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Inves estor P Pres esen entati tion May o y of 2020 2020 1 - - PowerPoint PPT Presentation
Inves estor P Pres esen entati tion May o y of 2020 2020 1 - - PowerPoint PPT Presentation
Inves estor P Pres esen entati tion May o y of 2020 2020 1 STRICTLY CONFIDENTIAL Sa Safe Harbor or St Statement and M Merger U Update This p s prese sentation c contains f s forward-look ooking statements r relating t to our
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Sa Safe Harbor
- r St
Statement and M Merger U Update
This p s prese sentation c contains f s forward-look
- oking statements r
relating t to our expectations, p plans a and p
- prospects. Thes
ese s statem emen ents ts are b based ed
- n i
information available t to u us at th t the ti time of f th this p presentation and, b by th their nature, involve r risks a and uncertainties t that c could c cause act ctual results t to differ m materially f from t those d described i in the forward-looki king s
- statements. R
Risks and uncertai ainties associated w with o
- ur
business a are described in o
- ur annual r
report on F Form 1 10-K f K for the period e ending D December 3 31, 2019 a and any subsequently filed peri riod
- dic r
report
- rts o
- n Form
rm 1 10-K o
- r 10
10-Q. We assume n no obligation t to, and d do not i intend t to, update a any f forward l looking statements. Customers w who purchase our services s should m make sure t that t their d decisions are based o
- n features t
that a are cu currently a
- available. Pl
Pleas ease be be advised t that a any u unreleased s services or features r referenced i in this p presentation or o
- ther p
public s statements are not cu currently a available and may not b be d delivered o
- n t
time or at a all. For d details o
- n the proposed m
merger b between Qumu a and Synac acor, I Inc., we encourag age y you to review w our r recent S SEC filings wh which can b be found on the i investor sect ction o
- f our w
website.
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Who ho i is Qum umu? u?
Qum umu i is the he l leadi ding ng p provide der o
- f best-in-cl
class to tools to to create, m mana nage, s secure, d distribu bute a and m nd measure t the he success o
- f live and
nd on d n demand v video for t the he e enterprise.
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- Qumu provides best-in-cl
class t tool
- ls to create, manage, secure, distribute and measure
the success of live and on-demand video within the enterprise
- We provide comprehensi
sive an and flexible c connectivity inside or outside of the firewall
- We provide sea
eamless i integ egrati tion
- ns with existing video conferencing and collaboration
tools to create, release, secure and distribute video
- We are tr
trusted ed b by Glob
- bal 2
2000 f firms in Financial Services, Manufacturing, Professional Services, Health Care and Telecom—when security is critical
- We are ranked
ed as a Lea Leader er in th the E e EV s space ce in the Gartner Magic Quadrant
- We offer a flexible d
deployment model with Cloud, Hybrid and On Premise options
- Our Cloud (SaaS) platform is white l
e label eled ed by p partn tner ers to support live managed events, and to power learning management system (LMS) video platforms
Bus Busine ness Overview Who ho i is Qum umu? u?
