Bigbear.ai, Inc. · NYSE:BBAI
Bigbear.ai — GigCapital4 — SPAC Merger (June 2021)
42 slides from Bigbear.ai's SPAC merger presentation, Jun 4, 2021
Slide 1: BigBear.ai to Become Publicly Traded Company via Merger with GigCapital4
Exhibit 99.2 BIGBEAR.AI TO BECOME PUBLICLY TRADED COMPANY VIA MERGER WITH GIGCAPITAL4 June 2021 Investor Presentation DATA-DRIVEN DECISION DOMINANCE © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.Exhibit 99.2 BIGBEAR.AI TO BECOME PUBLICLY TRADED COMPANY VIA MERGER WITH GIGCAPITAL4 J
Slide 2: Safe Harbor
Safe Harbor This investor presentation (“Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed Business Combination (the “Business Combination”) between GigCapital4, Inc. (“GipCapital4”) and BigBear.ai Holdings, LLC
Slide 3: Safe Harbor (cont.)
Safe Harbor (cont.) USE OF PROJECTIONS This Presentation contains projected financial information with respect to BigBear.ai, namely the Company’s projected revenue, products sold, gross profit, Adjusted EBITDA and Adjusted EBITDA margin for 2021-2025. Such projected financial information constitute
Slide 4: Transaction Overview
(1) Transaction Overview OVERVIEW USE OF PROCEEDS ▪ BigBear.ai to become publicly traded company via ▪ Fueling commercial growth projects, sales and marketing merger with GigCapital4, Inc. expansion, research and development to accelerate product offerings, and inorganic growth through accretive M&A
Slide 5: Overview of GigCapital4, Inc.
Overview of GigCapital4, Inc. OVERVIEW GIGCAPITAL4 LEADERSHIP TEAM • GigCapital4, Inc. (NASDAQ: GIGGU) is a $358.8M publicly traded Special Purpose Acquisition Company (“SPAC”) ▪ Executive Chairman and Founding Managing Partner of GigCapital Global and all its entities, including GigCapital4 • GigCa
Slide 6: Today's Presenters
Today’s Presenters Dr. Reggie Brian Josh Brothers Frutchey Kinley Chief Executive Officer Chief Technology Officer Chief Financial Officer ⚫ 30+ years of experience as a science and ⚫ 25+ years of experience in technology ⚫ 20+ years of experience in government technology innovator focusing on Big D
Slide 7: Our Mission
Our Mission Your World is a Battle Ground. Know your World. Shape your World. Data-Driven Decision Dominance. 7Our Mission Your World is a Battle Ground. Know your World. Shape your World. Data-Driven Decision Dominance. 7
Slide 8: Big Data Analytics Powered by Artificial Intelligence & Machine Learning
Big Data Analytics Powered by Artificial Intelligence & Machine Learning A POWERFUL FORCE IN BIG DATA ANALYTICS ▪ Modular end-to-end offering enables customers to optimize decisions by ingesting and mining disparate data to deliver AI-powered advice and insights ▪ Large addressable market growth dri
Slide 9: Battle Tested to Perform in Complex, Real Time Environments
Battle Tested to Perform in Complex, Real Time Environments BigBear.ai’s platform generates critical insights into complex situations where the cost of failure is significant Predicted Russian invasion of Crimea Detected fuel smuggling Product leveraged by CENTCOM to from Libya shape Iranian engagem
Slide 10: BigBear.ai Company Snapshot
BigBear.ai Company Snapshot BigBear.ai, fueled by machine driven analytics, enables decision making dominance in real-time $277M 63% ~$500M FY’22E Total Revenue FY’22E Revenue Growth Contracted Backlog 100K $4.5B 21 Enterprise Decision Makers and Near-Term Pipeline Years in Operation Analysts Relyin
Slide 11: Our Customers Operate in Complex, Unforgiving Environments
Our Customers Operate in Complex, Unforgiving Environments The proliferation of data, if harnessed through AI / ML, could result in a global economic gain of ~$16T by 2030 – organizations that don’t leverage AI / ML may pay a steep cost Source: IDC, PwC, FT and Gartner Research. 11Our Customers Oper
Slide 12: We Provide Customers With Mission Critical Solutions
We Provide Customers With Mission Critical Solutions Highly Customizable Diverse Base of Government and Product Suites Enterprise Customers Data Ingestion, Defense Enrichment & Processing Artificial Intelligence & Intelligence Machine Learning Predictive Analytics & Enterprise Visualization 12We Pro
Slide 13: Large and Rapidly Growing Addressable Market
Large and Rapidly Growing Addressable Market $109B+ 2024E TAM with Further Penetration COMMERCIAL into Adjacent Markets EXPANSION $72B+ INFRASTRUCTURE / ENERGY TAM Opportunity Today LOGISTICS Targeting critical and high- MEDIA growth market arenas such Organic growth from as business intelligence &
