INVESTOR PRESENTATIONFY24 FULL YEAR RESULTSCOMPANY HIGHLIGHTS

What Does Megaport Do?
WE CONNECT

Largest Network-as-a-Service
connections to cloud providers
on the planet.

Pioneered global private
Multicloud connectivity all
provisioned via code.

Data Center Interconnect andGlobal WAN between 860+
DCs 24 Countries - 100G
connectivity from 597 DCs.

Spin Up Virtual Routers andFirewalls from your favourite
vendors worldwide.

We do all that in 60 seconds with just a few clicks.
2Company
Highlights

AnnualResults

Business
UpdateProgress on
Transformation

3

COMPANY HIGHLIGHTS

Proﬁtable Efﬁcient Growth

4

COMPANY HIGHLIGHTSFY24 Highlights

REVENUEGROSS PROFITEBITDA1

NET CASH FLOW2

up 28% YoY

up 32% YoY

up 182% YoYn.m. YoY

1. Earnings Before Interest Tax Depreciation and Amortisation (‘EBITDA’) represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains andlosses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. EBITDA excludes restructuring costs of $1.1M in FY24 (FY23: $4.9M), and prior to FY24 EBITDA
was normalised (adjusted or reduced) for certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.
2. Net Cash Flow represents the movement in Net Cash, which is cash at bank less debt including the vendor ﬁnancing liability. FY24 Net Cash Flow of $28.0M includes a one-off net receipt of $5.5m
relating to prior quarters, and follows a review of revenue share arrangements with a partner. Excluding the one-off receipt of $5.5M, Net Cash Flow for FY24 was $22.5M. YoY movement in Net Cash Flowis the difference between a net cash outflow of $34.5M in FY23 and a net cash inflow of $28.0M in FY24.
3. n.m. = not meaningful
4. YoY = compared to the previous year.

5

COMPANY HIGHLIGHTS

Proﬁtable Efﬁcient Growth
EBITDA1
EBITDA1 YoY
FY24 EBITDA1 reﬂects the full year impact of
Megaport’s turnaround to proﬁtable, efﬁcient growth.
Full costs were not incurred until the second half, when
the business began its re-investment in longer term
growth.
These reinvestments in growth saw the Jun-24 EBITDA1
exit run rate at $4.5M (27% margin), equating to $54M
on an annualised basis.

1. Earnings Before Interest Tax Depreciation and Amortisation (‘EBITDA’) represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains andlosses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. EBITDA excludes restructuring costs of $1.1M in FY24 (FY23: $4.9M), and prior to FY24 EBITDA
was normalised (adjusted or reduced) for certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.

6

COMPANY HIGHLIGHTS

Growth Across All Regions
North America

Asia Paciﬁc

EMEA

Global$110.8M$52.6M$31.9M$195.3M

57% of global revenue

27% of global revenue

16% of global revenue$25.4 M30%

$9.2 M21%$7.6 M31%$42.2 M

28%

YoY

YoY

YoY

YoY

FY23: $85.4M

FY23: $43.4M

FY23: $24.3M

FY23: $153.1M

Note: Growth rates are calculated using the actual $ values.

7

COMPANY HIGHLIGHTS

Annual Recurring Revenue (ARR)1
ARR1

Net New Q4 ARR1FX Comparison
3.7%

A$M

2.3%

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 any
non-recurring or one-off revenue.
2. FX Adjusted shows net increase in ARR based on prior quarter’s exchange rate. Excluding the impact of foreign exchange headwinds from a strengthening Australian dollar, underlying ARR grew 3.7%
in 4Q FY24.

8

COMPANY HIGHLIGHTS

Continued Focus on Proﬁtable, Efﬁcient Growth
Net Cash Flow1,2+$28.0M up $62.5M YoY

NET CASH FLOW1,2,3

Net Cash1,2$61.2M up $28.0M YoY
Cash at Bank
$72.4M up $24.0M YoY

1. Net Cash Flow represents movement in Net Cash, which is cash at bank less debt including the vendor ﬁnancing liability. Net Cash as at 30-Jun-24 of $61.2M comprises cash at bank of $72.4M lessamounts owing under the vendor ﬁnancing facility of $11.2M.
2. FY24 Net Cash Flow of $28.0M includes a one-off net receipt of $5.5m relating to prior quarters, and follows a review of revenue share arrangements with a partner. Excluding the one-off receipt of$5.5M, Net Cash Flow for FY24 was $22.5M. Q4 Net Cash Flow was $2.0M reflecting the timing of receipts from customers falling into the 1st week of July, along with FX headwinds and slightly higher
costs.
3. Net Cash Flow excludes proceeds from capital raisings of $42.4m in FY17, $77.0m in FY18, $64.1M in FY19 and $134.3M in FY20, and $10.4M (US$7.5M) cash purchase price for InnovoEdge in FY22.

