Slide 1: Updated FY22 Full Year Investor Presentation cover letter
26 August 2022 For personal use only Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000 Dear Sir or Madam Megaport Limited – Updated FY22 Full Year Investor Presentation Please find attached an updated version of the FY22 Full Year Investor Present
Slide 2: Global Update FY22 Full Year Results
GLOBAL For personal use only UPDATE FY22 FULL YEAR RESULTS MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1 | 9 AUGUST 2022
Slide 3: Company Highlights FY22
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only COMPANY HIGHLIGHTS FY22
Slide 4: Revenue Performance FY22
COMPANY HIGHLIGHTS REVENUE PERFORMANCE FY22 For personal use only North America Asia Pacific Europe Global FY22 FY22 FY22 FY22 $57.8M $33.5M $18.4M $109.7M $19.1M 49% $7.8M 30% $4.6M 33% $31.4M 40% FY21: $38.7M FY21: $25.7M FY21: $13.8M FY21: $78.3M Note: Growth rates are calculated using the actual
Slide 5: Highlights FY22
COMPANY HIGHLIGHTS HIGHLIGHTS FY22 For personal use only +43% +43% +16% Monthly Recurring Revenue1 Annualised Revenue2 Total Number of Customers $7.5M $10.7M $89.8M $128.3M 2,285 2,643 30 JUNE 2021 30 JUNE 2022 30 JUNE 2021 30 JUNE 2022 30 JUNE 2021 30 JUNE 2022 +26% +24% +46% Total Number of Servic
Slide 6: Highlights FY22
COMPANY HIGHLIGHTS HIGHLIGHTS FY22 For personal use only JUNE 2021 JUNE 2022 Total Customers Group Exit Gross Margin Cloud Onramps 2,285 2,643 APAC 79% EMEA 71% NAM 54% MP1 65% 3.37 Average Ports per Customer 3.61 45 278 NEW TOTAL Drive to Profitability Average Services per Port Japan, Canada EBITDA
Slide 7: Annual Results FY22
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only ANNUAL RESULTS FY22
Slide 8: Revenue
ANNUAL RESULTS REVENUE FINANCIAL RESULTS FOR YEAR ENDED 30 JUNE 2022 For personal use only FY22 FY21 Revenue of $109.7M, up 40%, driven by customer growth and service uptake across all regions. $33.5M $25.7M NAM strongest growth across all 30% 33% regions, increasing $19.1M (49%) in $57.8M $38.7M FY
Slide 9: Financial Results
ANNUAL RESULTS FINANCIAL RESULTS FINANCIAL RESULTS FOR YEAR ENDED 30 JUNE 2022 For personal use only FY22 FY21 Change Consolidated Profit & Loss $’M $’M % Revenue $109.7M up 40% Direct network costs increases $2.1M Revenue 109.7 78.3 40% (8%) with 26 new data centres Direct network costs 29.7 27.6 (
Slide 10: Operating Costs
ANNUAL RESULTS OPERATING COSTS FINANCIAL RESULTS FY22 FY21 Change FOR YEAR ENDED 30 JUNE 2022 For personal use only $’M $’M % Average network cost per data centre Direct network costs 29.7 27.6 (8%) per month is $5.8K in FY22 ($5.9K in FY21) with increasingly efficient cost Partner commissions 11.7
Slide 11: Cash Flow
ANNUAL RESULTS CASH FLOW FINANCIAL RESULTS FY22 FY21 YoY FOR YEAR ENDED 30 JUNE 2022 For personal use only $’M $’M % Normalised EBITDA1 (10.2) (13.3) 23% Cash used in operations of $9.8M Working Capital 0.4 4.7 (91%) increased 14% from FY21. Q4 cash flow from operations was positive. Cash flow used
Slide 12: Financial Position
ANNUAL RESULTS FINANCIAL POSITION FINANCIAL RESULTS FOR YEAR ENDED 30 JUNE 2022 For personal use only 30 June 2022 30 June 2021 $’M $’M Trade debtors up 55% at $10.2m and Cash 82.5 136.3 DSO unchanged at 25 days (FY21: 25 days). Other current assets 20.4 14.1 Total liabilities include 0% vendor fina
Slide 13: Historical Financial Performance: Margin Trends
ANNUAL RESULTS HISTORICAL FINANCIAL PERFORMANCE MARGIN TRENDS For personal use only Group EBITDA positive for Quarter 4, a marked improvement on breakeven achieved in the month of June FY21. Investment in Scale Up, Scale Out completed within FY22. Accelerating revenue growth delivering margin growth
Slide 14: Business Update
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only BUSINESS UPDATE
Slide 15: Market Drivers
BUSINESS UPDATE MARKET DRIVERS Communications Services End-User Spending Worldwide by Megaport Value Proposition Service Type, 2020-2026 (Millions of Constant U.S. Dollars) For personal use only Cloud Connect* (2026) 68% of MP1 connections 278 Cloud onramps 12 Leading Clouds $3.8B Megaport Cloud Rou
Slide 16: Cloud Trends: Multicloud Mandate
