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Over-the-Top B2C Mobile Messaging

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Page 1: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

Over-the-Top B2C

Mobile Messaging

Page 2: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

B2C mobile messaging is a multi-billion dollar market in growth mode and is used by businesses to attract, retain, and engage with customers for both marketing and non-marketing/CRM purposes.

B2C Messaging Today

Financial Services Retail

Sports Entertainment Healthcare

Page 3: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

SMS & MMS are not able to service the rapidly growing B2C mobile messaging market adequately—a market ripe for disruption.

SMS & MMS Can’t Keep Pace

High Cost

Rudimentary Analytics

International Fragmentation

MNO Rules and Regulations

Unbrandable Short Codes

App Publishers Need Additional Revenue Models

Page 4: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ Has the Solution

OTT Networks

WIZ enables the new revenue-generating category of OTT B2C mobile messaging. Because WIZ circumvents the MNO SMS network, it offers cost savings, richer messages, and better analytics than SMS.

Reduced Costs Alpha Sender IDs Rich Analytics New Revenue

Connects businesses to consumers via OTT (WiFi, 3G/4G) networks

Reduces costs signi!cantly via bypassing MNO SMS networks

Allows global alpha SMS sender IDs and enables replies to alpha IDs, a powerful branding advantage

Delivers rich analytics, reporting, and targeting based on smartphone APIs

Provides new non-advertising revenue source for global smartphone application publishers

Page 5: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ connects SMS/MMS message aggregators to OTT mobile messaging apps on smartphones via industry standard MNO interface.

WIZ Message Cloud

Partners/Receivers

Any mobile app with wide distribution

SMPP

message cloud

Customers/Senders

Any SMS aggregator

Page 6: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

MNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016.

B2C and OTT Explode Overall SMS/MMS in decline

75

125

175

225

2011 2012 2013 2014 2015 2016

SMS+MMS

P2P

Revenue ($B)

B2C and OTT sustain major growth

0

25

50

75

100

2011 2012 2013 2014 2015 2016

B2C

OTT

Revenue ($B)

2016: $83B

2012-2016: $42B (total)

peak: $197B

15% decline

49% decline

peak: $165B

CAGR 33% (avg.)

2016: $84B

2016: $167B

Page 7: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

The competition doesn’t have WIZ’s “special sauce”.

Competition App/Consumer

Reach

SMS Aggregator Ease of Adoption

•  Many-to-Many (Reach 3rd party OTT messaging, other apps with broad distribution)

•  Use existing API

•  One-to-One(Reach your own app only)

•  New API required

Page 8: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ Unique Selling Points

WIZ has a unique architecture, feature set, and business model.

Increased gross margins for SMS aggregators without changing their existing MNO interface

SMS Bypass

Enables much greater app/consumer reach than with current 1:1 push noti!cations model and injects new revenue streams into mobile app developer community

Industry-!rst alpha branded sender ID and reply to capabilities increase consumer brand engagement with B2C mobile messages

Many-to-Many B2C Push Branded Sender ID and Reply-To

Page 9: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

One-to-One push noti!cations are a proven and exploding market (from zero in 2010 to $2B+ in 2014). WIZ signi!cantly expands the push noti!cations market with our Many-to-Many model.

WIZ Enables “Many to Many” One-to-One

Massive installed base

Many-to-Many

Customers (Message Senders)

•  Global mobile message aggregators

•  Global brands

Partners (Message Receipt Enablers)

•  Global app publishers

•  Mobile device OEMs

•  Developers

Page 10: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with mobile network operator (MNO), and MNO collects lion’s share of revenue.

Business Model (Today)

Businesses (Message Senders)

SMS Aggregators

Mobile Network Operator

20-30% 70-80% of revenue of revenue

Message Receiver

Page 11: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ Business Model

SMS Aggregators

25% 25% of revenue of revenue

Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with WIZ and partner app publisher (a new revenue stream). SMS Aggregators revenue share and gross margin increased signi!cantly.