9

Company
Highlights

AnnualResults

Business
UpdateProgress on
Transformation

10

ANNUAL RESULTS

Substantial Financial Turnaround11

ANNUAL RESULTS

Delivering a robust ﬁnancial
turnaround, while also
reinvesting for future growth.

Summary P&L
FY24$’M AUD

FY23$’M AUD

Change$’M AUD

Change%Revenue

195.3

153.1

42.2

28%

Direct network costs(36.4)(31.5)

(4.9)

(16%)

Partner commissions(22.0)(17.7)

(4.3)

(24%)

Gross proﬁt

136.8

103.9

32.9

32%

Gross proﬁt margin

70%

68%

n.m.

+2 pp

Operating Expenses (Opex)

Consolidated Proﬁt & Loss

(79.7)(78.7)

(1.0)

(1%)

1

EBITDA

57.1

25.2

31.9

127%

EBITDA margin

29%

16%

n.m

+13 ppDepreciation, amortisation, other non-operating
expenses and taxes(33.8)(31.5)

(2.3)

(7%)

Equity settled employee costs(13.7)(3.5)(10.2)

n.m.

Net proﬁt/(loss) for the period

9.6

(9.8)

19.4

n.m.

1. Earnings Before Interest Tax Depreciation and Amortisation (‘EBITDA’) represents operating results excluding equity-settled employee andrelated costs, foreign exchange gains and losses, gains and losses on disposal of property, plant and equipment, and certain non-recurring
non-operational expenses. EBITDA excludes restructuring costs of $1.1M in FY24 (FY23: $4.9M).
2. RSUs are Restricted Stock Units used to attract and retain staff. PRSUs are Performance Restricted Stock Unit issued to key management
personnel. Refer to Appendix for more detail.
n.m. = not meaningful. pp = percentage point
NB: Due to rounding, numbers presented in this section may not calculate precisely to the totals or year on year movements provided.

Revenue up 28%, driven by growth in services
across all regions and the full year impact in
FY24 of pricing changes for Cloud VXCs in 2H
FY23.
Direct network costs only increased 4% after
removing the impact of IFRS leasing andchanges in accounting treatment.
Partner commissions up 24%, reﬂecting
re-engagement with channel partners as partof the GTM strategy.
Overall Gross Proﬁt increased by 32%.
FY24 equity settled employee costs included:●●●

CEO PRSUs2: $2.8M
Vested RSUs2: $7.5M
Accrued performance based incentives: $3.3M

FY23 was low due to a share options reversal
of $2.0M not vested and lower option grants
to employees.

12

ANNUAL RESULTS

Operating Costs

Investing in go-to-market to drive
future growth, while maintaining
tight cost controls.

Operating Expenses

1H FY24 was signiﬁcantly low across all opex
categories, however 2H FY24 reﬂected the full
impact of higher salary costs for the go tomarket functions and increased expenditure on
marketing, advertising, travel andentertainment.

FY24$’M AUD

FY23$’M AUD

Change$’M AUD

Change%Employee costs1

57.9

56.7

1.2

2%

Professional fees

4.6

6.4

(1.8)

(28%)

Marketing costs

4.8

4.4

0.4

9%

Travel costs

2.9

2.2

0.7

32%

IT costs

3.4

3.5

(0.1)

(3%)

Other operating expenses

6.2

5.5

0.7

13%

Total Opex

79.7

78.7

1.0

1%

1. Excludes equity-settled employee costs and restructuring costs.
NB: Due to rounding, numbers presented in this section may not calculate precisely to the totals or year on year movements provided.

