Route1 Inc. · TSXV:ROI
Route1 — Shareholder Meeting (November 2015)
28 slides from Route1's shareholder meeting presentation, Nov 25, 2015
Slide 1: 2015 Annual General Meeting
2015 Annual General Meeting November 25, 2015 © 2015, Route1, Inc. All rights reserved.
Slide 2: Legal Notices
Legal Notices This presentation contains statements that are not current or historical factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including, expected financial performance, business prospects, technological develo
Slide 3: Q3 2015 Highlights
Q3 2015 Highlights • The June 2015 OPM data breach continues to resonate in Washington • Small ramp up of our investment in sales and marketing – October 2015 – Michael Seiler – ex of HPES – Enterprise sales rep – lead generation • MobiKEY 5.0 released in November 2015 • Continued expansion and addi
Slide 4: Paid, Active Users
Paid, Active Users Number of Paid, Active Users ARPU 4
Slide 5: Quarterly Operating Performance
Quarterly Operating Performance In CAD $000s Q3 A Q2 A Q1 A Q4 A Q3 A Q2 A 2015 2015 2015 2014 2014 2014 Revenue 1,614 1,620 1,538 1,485 1,432 1,404 Services 1,572 1,569 1,461 1,415 1,399 1,374 Devices, Appliances and Other 42 51 77 70 33 30 Gross Margin 1,294 1,326 1,272 1,243 1,110 1,174 Operating
Slide 6: Growing Recurring Services Revenue
Growing Recurring Services Revenue Note: In the third In CAD $000s quarter of 2015, Route1 changed its pricing model for the DON users from a flat fee per month plus a variable fee TO solely a variable fee. 6
Slide 7: YTD Operating Performance
YTD Operating Performance In CAD $000s Q3 A Q3 A YTD A YTD A 2015 2014 2015 2014 Revenue 1,614 1,432 4,772 4,592 Services 1,572 1,399 4,602 4,055 Devices, Appliances and Other 42 33 170 537 Gross Margin 1,294 1,110 3,892 3,689 Operating Income 124 21 566 515 EBITDA 242 110 872 794 Net Income 102 210
Slide 8: Balance Sheet
Balance Sheet In CAD $000s Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 A 2015 A 2015 A 2015 A 2014 A 2014 Cash 2,433 3,468 1,277 1,533 2,601 Total current assets 3,161 4,166 3,363 2,246 3,349 Total current liabilities 3,155 4,351 2,986 1,926 2,870 Net working capital 6 (185) 377 320 479 Fixed and intangible
Slide 9: Quarterly Cash Flow
Quarterly Cash Flow In CAD $000s Q3 A Q2 A Q1 A Q4 A Q3 A 2015 2015 2015 2014 2014 Cash from Operations 376 (127) 452 141 298 Change in Working Capital (1,249) 2,749 (312) (874) (1,177) Balance Investing Activities (96) (158) (367) (71) (29) Financing Activities (66) (272) (29) (263) (86) Cash Inflo
Slide 10: Securities Outstanding
Securities Outstanding Security Number Outstanding Common Shares As at December 31, 2014 372,773,914 NCIB Period Purchases 740,000 As at March 31, 2015 372,033,914 NCIB Period Purchases 5,668,500 As at June 30, 2015 366,365,414 NCIB Period Purchases 1,283,000 As at September 30, 2015 365,082,414 NCI
Slide 11: Development Update
Development Update n =|: MobiKEY Securing Enterprise Mobility
Slide 12: Competing Factors
Competing Factors • Employees, remote workers and contractors demand access to their workspace from anywhere, from any device. • Unlocking these productivity gains can dramatically increase the organization’s exposure to security threats and the risk of network breaches. At the same time IT professi
Slide 13: Data Breach Investigation Report
Data Breach Investigation Report Verizon 2015 – Data Breach Investigation Report “It may not be obvious at first glance, but the common denominator across the top four patterns — accounting for nearly 90% of all incidents — is PEOPLE. At this point, take your index finger, place it on your chest, an
Slide 14: Data Breach Consequences are Growing
Data Breach Consequences are Growing • August 2015: FTC vs. Wyndham Worldwide – US Court of Appeals for the 3rd Circuit handed down its decision in favor of the FTC against Wyndham Worldwide Corporation (Wyndham). – This lawsuit was for a failure to implement proper cybersecurity measures and protec
Slide 15: Data Breach Consequences are Growing
Data Breach Consequences are Growing • October 2015: Enslin vs. The Coca-Cola Company – Pennsylvania federal judge has allowed a data breach class action lawsuit against Coca- Cola to proceed. – The case is the first case in which a federal court in Pennsylvania allowed a data breach class action to
Slide 16: What Are We Hearing on the Sales Trail?
