#1Megaport Investor Presentation. Quarterly Update - 1QFY24 MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1 | OCTOBER 2023#2Highlights 1QFY24 Highlights ARR¹ $189.8M up $11.2M QoQ +6% >> >> Launched Megaport Reach EBITDA² $15.0M up $3.2M QoQ +27% Investment in go-to-market engine progressing well $ Positive Net Cash Flow³ $5.6M up $3.3M QoQ 143% Public availability of Megaport ONE Beta 1. Annual Recurring Revenue 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 any non-recurring or one-off revenue. Excluding the impact of foreign exchange tailwinds from a weakening Australian dollar, underlying ARR grew $5.2M of 3% in 1QFY24. 2. Earnings Before Interest Tax Depreciation and Amortisation represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. Prior to 1QFY24, EBITDA was normalised (adjusted or reduced) for certain one-off accruals and reversals. 3. Net Cash Flow represents movement in Net Cash, which is cash at bank less debt including the vendor financing liability. Megaport 2#3EBITDA EBITDA¹: Highest on Record A$M 20 15 10 EBITDA¹ $5.0M 5 $2.4M $1.0M $1.0M -$3.2M -$4.1M -$3.9M 0 $11.8M $15.0M -5 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 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 disposal of property, plant and equipment, and certain non-recurring non-operational expenses. Prior to 1QFY24, EBITDA was normalised (adjusted or reduced) for certain one-off accrual reversals. Megaport 3#4Cash Flow Net Cash Flow in 1QFY24 Net Cash Flow¹ Positive Q1: $5.6M Net Cash² Position: $38.9M Cash at Bank: $55.2M A$M -10 -20 NET CASH FLOW¹ 10 0 44! -$6.8M -$8.6M -$8.5M -$11.1M -$16.5M -$17.2M Megaport $2.3M $5.6M -30 -$28.5M 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 1. Net Cash Flow represents movement in Net Cash, which is cash at bank less debt including the vendor financing liability. Net Cash Flow in 1QFY22 does not include the $10.4M cash purchase price paid for InnovoEdge. 2. Net Cash as at 30-Sep-23 comprises cash at bank of $55.2M less amounts owing under the vendor financing facility of $16.3M. 4#5Revenue Annual Recurring Revenue REVENUE GROWTH 200 ARR¹ 148 139 128 113 110 103 100 90 90 150 ARR¹ Growth Sep 23 QoQ 6% YoY 36% ARR A$M 50 Megaport 190 179 169 0 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 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 any non-recurring or one-off revenue. Excluding the impact of foreign exchange tailwinds from a weakening Australian dollar, underlying ARR grew $5.2M or 3% in 1QFY24. LO 5#6KPIs Key Performance Indicators Megaport Prelim QoQ QoQ % KPIs & Metrics¹ Sep-23 Jun-23 Net QoQ Sep-22 Change Growth YOY Change YoY % Growth RevGen4 Total Services² 31,190 30,516 674 694 2% 28,326 2,864 10% Customers 2,863 2,856 7 31 0% 2,700 163 6% Customer Ports³ 9,307 9,172 135 148 1% 8,573 734 9% Total Ports 10,099 9,963 136 148 1% 9,606 493 5% VXC and IX 20,067 19,546 521 499 3% 17,853 2,214 12% MCR 866 848 18 39 2% 772 94 12% MVE 158 159 -1 8 -1% 95 63 83 66% 1. A summary of Megaport's historical KPIs and metrics can be found on our website at https://www.megaport.com/investor/business-overview/#kpis. 2. Total Services include Ports, VXC, IX MCR, and MVE services. 3. Customer Ports exclude consolidation of legacy strategic ports as part of our transition to 100Gb cloud on-ramp interconnections. 4. Represents Net Revenue Generating metrics as the net movement in services and customers with billed revenue. 6#7FINANCIAL PERFORMANCE SUMMARY FINANCIAL PERFORMANCE 1QFY24 4QFY23 QoQ 1QFY23 YOY Unaudited Summary Financials $'M AUD $'M AUD % $'M AUD % Revenue 46.5 44.3 5% 33.7 38% Gross Margin 32.4 30.5 6% 21.7 49% Reported EBITDA 15.0 14.5 3% 1.0 n.m EBITDA¹ 15.0 11.8 27% 1.0 n.m EBITDA margin % 32% 27% +5pp 3% +29pp Net Cash Flow 2 5.6 2.3 n.m (17.2) n.m Closing Net Cash 2 38.9 33.3 17% 50.6 (23%) Megaport Unaudited Financial Results Quarter Ended 30 September 2023 Key Highlights 1QFY24 Revenue grew 5% QoQ driven by organic growth in recurring revenue and an FX tailwind from the USD:AUD. Further improvements in Gross Margin and EBITDA demonstrates the impact of both top line revenue growth and the continued focus on cost control. The Net Cash Flow improved for the quarter, continuing this positive momentum from 4QFY23, driven by consistent cost control measures and revenue growth. 