Megaport Ltd. · ASX:MP1
Megaport — Q3 FY2023 Earnings Presentation
15 slides from Megaport's earnings presentation, Apr 28, 2023
Slide 1: Investor Presentation: Quarterly Update - 3QFY23
INVESTOR For personal use only PRESENTATION QUARTERLY UPDATE - 3QFY23 MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1 | APRIL 2023
Slide 2: 3QFY23 Overview
QUARTERLY OPERATIONAL OUTLOOK AND OVERVIEW REVIEW GUIDANCE For personal use only 3QFY23 OVERVIEW
Slide 3: 3QFY23 Highlights
QUARTERLY OVERVIEW 3QFY23 HIGHLIGHTS For personal use only New CEO Announced Strong March Monthly Recurring Revenue Cost-out Program on Target Operational Review Commenced Improvement in Cash Flow Normalised EBITDA1 for 3QFY23 of AU$5.0M 1. Normalised Earnings Before Interest Tax Depreciation and Am
Slide 4: Key Performance Indicators (AUD) Unaudited
QUARTERLY OVERVIEW KEY PERFORMANCE INDICATORS (AUD) UNAUDITED KEY PERFORMANCE INDICATORS FOR THE QUARTER ENDED 31 MARCH 2023 For personal use only Incremental KPIs 3QFY23 2QFY23 YTD23 YTD22 MRR grew 14% QoQ, up $1.7M to Customers 72 39 168 256 $14.1M in March 2023, mostly driven by Cloud VXC reprici
Slide 5: EBITDA Journey
QUARTERLY OVERVIEW EBITDA1 JOURNEY For personal use only “Scale up, Scale Out” QoQ increase 3QFY23 vs 2QFY23 The main drivers in the improvement in quarterly EBITDA include a $1.2M net benefit from the Cloud VXC price increase on existing services, a $1.0M reduction in operational expenditure on eve
Slide 6: Operational Review
QUARTERLY OPERATIONAL OUTLOOK AND OVERVIEW REVIEW GUIDANCE For personal use only OPERATIONAL REVIEW
Slide 7: Operational Review Findings
OPERATIONAL REVIEW OPERATIONAL REVIEW FINDINGS For personal use only ‘Scale Up,Scale Out’ initiative did not yield expected returns from investment in headcount, and increased operational cost Opportunity to improve team cohesiveness and efficiency by centralising more of the Company’s core back-off
Slide 8: Building Sales Momentum
OPERATIONAL REVIEW BUILDING SALES MOMENTUM For personal use only Market demand is still strong, we just need to better focus our resources with the right go-to-market motion and hire more Salespeople in the right areas with the right incentive plan Channel Program has not delivered the targeted retu
Slide 9: Organisational Review Impacts
OPERATIONAL REVIEW ORGANISATIONAL REVIEW IMPACTS For personal use only Organisational review is now largely completed Regrettable reduction of 16% of the organisation’s team members (50 roles) in April that could not be re-assigned within the organisation Right-sized organisational headcount of 250
Slide 10: Cash Flow Improvement
OPERATIONAL REVIEW CASH FLOW IMPROVEMENT1 For personal use only Workforce: $10M Cloud VXC Repricing: $12M COGS Cost-out: $5M $30M Opex Cost-out: $3M 1. Represents improvement in cash flow from these initiatives only, and does not include cash outflows from the investment in quota bearing direct Sale
Slide 11: Outlook and Guidance
QUARTERLY OPERATIONAL OUTLOOK AND OVERVIEW REVIEW GUIDANCE For personal use only OUTLOOK AND GUIDANCE
Slide 12: 4QFY23 Normalised EBITDA Outlook
OUTLOOK AND GUIDANCE 4QFY23 NORMALISED EBITDA1 OUTLOOK For personal use only “Scale up, Scale Out” 4QFY23 Normalised EBITDA1 is forecast to increase compared to 3QFY23 due to a full quarter impact of the Cloud VXC pricing increase, the impact of the COGS and Opex cost-out programs, and workforce cos
Slide 13: EBITDA Guidance
OUTLOOK AND GUIDANCE EBITDA GUIDANCE For personal use only As a result of various initiatives designed to improve the Company’s operating and financial performance and cash generation, the Company is providing the following guidance on EBITDA1: EBITDA Guidance % Increase Year Market Consensus2 (Norm
Slide 14: Thank You
THANK YOU For personal use only ASX: MP1 ON THE WEB: megaport.com/investor megaport.com/media-centre SOCIAL: /megaportnetworks @megaport @megaportnetwork MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1
Slide 15: Important Information
IMPORTANT INFORMATION For personal use only This presentation has been authorised by the Board of Megaport. Megaport Limited ACN 607 301 959 Nothing in this presentation should be construed as either an offer to sell or a All references to “$” are to Australian currency (AUD) unless otherwise noted.