Slide 1: Investor Presentation
Investor Presentation June 2018
Slide 2: Disclaimer and Important Notices
Disclaimer and Important Notices This Investor Presentation (the “Investor Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Phunware, Inc.
Slide 3: Transaction Summary
TRANSACTION SUMMARY 3 © 2018 Phunware, Inc.
Slide 4: Parties to the Business Combination
Parties to the Business Combination Stellar Acquisition III, Inc. (“Stellar”, NASDAQ: STLR), a special purpose acquisition Phunware, Inc. (“Phunware” or the “Company”) is the only fully integrated software company (SPAC), completed a $70.4 million IPO(1) in September 2016 platform that equips Fo
Slide 5: Board of Directors – Post-Transaction
Board of Directors – Post-Transaction Executive Directors Independent Directors Three(3) additional Directors to be nominated by Randall Crowder Phunware, at least Akis Tsirigakis George Syllantavos, Alan S. Knitowski COO, Phunware two (2) of which will Chairman, President Co-CEO and CFO, Stellar CE
Slide 6: Transaction Overview
Transaction Overview Phunware has signed a definitive agreement to merge with a newly-formed subsidiary of Stellar (NASDAQ: STLR) Existing Phunware security holders will receive a total of $301 million in equity consideration (subject to adjustment for Phunware’s cash and debt), with Phunware st
Slide 7: Pro Forma Capitalization and Ownership
Pro Forma Capitalization and Ownership ($ and shares in millions) Proposed Sources Pro Forma Ownership (Diluted)(4) Shares % Ownership Rollover Equity (1) $301.0 Phunware Securityholders 28.8 78.2% SPAC Cash in Trust (2) 37.1 Stellar Shareholders 5.7 15.3% Expected Phunware Cash at Closing 0.0 New S
Slide 8: Attractive Valuation Relative to Peers
Attractive Valuation Relative to Peers Sum of the Parts Analysis ($ in millions) A sum of the parts analysis of comparable SaaS and Media / DaaS companies including expected proceeds from the Statistic Mean Multiples Implied Valuation Company’s TGE implies an enterprise valuation of $473 2018E Rev
Slide 9: Who Is Phunware?
WHO IS PHUNWARE? 9 © 2018 Phunware, Inc.
Slide 10: Phunware Executive Team
Phunware Executive Team Alan S. Knitowski Randall Crowder Matt Aune Luan Dang Tushar Patel Matt Lindenberger CEO, Phunware COO, Phunware CFO, Phunware CTO, Phunware EVP Corporate VP Engineering, Phunware Development, Phunware Founder and CEO, Vovida Co-Founder and Managing Global Technology Finance
Slide 11: Top-Tier Investors and Customers
Top-Tier Investors and Customers Investors Indicative Customers by Industry Aviation Gaming Healthcare Media & Ent. Retail Real Estate Sports 6 Financing Rounds Raised >$100 million Global investor and customer base provides unmatched distribution for Phunware’s platform 11 © 2018 Phunware, Inc.
Slide 12: Phunware's Services
PHUNWARE’s Services Phunware, Inc. is the only fully integrated software platform that equips companies with the products, solutions and services necessary to engage, manage and monetize their mobile application portfolios globally at scale. • Licenses-out enterprise mobile software via period contr
Slide 13: Mobile Application Lifecycle Management
Mobile Application Lifecycle Management STRATEGIZE Phunware’s Multiscreen as a Application experience definition: devices, operating Service (MaaS) platform systems, feature sets and use cases provides the entire mobile lifecycle of applications, media and data in one login through one procurement r
Slide 14: Customer Highlights
Customer Highlights Dignity Health Compass NBC Live: Sochi Olympic Games • Phunware vertical solution • Develop, manage and support application uses Wi-Fi and streaming capabilities for 500+ beacons to help patients, hours of live Olympics content visitors, employees, (vs. 200 across all TV networks
Slide 15: Customer Highlights (cont'd)
Customer Highlights (cont’d) FOX NOW Brickell City Centre (BCC) • Develop, manage and • iOS and Android app for billion- support application dollar mixed-use development portfolio for streaming full using Phunware vertical solution episodes of FOX, FX, FXX and platform SDKs Originals and National •
Slide 16: Global Reach and Scale
Global Reach and Scale 2,130 1 in 10 1,500 Platform touches 1 in 10 devices globally 1,200 1000s of applications launched 1,000 5TB (terabytes) of daily data generated 800 330 250 Monthly Active Users (MAU) in millions Source: Statista, 2018 16 © 2018 Phunware, Inc.
Slide 17: Financial Highlights and Estimates
Financial Highlights and Estimates Revenue Mix Backlog (Fiscal year ending December 31; $ in millions) $140 $120 SaaS Media/DaaS $111 2017 $8.4M Backlog: Deferred $100 $27.8M Revenue $79 $52 $80 $58 $60 $39 $40 $35 $27 $59 2018 $18.7M $20 $10 $40 Backlog: Deferred $55.4M Revenue $17 $23 $0 2017 2018
Slide 18: Financial Model Inputs
Financial Model Inputs $16M 2017 2018 Ending Ending 2018 Revenue Backlog Backlog $58M(1) $12M $28M $23M $55M SaaS $11M Revenue $35M Media and 2018 Data Bookings $35M Enhanced Transactions Revenue $88M $39M 18 © 2018 Phunware, Inc. (1) Over 90% of revenue derived from recurring multi-year software an
Slide 19: SaaS Metrics
SaaS Metrics Annual Contract Value ARR $234K $15.9M $203K $11.0M $11.2M $131K 2015 2016 2017 2015 2016 2017 Average Contract Length 2015 12.8 months LTV:CAC 2016 15.9 months >6.0 2017 19.9 months 19 © 2018 Phunware, Inc.
