APX — JMP Securities Technology Conference 2019
20 slides from APX's conference presentation, Feb 25, 2019
Slide 1: JMP Securities Technology Conference
Exhibit 99.1 APX Group Holdings, Inc. JMP Securities Technology Conference February 25, 2019 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements, including but not limited to, statements of APX Group Holdings, Inc. (the “Company”, “Vivint”, “we”, “our”, or “us”, related to the performance of our business, our financial results, our liquidity and capital resource
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures This presentation includes Adjusted EBITDA, which is a supplemental measure that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). “Adjusted EBITDA” is defined as net income (loss) before interest
Slide 4: Vivint Smart Home at a glance
Vivint Smart Home at a glance Highest App Engagement ~1.44 Million $1.09 - $1.12 Billion In the Smart Home industry1 Subscribers across North America2 Q4 2018 annualized revenue2 79% new entrants to the market3 20+ Million US & Canada Increasing IRRs Devices managed on our platform4 Sales, installat
Slide 5: Our Mission
Our Mission Redefine the home experience through intelligently designed cloud-enabled solutions delivered to every home by people who care 5
Slide 6: Our mission requires us to execute in both the digital and physical worlds
Our mission requires us to execute in both the digital and physical worlds Digital Physical Transformative Smart Home Platform Differentiated Business Model 6
Slide 7: Vivint's Smart Home app has the highest user engagement in the industry
Vivint’s Smart Home app has the highest user engagement in the industry(1) Open Rate % 1. App Annie, average Open Rate during the period September 1 - November 29, 2018 7
Slide 8: The winners will deliver a true Smart Home experience
The winners will deliver a true Smart Home experience Stand-Alone Devices Smart Home Narrow set of use cases Broadest set of use cases Separate app for every device Seamless and intuitive experience in a single app No integrated devices AI-driven automation and assistance DIY only Ma
Slide 9: Our Smart Home Operating System integrates all of these devices
Our Smart Home Operating System seamlessly integrates all of these devices into a unified, intuitive experience Smart Home Operating System “I’m leaving” 9
Slide 10: Consumers want Smart Home, but need help to design, install, and support
Consumers want Smart Home, but need help to design, install, and support the technology in their home 4 4.8 hrs Average installation time for DIY security systems1 VS 76% of Smart Home market in 2020 expected to be with managed service providers2 1. Parks Associates, The Impact of DIY Solutions on t
Slide 11: Award-winning workforce of Smart Home Pros
Vivint has built an award-winning workforce of Smart Home Pros to enable the Smart Home experience for every consumer Educate & Design Install Support In-home Over 47% of all sales are 87% first time service ticket installed within 24 hours1 resolution rate1 Online 81 tNPS for installation
Slide 12: Our consultative sales channels bring Smart Home to the consumer
Our consultative sales channels bring Smart Home to the consumer In Home Online In Store 2800+ sales representatives1 Digital marketing Several retail partnerships underway 10 million homes 41% of net new subscribers visited per year in 2017 Additional retail pilots forthcoming 33% 4-y
Slide 13: Patented technology to design and finance a customized system (Street Genie)
Vivint’s patented technology empowers our Smart Home Pros to design and finance a customized system for every consumer Street Genie 13
Slide 14: Proprietary technology to install and support a customized system (Tech Genie)
Vivint’s proprietary technology empowers our Smart Home Pros to install and support a customized system for every subscriber Tech Genie 14 14
Slide 15: Highly differentiated business model
Highly differentiated business model Recurring, subscription-based revenue 95%+ Subscription revenue Long-term subscriber relationships ~8 years Average subscriber life Expanding subscriber base ~1.4M Total subscribers Large revenue scale ~$1.1B Annualized Q4 revenue Attractive operating m
Slide 16: Unit economics create significant long-term value
Unit economics create significant long-term value Blended Unit Economics1 Cash Flow Illustration, net of Attrition1,2 $1,400 ~$600 Service Revenue / Subscriber / Year $1,200 ~8 Year Average Customer Life $1,000 $800 ~65% Gross Margin $600 $400 $200 Average Up Front ~$1,500 / Subscriber (Cumulative C
Slide 17: Subscription revenue growth driven by subscriber and MRR growth
Subscription revenue growth driven by subscriber and MRR growth New Subscribers Revenue / Gross Margin (000) ($ in Millions) 2012-16 320 - 326 CAGR 11% 277 280 $1,047 - $1,053 $882 $758 $723- $636 $729 $560 Historical Accounting Method (1) Growth: 1.1% 14.3% - 16.4% Revenue Growth: 16.4% 18.7% - 19.
Slide 18: vivint.SmartHome
vivint.SmartHome:
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Years Ended December 31, 2016 2017 2018 2016 2017 2018 Net loss $ (71.2) $(135.4) $ (116.0) $ (122.0) $(276.0) $(410.2) $(465.0) $(471.0) Interest expense, net 52.9 59.1 62.8 64.8 197.5 225.6 244.0 245.4 Other expense, net
Slide 20: Certain Definitions
Certain Definitions Total subscribers is the aggregate number of active smart home and security subscribers at the end of a given period. This metric excludes subscribers originated under pilot programs. Total monthly service revenue, or MSR, is the contracted recurring monthly service billings to o
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