Employee costs1 were up $1.2M,
predominantly driven by the increase inheadcount in the latter half of the ﬁnancial
year. Employee costs were 30% of revenue,
down from 37% in FY23.
The decrease in professional fees was due toongoing cost control efforts continued
throughout FY24, and a number of one-off
services in FY23 that did not recur.
The increase in travel spend reﬂected a returnto “normal” levels 2H FY24 as the go-to-market
team was focused on customer, partner andindustry engagement activities.

13

ANNUAL RESULTS

FY24 represents a substantial
ﬁnancial turnaround in cash
generation.

Cash Flow
FY24$’M AUD

FY23$’M AUD

Change$’M AUD

Change%Cash ﬂow - Operating Activities

51.7

10.2

41.5

n.m.

Cash ﬂow - Investing Activities(19.9)(32.7)

12.8

39%

Cash ﬂow - Financing Activities(7.4)(12.4)

5.0

40%

Effect of FX movements

(0.5)

0.9

(1.4)

n.m.

Total Cash Flow

24.0

(34.0)

58.0

n.m.

Opening Cash Balance

48.5

82.5

(34.0)(41%)

Closing Cash Balance

72.4

48.5

24.0

49%

Opening Vendor Financing Balance(15.2)(14.7)

(0.5)

(3%)

Closing Vendor Financing Balance(11.2)(15.2)

4.0

26%

Net Cash Flow1

28.0(34.5)

62.5

n.m.

Closing Net Cash2

61.2

33.3

28.0

84%

Consolidated Cash Flow

Increase in operating cash inﬂows YoY aligns
with EBITDA growth, which was driven byrevenue growth and partner re-engagement
efforts.
Cash ﬂows used in investing activities
reduced by 39% to $19.9M, reﬂecting the low
expenditure on equipment purchases asexisting inventory was utilised, and reduced
development costs from headcount.
Decrease of 40% in ﬁnancing activity cash
outﬂows reﬂected increased proceeds fromexercise of employee share options ($1.3M
FY24 vs $0.6M FY23), reduced payment ofprincipal portion of lease liabilities ($5.7M
FY24 vs $7.4M FY23), and reduced outﬂows
on borrowings ($1.3M FY24 vs $3.1M FY23).

NET CASH FLOW1 IMPROVEMENT IN FY24

1. Net Cash Flow is the change in Net Cash over the period.
2. Net Cash is cash at bank less debt (including vendor ﬁnance facility). As at 30 June 2024, Net Cash comprised cash at bank of $72.4M lessthe amount outstanding under vendor ﬁnancing facility of $11.2M.
n.m. = not meaningful
NB: Due to rounding, numbers presented in this section may not calculate precisely to the totals or year on year movements provided.

$62.5M
14

ANNUAL RESULTS

Cash at bank at the the end of
FY24 was $72.4M, a 49% increase
YoY.

Financial Position
30 June 2024$’M AUD

30 June 2023$’M AUD

Cash

72.4

48.5

Other current assets

32.7

30.0

Non-current assets1

109.6

125.9

Total assets

214.7

204.4

Consolidated Statement of Financial Position

Current liabilities

45.7

51.5

Non-current liabilities1

14.9

24.9

Total liabilities

60.6

76.4

Net assets

154.1

128.0

1. Non-current assets and non-current liabilities as at 30 June 2023 have been restated due to application of AASB 2021-5. Refer to Note 4
to the consolidated ﬁnancial statements in the Appendix 4E and FY24 Annual Report for details.
2. Current ratio calculated as current assets divided by current liabilities.
NB: Due to rounding, numbers presented in this section may not calculate precisely to the totals or year on year movements provided.

Non-current assets decreased due to lower
spend on equipment as existing inventory was
consumed and no major network upgrades
required further purchases in FY24.
Capitalised wages also reduced due to a lower
headcount during FY24.
The amount owing under the vendor ﬁnancing
was $11.2M, down from $15.2M at 30 June
2023.
Megaport’s current ratio2 of 2.3 (FY23: 1.5) islargely driven by the strong operating cash
inﬂows during the year.

TOTAL CASH AT 30 JUNE 2024

$72.4M

15

ANNUAL RESULTS

FY24 capex historically low.

