Slide 1: Investor Presentation: Quarterly Update 2Q FY24
For personal use only Investor Presentation. Quarterly Update – 2Q FY24 MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1 | JANUARY 2024
Slide 2: 2Q FY24 Highlights
2Q FY24 Highlights For personal use only Revenue EBITDA1 Total Cash Flow2 NAM Direct Sales Roles 1. Earnings Before Interest Tax Depreciation and Amortisation represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and losses on disp
Slide 3: Continued Strong Cash Flow Turnaround
Continued Strong Cash Flow Turnaround For personal use only NET CASH FLOW1 Net Cash Flow1: +$6.9M up $18M YoY Operating Cash Flow: +$15.2M up $15M YoY Cash at Bank: $62.5M up $7.3M QoQ 1. Net Cash Flow represents movement in Net Cash, which is cash at bank less debt including the vendor financing lia
Slide 4: Strong Turnaround in Profitability While Investing in Growth
Strong Turnaround in Profitability While Investing in Growth For personal use only EBITDA1 EBITDA in line QoQ » QoQ EBITDA reflects the increase in expenditure to reignite the go-to-market engine, offset by growth in revenue 1. Earnings Before Interest Tax Depreciation and Amortisation represents oper
Slide 5: Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR)1 For personal use only ARR1 Net New ARR FX Comparison A$M Reported FX Adjusted2 1. Annual Recurring Revenue (ARR) in A$ is the recurring revenue expected over a 12 month period, calculated as Monthly Recurring Revenue for the last month of the period x 12, and excludes
Slide 6: Move to Revenue-Generating KPIs
Move to Revenue-Generating KPIs1,2 For personal use only Challenges with Historically Reported KPIs Move to Revenue-Generating Metrics1 》 Trials/Proof of Concepts (PoC) 》 Provide a more accurate QoQ signal to how 》 Test accounts the business is performing 》 Cloud Ports (impacted by port consolidatio
Slide 7: 2Q FY24 Revenue-Generating KPIs
2Q FY24 Revenue-Generating KPIs1,2 For personal use only Net QoQ QoQ % Net YoY YoY % KPIs & Metrics1,2 Dec-23 Sep-23 Dec-22 Growth Growth Growth Growth Total Services3 28,516 27,768 748 3% 25,381 3,135 12% Customers 2,816 2,777 39 1% 2,637 179 7% Ports 8,602 8,447 155 2% 7,975 627 8% VXC and IX 18,8
Slide 8: Unaudited Financial Results
Unaudited Financial Results For personal use only Unaudited Financial Results Quarter Ended 31 December Unaudited Summary Financial 2Q FY24 1Q FY24 QoQ 2Q FY23 YoY 2023 Key Highlights Performance $’M AUD $’M AUD % $’M AUD % Revenue 48.6 46.5 5% 37.0 31% 2Q FY24 Revenue grew 5% QoQ driven by organic
Slide 9: Unaudited Financial Results: Consolidated Profit & Loss
Unaudited Financial Results For personal use only Unaudited Financial Results 2Q FY24 1Q FY24 QoQ 2Q FY23 YoY Consolidated Profit & Loss $’M AUD $’M AUD % $’M AUD % Quarter Ended 31 December 2023 EBITDA1 Highlights Revenue 48.6 46.5 5% 37.0 31% Gross margin % remained consistent Direct network costs
Slide 10: Unaudited Financial Results: Consolidated Cash Flow
Unaudited Financial Results For personal use only Consolidated Cash Flow 2Q FY24 1Q FY24 QoQ 2Q FY23 YoY Unaudited Financial Results $’M AUD $’M AUD % $’M AUD % Quarter Ended 31 December 2023 Net Cash Flow EBITDA1 15.1 15.0 1% 2.4 n.m. Working Capital 0.1 (4.3) n.m. (2.2) n.m. Cash flow from Operatin
Slide 11: FY24 Progress
FY24 Progress For personal use only Q1 Q2 Q3 Q4 Develop Strategy Execute Strategy Build GTM Momentum Recovery in KPIs Evident 》 People 》 Rebuild GTM 》 Restart Marketing 》 Double-down on Machine Machine proven successes in 》 Product Sales and Marketing 》 3x quota-bearing 》 Fuel the new Sales 》 Profit
Slide 12: Strategy Execution To Date
Strategy Execution To Date For personal use only 》 Hiring 20+ GTM roles ✓ 》 Implemented nextgen sales tools/platform for training and execution ✓ 》 Re-launched MegaIX in North America ✓ 》 Launched Global WAN ✓ 》 Launched Megaport Internet ✓ 》 Launched up to 100G VXCs ✓ 》 Launched contracted VXCs ✓ 》
Slide 13: Introducing Megaport's New Hires
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Slide 14: GTM Transformation - Next Phase
GTM Transformation - Next Phase For personal use only 》 Focus now on improving effectiveness of the GTM team ○ Lead generation and nurturing pipeline ○ Updated sales messaging and solutions approach e.g. Global WAN, Hybrid Cloud, etc ○ Improved reporting and commissions structures for sales and sale
Slide 15: Global WAN Launch = Largest Deal in MP1 History
Global WAN Launch = Largest Deal in MP1 History For personal use only $1.4M ARR over 3 years = Total Contract Value (TCV) of $4.2M AUD Client Solution 35x the Average Deal A major US healthcare provider with operations across multiple states and a presence in 8 data centres Global WAN use case utili
Slide 16: Product Expansion: Internet Exchange (IX) Locations
Product Expansion: Internet Exchange (IX) Locations For personal use only 》 IX locations now at 23 》 Newly Launched: ○ Charlotte ○ New York ○ Atlanta ○ Miami ○ Denver 》 IX customers: ○ Traditional CDN & Content Creators ○ New Logos e.g. TikTok and Cachefly 》 100G port wins 16
Slide 17: New Product Launches
New Product Launches For personal use only 》 400G US Backbone is expected to be finished in Q3 - enabling up to 100G VXCs across the US 》 Moving beyond the DC - FibreConx Partnership 》 Launched Megaport Internet 17
Slide 18: Megaport Internet Demo
For personal use only Megaport Internet Demo 18
Slide 19: Outlook
Outlook For personal use only 》 FY24 Guidance1 ○ FY24 Revenue of $190M - $195M (unchanged) ○ FY24 EBITDA2 of $51M - $57M (unchanged) ○ FY24 Capex expected to be $20M - $22M (revised from $28M - $30M3) 》 2H FY24 EBITDA2 and Net Cash Flow4 to reflect full impact of increased headcount across the group
Slide 20: Questions.
For personal use only Questions. @megaport ASX: MP1 @megaportnetwork megaport.com/investor @megaportnetworks megaport.com/newsroom 20
Slide 21: Important Information
Important Information For personal use only This presentation has been authorised by the Board of Megaport. Megaport Limited ACN 607 301 959 All references to “$” are to Australian currency (AUD) unless otherwise noted. Nothing in this presentation should be construed as either an offer to sell or a