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High L Lev evel el O Over erview ew
Headquar arters: Minneap apolis, M MN Full-Time E EEs: 124 124 Own Ownership: NASD SDAQ: QUM QUMU Year F Founded: 2002 2002
Financials and M Metrics Gl Global E Employees ees 183 E Enterprise e Cus ustomer er De Deploymen ents 64% o
- f Cu
Customers Installed a as Hybri rid o
- r Cl
Cloud $19.25MM A ARR i in FY FY 2 2019 92% Cus ustomer er R Reten ention >72% G Gross M Margin i in FY FY 2019
San Francisco (19) Minneapolis (26) USA Remote (16) London / Europe (40) Hyderabad (23)
Qum umu b u by the he N Num umbe bers
Key C Customers rs a and Partners rs
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- 1. Wainhouse Research: Enterprise Streaming and Webcasting Report, 2019
Market Lea t Leading Enter erprise Video P eo Platf tform Attr tractiv ctive M e Market w t with th Favorable e Growth T h Trends Marquee C ee Customer B Base
- f
- f Market Lea
t Leader ers Improving R Recurring Revenue M Metrics Hi High-Margin S Subscr cripti tion B Business Exper erience ced M Managem ement Tea eam w with th Deep eep I Industr try R Roots
- ts
39.3%
- f Customers are Global 2000
$17. $17.1M 1M → $19. $19.3M 3M
2018 → 2019 ARR
150+ 150+
Years of Qumu Senior Leadership Experience
4+ Y Year ears
Average Customer Tenure
92% 92%
2019 Customer Retention Growing 2.5%+ YoY
124 124
Total Full-Time EEs
66% → 72%
2018A → 2019A Gross Margin
$2. $2.5B 5B
2019 Enterprise Streaming Market Size1
15.3%
2018–2022 Market CAGR1
Key I Investment H Hig ighli lights
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Qumu An u Analyst Summary Cur Curren ent Pl Plac acem emen ents
Gartner: EV EVCM L Leader Aragon
- n:
EV EVCM L Leader Wainhouse: EV EVCM L Leader Aragon
- n:
VC Co C Contender ender
* From a an Analyst p perspective, t this i is the best position we’ve ever been i in a as a a c comp mpany
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Qumu Customers by the Numbers
- 72 m
72 mem ember bers of the he Forbes bes G Global bal 200 2000
- 45
45 mem ember bers of the he Fortune 500 une 500
- 14 of
- f the Wor
- rld’s M
Mos
- st V
Valuable B Brands
- 28 of
- f t
the For
- rtune Mos
- st Admired Com
- mpanies
- All 5 of
- f t
the Top
- p 5 Credit Card Com
- mpanies in
the W Wor
- rld
- 10 of
- f the For
- rbes W
Wor
- rld’s B
Best Banks
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Financial Ser ervic ices Healt lthcar are an and Life S e Scien ences Manuf ufactur uring ng Profes essi sional Ser ervic ices Tel elec ecom a and nd Technology gy
Cus Custom
- mer Br
Break akdo down n by I Indus ndustry and V and Vertical al
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All Qumu Customers by Installation Type
Hybrid 15.5%
On On P Prem emise 35. 35.9% Cloud 48. 48.6%
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All Qumu Customers by Region
APA PAC 26. 26.7% EMEA EA 29. 29.0% AMER 44. 44.3%
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All Qumu Customers by Industry
Other 6.9% 9% Go Govt, U Utilities & es & Nonprofit 6.8% 8% Hea ealth & & Life e Science 7.9% 9% Tele elecom & & T Tec ech 8.5% 5% Ret etail, Food & & Bev ev 9.1% 1% Pro S Ser ervices es 10.2% Manufacturing 13.1% Banking, F Finance & Insurance 37.5%
The he Mar arket Be Before C COVID-19 19
Market S t Sizing and G Growt wth T Through 2022 The T Technology Stack
Enterprise Video
Vi Video eo Conf nferenc ncing ng Vi Video eo Co Content Mgmt mt Vi Video eo Strea eaming Vi Video eo Ca Capture/ Record Unified Comms
$39B growing to $65B
Video Content
$4B growing to $6B
Collaboration
$6B growing to $11B
Content Mgmt
$6.9B growing to $11B
The he Mar arket T Toda day
Market S t Sizing and G Growt wth T Through 2022 The T Technology Stack Unified Comms ? Video Content ? Collaboration ? Content Mgmt ?