Capital Expenditure

PPE Capex
39.8

●
29.1

●
19.4

●

Inventory was stockpiled during the
pandemic due to supply chain delays
Downward trend in capex from FY22 due
to utilisation of inventory for expansion
and upgrades
FY24 in-year purchases reduced while
future network design and equipment
requirements were planned

Capitalised Wages●

PPE Capex $7.6M
Network andCapacity Upgrades

Capitalised Wages Capex $11.8M

Other

Other
Deployment●

Signiﬁcantly lower due to a reduced
resource cost base and more internal timespent on non-capital initiatives
Predominantly reﬂects efforts on deliveryof network enhancements, new productdevelopment and deployment to new andexisting sites

FY25 TOTAL CAPEX EXPECTED

Equipment
RefreshNetworkDevelopment

Product
Development$27M - $30M
Inclusive of $6M in network licencesfor 3 years.

16

ANNUAL RESULTS

Jun-24 reﬂects the second half
reinvestment in growth.

Operating Leverage - Exit June Month

EBITDA Exit Margin of 27% reﬂects thecontinued reinvestment through FY24 in the
go-to-market function.
The exit run rate for Jun-23 was a result of
cost cutting measures but was prior to thereinvestment in future growth.
$4.5MGroup Margins for the Month

Jun-20Jun-21

Jun-22Jun-23Jun-24Gross Margin1

55%

60%

65%

69%

70%

EBITDA2 Margin

(29%)

1%

5%

31%

27%

1. Gross Margin reflects revenue less direct network costs (comprising data centre power and space, physical cross connect fees, bandwidthand dark ﬁbre, network operation and maintenance), and partner commissions which are directly related to generating revenue.
2. Earnings Before Interest Tax Depreciation and Amortisation (‘EBITDA’) represents operating results excluding equity-settled employee andrelated costs, foreign exchange gains and losses, gains and losses on disposal of property, plant and equipment, and certain non-recurring
non-operational expenses. EBITDA excludes restructuring costs, and prior to FY24 EBITDA was normalised (adjusted or reduced) for
certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.

The GTM reinvigoration and reinvestment
were largely delivered during 2H and are
best reﬂected on an exit basis.

17

Company
Highlights

AnnualResults

Business
UpdateProgress on
Transformation

18

BUSINESS UPDATE

Breaking Through $200M

19

BUSINESS UPDATE

Annual Recurring Revenue1
ARR1

YoY ARR1 growthJun 24

Group2

14%

NAM

16%

APAC

11%

EMEA

14%

Megaport

NAM

APAC
EMEA

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.
2. Q4 FY24 ARR grew by $4.5M (2.3%). Excluding the impact of foreign exchange headwinds from a strengthening Australian dollar, underlying ARR grew $7.3M or 3.7% in 4Q FY24.

20

BUSINESS UPDATEARR Contribution By Cohort1

Each customer cohort contributes
to ARR growth year after year.
Cloud VXC Reprice

MVE

MCR

EMEA
NAM

1. Customer Cohorts remain based on accounts, and are not normalised for either logo consolidation or revenue generating status

21

BUSINESS UPDATEARR per Customer
ARR per Customer1,2

Megaport

NAM

EMEA

APAC

1. ARR calculated on a constant currency basis, using June 2024 average AUD/USD = 0.664 and AUD/EUR = 0.617
2. ARR per Customer at a group level is higher than the regional calculation as the group customer count is lower than the sum of the regional customer count. This is because acustomer with services in multiple regions is counted once in the the group customer count.

22

BUSINESS UPDATE

Annual Recurring Revenue Per Service1 is Increasing
Total Services1

Total Services1

29,816
Jun 23: 26,960

Services Per Customer

11.3
Jun 23: 10.6

ARR Per Service$6,840Jun 23: $6,625

1. Total Services comprise revenue-generating Ports, Virtual Cross Connects (VXCs), Megaport Cloud Router (MCR), Megaport Virtual Edge (MVE), and Internet Exchange (IX) at period end.

23

BUSINESS UPDATE

Megaport Cloud Router + Megaport Virtual Edge

Jun-24 Average Services per Customer
Logo1

9.6

17.4

25.1

Jun-23: 9.3

Jun-23: 16.3

Jun-23: 23.1

Port only Customer

MCR Customer

MVE Customer

MCR Count

Our pivot to solution selling
made a signiﬁcant impact in thesales of MVE services.