Slide 14: Client-focused, Specialized Workforce Builds Customer Intimacy
Client-focused, Specialized Workforce Builds Customer Intimacy Skilled and cleared, mission-focused employees with experience working in high pressure critically important situations SPECIALIZED WORKFORCE 92% 175+ 90%+ 64% TS & TS / SCI Secret+ Cleared Advanced Degrees Employee Employees Employees (
Slide 15: AI Powered Products for Decision Dominance
AI Powered Products for Decision Dominance OBSERVE ORIENT DOMINATE Collect and conflate big “Low Code” AI Visual interactions and real-time sources into generates insights advice for decisions in informative dossiers and predictions complex situations Change Detection Course of Action Impact Optimiz
Slide 16: Agility and Differentiation from a Composable Foundation
Agility and Differentiation from a Composable Foundation BigBear.ai’s highly modular IP can be used alone or grafted onto a customer's existing technology to quickly produce customized solutions that meet the unique needs of the customer and the end market DOMINATE OBSERVE ORIENT Advantages of our A
Slide 17: Existing Software Solutions Apply to Commercial Use Cases
Existing Software Solutions Apply to Commercial Use Cases BigBear.ai's IP, originally designed for defense and intelligence customers, can be used today within a wide range of commercial applications across every industry vertical DEFENSE USE CASE EXAMPLES: COMMERCIAL USE CASE EXAMPLES: ▪ Predict th
Slide 18: Case Study: U.S. Intelligence Agency
Case Study: U.S. Intelligence Agency AI harnessed to ingest and enrich vast amounts of data to discover, characterize and alert analysts to activities of interest ▪ Real-time global tracking of entities 110+ Years of Labor Costs Saved ▪ Began with Observe and were able to Through Use of BigBear.ai u
Slide 19: Case Study: Large Public Transportation and Logistics Firm
Case Study: Large Public Transportation and Logistics Firm BigBear.ai provides a SaaS maritime intelligence portal to enhance awareness, safety, efficiency, and competitiveness ▪ Near real-time analysis and modeling of vessel telemetry, 1K Miles Identified Vessels that cargo, weather, events, and co
Slide 20: Well Situated Between Competitive Offerings
Well Situated Between Competitive Offerings BigBear.ai’s differentiated platform offers end-to-end integration with a comprehensive suite of products and capabilities to address unmet, critical needs Portability and modularity to fit into existing enterprises Provides rapid value and promotes horizo
Slide 21: Growth Strategy
GROWTH STRATEGYGROWTH STRATEGY
Slide 22: Multiple Growth Vectors
Multiple Growth Vectors Contracted and near-term opportunities provide visibility into achieving forecasted growth Opportunities for Inorganic Growth and Horizontal Expand Presence in Expansion Commercial Market ▪Continue to identify and acquire Pursue Near-Term ▪Continue recent momentum strategic M
Slide 23: The U.S. DoD is Evolving to Utilize AI at Speed and Scale
The U.S. DoD is Evolving to Utilize AI at Speed and Scale Build the Accelerate Adoption Technical of Existing Digital Backbone Technologies “AI is an inspiring technology. “America is not It will be the most powerful prepared to defend tool in generations for or compete in the benefiting humanity.”
Slide 24: Recent Wins and Pipeline Opportunities
Recent Wins and Pipeline Opportunities (1) BigBear.ai has experienced an organic revenue CAGR of 25%+ historically NOTABLE RECENT WINS ROBUST PIPELINE OF OPPORTUNITIES • Near-term Pipeline Represents ~$4.5B • Recent wins Represent ~$260M of Current Backlog • Near-term Pipeline of Opportunities is ~1
Slide 25: Commercial Go-To-Market Overview & Strategy
Commercial Go-To-Market Overview & Strategy Targeted go-to-market strategy is driving momentum with new and existing customers Incentives & Technical Training Discounts & Sales Enablement 1 2 Marketing CHANNEL (1) 10 Team Members PARTNER 5 3 PROGRAM Partner Deal Portals Registration 4 Technical Sale
Slide 26: Proven Land and Expand Strategy
Proven Land and Expand Strategy We have demonstrated an ability to accelerate growth in our customer relationships as we release products QUADRUPLED YEAR 0 TODAY REVENUE IN: $10M $40M Revenue Revenue 7 Army Years ▪ History of getting a single 6,000 51,000 foothold with a customer Platform Users Plat
Slide 27: Strategic M&A Can Accelerate BigBear.ai's Momentum