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 disposal of property, plant and equipment, and certain non-recurring non-operational expenses. Prior to 1QFY24, EBITDA was normalised (adjusted or reduced) for certain one-off accrual reversals. 2. Net Cash Flow is the change in Net Cash over the period. Net cash = cash at bank less debt (including vendor finance facility). As at 30 September 2023 Net Cash comprised cash at bank of $55.2M less the amount outstanding under vendor finance facility of $16.3M. n.m. = not meaningful; QoQ = quarter over sequential quarter; YoY = quarter of prior corresponding quarter in the previous year 7#8FINANCIAL PERFORMANCE UNAUDITED FINANCIAL RESULTS 1QFY24 4QFY23 QoQ Consolidated Profit & Loss $'M AUD $'M AUD % 1QFY23 $'M AUD YOY % Revenue 46.5 44.3 5% 33.7 38% Direct network costs (9.1) (8.4) (8%) (8.2) (11%) Partner commissions (5.0) (5.4) 7% (3.8) (32%) Gross Margin 32.4 30.5 6% 21.7 49% Gross Margin % 70% 69% +1pp 64% +5pp Employee expenses (13.4) (11.2) (20%) (14.9) 10% Professional fees (1.0) (1.5) 33% (1.6) 38% Marketing expenses (0.4) (0.8) 50% (1.2) 67% Travel expenses (0.3) (0.2) (50%) (0.6) 50% IT costs (0.6) (0.9) 33% (0.9) 33% Other operating expenses (1.7) (1.4) (21%) (1.5) (13%) Reported EBITDA¹ 15.0 14.5 3% 1.0 n.m 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 disposal of property, plant and equipment, and certain non-recurring non-operational expenses. n.m. = not meaningful; QoQ = quarter over sequential quarter; YoY = quarter of prior corresponding quarter in the previous year Megaport Unaudited Financial Results Quarter Ended 30 September 2023 EBITDA Highlights Gross Margin % remained consistent with 4QFY23, driven by the results of network optimisation efforts begun in the prior year, and revenue growth. Employee expenses in 4QFY23 included a year-to-date accounting reclassification of $2.3M in share-based payments for FY23 annual staff performance-based incentives. 1QFY24 costs reflect lower headcount post-restructuring, offset by new hires. Overall quarterly results reflect the stable growth QoQ, driven by continuous improvement of operating efficiency to support the go-to-market strategy, which is expected to yield continued and consistent operating and financial performance. 8#9FINANCIAL PERFORMANCE UNAUDITED FINANCIAL RESULTS 1QFY24 4QFY23 QoQ Consolidated Cash Flow $'M AUD $'M AUD % 1QFY233 $'M AUD YOY % EBITDA¹ 15.0 14.5 3% 1.0 n.m Working Capital (4.3) (8.1) 47% 0.1 n.m Cash flow from Operating Activities 10.7 6.4 67% 1.1 n.m Cash flow used in Investing Activities (5.9) (4.9) (20%) (14.4) 59% Cash flow from Financing Activities 1.2 (1.7) n.m 1.0 20% Effect of FX movements 0.7 0.1 n.m (0.8) n.m Total Cash Flow 6.7 (0.1) n.m (13.1) n.m Opening Cash Balance 48.5 48.6 0% 82.5 (41%) Closing Cash Balance 55.2 48.5 14% 69.4 (20%) Opening Vendor Financing Balance (15.2) (17.6) 14% (14.7) (3%) Closing Vendor Financing Balance (16.3) (15.2) (7%) (18.8) 13% Net Cash Flow² 5.6 2.3 n.m (17.2) n.m Closing Net Cash² 38.9 33.3 17% 50.6 (23%) Megaport Unaudited Financial Results Quarter Ended 30 September 2023 Net Cash Flow Cash flow from Operating Activities was an inflow of $10.7M, up $4.3M from 4QFY23, largely due to higher billed revenue for the quarter. Increase in Cash used in Investing Activities was due to purchase of inventory, funded via the vendor financing facility. Cash from Financing Activities includes a slight increase in borrowings under the vendor financing facility and employee share options exercised during the quarter. Closing Net Cash² at 30 September 2023 was up $5.6M to $38.9M from 30 June 2023. 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 disposal of property, plant and equipment, and certain non-recurring non-operational expenses. Prior to 1QFY24, EBITDA was normalised (adjusted or reduced) for certain one-off accrual reversals. 2. Net Cash Flow represents movement in Net Cash. Closing Net Cash = cash at bank less debt (including vendor finance facility). 3. 