MVE CountJun-24 Average ARR per Customer Logo1,2$67K $120K $190K
Jun-23: $61K

Jun-23: $109K

Jun-23: $216K

Port only Customer

MCR Customer

MVE Customer

1. All metrics are revenue-generating and measured at period end.
2. Represents Jun-24 ARR divided by relevant customer logo count at 30 June 2024.

24

Megaport Demo25

Company
Highlights

AnnualResults

Business
UpdateProgress on
Transformation

26

PROGRESS ON TRANSFORMATION

Reinvestment For Future Growth27

PROGRESS ON TRANSFORMATIONFY24 Progress

Q1

Q2

Q3

Q4

Develop Strategy

Execute Strategy

Build GTM Momentum

Reﬁne & Optimise》 People》 Rebuild GTM machine》 Product》 3x quota-bearing sales
execs in NAM》 Proﬁtability》 Build Digital Marketing》 Restart marketingmachine》 Fuel the new sales
business》 Double-down on provensuccesses in sales andmarketing》 Geographic expansion》 Product innovation》 Expand existing sales
team》 Continued market
expansion》 Strengthen balance sheet》 400G backbone upgrade》 Product innovation》 Strategic investments forlong term growth28

PROGRESS ON TRANSFORMATION

GTM Highlights
4Q FY24 Highlights》 Largest ARR1 contribution from New Access Products2 in Megaport history ✓》 Largest quarter in Megaport history for MVE sales ✓》 Largest overall termed services sales ✓》 Total customers generating more than $100K ARR grew 20% in FY24 ✓》 Pivot to solution selling continuing ✓》 Closing high value long-haul transactions and solution-oriented deals ✓》 New hires contributing as expected to new land ARR ✓1. Annual Recurring Revenue in A$ 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-recurringor one-off revenue.
2. Access products include Ports, MCR and MVE.

29

PROGRESS ON TRANSFORMATIONFY24 Execution
People, Product, Proﬁts》 Massive ﬁscal turn around ✓》 Exec rebuild: CFO, CTO, CLO, CSO, CMO, 3 x GTM EVPs ✓》 Ground up rebuild of GTM ✓○ Sales Execs, SAs, CSMs, SDRs, Channel, Leaders,
Tools, Systems, Comp, Forecasting, Inbound, Spain,
Italy, Brazil, World Tour 50+ Cities.

》 Largest product launches in Megaport history ✓○ Reach, Global WAN, Internet, Termed VXC, 100G VXC,
DCI, MVE vendors○ Launched ﬁrst NaaS on AWS Marketplace, Cisco
Paygo》 DC expansion, new cloud vendors, new GPUaaS ✓》 Marketing team rebuild ✓》 400G Backbone upgrades ✓》 Launched new website and updated branding ✓》 Signed largest deal ever ($1.4m ARR / $4.2m TCV) ✓》 Global IX launches ✓》 Future of Pricing - Largest overhaul in Megaport history ✓》 300% increase in HQ BBQs ✓TCV = Total Contract Value

30

PROGRESS ON TRANSFORMATION

Strategic Investments for Long-Term Growth
Scaling Network & Product Innovation

Geographic & Ecosystem Expansion》 Scale network for demands of AI》 Strategic data centre expansion》 Roll-out 400G backbone to provide 100G access acrosswider network》 New countries & competitive pricing to expand
addressable markets》 Scale network procurement economics to enable faster,
more disruptive services》 Expand AI/GPUaaS on-ramps - AI Exchange》 Expand product set to include low-touch, incremental,
high revenue products》 Faster cloud-to-cloud connectivity》 More MVE partners》 More Cloud providers and Cloud on-ramps》 More IX locations, IX peering》 FSI Exchange》 Ongoing investments in GTM