- Con
- nsol
- lidation i
is happening
- Lines b
between t tech chnol
- log
- gies
are becom
- ming b
g blurred
- Th
The e entire vi video c
- col
- llabor
- ration
- n
space ce i is being g redefined a as we s e speak peak
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Our ur W World Rig ight N Now Ex Execu cutives are being ch g challenged w with business con
- ntinuity n
now mor
- re than e
ever Em Employees are s scr crambling t to
- remain
prod
- duct
ctive i in spite of
- f travel r
restrict ction
- ns, wor
- rk
at h hom
- me m
mandates and cance celed events En Enterprises acr cros
- ss the glob
- be a
are adjusting g to
- what will
ill very lik likely ly be a ‘n ‘new normal’ l’
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Wha hat D Does the ‘ ‘New ew Normal al’ Loo
- ok L
Like? En Enterprises a are rethinking g investments i in travel and physical of
- ffice
ce space ce Budgets are b being g adjusted for
- r i
investment i in new col
- llabor
- ration
- n t
tech chnol
- log
- gies, or
- r the
hardening of
- f existing p
platfor
- rms
Th The secu cure, s scalable and r reliable streaming of
- f
vi video w
- within the e
enterprise is b becom
- ming
g an ‘es essen ential al s ser ervice’ e’
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20 2020 M Market A t Approach ch
Sal ales C Chan annel el Core S Strat ategy Global al 200 2000 Global 1 al 10,000 + Ver ertic ical A al Applic icatio ions White L e Label el / / OE OEM SMB + + Ver ertic ical A al Applic licatio ions
Financi ncial S Services ces, M Manuf ufactur uring ng, Tel elecom, P Professiona nal S Services ces, L Life e Scien ence, e, G Gover ernm nment a and U Utilities Webcasting, E Employee e Onboarding, Marketing Aut Automation, C , Crisi sis C Comms, s, Learni ning Managem emen ent, R Recrui uiting ng BT, W Whitlock ck, A AT&T &T, Gen Genesi sis, , Yo Yorktel, VC VCube be
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Sales Execution and New Customer Growth Increase volume of qualified leads into sales pipeline Secure top rankings with industry analysts and influencers Invest in top management and sales talent globally Expand channel efforts
Sale ales Exec ecution and N New ew Customer er Gro rowth Customer er Succes ess a and Rete etention Finan ancial al Strength th Marke ket- Focused Product Innovation ion
Technical a and O Operational E Excellence Strong F Financial R Results ts
Customer Success and Retention Dedicate management to all accounts Improve retention rate to 92% Convert customers to intelligent hybrid platform Focus on the message of distributed computing Market-Focused Product Innovation Build on our strengths of Delivery and Extensibility Deliver an Intelligent Video Platform—including architecture, features and functionality to address self-service and distributed computing within the enterprise Financial Strength Continuous improvement of operating expenses Deliver new revenue streams via partners Enhance Balance Sheet
Four Co r Core Pi Pillars f for S r Success
Growth S Strategy
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What is is the he Q Qum umu u Enterp rpri rise Vide deo as as a a Se Servi vice ce Pla latform? 1.
- 1. A F
Full St Stack ck Sol
- lution
- n
2.
- 2. Scala
labilit ility 3.
- 3. An Open A
Arch chitect cture 4.
- 4. Extensib
ibilit ility 5.
- 5. Use Case F
Fle lexib ibilit ility 6.
- 6. Se
Secu curity 7.
