Intelligent Protection Management Corp. · NASDAQ:IPM
Intelligent Protection Management — PeerStream — Investor Presentation (May 2018)
29 slides from Intelligent Protection Management's investor presentation, May 9, 2018
Slide 1: Investor Presentation May 2018
INVESTOR PRESENTATION May 2018 PeerStream , Inc. | Ticker: PEER
Slide 2: Disclaimer and forward-looking statements
This presentation is for discussion purposes only. Certain material is based upon third party information that we consider r eli able, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Certain statements in this presentation constitute “forward - look
Slide 3: PeerStream Company Overview
Billions of video and text communications sent 3 with > 100 MM users each since inception 3 apps 75 26 Developers in 4 tech centers* Patents *includes contractors TECHNOLOGY PLATFORM CONSUMER APPS BUSINESS SOLUTIONS POWERED BY BLOCKCHAIN PeerStream Company Overview 3 Innovative decentralized technol
Slide 4: Market Profile
OTCQB Ticker PEER Closing Price 1 $ 5 . 1 0 52 - Week Range 2 : $ 1.50 - $ 8 . 31 Shares Outstanding 3 : 6. 9 mm Shares in Public Float: 2. 3 mm Market Cap: $ 35.2 mm Enterprise Value: $ 26.7 mm 2017 Rev enues: $ 24.8 mm Total Cash 5 / 8 /1 8 4 : $ 8 . 5 mm Total Debt: $0 1 Closing price on 4/30/18
Slide 5: Investment Highlights
Now offering PeerStream’s industry leading expertise to third party developers and corporate clients, presenting a high potential new revenue channel Digital video pioneer adopting revolutionary blockchain technology to evolve existing business and launch new high potential growth initiatives EXPLOS
Slide 6: Executive Leadership
Jason Katz Chairman, President + COO Judy Krandel Alex Harrington CEO CFO • Joined PeerStream in 2014 and has also served as interim CFO • CEO of MeetMoi, a mobile dating pioneer (sold to Match.com) • SVP of Strategy & Operations for Zagat (acquired by Google) • MBA from Wharton and a B.A. from Will
Slide 7: Blockchain can support multimedia networks
CROWD - SOURCED COMPUTING BANDWIDTH CRYPTO TOKENS MEDIATES PAYMENTS CONSENSUS ALGORITHM BLOCKCHAIN TECHNOLOGY GLOBAL P2P NETWORK Blockchain can support multimedia networks 7 Blockchain can help form a global peer - to - peer network that can be used to deliver media
Slide 8: We are building PSP to address this opportunity
APPS THAT GENERATE LIVE MULTIMEDIA CONTENT B2B APPS CONSUMER APPS social networks live video streaming video chat video conferencing workforce collaboration sales demos AUDIENCE OF END USERS We are building PSP to address this opportunity 8 PeerStream Protocol (“PSP”) is expected to harness the scal
Slide 9: Technology platform supports two lines of business
TECHNOLOGY PLATFORM Apps CONSUMER APPS BUSINESS SOLUTIONS POWERED BY BLOCKCHAIN MULTIMEDIA CONTENT DELIVERY Legacy distributed + PSP Technology platform supports two lines of business 9
Slide 10: Consumer apps business: social video apps
US - focused, worldwide video chat community targeting users over 35 Asia - centric video chat community targeting users from 18 - 35 US - focused video chat community targeting users 18 - 35 Prominent, game - like dating app targeting users over 35 SHARED COMMON INTERESTS 24/7 ENTERTAINMENT A PLATF
Slide 11: Consumer apps: natively blockchain video app
D ecentralized media delivery No p ersonally i dentifiable information F reemium app with token payments Messaging Apps Market Scale * (Sold to Facebook in 2014 for $19B) 2016 downloads 225MM Secure Messaging Apps * 2016 downloads (MM) *Source: Fortune.com and Apptopia 49.3 3.8 3.6 Expected launch i
Slide 12: Business solutions: the digital video opportunity
August 2017 Business solutions: the digital video opportunity 12 Cheap bandwidth and better mobile hardware has made video a killer app in web 3.0, and app developers are incorporating video more than ever before
Slide 13: Business solutions: the blockchain opportunity
Global demand for blockchain fueled by: demand for distributed ledger technology transparency faster transactions reduced total cost of ownership increasing demand for simplified business processes rising adoption of blockchain - as - a - service 13 Business solutions: the blockchain opportunity ”NE
Slide 14: Business solutions: multimedia delivery services
Blockchain Strategy Consulting Blockchain Software Implementation Turnkey Video Solutions Technology Licensing Technical Support 15+ years of multimedia streaming expertise 75 Developers * Developers of PSP using blockchain technology Billions of multimedia messages sent to 100MMs of users PeerStrea
Slide 15: Business services: case study ProximaX
