telepresence cloud managed video services presentation glowpoint -glow

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© 2011 Glowpoint, Inc. 1. Management Presentation 06/26/22 © 2011 Glowpoint, Inc. 1 Cloud Managed Video Services Management Presentation

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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.

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Page 1: Telepresence cloud managed video services presentation Glowpoint -glow

© 2011 Glowpoint, Inc. 1.Management Presentation04/12/23© 2011 Glowpoint, Inc. 1

Cloud Managed Video Services

Management Presentation

Page 2: Telepresence cloud managed video services presentation Glowpoint -glow

© 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.

Page 3: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 4: Telepresence cloud managed video services presentation Glowpoint -glow

© 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%

Page 5: Telepresence cloud managed video services presentation Glowpoint -glow

© 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.

Page 6: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 7: Telepresence cloud managed video services presentation Glowpoint -glow

© 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!

Page 8: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 9: Telepresence cloud managed video services presentation Glowpoint -glow

© 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)

Page 10: Telepresence cloud managed video services presentation Glowpoint -glow

© 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%

Page 11: Telepresence cloud managed video services presentation Glowpoint -glow

© 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.

Page 12: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 13: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 14: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 15: Telepresence cloud managed video services presentation Glowpoint -glow

© 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

Page 16: Telepresence cloud managed video services presentation Glowpoint -glow

© 2011 Glowpoint, Inc. 16.Management Presentation

THANK YOU!www.glowpoint.com

OTCBB: GLOW