telepresence cloud managed video services presentation glowpoint -glow
DESCRIPTION
Glowpoint, Inc. provides cloud managed video services to the global enterprise community requiring high-quality, reliable video conferencing and telepresence experiences for their business. The Glowpoint service offerings make the complexity of enterprise grade video communications as simple as using the internet, between any technology, network or business. Using the Glowpoint Open Video(TM) cloud architecture, Glowpoint enables organizations of all sizes to adopt business-class video easily, scale instantly and collaborate openly, yet securely, across boundaries created by disparate technologies and IP networks - and realize the full value of visual communications.TRANSCRIPT
© 2011 Glowpoint, Inc. 1.Management Presentation04/12/23© 2011 Glowpoint, Inc. 1
Cloud Managed Video Services
Management Presentation
© 2011 Glowpoint, Inc. 2.Management Presentation
SAFE HARBOR STATEMENT
The following information and presentation may contain statements that are or
may be deemed to be forward-looking statements and involve factors, risks, and
uncertainties that may cause actual results in future periods to differ materially
from such statements. These factors, risks, and uncertainties include market
acceptance and availability of new video communications services; the non-
exclusive and terminable-at-will nature of sales agreements; rapid technological
change affecting demand for our services; competition from other video
communication service providers; and the availability of sufficient financial
resources to enable us to expand our operations, as well as other risks detailed
from time to time in our filings with the Securities and Exchange Commission. We
make no representation or warranty that the information contained herein is
complete and accurate; we have no duty to correct or update any information.
© 2011 Glowpoint, Inc. 3.Management Presentation
• “Pure play” video service provider
• Technology agnostic and network neutral managed video services
• Delivering to more than 500 enterprises globally
• Monthly recurring revenue model – with accelerating growth and profitability
• Key strategic partnerships with leading Unified Communication equipment manufacturers, Network operators and System integrators
• Experienced management team with broad industry backgrounds
Leading Provider of Cloud Managed Video Services
company overview
HQ: Murray Hill, NJEmployees: 100Stock Symbol: GLOW
LQA revenue: $28 mmLQA Adj EBITDA: $3.2 mm
Shares outstanding: 25 mm
© 2011 Glowpoint, Inc. 4.Management Presentation
accelerating growth in enterprise video & telepresence
Mobility and Desktop Video driving next phase of proliferation
“Video softclient users are expected to increase from 9.3 million users in 2010 to over 130 million users in 2015, a 70% 5-yr
CAGR”1
(1) Gartner: Market Trends – Videoconferencing, April 2011
Availability of Cloud Services
Cost benefitsTravel budgets✓
Improved Technology / User Experience✓
ImprovedProductivity✓
PersonalSecurity and health✓
Addressable Market
[Source: Gartner, Market Trends: Videoconferencing, Worldwide, 2011]
$M
CAGR 38%
© 2011 Glowpoint, Inc. 5.Management Presentation
ENTERPRISE VIDEO & TELEPRESENCEENTERPRISE VIDEO & TELEPRESENCE
PERSONAL / CONSUMERPERSONAL / CONSUMER
glowpoint’s OpenVideo™ cloud
FaceTime+160M Subscribers
+330M Subscribers
+500M Subscribers Hangouts
+113M Subscribers
Cisco TelePresence Exchange
Public Rooms Enterprise
Other Carriers
Other Carriers
Ethernet Exchange
Public Rooms
OPEN VIDEO™
Unique portfolio of intellectual
property Enterprise & SMBs Direct
Over 400 Carriers Globally
BroadCloud Service
Glowpoint
Unique to Glowpoint – The provider of choice for OEM partners like Tata,
Avaya, Polycom and others. The expertise and technology built through
hundreds of man-years and tens of millions of dollars invested in R&D.
© 2011 Glowpoint, Inc. 6.Management Presentation
• OEM and service provider partners
– Faster time to video deployment + scale-out + revenue
– Complementary + high-value managed service offerings
• Other global and regional channel partners providing video solutions
• Technology partners key to powering OpenVideo™ platform.
go to market strategy
04/12/23
Over 80% of new sales through global
strategic partners
Key strategic partnerships drive strong GTM strategy
© 2011 Glowpoint, Inc. 7.Management Presentation
blue chip customer base provides key validation of solutions
Live sports analysts interviews
Live sports analysts interviews
Telepresence scaled globallyTelepresence
scaled globally
Globalexpansion
Globalexpansion
VNOC & Demo Network
VNOC & Demo Network
Portfoliomanagement
Portfoliomanagement
AcquisitionintegrationAcquisitionintegration
Inter-BU collaboration
Inter-BU collaboration
Private andPublic cloud Private and
Public cloud
Remote sites and offshore rigs
Remote sites and offshore rigs
Globalclassroom
Globalclassroom
Servicing Over 500 Customers Globally, in 38 Countries
Enthusiastic customer base that proactively advocates Glowpoint!
