Falconstor Software, Inc. · OTC:FALC
Falconstor Software — Q4 2015 Earnings Presentation
31 slides from Falconstor Software's earnings presentation, 2016
Slide 1: Q4 2015 Earnings Call
Q4 2015 Earnings Call Gary Quinn - CEO & President Intelligent – Predictive - Actionable Lou Petrucelly – EVP & CFO Software-Defined Data Management © 2016 FalconStor Software, Inc. All Rights Reserved
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are discussed in FalconStor’s reports on Forms 10-K, 10-Q and other
Slide 3: Our Vision
Our Vision FreeStor delivers enterprise class software defined, intelligent data services combined with predictive analytics across any primary or secondary storage hardware; in the cloud or on premise. FalconStor Confidential 3
Slide 4: Available Market
AVAILABLE MARKET FalconStor Confidential 4
Slide 5: Competitive Advantage
Technology Waves Cost, Performance and Agility Disruption Client/Server Cloud / Services Centric Centric Competitive Advantage $10B $14B Block Oriented Object Oriented • High Performance, • Flexible and Low latency Modular • Dedicated Storage • IaaS resources • Legacy interfaces • Exposed via API Di
Slide 6: Storage Infrastructure Perspective
Storage Infrastructure Perspective Mission Critical Balanced Performance High Capacity OLTP NoSQL Big Data Cloud Topology Centralized DAS DAS DAS Disaggregated Disaggregated Disaggregated Scale TB PB TB PB 100’s PB 10’s PB Growth Organic/Low Medium High High Protocols SAN / FC, NFS ISCSI S
Slide 7: IDC Storage SW Market Forecast
IDC Storage SW Market Forecast SW Segment 2016 2017 2018 2019 CAGR Data protection $6,283.3 $ 6,601.5 $6,935.8 $7,656.0 5.1% Storage Mgmt. $908.7 $1,078.0 $1,278.9 $1,800.0 18.6% Replication $2,796.0 $3,031.7 $3,287.3 $3,865.0 8.4% SDS $700.0 $1,134.1 $1,837.4 $4,823.0 62.0% Archive $1,544.7 $1,636.
Slide 8: Addressable Market
ADDRESSABLE MARKET FalconStor Confidential 8
Slide 9: FreeStor Use Cases to Address
FreeStor Use Cases to Address Use Case IDC Mkt Segment Multi-Tenancy Storage Management, Cloud Primary Protection Data Protection, Replication (Clustering/Replication/Snapshots) Auto-Tiering (Intelligent, Policy-based) Storage Management, SDS Archive (Object) Archive No SQL (Mobile Apps) Data Protec
Slide 10: FreeStor Use Case TAM ($M)
FreeStor Use Case TAM ($M) (Total Available Market By Segment) Use Cases mapped to 2016 2017 2018 2019 CAGR segments Multi-Tenancy $901.4 $1,029.9 $1,166.6 $1,428.7 12.2% Primary Protection $ 3,980.5 $4,210.3 $4,454.1 $4,987.5 5.8% Auto-Tiering $783.5 $1,111.7 $2,229.6 $3,613.8 46.5% Archive $1,235.
Slide 11: What Is SDS?
WHAT IS SDS? FalconStor Confidential 11
Slide 12: New IDC SDS: Where FreeStor Fits
IDC SDS Taxonomy December 2015 IDC#: 258777 New IDC SDS: Where FreeStor Fits Storage Workload Discrete OS (Storage Only) Server based Storage Software Defined Storage Controller (SDS-CS) Storage Non-Storage Workload Workload Virtual Bare- Container Converged Machine Metal (Compute + Storage) Hyper-V
Slide 13: Gartner SDS: Where FreeStor Fits
What Is the Value of a Software- Defined Data Center? G00262841 Sept 2014 Gartner SDS: Where FreeStor Fits Service Layer Infrastructure “Control Plane” Software Defined Controllers, Disaggregated from HW Northbound APIs Layer of Abstraction Southbound APIs Physical Infrastructure “Data Plane” Infras
Slide 14: Where FreeStor Fits Today
Where FreeStor Fits Today Infrastructure “Control Discrete Plane” (Storage Only) Software Defined Storage Layer of Abstraction Controller (SDS-CS) Converged (Compute + Storage) Infrastructure “Data Plane” FreeStor controls the IO path and data services independently, disaggregated/discretely from
Slide 15: Who Plays Where - Today
Who Plays Where - Today Discrete Hyper-Converged Hyper-Scale SVC FalconStor Confidential 15
Slide 16: Who Plays Where - Tomorrow
Who Plays Where - Tomorrow Discrete Hyper-Converged Hyper-Scale SVC FalconStor Confidential 16
Slide 17: Q4 2015 Financial Summary
Q4 2015 Financial Summary FalconStor Confidential 17
Slide 18: Q4 2015 Summary Overview
