Slide 1: Half Year 2017 Market update
For personal use only Half Year 2017 Market update 21 February 2017 Megaport Limited ACN 607 301 959
Slide 2: Half Year Numbers
Half Year Numbers As of December 2016 For personal use only Total number of data centres Total number of ports Total number of services 102 141 736 1479 1500 2768 30 JUNE 2016 31 DEC 2016 30 JUNE 2016 31 DEC 2016 30 JUNE 2016 31 DEC 2016 Total number of customers Monthly Recurring Revenue Annualised
Slide 3: Who is Megaport?
Who is Megaport? We make connectivity easy For personal use only Pay for what you use Ease of use Fast, Instant, and Secure Leading Service Providers Who do we connect? Enterprises Cloud Service Providers Data Centre Operators Network Service Providers We are network on demand 3
Slide 4: Why Megaport?
Why Megaport? Megaport’s Network on Demand For personal use only Traditional Network Expensive locked-in pricing model Pricing Pay for what you use, no setup fees Expensive setup costs Real-time provisioning Long setup times Speed (59 seconds or less) (1 week - several months) Capacity Elastic, righ
Slide 5: Megaport is the reason cloud connectivity will scale
Megaport is the reason cloud connectivity will scale For personal use only There are 4000+ enterprise 149 Megaported Megaport SDN Only about 80 cloud data centres data centres on-ramp locations Megaport is the leading Software Defined Network (SDN) connecting data centres to cloud, and cloud to ente
Slide 6: Half Year Results 1HFY17
For personal use only Half Year Results 1HFY17 6
Slide 7: 1HFY17 Financial Results
1HFY17 Financial Results For personal use only 1 July 2016 - 27 July 2015 - 31 December 2016 31 December 2015 Revenue 4,458,704 1,001,079 Financial Results Direct network costs1 5,289,857 1,150,534 For half-year ended 31 December 2016 Profit/(loss) after direct network (831,153) (149,455) costs1 Rev
Slide 8: 1HFY17 Revenue Growth
1HFY17 Revenue Growth Financial Results For personal use only 1 July 2016 - 27 July 2015 - 31 December 2016 31 December 2015 Change % For half-year ended 31 December 2016 Asia-Pacific 2,345,183 1,001,079 1,344,104 Revenue was $4,458,704 driven by Europe 1,868,481 - 1,868,481 acquisitions in Europe,
Slide 9: 1HFY17 Managing Costs
1HFY17 Managing Costs For personal use only Heavy Lifting Direct Network Costs include bandwidth, colocation, Complete and cross connect costs Costs managed to maximise efficiency whilst enabling Operating Expenses support of revenue generating activities Employee costs represent growth in global re
Slide 10: 1HFY17 Cashflow
1HFY17 Cashflow For personal use only Cash Burn Stabilised Following investment in network, people, and infrastructure in 2016 2HFY17 Focus Aligned to significant revenue growth with prudent cost management to deliver meaningful reduction in cash burn Closing cash position $24.2M as at 31 Dec 2016 1
Slide 11: Business update
For personal use only Business update 11
Slide 12: The Megaport Network
The Megaport Network For personal use only December 2016 COUNTRIES: 19 CITIES: 38 LOCATIONS: 141 PORTS: 1,479 149 locations as of 21 Feb 2017 12 Megaported Location Seaborn Software Licensing Agreement (2017)
Slide 13: H1FY17 - Growth & Momentum
H1FY17 - Growth & Momentum 2768 What’s driving For personal use only revenue growth? Average Revenue per Port (2016)* 1479 1500 June December $418 $615 **$909k GROWTH 736 +47% $308k The increase in services per-port 102 141 directly increases Port value. June 2016 Dec 2016 June 2016 Dec 2016 June 20
Slide 14: Path to Revenue
Path to Revenue For personal use only * December 2016 141 621 1479 2768 $909k September 2016 132 561 1409 2412 $794k June 2016 102 314 736 1500 $308k Services comprise of Ports, Virtual Cross Connections (VXCs), and Internet Exchange (IX). 14 *Monthly Recurring Revenue is closing monthly revenue for
Slide 15: The Network Effect
The Network Effect For personal use only Megaport’s strategy is to rapidly expand our network, expand our addressable market, and expand our revenue opportunity. “A network effect occurs when a “Getting big fast matters, not only product or service becomes more because it creates more value, but als
Slide 16: Adoption of Megaport Services
Adoption of Megaport Services Dec 2015 June 2016 Dec 2016 For personal use only Megaport Megaport Service connectivity Connections mirrors cloud adoption Ports Services trends Service Connections Types Direct Public Cloud Internet Exchange Private Connection 16 Excludes acquisitions
Slide 17: Growth Trends
Growth Trends For personal use only Increased services per port drives greater monthly recurring revenue growth 17
Slide 18: Revenue Channels / Go To Market
Revenue Channels / Go To Market Addressable Market Revenue For personal use only Expand reach to more Enterprise prospects Strategic Partners Increase number of people Resellers, Data Centres, $$ selling Megaport by an order of Integrators, Carriers magnitude Solutions and Sales Engineering support
Slide 19: Partnership Benefits
Partnership Benefits Network and Cloud Service Providers Data Centre Operators For personal use only Managed Service Providers Cloud Service Providers can reach a larger Data Centre partners can access instant cloud Physical reach of Network partners’ customer base that could not traditionally conne
Slide 20: Digital Realty partnership
For personal use only Digital Realty is a leading full scale data centre provider offering colocation, interconnection, and cloud connectivity services with 150+ data centres globally. The Partnership: Global agreement to provide elastic interconnection capabilities for Service Exchange in 24 data c
Slide 21: Seaborn Networks partnership
For personal use only Seaborn Networks, a leading developer-owner-operator of independent submarine fiber optic cable systems, including Seabras-1 between New York and Sao Paulo. The Partnership: Global Platform and Licensing Agreement enabling Seaborn Networks to offer Megaport’s elastic interconne
Slide 22: Regional update
Regional update For personal use only Demand-led 45 capacity IX HK-LA Trans-Pacific link Jun - Dec Traffic growth: Data Centres SG-HK Secondary path +25% SYD, +63% AKL, +53% SG 39 8 1st Data Centres New cloud Azure GovCloud locations in on-ramp locations Dallas and Chicago 57 6 1st Data Centres New
Slide 23: H2 FY17 Priorities
H2 FY17 Priorities For personal use only EXPAND Deeper into enterprise markets through partnership and organically, adding 30 new data centres CONNECT Industry leading Cloud Providers onto our SDN and to our customers DRIVE Sales enablement through expanded direct sales and channel engagements DELIV
Slide 24: Thank you
Thank you For personal use only On the Web: Megaport.com/investor Megaport.com/newsroom Social /megaportnetworks @megaport @megaportnetwork Contact investor.centre@megaport.com ASX: MP1 24