© 2011 Glowpoint, Inc. 8.Management Presentation
revenue growth driven by managed services demand
Managed Service
RevenuesManaged Service
Revenues
• Total revenue made up of network services and managed services• Managed services growth is primary focus and managed services revenues are
expected to exceed 50% of total revenues by the end of 2011
• 2 year CAGR over 50% for cloud managed video services
• Current management team in place since Q410
45%
2 Year CAGR = 53%
Current management team in place Q410
© 2011 Glowpoint, Inc. 9.Management Presentation
operating leverage
EBITDA margin
target 20%EBITDA margin
target 20%
• EBITDA and cash flow driven by higher margin managed services
• Long term targets of 20% EBITDA margin
• Low capital expenditures: Highly leveraged multi-tenant infrastructure and support services with scale and capacity to grow revenues
• Long-term free cash flow generation
*Adjusted EBITDA excludes stock based compensation and certain one time charges such as severance
Linear (Adj EBITDA Margins)
© 2011 Glowpoint, Inc. 10.Management Presentation
key operating metrics
2011 TTM = 2Q10-1Q11
GROWTH IN MANAGED SERVICES = GREATER CONSUMPTION OF SERVICES AND ATTACH RATES Managed rooms and devices + Certified systems on cloud infrastructure = MANAGED SERVICE REVENUE GROWTH
GROWTH IN MANAGED SERVICES = GREATER CONSUMPTION OF SERVICES AND ATTACH RATES Managed rooms and devices + Certified systems on cloud infrastructure = MANAGED SERVICE REVENUE GROWTH
Service stickiness and contract retention validated by average contract life greater
than 2 years
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Y/Y %
Managed rooms 498 739 807 919 1,099 120.7%
Conferences (ttm) 67,730 92,584 100,909 108,114 113,550 67.7%
Certified systems on cloud 34,355 36,120 37,563 39,030 42,438 23.5%
56%
44%
80%71%
62%
20%29%
38%
© 2011 Glowpoint, Inc. 11.Management Presentation
income statement summary
• Revenue growth rate in cloud managed services expected to continue 20-30% range
• Profit swing proving leverage in model
• Positive cash flow
000's LQA
2010 2011 % chg Q3 11
Managed Services $ 7,547 9,344 24% 12,656
Network Services $ 12,165 10,162 -16% 13,128
Professional Services $ 829 1,258 52% 1,532
Total Revenue: $ 20,541 20,764 1% 27,316
Net (loss) income: $ (2,216) 85 104% 144
Earnings Per Share: $ (0.16) - 100% -
Adjusted EBITDA (1): $ (1,032) 1,662 261% 3,348
CAPEX $ 959 793 -17%
Free cash flow $ (1,991) 869 144%
9 months ending 9/30
(1) Adjusted EBITDA is non-GAAP measurement that the company uses to measure its operation, and includes net (loss) income from continuing operationsadjusted to exclude, interest, tax, depreciation, amortization, along with stock based comp, and any one time charges associated with severance costs.
© 2011 Glowpoint, Inc. 12.Management Presentation
balance sheet and capital structure
• $5 mm revolving loan facility, of which $750,000 is drawn• $10 mm stated value of Series B-1 non-convertible preferred
Equity # Shares
Common Stock 25,143,750
Series A2 Preferred (1) 94
Employee options (2) 830,747
Warrants (3) 33,333
(1) Convertible into 234,630 comon shares(2) Combined weighted average price of $3.05(3) Combined weighted average price of $1.60
stock price 6 month history
© 2011 Glowpoint, Inc. 13.Management Presentation
Name Position Years of experience
Previous Companies
Joseph Laezza President and Chief Executive Officer 18
John R. McGovern Executive Vice President andChief Financial Officer
25
Anil Balani Senior Vice President,Product and Strategy
16
Thomas P. Schroeder
Senior Vice President,Operations
13
Stephen K. Vobbe Senior Vice President,Sales and Marketing
17
Michael Hubner General Counsel and Corporate Secretary
15
Tolga Sakman Vice President, Corporate Development and Strategy
14
experienced management
© 2011 Glowpoint, Inc. 14.Management Presentation
compelling growth strategy
Revenue Growth
Mar
ket E
xpan
sion
Pursue Strategic Acquisitions
Leverage Indirect Sales Channels
Broaden Managed Services Offerings
Expand Geographic Presence
Deepen and Grow Customer Base
© 2011 Glowpoint, Inc. 15.Management Presentation
investment highlights
Market will continue to grow at a compounded annual growth rate of 38%
Superior platform as the only ‘pure play’ service provider in the video space
Network effect long-term value from new customers added to the platform
Extensive product pipeline providing incremental growth opportunities
Superior recurring revenue model, positive income, free cash flow, strong GTM strategy
Rapidly Growing Market Opportunity
Leading Provider of Cloud Video Services
Strong First Mover Advantage & Network Effect
Robust Commercial Momentum and Product Pipeline
Strong Financial Momentum and Superior Business Model
© 2011 Glowpoint, Inc. 16.Management Presentation
THANK YOU!www.glowpoint.com
OTCBB: GLOW