31

PROGRESS ON TRANSFORMATION

Outlook and Guidance
FY25 REVENUE1

FY25 EBITDA1,2》 FY25 revenue guidance reﬂects expected new logos and expansion of our existing customer base
》 The FY25 EBITDA guidance represents the continuation of proﬁtable, efﬁcient growth while reinvesting in the business todrive long-term growth》 Megaport’s focus is to accelerate ARR through the next 3 years and beyond○ Product innovation in FY24 has signiﬁcantly increased TAM - Global WAN, DCI, Internet, and 100G connectivity○ Attacking the new TAM by leveraging the rebuilt GTM engine○ Continued expansion of our global footprint, network, 400G backbone》 Ongoing investments in product innovation and GTM expansion as we disrupt large and expanding markets
1. Guidance is provided after taking into account the planned investment in go-to-market capabilities, product development, marketing, advertising, travel, entertainment, professional fees and planned
capital expenditure, and excludes any future strategic initiatives the Company may decide to undertake. FY25 Guidance assumes a foreign exchange rate of AUD $1.00 to USD $0.668. Any variation to theexchange rate will impact revenue, costs and cash flow.
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.
TAM = Total Addressable Market

32

PROGRESS ON TRANSFORMATION

Megaport Services - More Than Just Cloud
Megaport Services

CONNECTIVITY

NETWORKEXCHANGE

DC to Cloud

Virtual Routing

Internet Exchange

Cloud to Cloud

Hybrid MulticloudMarketplace Exchange

DC to DC

Global WAN

Financial Services Exchange

DC to GPU

Virtual Security

AI Exchange

Cloud to GPU

Global Backbone

Branch to Ecosystem

Dedicated Internet

Recently launched services.

Existing core services.

33

INVESTOR PRESENTATIONFY24 FULL YEAR RESULTS

Questions.
@megaport

ASX: MP1@megaportnetwork

megaport.com/investor@megaportnetworks

megaport.com/newsroom

THANK YOU

Important 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 asolicitation 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 thispresentation is subject to change without notiﬁcation.
This presentation includes certain forward looking statements that are basedon information and assumptions known to date and are subject to various risks
and uncertainties. Actual results, performance or achievements could besigniﬁcantly 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 andother factors, many of which are beyond the control of Megaport. These factors
may cause actual results to differ materially from those expressed in thestatements 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 athttps://www.megaport.com/investor/business-overview/.

Reference Slides
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

Contact:

Level 3825 Ann Street
Fortitude Valley
Queensland 4006

Investor Relations
Megaport Limited
investor@megaport.com

35

Appendix

36

APPENDIX

4Q FY24 Revenue-Generating KPIs1,2

1.
2.
3.
4.
5.

KPIs & Metrics1,2

Jun-24Mar-24

Net QoQ
GrowthQoQ %GrowthJun-23

Net YoY
GrowthYoY %GrowthARR3 ($m)

203.9

199.4

4.54

2%

178.6

25.3

14%

ARR per Service ($)

6,840

6,834

6

0%

6,625

215

3%

Customer Logos

2,637

2,627

10

0%

2,545

92

4%

Total Services5

29,81629,176640

2%26,960

2,856

11%

Ports

8,777

8,673

104

1%

8,294

483

6%

VXC and IX

19,874

19,407467

2%17,757

2,117

12%

MCR

914

906

8

1%

792

122

15%

MVE

251

190

61

32%

117

134

115%

Revenue-generating key performance metrics are those with billed revenue in the quarter.
Megaport's Revenue-generating Key Performance Indicators (KPIs) can be found on our website at https://www.megaport.com/investor/business-overview/#kpis.
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 headwinds from a strengthening Australian dollar, underlying ARR grew by $7.3M or 3.7% in 4Q FY24.
Total Services comprise Revenue-generating Ports, Virtual Cross Connections (VXCs), Internet Exchange (IX), Megaport Cloud Router (MCR), and Megaport Virtual Edge (MVE).

37

APPENDIX

Customer Cohort1 Trends
Average Services per Customer

2

1. Customer Cohorts remain based on accounts, and are not normalised for either logo consolidation or revenue generating status
2. FY22 has been adjusted to remove 40 accounts that were being utilised for ongoing customer training purposes from H2 FY22

Average ARR per Customer ($)

2

38

APPENDIX

Customer Cohort1 Trends
Survivorship by Customer Cohort

2

1. Customer Cohorts remain based on accounts, and are not normalised for either logo consolidation or revenue generating status
2. FY22 has been adjusted to remove 40 accounts that were being utilised for ongoing customer training purposes from H2 FY2239