- 7. Sel
elf-Service EVaaS aaS™ is a a Com Compr prehe hens nsive Set o
- f Enterpr
prise Vide deo Services w with t h the he Following ng Co Compo pone nents:
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Th The Qumu Pl Platfor
- rm
Edge Computing Peer-to-Peer Public CDN WebRTC eCDN Conferencing Apps Desktop Webcams Studio Encoders Mobile Devices UC Platforms iPTV Digital Signage Learning Management Live and VOD Captioning Video Conference Streaming Analytics Workflows Translation Transcription Speech-to-Text
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Th The Qumu Pl Platfor
- rm
Marketing Automation Learning Management ECM and Websites Social Business CRM Whitlock AVI-SPL Yorktel Vcube IGEL Pexip Citrix Hive and Kollective Microsoft and Zoom BT AT&T Vodafone
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Mobile ile Deskto top Screen C een Captu ture Slide C e Captur ture Studio Unified Comms mms Live ve E Eve vents File ile Uplo load Mobile ile Deskto top Public lic D Displa lay We Website Por
- rtal
Intranet
Content Mgmt mt Po Portals Spe Speech Se Sear arch Analytics cs Rest A APIs Is Content Creation Encoding
Transcoding
Cl Cloud ud | On n Premise | | Hybr brid
An E An End nd-to to-End Intellig lligent Vid ideo P Pla latform
Pathfinder nder
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Professional nal Services as as a a Revenue nue Co Compone ponent
Vi Video eo Manageme ement Vi Video eo Deliv elivery Unified ed Comms mms Profes essi sional Ser ervic ices
Impl plem emen entation Custom Po Portals Mobi bile A e Apps Advanced R nced Reporting ng Load T d Testing ng Data M Migration API PIs Cons nsul ulting ng Platform A Audits Partne ner I Integ egrations ns Live E Eve vent S Support Traini ning ng
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20 2020 20 F Financ nancial al Upda pdate
Key H High ghlights ts Financial S Summary
- YTD revenue is $6.2 million vs. $7.1 million in the first quarter
- 2019. PY included large term license renewals, for which the
revenue is recognized up front. During the last weeks of March 2020, Qumu received customer orders of $9.7 million total contract value, which were directly attributable to the new working environment caused by the pandemic COVID-19. Of the $6.2 million in Q1 revenue, approximately $0.5 million in revenue was attributable to a large customer order. We expect to recognize revenue from this order of approximately $3.8 million in the second quarter 2020, subject to Qumu’s fulfillment of its delivery and deployment obligations.
- YTD gross margins were 66.5% vs 78.3% in the first quarter
2019, due primarily to product mix
- Renewal rate is performing well at 90%
- Cash remains strong at $8.4 million as of 3/31
Building M Momentum D Drives S Strong F First st-Half 2 f 2020 Results ts
COVID-19 has been an unprecedented change agent, leading to increased bookings and sales activity, giving us confidence for 2020. Improved execution around the perpetual license to SaaS transition is underway along with top-line growth, strong margins and customer retention. Qumu has repaid its ESW Credit Facility and repurchased a warrant for 925,000 shares to further improve its balance sheet and capital structure.
High degree of confidence in 2020 revenue guidance, as YTD revenue included a small portion of a multi-million dollar contract, which will also deliver significant revenues in Q2, as well as in the second half of 2020
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Inv nvestor Co Contac act Informa mation
Dav ave Rist stow Chief F Finan ancial al Officer er Qu Qumu C Corporation
- n
Dave ve.Risto tow@q @qumu.com +1.612. 612.638. 638.9045 9045
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Appendix
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- On P
Prem emise e - Traditionally, most large-scale corporate streaming deployments in high-security or compliance-heavy industries fall into this category. All hardware and software is housed in a data center owned and maintained by the enterprise, and the corporate IT team is responsible for managing the solution.
- Clou
- ud (
(SaaS) - Hosted streaming solutions are deployed in a Qumu data center. Qumu is responsible for product maintenance and upgrades. The enterprise receives all available features and product releases, but pays a subscription fee to cover the costs of ongoing support.
- Hybrid (
(SaaS) ) - A Hybrid deployment is essentially a Cloud-based solution, enhanced with on premise elements to increase delivery performance and data
- security. By placing edge computing technology at the Cloud’s periphery, a
company can easily build a video-aware, privatized network on top of a flexible Cloud core. While a growing number of organizations are starting with Hybrid implementations right away, most still initially invest in a Cloud-based platform first and migrate to Hybrid as corporate demand for video increases over time.
Glossa sary Page 1 e 1
Qumu D Deployment T Types
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- Annual Con
- ntr
tract V t Value ( e (ACV) ) Com
- mponen
ents ts ( (One-Time + + ARR) ARR): On-Prem emise: e: Perpetual License + Hardware + Professional Services <= 1 year + Maintenance & Support <= 1 year Cloud ud & & Hyb ybri rid: Subscription & Support <= 1 year + Professional Services <= 1 year
- Tot
- tal C
Con
- ntr
tract t Value ( e (TCV): ): The sum of all ACV components, including multi-year maintenance, committed via signed agreement/order form.
Glossa sary Page 2 e 2
Financi cial F For
- rmulas