1QFY23 has been restated to reclassify interest received as cash flows from operating activities and interest paid as cash flows from financing activities. n.m. = not meaningful; QoQ = quarter over sequential quarter; YoY = quarter of prior corresponding quarter in the previous year 9#10Megaport Portal 塑 Demo Megaport 10#11Customer Growth 2023 New Logos Stop Paying Too Much!! CHEMIST The New York Times essential First Eagle WAREHOUSE energy Investments Queensland Country Bank Megaport amc THEATRES SWIRE SHIPPING BANCO FIBRA VISTA Bank of Sydney Σntain CATO CONAGRA BRANDS. RSL care +rdns by your side LLOYDS BANK NETWORKS CITY OF OAKLAND EMI.. Money in Motion SA Power Networks ■ITAI PIPaccess international WELLINGTON MANAGEMENT® RЯP RESTER AUSTRALIA RISING SUN PICTURES Public Transport Authority 11#12Focus Investment in Reigniting the GTM Engine >> Go-to-Market overhaul remains our #1 priority >> 90% of the sales roles are hired and almost all in seat >>> Sales Leadership: CSO, EVP GTM Transformation & NAM Sales Leader in seat >> Customer Success: 3 new hires in seat, Protect and Expand beyond product led growth >> Solution Architects: 3 new roles filled >> Channel team: re-focused to optimise routes to market Megaport 12#13Focus Megaport Outlook >> Strong financial position, delivering sustained improvements in EBITDA¹ and Net Cash Flow² >> Launched Megaport Reach, Megaport ONE Beta, Global WAN, and Portal Dashboard Imminent launch of Megaport Enterprise Internet product >> IX roll out, Project Centurion 400G backbone and 100G port deployment, 100G+ connectivity >> Continued data centre expansion into new countries and markets >> FY24 Guidance³ unchanged, the rebuild and recovery of momentum expected to take time 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 disposal of property, plant and equipment, and certain non-recurring non-operational expenses. Prior to 1QFY24, EBITDA was normalised (adjusted or reduced) for certain one-off accrual reversals. 2. Net Cash Flow is the change in Net Cash over the period. Net cash is defined as cash at bank less debt including the vendor finance facility. 3. On 22 August 2023, Megaport released Updated Guidance for FY24 to ASX that noted FY24 EBITDA is expected to be in the range of $51M to $57M, FY24 Revenue is expected to be in the range of $190M to $195M and Megaport expects to be Net Cash Flow positive for the FY24 full year. FY24 guidance is provided after taking into account the planned incremental growth in sales headcount and planned capital expenditure, and excludes any future strategic initiatives the Company may decide to undertake. Guidance assumes a foreign exchange rate of AUD $1.00 to USD $0.67. Any variation to the exchange rate will impact both revenue and costs. 13#14Questions. in @megaport @megaportnetwork @megaportnetworks ASX: MP1 megaport.com/investor megaport.com/newsroom 8 14 Megaport#15Important Information This presentation has been authorised by the Board of Megaport. Megaport Limited ACN 607 301 959 Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Megaport securities in any jurisdiction. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the information, whether as to the past or future. Recipients of the document must make their own independent investigations, consideration and evaluation. The information contained in this presentation is subject to change without notification. This presentation includes certain forward looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Megaport. These factors may cause actual results to differ materially from those expressed in the statements contained in this presentation. For specific risks, please refer to the FY23 Annual Report lodged with the ASX on 22 August 2023. For specific disclaimers, please refer to the Megaport Placement & Share Purchase Plan presentation lodged with the ASX on 7 April 2020. All references to "$" are to Australian currency (AUD) unless otherwise noted. For definitions refer to the Glossary for Investors on the Megaport website at https://www.megaport.com/investor/business-overview/. A summary of Megaport's historical KPIs and metrics can be found on our website at https://www.megaport.com/investor/business-overview/#kpis. Subscribe for ASX announcements at https://www.megaport.com/investor/#investor-contact. Megaport Limited Level 3 825 Ann Street Fortitude Valley Queensland 4006 Contact: Investor Relations Megaport Limited [email protected] Megaport 15