APPENDIX

North America Metrics
Total Enabled Data Centres

Total Number of Customers

450

491

1,455

1,533

30 JUNE 2023

30 JUNE 2024

30 JUNE 2023

30 JUNE 2024

ARR per Port3$26,940+8%Services per Port

Total Number of Ports

Total Number of Services1

4,022

4,290

13,227

14,71330 JUNE 2023

30 JUNE 2024

30 JUNE 2023

30 JUNE 2024

Annual Recurring Revenue2$100.0M $115.6M
JUNE 2023

JUNE 2024

Proﬁt After Direct Network Costs Margin

+4%

3.4

Services per Customer

9.6

+6%
Port Utilisation4

64%

64%

36%

30 JUNE 2023

30 JUNE 2024

Figures as at 30 JUNE 2024 (vs 30 JUNE
2023)

1. Total Services comprise revenue-generating Ports, Virtual Cross Connections (VXCs), Internet Exchange (IX), Megaport Cloud Router (MCR), and Megaport Virtual Edge (MVE).
2. Annual Recurring Revenue (ARR) is revenue (excluding one-off and non-recurring revenue) for the month of June, multiplied by 12.
3. ARR divided by number of Ports at reporting period end date.
4. Ports sold/used divided by total Ports available.
Note: A spreadsheet with historical KPIs and metrics can be found on our website at https://www.megaport.com/investor/business-overview/#kpis.

40

APPENDIX

North America Financial Performance - June Month
Exit June result
Sustained growth in Jun-24 Revenue
vs Jun-23 +16%.
Gross margin is stable reﬂecting
ongoing investment into the network.
Jun-24 EBITDA margin is primarily
reﬂective of reinvestment in GTM.
Jun-23 EBITDA margin was higher
due to the ongoing cost-out program.

NAM Margins1

Jun-20Jun-21

Jun-22Jun-23Jun-24

Normalised proﬁt after direct network cost margin2

38%

53%

54%

64%

64%

EBITDA margin3

(13%)

22%

23%

49%

43%

1. All ﬁgures are for the month of June.
2. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark ﬁbre, network operation and maintenance, and partner commissions which are directly
related to generating the service revenue of Megaport Group.
3. 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. EBITDA excludes restructuring costs, and prior to FY24 EBITDA was normalised (adjusted or reduced) for
certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.

41

APPENDIX

Asia Paciﬁc Metrics
Total Enabled Data Centres

Total Number of Customers

138

148

935

947

30 JUNE 2023

30 JUNE 2024

30 JUNE 2023

30 JUNE 2024

ARR per Port3$17,027+7%

Services per Port

Total Number of Ports

Total Number of Services1

3,121

3,228

10,09010,95930 JUNE 2023

30 JUNE 2024

30 JUNE 2023

30 JUNE 2024

Annual Recurring Revenue2$49.5M $55.0M
JUNE 2023

JUNE 2024

Proﬁt After Direct Network Costs Margin

+2%

3.4

Services per Customer

11.6

+7%

Port Utilisation4

81%

78%

43%

30 JUNE 2023

30 JUNE 2024

Figures as at 30 JUNE 2024 (vs 30 JUNE
2023)

1. Total Services comprise revenue-generating Ports, Virtual Cross Connections (VXCs), Internet Exchange (IX), Megaport Cloud Router (MCR), and Megaport Virtual Edge (MVE).
2. Annual Recurring Revenue (ARR) is revenue (excluding one-off and non-recurring revenue) for the month of June, multiplied by 12.
3. ARR divided by number of Ports at reporting period end date.
4. Ports sold/used divided by total Ports available.
Note: A spreadsheet with historical KPIs and metrics can be found on our website at https://www.megaport.com/investor/business-overview/#kpis.

42

APPENDIX

Asia Paciﬁc Financial Performance - June Month
Exit June result
Growth in Jun-24 Revenue vsJun-23 +11%.
Gross margin is down 3% reﬂecting
ongoing investment, as Megaport
expands its data centre footprint
and increases the capacity of its
network.
The lower EBITDA margin isprimarily reﬂective of reinvestment
into the network and GTM.

