Hubify : HFY 1H FY22 Financial Results Presentation

Market Announcement

ASX Release: Hubify (HFY)

28 February 2022

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Hubify December1H22 Update - Customer Revenue¹ up 38% and

establishment of Enterprise Managed Service Business

• Customer revenues¹ of $10.8m, up 38% on previous corresponding period (pcp) with 16.3% organic growth
• Recurring Revenue of $7.8m, up 57% on pcp - now representing 68% of Total Revenue
• Gross profit increased by 57% to $7.8m - notable increase in gross profit margin to 71.8% (from 63.9% pcp)
• Annualised Recurring Revenue (Dec 2021 exit run rate) of $16.2m, up 41% on pcp
• Investment in IT services (MSP) capability with 50+ employees driving organic growth and taking total company headcount to over 140 people
• EBITDA² of $0.43m, taking in to account significant investment in above- mentioned capability to fuel additional organic growth
• Strong Balance sheet with $4.7m cash and zero debt

Hubify Limited (ASX:HFY) ("Hubify", or the "Company"), a leading provider of Telco and IT/ Managed Services to Australian businesses, today announced its financial results for the Half-year ended December 2021. Customer revenues grew by 38% from 1H21 to $10.8m, while recurring revenues increased by 57% to $7.8m, which, positively, now represent 68% of total revenue. Total organic growth was up 16% from 1H21, led by the strong demand from the Managed Services business and solid growth across telco divisions. On the back of continued revenue growth and a notable increase in gross margins (71.8% vs 63.9% pcp), gross profit grew by 57% to $7.8m. Notwithstanding continued strong growth in top line numbers, EBITDA ($0.43m) was impacted by the Company's strategic decision to invest in additional headcount and capability during the period in order to execute upon an increasingly strong sales pipeline and new enterprise customer contracts in the Managed Services sector, in line with HFY's stated growth strategy.

The Managed Service & Cyber Security business continues to grow strongly with its Enterprise customer offerings in Business IT, Cloud services and IT infrastructure and is fuelling a pipeline of telco voice and data opportunities for the company. To support this growth Hubify has successfully recruited technical and project management staff to provide the necessary expertise and fulfill the immediate increase in requirements for Managed Service & Cyber Security customers. Costs associated with onboarding staff to support new customer contracts and the necessary building of expertise in the Enterprise managed services has driven the increase in customer revenue.

The COVID environment impacted revenue during the period across a number of areas from the provisioning and billing of clients, sales calls to customer prospects, and new client on-boarding. The company continued to support staff

Market Announcement

throughout difficult labour market conditions, even with reduced support from government and this had a negative impact on profitability. The impact of business closures due to COVID lockdowns was most pronounced in the key markets of Sydney and Melbourne across all business divisions.

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Going forward, as Australian Business' return to the office, SMB's and Enterprise are responding to pent up consumer demand in Mobility, Voice and Internet & Networks, and the Company expects this to act as an important tailwind across these divisions for the remainder of FY22.

Hubify Limited CEO Victor Tsaccounis said:

"1H22 was a transformational period for the company with the establishment of our Managed Services practice. Hubify successfully recruited technical and project management staff to fulfil the immediate increase in services necessary to manage the growth in the Managed Services division. In just over six months we now have over 50 additional employees to deliver IT and Telco solutions to our clients and have the capability to successfully manage the IT and technology needs for large Enterprise customers. This capability will fuel organic growth in our voice and data business as we continue to move up the food chain and grow revenue in the enterprise segment. We continue to find our niche in

Market Announcement

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this section of the market and are focused on developing the capability of the organization to meet strong customer demand.

In summary, we expect strong organic growth to continue across all of our business divisions, and continue to actively explore acquisition opportunities in the telco/MSP sector and look forward to updating the market as the acquisition pipeline materializes."

This announcement is authorised for release to the market by Hubify

Chief Executive Officer, Victor Tsaccounis.

• Customer Revenue refers Revenue from contracts with customers
• EBITDA is a financial measure which is not prescribed by Australian Accounting Standards ('AAS') and represents the profit under AAS adjusted for depreciation, amortisation, interest and tax.

For further details please contact:

CEO	Investor	Relations		Media Relations
Victor Tsaccounis	Mark Gell			Jane Morgan
Hubify Limited	Reputation	Edge		Jane Morgan Management
T: [phone]	T: +61 419	440 533		T: [phone]
E: [e-mail]	E:	[e-mail]		E: [e-mail]

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This update may contain forward-looking statements. Whilst Hubify Limited has no reason to believe that any such statements are either false, misleading or incorrect. It cannot and does not warrant or guarantee that through either the passage of time or actions beyond the control of Hubify Limited they will not become so. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forward-looking statements made. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of Hubify Limited does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company's prospects.

Any financial data pertaining to FY21 contained in this update are unaudited as at the date of this presentation.

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Providing Australian Business a one stop shop for

their Telco and IT needs

6mths to Dec21 Results 1H FY22

28 February 2022

Victor Tsaccounis - CEO

Nick Fitzgerald - CFO

ASX : HFY

Disclaimer - Earnings Disclosure

For personal use only

This update may contain forward-looking statements. Whilst Hubify Limited has no reason to believe that any such statements are either false, misleading, or incorrect. It cannot and does not warrant or guarantee that through either the passage of time or actions beyond the control of Hubify Limited they will not become so. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forward-looking statements made. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of Hubify Limited does not purport to be all inclusive or to contain all information which its recipients may require to make an informed assessment of the Company's prospects.

ASX : HFY