50% of revenue

Businesses (Message Senders)

App Developers

SDK

Page 12: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ Message Cloud is fully operational today, processing rich media messages for thousands of WIZ Messenger users globally.

WIZ Today

Message Cloud

iPhone Windows Phone

Android

Page 13: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ Today

Today’s fully operational WIZ P2P cross-platform push noti!cations cloud and WIZ Messenger app will reduce time to market for the WIZ B2C cloud and mobile SDK.

Windows Azure Cloud architecture provides ease of scalability, high availability, and business-grade infrastructure (server, O/S, application) management

Scalable Architecture

Phone number validation during registration, back-end system token based signing, HTTPS for all external communications

Push Noti!cations, group chat, online status, rich media, read receipts, SMS messaging (Android), guaranteed delivery, auto-contact import, HTTPS encryption

Secure by Design Feature-Rich

Page 14: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

The Dynmark/WIZ relationship is valuable (First trial partnership): an on-going commercial relationship provides many bene!ts and key commercial advantages moving forward.

Dynmark and WIZ

Leading U.K. SMS aggregator and mobile marketing !rm

•  $1.2M to build WIZ

•  Spun-off all WIZ IP into an independent company

•  WIZ IP resides outside U.S.

•  WIZ initial trial partner

WIZ founders have in-depth knowledge and relationships within SMS aggregator industry which will drive WIZ message volume.

Page 15: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

Q412 Q113 Q213 Q313 Q413

Core Dev Team Hired

WIZ Beta Release WIZ GA Release

Trial Partner Integration

WIZ Cloud API and Agent Development + QA

Additional Partner Recruitment (Message Aggregators, App Publishers)

Bug Fixing and Enhancements (Reporting, Analytics, Alpha Send and Reply, iOS)

Commercial Expansion

Sept. 2012

WIZ SMS Agent on

Google Play

WIZ Demo

Roadmap and Milestones

Current investment requirements will enable WIZ to realize the 15-month roadmap.

CTO Hired

Developer Marketing

MMS API

Commercial Launch: Android

Build Developer Portal

Q114

Page 16: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

Numbers

2012 2013 2014 2015

Revenue 0.0 14.0 86.4 136.7

Gross Pro!t

0.0 7.0 43.2 68.3

EBITDA -0.2 3.5 36.4 60.7

P&L Forecast ($US M)

Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.

Funds Required: $3M

Use of Funds

•  Hire core team (12)

•  New of!ce

•  Product development and operations for commercial launch

Page 17: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

Numbers

Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.

2012 2013 2014 2015

ARPU $1 $1 $2 $2

Active Users (millions)

-- 30 50 74

WIZ Gross Revenue/Message ($US)

-- .008 .006 .005

Messages/User/Month

-- 10 26 33 0

2

4

Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414

Quarterly Messages Processed

messages (billions)

Page 18: Over-the-Top B2C Mobile MessagingMNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016. B2C and

WIZ's founders are subject matter experts in mobile messaging and application development ecosystems.

Founders

Martin Barclay B.A.Sc., MBA, P.Eng. VP of Product & Developer Ecosystem Head of Developer Marketing, Americas, Nokia 2008- 2011, Director Product Marketing Ubiquity Software (acquired by Avaya) 2005-2008.

Oscar Jenkins MBA CEO Founded Nethead (aka X-Stream Networks - !rst Free UK ISP) in 1993, (acquired by Liberty Surf in 2000 for $75m). 2001 founded mobile messaging !rm Dynmark International. 2011 launched Dynmark USA.

Doug Tucker, BSEE CTO CTO Tatara Systems, CTO Avaya/Ubiquity Software, CTO MCK Communications, CTO VideoServer

[email protected]

linkedin.com/in/oscarjenkins

[email protected]

linkedin.com/in/mgbarclay

[email protected]

linkedin.com/in/dougtucker

www.wiz.co www.dynmark.com