What Are We Hearing on the Sales Trail? • So long as we meet the appropriate regulatory requirements, i.e. using a VPN, the company is secure. • If the technology we are using has a reputable technology brand name, it must be secure. • If industry peers are using it, it must be secure. • My data is
Slide 17: MobiKEY - Access After Authentication
MobiKEY - Access After Authentication • Smart card based, device independent, 2-factor authentication • MobiKEY users do not establish inbound connections, devices and PCs never become nodes on the enterprise’s network • Users can manipulate files and data but NEVER REMOVE from the enterprise’s netw
Slide 18: MobiKEY Promise
MobiKEY Promise To unlock the productivity gains of enterprise mobility and BYOD without exposing the organization to the risks of data spillage, spyware or malware propagation. 1. High Assurance – Meeting the requirements of the most security conscious organizations 2. Plug-and-Play Ease-of-Use – E
Slide 19: MobiKEY versus a VPN
MobiKEY versus a VPN MobiKEY VPN Multi Factor Driven by the identity of the user; Driven by the software Authentication smartcard based downloaded on the remote PC not the user Remote Device Any internet enabled computer Requires a dedicated and pre- can be used safely and securely configured remote
Slide 20: MobiKEY versus TeamViewer
MobiKEY versus TeamViewer MobiKEY VPN Multi Factor Strong hardware based authentication Multi-factor authentication optional Authentication driven by the identity of the user - through available OTP mobile app. smartcard based. PIV/CAC support. Portability Any internet enabled computer or Requires i
Slide 21: Customer testimonial: CIO, Global Insurance Company
“With MobiKEY, parameters such as what kind of device is requesting access, when was the last OS update, has the latest virus profile been installed, and other device- specific details are not a concern anymore. It just simplifies things tremendously.” CIO, Global Insurance Company 21
Slide 22: 2015 Business Development Plan
2015 Business Development Plan 1. Renew key lighthouse accounts. • EITSD (the Pentagon) • US DHS CBP 2. Build on expanding USG government opportunities. 3. Open up new USG and Canadian government opportunities. • The OPM data breach is a strong catalyst for civilian agency growth in 2016 4. Leverage
Slide 23: MobiKEY 5.0 – A New Baseline
MobiKEY 5.0 – A New Baseline Functionality Features – Compatibility • Remote Asset operating system (OS) − Android 4.4 − iOS 6, 7, 8 and 9 − Linux Mint, Fedora, Ubuntu or CentOS − Mac OS X 10.7 Lion, 10.8 Mountain Lion, 10.9 Mavericks, 10.10 Yosemite or 10.11 El Capitan − Windows XP - 32 bit, Window
Slide 24: MobiKEY 5.0 – A New Baseline
MobiKEY 5.0 – A New Baseline Functionality Features – Usability • Full workspace experience from any device • Turnkey setup and easy integration with existing infrastructure • Plug and play user experience; nothing to install on mobile asset • Cross domain technology; Host Assets can be on any domai
Slide 25: MobiKEY 5.0 – A New Baseline
MobiKEY 5.0 – A New Baseline Functionality Policy • Secure Remote Printing • Secure Remote Scanning • Bootable MobiKEY • Secure Storage • Password Reset • Host/No Host 25
Slide 26: MobiKEY Roadmap
MobiKEY Roadmap Release Attributes Timing – On or About MobiKEY 5.1 Support of multiple smart card readers Q4 2015 MAP 3.0 Improved UX Q4 2015 MobiKEY 5.2 New protocol, performance optimizations Q4 2015 – Q1 2016 MobiKEY for iOS 5.0 Improved UX Q4 2015 MobiKEY 5.3 Microphone support Q1 2016 MobiKEY
Slide 27: MobiENCRYPT
MobiENCRYPT Objective • To develop a full disk encryption product that can encrypt the Windows operating system partition using the private key in the smart card. Features • Transparent Full Disk Encryption: The hard disk will be encrypted/decrypted on-the- fly using AES 256/XTS encryption. This fea
Slide 28: Route1 is on a Path to Market Leadership
Route1 is on a Path to Market Leadership • The world’s best technology to deliver mobile access In CAD $000s FY 14 FY 13 for enterprises Audited Audited • Unlocks mobility without introducing new security Revenue 6,078 5,433 risks Gross Margin 4,932 4,296 • Combines high assurance security with plug