BUSINESS UPDATE CLOUD TRENDS MULTICLOUD MANDATE For personal use only Use of three or more cloud providers to go from 52% of organisations to 84% 60% of respondents expect their organisations to leverage 4 or more IaaS CSPs 24 months from now Mean estimation that 66% of branch locations require clou
Slide 17: Cloud Trends: IaaS for Business-Critical Applications
BUSINESS UPDATE CLOUD TRENDS IAAS IS LEVERAGED FOR Estimated mean: 63% BUSINESS-CRITICAL APPLICATIONS For personal use only Three quarters of all respondents say that the majority of their IaaS-hosted applications are business-critical Network investments to increase 15% more than overall IT budget
Slide 18: Megaport Cloud Enablement
BUSINESS UPDATE MEGAPORT CLOUD ENABLEMENT For personal use only 278 Total Onramps FY22 Increase: 45 +19% 77% of Megaport connections terminate to public cloud providers ONRAMP TOTAL Amazon Web Services 78 40% of Megaport customers connecting to cloud are multicloud Microsoft Azure 54 Google Cloud 43
Slide 19: Leading Companies Trust Megaport
BUSINESS UPDATE LEADING COMPANIES TRUST MEGAPORT Customers For personal use only Fortune 100 20 Customers 20% Fortune 500 80 Customers 16% Fortune 1000 140 Customers 14% PAGE 18
Slide 20: Growth in Ports, Services, and Revenue
BUSINESS UPDATE GROWTH IN PORTS, SERVICES, AND REVENUE For personal use only Total Ports Total Services 1. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), Megaport Virtual Edge (MVE), and Internet Exchange (IX) at period end. PAGE 19 2. Monthly Recur
Slide 21: Customer Cohort Trends: Services per Customer
BUSINESS UPDATE CUSTOMER COHORT TRENDS For personal use only Average Services per Customer Customer take up an increasing number of services over time. Behaviour exhibited by every cohort. New cohorts initial services increasing every year. Increasingly selling more complex solutions to larger globa
Slide 22: Customer Cohort Trends: Monthly Revenue per Customer
BUSINESS UPDATE CUSTOMER COHORT TRENDS For personal use only Average Monthly Revenue per Customer ($) Average spend by customer increases annually in line with taking additional services. Trend for customer initial spend increasing every year. Cohort size, number of customers added, increasing every
Slide 23: Customer Cohort Survival
BUSINESS UPDATE CUSTOMER COHORT SURVIVAL For personal use only Customer Survival % by Customer Cohort Year Customer survivorship displaying similar characteristics over every cohort. Customer churn after Year 2 drops significantly. More than half of initial cohort still a customer after 9 years. Com
Slide 24: MRR Contribution by Cohort
BUSINESS UPDATE MRR CONTRIBUTION BY COHORT For personal use only MVE Revenue contribution from every cohort grows annually. Uptake of services by existing customers far exceed services lost MCR through customer churn. Later cohorts yielding greater contribution to Group MRR. EMEA Increasingly sellin
Slide 25: LTV to CAC Annual Growth
BUSINESS UPDATE LTV TO CAC ANNUAL GROWTH For personal use only Early days LTV to CAC reflective of meteoric growth in scale of reach (lower GM) and investment in customer acquisition in new markets. Apparent slight drop in LTV to CAC reflects additional investment in sales in FY22 to stand up channe
Slide 26: Megaport Cloud Router
BUSINESS UPDATE MEGAPORT CLOUD ROUTER For personal use only MCR Growth Average Monthly Revenue per Customer1 $3.6k $6.4k Port only Customer MCR Customer Avg Services per Customer2 9.5 14.9 Port only Customer MCR Customer Total MCRs 502 731 At 30 June 2021 At 30 June 2022 1. Represents June 2022 MRR
Slide 27: Megaport Virtual Edge
BUSINESS UPDATE MEGAPORT VIRTUAL EDGE For personal use only Average Monthly Revenue per Customer1 SD-WAN Technology Partners Initial sales through Cisco channel Q3 and Q4. $3.6k $12.0k MVEs sales over first 5 quarters Port only Customer MVE Customer mirroring MCR with majority of sales through direc
Slide 28: Global MVE Use Case
BUSINESS UPDATE GLOBAL MVE USE CASE COMPANY: 40,000 EMPLOYEES CHALLENGE: DIGITAL TRANSFORMATION WITH GLOBAL CISCO SD-WAN DEPLOYMENT SOLUTION: 2 MVE IN EACH REGION, For personal use only CONNECTING TO AWS & AZURE RESULT: GLOBAL, PRIVATE NETWORK BACKBONE BUILT FOR RESILIENCY AND DISTRIBUTED WORKFORCE.