15 THE PROJECT • Next generation blockchain protocol founded on NEM technology • Enhanced utility with storage and media streaming/messaging layers • Led by Blockchain pioneer Lon Wong, former President of NEM.io Foundation • Completed successful ICO in Q2 2018 business services: case study THE ENGA
Slide 16: Blockchain partnerships / investment opportunities
Social & Video Consumer Apps Infrastructure: • Content Delivery • Digital Security • Storage • Payments • Ad Tech • Digital Operators at Scale • First Customers / Beta Testers for new Blockchain Tech • Joint Development Collaboration • Public Company Stature Areas of Potential Partnership/Investment
Slide 17: Blockchain advisory board
M ike Jones • Active angel investor with more than $2.5B in exits • CEO of Science, Inc. • Recent exits include: Dollar Shave Club, Famebit, DogVacay and HelloSociety • Previous CEO of MySpace, Userplane and Tsavo • Recently launched his newest incubator, Science Blockchain, which just completed an
Slide 18: Multiple potential revenue streams
Subscriptions • F reemium model with subscriptions that expand access and unlock status Advertising Revenue • D riven by ad networks and direct - to - advertiser relationships Virtual Gifts and Micro - transactions • V irtual gifts enhance status and build relationships • M icro - transactions permi
Slide 19: Financial highlights
financial highlights 19 • FY2017 revenues of $24.8MM , an 18.4% increase vs. FY2016, driven primarily by the completion of the AVM Merger ; • Q1 2018 revenue of $5.7MM declined 14.5% vs. Q1 2017 and 3.5% vs. Q4 2017 ; • Q1 subscription revenue of $5.4MM declined 12.8% vs. Q1 2017 and 1.1% vs. Q4 201
Slide 20: Revenue
• Q1 2018 revenue of $5.7MM declined 14.5% from Q1 2017 and 3.5% from Q4 2017; the quarter - to - quarter decline was primarily due to a decrease in revenue from our dating properties • Q1 2018 subscription revenue of $5.4MM declined 12.8% from Q1 2017 and 1.1% from Q4 2017; Q uarter - to - quarter
Slide 21: Adjusted EBITDA and net loss
adjusted EBITDA 21 $(214) $105 ($300) ($200) ($100) $0 $100 $200 Q1 2017 Q1 2018 Quarterly Adjusted EBITDA ($ in 1000s) $(1,039) $(809) ($1,500) ($1,000) ($500) $0 Q1 2017 Q1 2018 Quarterly Net Loss ($ in 1000s) • Q1 2018 Adj. EBITDA was $105 thousand, a $319 thousand improvement from Q1 2017, refle
Slide 22: Cash flows
• Net cash flow for the three months ended March 31 , 2018 was ($623) thousand which included the annual incentive employee bonuses and some lingering deal expenses from a merger agreement terminated in October 2017 • Cash and cash equivalents of approximately $3.5 million at March 31, 2018; $0 debt
Slide 23: Peer valuation comparison
• PeerStream has a modest enterprise value as compared to average of other blockchain companies • PeerStream trades at an EV/Sales discount as compared to the average of its peers [NOTES]: [1] Valuation metrics and data as of 4/30/18; [2] Price, Market Cap, EV, and TTM sales data via Yahoo! Finance;
Slide 24: Key takeaways
EXPLOSIVE MARKET GROWTH POTENTIAL DRIVEN BY SYNERGY OF VIDEO AND BLOCKCHAIN FIRST PUBLIC BLOCKCHAIN INVESTMENT IN MULTIMEDIA COMMUNICATIONS BUSINESS SOLUTIONS OFFERING EXPECTED TO DRAMATICALLY EXPAND ADDRESSABLE MARKET Key takeaways 24
Slide 25: Non-GAAP Financial Measures
Non - GAAP Financial Measures Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest expense, net, depreciation and amortization expense and stock - based compensation expense. The Company presents Adjusted EBITDA because it is a key measure used by the Company’s management and
Slide 26: Appendix
Appendix 26
Slide 27: Snap Interactive is now PeerStream
Snap Interactive is now PeerStream 27 LEGACY NEW STRATEGIC DIRECTION • Consumer social video apps for meeting new people • Innovative technology supporting live multimedia communications within proprietary apps • Multimedia streaming and communications tech platform, fortified with blockchain • Cons
Slide 28: What is blockchain?
A transaction is requested – it is represented online as a “block” The block is broadcast to a P2P network of computers known as nodes Using known algorithms, those in the network validate the transaction A verified transaction may include contracts, records and/or cryptocurrency After verification,
Slide 29: Why is blockchain so revolutionary?
“Blockchain is the distributed trust network the internet always needed and never had” – Marc Andreesen Why is blockchain so revolutionary? 29 Blockchain is capable of recording and enabling transactions in virtually every area of value and importance to humankind