Datagate Investor Update September 2023

October 30
th
, 2023

Dear Datagate Shareholders,
I hope that you are fairing well in these challenging times the world is going though.
I’m pleased to report that Datagate has continued to stay on-track towards our goal of growth and
profitability during the July-September quarter, and the outlook for next quarter and foreseeable future
is very positive. Our MRR growth is tracking ahead of budget and in the month of August we achieved
the milestone of our first profitable month, returning positive EBITDA of NZ $14K.
At the end of the July-
September quarter, Datagate
reached NZ $3.53M ARR.
Our monthly EBITDA results
are trending upwards as
projected, with August being
our first ever month that we
achieved a positive result.
Our EBITDA outlook for the
next quarter remains positive
with several large new
customers coming on stream
with Datagate.

Decision to Not Raise New Capital
We are still comfortable with our decision to not raise new capital this year. This is the first year in
Datagate’s history that we have not needed new capital. We believe that current market conditions are
not ideal for raising capital, and as long as Datagate continues growing fast towards profitability, we do
not expect to raise new capital.
October 2023 – our best month so far for new sales
With 18 new orders so far, this month of October has already become our best month ever in terms of
the quantity of new Datagate sales, and the month is not completed as at the time of writing this report.
Global MSP Industry Continues to Grow
Datagate’s upward trajectory is underpinned by adding new customers who are predominantly
Managed Service Providers (MSPs). Market research suggests the MSP market is growing at a CAGR of
13.1%, worldwide, and in the United States. Our in-market experience in working directly with MSPs
backs this up.

Telecommunications is a significant segment of MSP business, and when MSPs provide telecom services,
they require a specialized billing solution such as Datagate. MSPs are dominating the Unified
Communications as a Service (UCaaS) market, and that segment of MSP activity is growing at 15.1%
CAGR according to Grand View Research.
Overall Datagate is tracking well, and we are excited for the future of the business.
Thank you for your ongoing support of Datagate. If you have any questions, please contact me at
mark.loveys@datagate-i.com

Thanks & Regards

Mark Loveys, CEO
Datagate Innovation Limited
mark.loveys@datagate-i.com