Slide 29: Global Footprint
BUSINESS UPDATE GLOBAL FOOTPRINT For personal use only >200,000km OF NETWORK CIRCUITS MULTI-TERABIT NETWORK CAPACITY 25 145 423 787 COUNTRIES CITIES INSTALLED DCs ENABLED DCs See: megaport.com/locations PAGE 28
Slide 30: Channel Update
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only CHANNEL UPDATE
Slide 31: Evolution of Market Access
CHANNEL UPDATE EVOLUTION OF MARKET ACCESS For personal use only FY13 FY20 FY23+ Other SDWAN Cisco DCO VAD DCO GSI MSP Reseller ENTERPRISE CUSTOMER ENTERPRISE CUSTOMER ENTERPRISE CUSTOMER DCO = Data Centre Operator, VAD = Value-Add Distributor, MSP = Managed Service Provider, GSI = Global System Inte
Slide 32: PartnerVantage - New Logo Path to Revenue
CHANNEL UPDATE PARTNERVANTAGE - NEW LOGO PATH TO REVENUE PartnerVantage is additive to existing indirect business. For personal use only TRAIN MENTOR COACH 78 new resell partners added from launch, 28 in Q4. 78 Channel managers onboard and train new partners and encourage REVENUE GENERATION increase
Slide 33: Channel Logo Highlights
CHANNEL UPDATE CHANNEL LOGO HIGHLIGHTS For personal use only PAGE 32
Slide 34: Our Focus
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only OUR FOCUS
Slide 35: Our Focus
SECTION HEADING HERE OUR FOCUS For personal use only Operating Leverage Profitability Competitive Differentiation Market-Leading Innovation Drive service uptake across Optimise for efficiency – align Consolidate our position as Accelerate competitive global platform, leveraging operational costs to
Slide 36: Thank You
THANK YOU For personal use only ASX: MP1 ON THE WEB: megaport.com/investor megaport.com/media-centre SOCIAL: /megaportnetworks @megaport @megaportnetwork MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1
Slide 37: Important Information
IMPORTANT INFORMATION For personal use only 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.
Slide 38: Appendix
COMPANY ANNUAL BUSINESS CHANNEL OUR APPENDIX HIGHLIGHTS RESULTS UPDATE UPDATE FOCUS For personal use only APPENDIX
Slide 39: Regional Highlights: Asia Pacific
REGIONAL HIGHLIGHTS ASIA PACIFIC For personal use only Total Installed Data Centres Total Number of Customers Average Revenue per Port3 105 108 917 1,003 $945 +18% 30 JUNE 2021 30 JUNE 2022 30 JUNE 2021 30 JUNE 2022 No. of Ports per Data Centre 32.3 +40% Total Number of Ports Total Number of Service
Slide 40: Asia Pacific Financial Performance
REGIONAL HIGHLIGHTS ASIA PACIFIC FINANCIAL PERFORMANCE MARGIN TRENDS1 For personal use only APAC $M1 Japan became EBITDA positive from April. APAC profit after direct network costs margin continues to grow with increasing MRR, and direct network costs remaining steady. The EBITDA return continues to
Slide 41: Regional Highlights: Europe
REGIONAL HIGHLIGHTS EUROPE For personal use only Total Installed Data Centres Total Number of Customers Average Revenue per Port3 102 105 430 531 $1,174 +3% 30 JUNE 2021 30 JUNE 2022 30 JUNE 2021 30 JUNE 2022 No. of Ports per Data Centre 13.5 +21% Total Number of Ports Total Number of Services 1 Ser
Slide 42: Europe Financial Performance
REGIONAL HIGHLIGHTS EUROPE FINANCIAL PERFORMANCE MARGIN TRENDS1 For personal use only EMEA $M1 EMEA EBITDA continues to be positive for the full year. France positive GM for the year, approaching EBITDA breakeven. EMEA remains in a strong position for growth via indirect channels. EMEA EBITDA margin
Slide 43: Regional Highlights: North America
REGIONAL HIGHLIGHTS NORTH AMERICA For personal use only Total Installed Data Centres Total Number of Customers Average Revenue per Port3 $1,234 +16% 198 210 1,219 1,462 30 JUNE 2021 30 JUNE 2022 30 JUNE 2021 30 JUNE 2022 No. of Ports per Data Centre 22.1 +23% Total Number of Ports Total Number of Se
Slide 44: North America Financial Performance
REGIONAL HIGHLIGHTS NORTH AMERICA FINANCIAL PERFORMANCE MARGIN TRENDS1 For personal use only NAM $M1 Canada EBITDA positive from March. Launch of Mexico in Q4 adds leverage, temporarily slowing margin expansion. EBITDA margin more impacted than other regions by additional labour costs from investmen