Strategic M&A Can Accelerate BigBear.ai’s Momentum PROVEN M&A TRACK RECORD ACTIONABLE PIPELINE 25+ Potential Targets Identified AI / ML & Cloud Cloud & Cyber AI / ML Focus Comprises ~50% of Targets $385M+ Combined Big Data AI / ML Revenue M&A has potential to strategically build out capabilities and
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
Slide 29: BigBear.ai is Established, Flexible, and Scalable
BigBear.ai is Established, Flexible, and Scalable 2022E 2025E Impact Total 40% $277 $764 Revenue CAGR 2022E – 2025E ($M) 75% Analytics Analytics 52% 75% Revenue (%) Revenue (%) by 2025E ~800 bps Adj. EBITDA Adj. EBITDA 13% 21% Margin (%) Margin Expansion by 2025E Refer to Safe Harbor on slides 2 and
Slide 30: Revenue by Type and End Market
Revenue by Type and End Market Revenue mix is anticipated to shift over the projected period such that Analytics will account for 75% of total revenue in 2025E REVENUE BY SEGMENT FUTURE STATE REVENUE BY END MARKET ($ in millions) $764 Cyber & Engineering (“C&E”) Defense Analytics Commercial $550 83%
Slide 31: Gross Profit by Segment
Gross Profit by Segment (1) Gross profit margin is projected to increase over the projected period as revenue mix shifts towards Analytics segment and Commercial end markets (1) FUTURE STATE GROSS PROFIT BY SEGMENT 30% 2025E Gross Profit Margin for (1) C&E 12% 71% 2025E Gross Profit Margin for (1) A
Slide 32: Cash Flow and Adj. EBITDA Detail
Cash Flow and Adj. EBITDA Detail BigBear.ai’s profitable and established operations are projected to generate healthy EBITDA margins and cash flow • Adjusted EBITDA margin expansion is bolstered by the growth in the analytics segment • With a market-tested product in place, BigBear.ai is expected to
Slide 33: Valuation Overview & Transaction Summary
VALUATION OVERVIEW & TRANSACTION SUMMARYVALUATION OVERVIEW & TRANSACTION SUMMARY
Slide 34: Peer Group
Peer Group BigBear.ai’s capabilities position it as a powerful force in the data / analytics infrastructure peer set DATA / ANALYTICS INFRASTRUCTURE COMPARABLES Selected Peers ▪ Operate in the same industry with complementary end markets ▪ Commercial and government exposure ▪ Valued on revenue multi
Slide 35: Benchmarking
Benchmarking Operational benchmarking – revenue growth and gross margin profiles Peer Average: 38.0% 87.5% Peer Median: 31.3% 63.7% Total 52.4% 41.0% Revenue 39.0% 33.9% 34.2% 28.7% 24.7% Growth MEDIAN 23.5% 21.9% ’22E 20.7% (FY’21E – ’25E FY’22E) Peer Average: 73.6% 91.4% Peer Median: 76.5% 80.8% 7
Slide 36: Benchmarking (cont'd)
Benchmarking (cont’d) Peer group profitability and Rule of 40 benchmarking Peer Average: 4.0% Peer Median: 5.5% 26.5% 20.8% 17.8% 14.4% 13.0% 9.1% 5.5% 5.0% Adj. n.m. ’25E MEDIAN ’22E EBITDA (2.3%) (6.8%) Margin (FY’22E) (32.9%) Peer Average: 38.9% Peer Median: 36.0% 69.0% 65.4% 59.8% 57.5% 56.6% 44
Slide 37: Benchmarking (cont'd)
Benchmarking (cont’d) Peer group valuation benchmarking Peer Average: 18.6x Peer Median: 14.6x 38.4x 31.4x 30.0x 28.5x EV / Revenue (FY’22E) 17.1x MEDIAN 12.0x 8.4x 8.0x 6.9x 5.3x 5.6x Source: CapIQ and FactSet; Market data as of June 2, 2021. Refer to Safe Harbor on slides 2 and 3 regarding project
Slide 38: Benchmarking (cont'd)
Benchmarking (cont’d) BigBear.ai is priced with significant upside potential TRANSACTION PEER VALUE VALUATION Summary of Approach $5,440▪ Peer valuation applies range of multiples to BigBear.ai’s 2021E and $5,004 2022E management forecasted revenue $4,885 to arrive at an implied enterprise value $4,
Slide 39: Pro Forma Valuation
(1) PRO FORMA VALUATION Transaction Detail $ IN MILLIONS Share Price $10.00 TRANSACTION HIGHLIGHTS Shares Outstanding (M) 169.7 Equity Value $1,697 ▪ PF Enterprise Value of $1,565M, implying an EV / FY2022E revenue multiple of 5.6x (3) Less: Net Cash (132) ▪ Current BigBear.ai stockholders to retain
Slide 40: Appendix
APPENDIXAPPENDIX
Slide 41: Summary Financials
Summary Financials (1)(2)(3) Fiscal Year Ended December 31, 2018 2019 2020 2021 2022 2023 2024 2025 (4) Cyber & Engineering $49 $74 $76 $95 $133 $153 $170 $192 (4) Analytics 39 48 65 87 145 235 379 572 Revenue $88 $122 $140 $182 $277 $388 $550 $764 Growth 26% 38% 16% 31% 52% 40% 42% 39% (4) Cyber &
Slide 42: Thank You
DATA-DRIVEN DECISION DOMINANCE Thank You © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.DATA-DRIVEN DECISION DOMINANCE Thank You © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.