APAC Margins1

Jun-20Jun-21

Jun-22Jun-23Jun-24

Normalised proﬁt after direct network cost margin2

72%

73%

79%

81%

78%

EBITDA margin3

41%

47%

64%

71%

65%

1. All ﬁgures are for the month of June.
2. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark ﬁbre, network operation and maintenance, and partner commissions which are directly related
to generating the service revenue of Megaport Group.
3. 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. EBITDA excludes restructuring costs, and prior to FY24 EBITDA was normalised (adjusted or reduced) for
certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.

43

APPENDIXEMEA Metrics
Total Enabled Data Centres

Total Number of Customers

224

229

517

560

30 JUNE 2023

30 JUNE 2024

30 JUNE 2023

30 JUNE 2024

ARR per Port3$26,524+7%

Services per Port

Total Number of Ports

1,151

1,259

30 JUNE 2023

30 JUNE 2024

Annual Recurring Revenue2$29.2M $33.4M
JUNE 2023

JUNE 2024

Total Number of Services1

3,643
30 JUNE 2023

4,144
30 JUNE 2024

Proﬁt After Direct Network Costs Margin

+4%

3.3

Services per Customer

7.4

+5%
Port Utilisation4

75%

78%

35%

30 JUNE 2023

30 JUNE 2024

Figures as at 30 JUNE 2024 (vs 30 JUNE
2023)

1. Total Services comprise revenue-generating Ports, Virtual Cross Connections (VXCs), Internet Exchange (IX), Megaport Cloud Router (MCR), and Megaport Virtual Edge (MVE).
2. Annual Recurring Revenue (ARR) is revenue (excluding one-off and non-recurring revenue) for the month of June, multiplied by 12.
3. ARR divided by number of Ports at reporting period end date.
4. Ports sold/used divided by total Ports available.
Note: A spreadsheet with historical KPIs and metrics can be found on our website at https://www.megaport.com/investor/business-overview/#kpis.

44

APPENDIXEMEA Financial Performance - June Month
Exit June result
Growth in Jun-24 Revenue vsJun-23 +14%.
Gross margin is up 3% reﬂecting
optimisation of the network andongoing operating leverage
conversion.
The lower EBITDA margin isprimarily reﬂective of reinvestment
in GTM - marketing, events andsales activity.

EMEA Margins1

Jun-20Jun-21

Jun-22Jun-23Jun-24

Normalised proﬁt after direct network cost margin2

64%

62%

71%

75%

78%

EBITDA margin3

23%

42%

45%

54%

42%

1. All ﬁgures are for the month of June.
2. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark ﬁbre, network operation and maintenance, and partner commissions which are directly
related to generating the service revenue of Megaport Group.
3. 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. EBITDA excludes restructuring costs, and prior to FY24 EBITDA was normalised (adjusted or reduced) for
certain one-off accrual reversals and reclassiﬁcations within proﬁt and loss.

45

APPENDIX

Equity Settled Employee Costs

FY24 of $13.7M includes:》

PRSUs3 allocated to the CEO in March2023 and approved at the AGM in
November 20234 of $2.8M.

》

Vesting of RSUs3 granted to
employees of $7.5M.

》

FY24 bonus accrual of $3.3M.

1. FY21 has been normalised to exclude $1.1M of payroll tax charges relating to FY18 to FY20.
2. FY23 has been normalised to exclude the reversal in 1H FY23 of $2.0M of share options that did not fully vest.
3. RSUs are Restricted Stock Units used to attract and retain staff. PRSUs are Performance Restricted Stock Unit issued to key management personnel.
4. In March 2023, Michael Reid was hired as the new CEO from Cisco in the US where he was serving as Chief Revenue Ofﬁcer of ThousandEyes, one of Cisco's fastest growing SaaS businesses. The key
terms of the new CEO's package, disclosed to ASX on 28 March 2023, included 977,840 PRSUs, vesting over three years, subject to meeting speciﬁc performance hurdles. At the time of signing theemployment agreement, the PRSUs were worth $4.25M. The CEO PRSUs were approved at the AGM on 2 November 2023, at which time the value of the PRSUs when measured under AASB 2
Share-based Payment was $8.4M, the increase in value being due to the increase in the Megaport share price between March and November 2023. The PRSUs will be recognised over the three year
vesting period under Equity Settled Employee Employee Costs.

46