Slide 20: Evolution Through PhunCoin
EVOLUTION THROUGH PHUNCOIN 20 © 2018 Phunware, Inc.
Slide 21: PhunCoin: a Real Token with Real Utility
PhunCoin: a Real Token with Real Utility Phunware intends to raise capital via a token generation event (TGE) and launch PhunCoin − Secure, transparent and incentive-based way to connect businesses and target consumers directly − Neutralizes centralized intermediaries such as Facebook and Google
Slide 22: PhunCoin Value Exchange
PhunCoin Value Exchange Without PhunCoin Disruptive Consumer With PhunCoin Brands leverage consumers’ data without Empowerment Consumers, publishers and brands share and compensating them consume data in a value-based exchange Etc. Consumers Consumers DATA DATA DATA • Can download the PhunCoin appli
Slide 23: Token Rights Sale Launch Initiated in June 2018
Token Rights Sale Launch Initiated in June 2018 Phunware Initiated the Launch of a $100 “We look to invest in projects like Million PhunCoin Token Rights Sale “New token ecosystem boasts early PhunCoin that bridge the gap between crypto investors BlockTower Capital, cryptocurrency and real-world use
Slide 24: PhunCoin Leverages Phunware's Enormous Ecosystem
PhunCoin Leverages Phunware’s Enormous Ecosystem PhunCoin Market Opportunity PhunCoin Benefits Today, the system allows intermediaries such as PhunCoin will be a secure, transparent, and Facebook and Google to profit from consumer incentive-based way to connect brands and data provided to them f
Slide 25: PhunCoin Token Ecosystem
PhunCoin Token Ecosystem PhunCoin Platform PhunCoin Data Exchange Will allow registration of Will enable payments The PhunCoin data exchange will store sovereign identity and hosts from app developers to segments and data created from PhunCoin wallet their end users for data users, will manage p
Slide 26: Vision and Strategy
VISION AND STRATEGY 26 © 2018 Phunware, Inc.
Slide 27: Transformational Market Opportunity
Transformational Market Opportunity The Internet is undergoing a transformational wave driven by rapid data decentralization The way data is gathered, stored, and shared is changing as consumers and marketers become more wary of walled gardens Consumers are seeking self-sovereignty, or control
Slide 28: Growth Strategy
Growth Strategy Organic Growth Strategy Inorganic Growth Strategy Expand mobile products and services Continue to identify, target and acquire value- Deepen existing customer relationships and aggressively enhancing platforms – Phunware is an experienced expand customer base through direct and
Slide 29: Massive Addressable Market
Massive Addressable Market APPLICATIONS MEDIA AND DATA CRYPTOCURRENCY 175 billion app downloads annually(1) Users spend 66% of online time on mobile Global cryptocurrency market cap currently (+60% since 2015) devices(2) $369 billion(4) $86 billion in worldwide mobile app Mobile advertising revenue
Slide 30: The Phunware Multiscreen as a Service (MaaS) Platform
The Phunware Multiscreen as a Service (MaaS) Platform APPLICATIONS MEDIA AND DATA CRYPTOCURRENCY Fortune 500 customer base Global mobile footprint Self-sovereign identity Over 5,000 apps deployed Platform touches 1 in 10 devices worldwide Decentralized data Embedded within core customer business 2+
Slide 31: The Phunware MaaS Platform (cont'd)
The Phunware MaaS Platform (cont’d) Application Branded Mobile Applications Portfolio Services WWE, CW, Fox, Revolt, NBC Sports, NASCAR, Etc. Healthcare Sports Aviation Vertical (Hospitals / Health (Stadiums / Arenas) (Airports) Systems) Application Retail Real Estate Other Solutions (Malls / Shoppi
Slide 32: Recap
RECAP 32 © 2018 Phunware, Inc.
Slide 33: Investment Highlights
Investment Highlights Pioneering Multiscreen as a Service (MaaS) platform, the only fully integrated software platform that equips the Fortune 500 to engage, manage and monetize their mobile application portfolios globally at scale World Scale Provides everything brands need to create “sticky” e
Slide 34: Appendix
Appendix 34 © 2018 Phunware, Inc.
Slide 35: Resources and Geography of Staff
Resources and Geography of Staff CANADA Employees 84 1 NEWPORT 178 53 BEACH Employees 30 SAN DIEGO MIAMI 75 REMOTE AUSTIN 9 33 9 26 LONDON 1 12 14 9 OTHER CREATIVE QA / QC OPS SALES PROD & MKT & ENG 35 © 2018 Phunware, Inc.
Slide 36: Intellectual Property Summary
Intellectual Property Summary ISSUED PATENTS PENDING PATENTS 1. Method and System for Accessing Wireless Account Information (Patent 1. System and Method for Leveraging Device Location for Targeting # 7,979,350) Hyper-Localized Mobile Advertisements (Application # 13/943,746) 2. Server-Side Wireless