Q4 2015 Summary Overview % Change v % US$ 000’s Q4 Q3 Q4 Sequential Change v 2015 2015 2014 Qtr Q4 2014 Total GAAP Revenue 9,395 9,683 11,794 (3%) (20%) Total Bookings 10,038 8,830 13,553 14% (26%) Total Bookings / 10,523 9,264 13,553 14% (22%) Constant Currency Total Non-GAAP 10,679 11,769 13,980 (
Slide 19: FY '15 Total Bookings Legacy v New Customers
FY ‘15 Total Bookings Legacy v New 15 Customers FreeStor 2% 157 Customers Renewals 42% FreeStor Technology 16% Existing 40% FalconStor Confidential 19
Slide 20: 2015 New Product Adoption
2015 New Product Adoption 180 172 160 140 120 100 80 58 60 43 42 40 29 20 0 Q1 Q2 Q3 Q4 FY FreeStor FreeStor Technology Consolidated FalconStor Confidential 20
Slide 21: Q4 2015 Summary Overview
Q4 2015 Summary Overview % Change v % Q4 Q3 Q4 US$ 000’s 2015 2015 2014 Sequential Change v Qtr Q4 2014 Total GAAP Revenue 9,395 9,683 11,794 (3%) (20%) Total Bookings 10,038 8,830 13,553 14% (26%) Total Bookings / 10,523 9,264 13,553 14% (22%) Constant Currency Total Non-GAAP 10,679 11,769 13,980 (
Slide 22: Deferred Revenue Metrics
Deferred Revenue Metrics Deferred Reveue Mix as of Deferred Revenue Mix as of 12/31/15 12/31/14 28% 22% 72% 78% Product Support/Service Product Support/Service Deferred Revenue Weighted Avg Life – 12/31/15 2.78 3 2.09 1.83 2 1 0 Product Support/Service Total Product Support/Service Total FalconStor
Slide 23: 2015 FreeStor Technology Sales
2015 FreeStor Technology Sales # of Total Capacity Customer Type License Type Renewal Opportunity Accounts Sold Monthly, Quarterly, FREESTOR or Annual MSPs 8 640 TB Subscription Subscription Renewals FREESTOR Annual Subscription Enterprise 7 1,340 TB Subscription Renewals FREESTOR Annual Maintenance
Slide 24: 2015 FreeStor Technology Sales
2015 FreeStor Technology Sales # of Total Capacity Customer Type License Type Renewal Opportunity Accounts Sold Monthly, Quarterly, FREESTOR or Annual MSPs 8 640 TB Subscription Subscription Renewals FREESTOR Annual Subscription Enterprise 7 1,340 TB Subscription Renewals FREESTOR Annual Maintenance
Slide 25: The Compound Effect
The Compound Effect 1 New Customer/Year Capacity 2015 2016 2017 2018 Total Base Capacity 100 TBs Annual Growth of 20% - New Customers - New Capacity Annual Grand Total 100 TBs YoY Growth Rate 100% Bookings @$350/TB 2015 2016 2017 2018 Annual Bookings Total $ 35,000 Annual Growth of 20% New Customers
Slide 26: The Compound Effect
The Compound Effect 1 New Customer/Year Capacity 2015 2016 2017 2018 Total Base Capacity 100 TBs 100 TBs Annual Growth of 20% - 20 TBs New Customers - 1 New Capacity 100 TBs Annual Grand Total 100 TBs 220 TBs YoY Growth Rate 100% 120% Bookings @$350/TB 2015 2016 2017 2018 Annual Bookings Total $ 35,
Slide 27: The Compound Effect
The Compound Effect 1 New Customer/Year Capacity 2015 2016 2017 2018 Total Base Capacity 100 TBs 100 TBs 220 TBs Annual Growth of 20% - 20 TBs 44 TBs New Customers - 1 1 New Capacity 100 TBs 100 TBs Annual Grand Total 100 TBs 220 TBs 364 TBs YoY Growth Rate 100% 120% 65% Bookings @$350/TB 2015 2016
Slide 28: The Compound Effect
The Compound Effect 1 New Customer/Year Capacity 2015 2016 2017 2018 Total Base Capacity 100 TBs 100 TBs 220 TBs 364 TBs Annual Growth of 20% - 20 TBs 44 TBs 97 TBs New Customers - 1 1 1 New Capacity 100 TBs 100 TBs 100 TBs Annual Grand Total 100 TBs 220 TBs 364 TBs 561 TBs YoY Growth Rate 100% 120%
Slide 29: IDC Storage SW Market Forecast
IDC Storage SW Market Forecast SW Segment 2016 2017 2018 2019 CAGR Data protection $6,283.3 $ 6,601.5 $6,935.8 $7,656.0 5.1% Storage Mgmt. $908.7 $1,078.0 $1,278.9 $1,800.0 18.6% Replication $2,796.0 $3,031.7 $3,287.3 $3,865.0 8.4% SDS $700.0 $1,134.1 $1,837.4 $4,823.0 62.0% Archive $1,544.7 $1,636.
Slide 30: Q&A
Q&A FalconStor Confidential 30
Slide 31: Thank You
THANK YOU Intelligent - Predictive - Actionable – Software Defined Data Management Corporate Headquarters EMEA Headquarters Asia Headquarters FalconStor Software, Inc. FalconStor Software, GmbH Room 1901, PICC Office Tower, 2 Huntington Quadrangle, Landsberger Str. 312 No. 2, Jian Guo Men Wai Street