28 April 2022

Quarterly Activities Report

For the quarter ending 31 March 2022

ActivePort Group Ltd ("ActivePort" or "the Company"), (ASX:ATV) is pleased to report strong software revenue growth for the quarter, demonstrating the success of the Company's strategy to deliver cash flow from high margin software sales.

Highlights:

  • • Year-to-date revenue stands at $10.27M, a 52% increase from H1 FY22 into Q3 FY22.

  • • Software revenue is now 29.7% of total revenue up from 7.9% in the previous quarter.

  • • Contracted software revenue will contribute significantly to quarterly cash inflows.

  • • Gross profit has risen from 32% in Q2 to 62% in Q3, demonstrating the positive impact software sales have on the profitability of the business.

Overall, the business is executing on its strategy and seeing strong take-up of the core software products. Software revenue is highly profitable and will make a significant cash contribution to the

Company's bottom line in coming quarters.

Group Revenue

Total group revenue is showing strong growth and steadily increasing quarter-on-quarter. A large one-off hardware contract in December increased the Q2 revenue above the average but the increase from Q1 to Q3 shows the underlying average revenue growth is accelerating.

The revenues shown in the chart above are proforma and assume the consolidated group was in place during those periods. The effective date of consolidation was 27 September 2021.

Software Revenue

Software revenue as a percentage of total revenue is accelerating, reaching 29.7% of total sales for the quarter, up from 7.9% in the previous quarter. Software revenue has high gross profit and therefore the $1.04M of software revenue in Q3 will make a significant contribution to the Company's cash reserves.

The revenues shown in the chart above are proforma and assume the consolidated group was in place during those periods. The effective date of consolidation was 27 September 2021.

Capital Consumption

ActivePort executive continues to focus on cost management to maintain a consistent operating cost base. This is complemented by a positive cash contribution from software sales that should see total cash burn reduce to circa $0.7M by the end of Q4 and trend toward positive early in FY23.

Note: this table is provided for illustrative purposes and is based on the information available to the company at the time of release. It should not be used as a guarantee of future performance or forecast.

Q4 Objectives

Q4 will see the company launch the Global Edge platform and deliver a self-service, edge-to-cloud,

SD-WAN orchestration portal. This will add another channel to market for ActivePort's software that has a shorter cycle from order to cash than the Company's enterprise software sales.

The sales team will continue to drive enterprise software sales to the global telecommunications sector, building on the successes experienced in Q3 and continue to work with our MSP and ISP partners globally, to grow the SD-WAN licence revenue base with their customers.

CEO and MD Karim Nejaim said:

"Quarter 2 and Quarter 3 have been foundational for ActivePort, and we are very proud that the revenue from our software products is now being realised as planned. We have a strong pipeline of customers both local and international and an increasing number of strategic deals that will make a strong positive cash contribution to the Company heading into FY23."

IPO Use of funds reconciliation

Pursuant to Listing Rule 4.7C2, the Company confirms that during the period since listing on the ASX on 18 October 2021, its expenditure incurred is in line with the Use of Funds as set out in its Prospectus, with a summary as shown in the table below:

Use of Funds under Prospectus1

Funds allocated under the Prospectus

Funds expended to 31

March 2022

Business growth and acquisitions

1,700,000

1,067,000

Global sales development

4,200,000

2,298,000

Product engineering and tech support

2,400,000

1,936,000

Capital raising and listing costs

870,000

837,000

Administration and other corporate costs

375,000

329,000

Working capital

2,595,000

874,000

12,140,000

7,341,000

Note 1 - refer to the ActivePort Prospectus dated 13 August 2021 for full details.

In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C include Director fees, salary and superannuation for the CEO, non-executive Chairman and non-executive Directors, consistent with disclosures in the Prospectus.

About ActivePort Group Ltd

ActivePort Group Ltd is an Australian software company that engineers, delivers and supports a network and cloud orchestration product. ActivePort software lets customers manage all their cloud hosting and networking technology end-to-end, from one single screen. Using ActivePort's unique software, customers can create network connections, deliver cloud services, and manage their data at a local, national, or global scale. The result is simplicity, agility, speed, and lower costs. ActivePort also delivers information technology managed services to enterprise customers.

For more information, please visitwww.activeport.com.au

Investor relations

Media relations

ActivePort Group Ltd

Lisa Jones, ActivePort Group

Investor.relations@activeport.com.au

lisa.jones@activeport.com.au

www.linkedin.com/company/activeport-group-ltd

ActivePort Group Ltd

Level 4, 46 Colin Street

West Perth, Western Australia 6005 ABN: 24 636 569 634 ----------------------------------------------------------------------------------------------------------------------------------

This announcement has been authorised for release by the Board of ActivePort Group Ltd.

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

ACTIVEPORT GROUP LTD

ABN

24 636 569 634

Quarter ended ("current quarter")

31 MARCH 2022

Consolidated statement of cash flows

Current quarter

$A'000

Year to date (9 months)

$A'000

  • 1. Cash flows from operating activities

  • 1.1 Receipts from customers

  • 1.2 Payments for

    • (a) research and development

    • (b) product manufacturing and operating costs

    • (c) advertising and marketing

    • (d) leased assets

    • (e) staff costs

    • (f) administration and corporate costs

  • 1.3 Dividends received (see note 3)

  • 1.4 Interest received

  • 1.5 Interest and other costs of finance paid

  • 1.6 Income taxes paid

  • 1.7 Government grants and tax incentives

  • 1.8 Other (provide details if material)

  • 1.9 Net cash from / (used in) operating activities

4,514

(557) (3,268)

(46)

- (1,711) (1,060)

- - - - - -

7,589

(1,591) (5,771)

(124)

(15) (4,392) (2,636)

- - - - - -

(2,128)

(6,940)

ASX Listing Rules Appendix 4C (17/07/20)

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(g) entities

-

-

(h) businesses

-

-

(i) property, plant and equipment

-

(4)

(j) investments

-

-

(k) intellectual property

-

-

Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

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ActivePort Group Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 04:13:07 UTC.