Inves estor P Pres esen entati tion May o y of 2020 2020 1 - - PowerPoint PPT Presentation

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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 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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1 STRICTLY CONFIDENTIAL

Inves estor P Pres esen entati tion

May o y of 2020 2020

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2 STRICTLY CONFIDENTIAL

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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4 STRICTLY CONFIDENTIAL

  • 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%

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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

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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