGHTS RESULTS UPDATE & GUIDANCE 1H FY24 RESULTS INVESTOR PRESENTATION
Slide 15: 1H FY24 Revenue-Generating KPIs
1H FY24 REVENUE-GENERATING KPIS1,2 Net HoH HoH % Net YoY YoY % KPIs & Metrics1,2 Dec-23 Jun-23 Dec-22 Growth Growth Growth Growth Total Services3 28,495 26,960 1,535 6% 25,360 3,135 12% Customer Logos4 2,615 2,545 70 3% 2,448 167 7% Customer Accounts 2,816 2,739 77 3% 2,637 179 7% Ports 8,602 8,294
Slide 16: 1H FY24 Referenceable New Logos
1H FY24 REFERENCEABLE NEW LOGOS1 NAM EMEA APAC 1. Only includes logos of customers that have granted Megaport permission to use them in marketing and communications materials. 16
Slide 17: Growth in Total Services
GROWTH IN TOTAL SERVICES1 Total Services1 Total Services1 28,4952 Dec 22: 25,360 +12% YoY Services Per Customer 10.9 Dec 22: 10.4 +5% YoY ARR Per Service $6,728 Dec 22: $5,848 +15% YoY 17 1. Total Services comprise revenue-generating Ports, Virtual Cross Connects (VXCs), Megaport Cloud Router (MCR),
Slide 18: Megaport Cloud Router + Megaport Virtual Edge
MEGAPORT CLOUD ROUTER + MEGAPORT VIRTUAL EDGE Dec-23 Average Services per Customer1 9.7 16.3 19.0 Port only Customer MCR Customer MVE Customer Dec-23 Average ARR per Customer1,2 $66K $107K $162K Port only Customer MCR Customer MVE Customer 1. All metrics are revenue-generating and measured at period
Slide 19: FY24 Revenue and EBITDA guidance remains unchanged
FY24 Revenue and EBITDA guidance remains unchanged as robust cash flows are being reinvested in profitable, efficient growth COMPANY 1H FY24 BUSINESS OUTLOOK HIGHLIGHTS RESULTS UPDATE & GUIDANCE 1H FY24 RESULTS INVESTOR PRESENTATION
Slide 20: Outlook
OUTLOOK 》 FY24 Guidance unchanged1 ○ FY24 Revenue of $190M - $195M ○ FY24 EBITDA2 of $51M - $57M ○ FY24 Capex expected to be $20M - $22M3 (as per revised guidance provided 30 January 2024) 》 2H FY24 EBITDA2 and Net Cash Flow4 to reflect full impact of increased headcount across the group especially h
Slide 21: Questions
Questions ASX: MP1 ON THE WEB: megaport.com/investor megaport.com/media-centre SOCIAL: @megaport @megaportnetwork MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1
Slide 22: Important Information
IMPORTANT INFORMATION This presentation has been authorised by the Board of Megaport. Megaport Limited ACN 607 301 959 Nothing in this presentation should be construed as either an offer to sell or a All references to “$” are to Australian currency (AUD) unless otherwise noted. solicitation of an of
Slide 23: Appendix
Appendix
Slide 24: North America Metrics
NORTH AMERICA METRICS Total Enabled Data Centres Total Number of Customers ARR per Port3 $25,725 +17% 434 478 1,398 1,509 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 Services per Port Total Number of Ports Total Number of Services1 3.4 +3% 3,842 4,219 12,459 14,151 Services per Customer 31 Dec 2
Slide 25: North America Financial Performance
NORTH AMERICA FINANCIAL PERFORMANCE Exit December result Significant growth in Dec-23 Revenue vs Dec 22 +29%. Gross margin marginally improved indicating strong control of network costs while delivering revenue growth. The improved EBITDA margin is primarily reflective of strong revenue growth, while
Slide 26: Asia Pacific Metrics
ASIA PACIFIC METRICS Total Enabled Data Centres Total Number of Customers ARR per Port3 145 146 902 956 $16,408 +23% 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 Services per Port Total Number of Ports Total Number of Services1 3.3 +5% 3,043 3,173 9,612 10,505 Services per Customer 31 Dec 2022 31
Slide 27: Asia Pacific Financial Performance
ASIA PACIFIC FINANCIAL PERFORMANCE Exit December result The APAC profit margin improved year on year largely due to increased revenue generated by the region. The EBITDA margin has improved to 69%, reflecting the improved gross profit, in addition to reduced staff costs and general operating expenses y
Slide 28: EMEA Metrics
EMEA METRICS Total Enabled Data Centres Total Number of Customers ARR per Port3 223 230 490 536 $25,726 +21% 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 Services per Port Total Number of Ports Total Number of Services1 3.2 +5% 1,090 1,210 3,289 3,839 Services per Customer 31 Dec 2022 31 Dec 2023
Slide 29: EMEA Financial Performance
EMEA FINANCIAL PERFORMANCE Exit December result EMEA EBITDA margin grew from 24% to 44% on the prior year. The margin saw substantial improvement as the cost management continued to be implemented across all categories, in particular staff costs and professional fees. Revenue grew, while maintaining
Slide 30: Equity Settled Employee Costs
EQUITY SETTLED EMPLOYEE COSTS 1H FY24 includes: 》 PRSUs3 allocated to the CEO in March 2023 and approved at the AGM in November 20234 of $2.2M. 》 Vesting of RSUs3 granted to employees of $2.0M. 》 FY24 bonus accrual of $1.1M. 1. FY21 has been normalised to exclude $1.1M of payroll tax charges relatin