Slide 1: Investor Update
SMITH MICRO SOFTWARE Investor Update January 12, 2016 Smith Micro Software NASDAQ: SMSIH SMSI Investor Jan 2016 V8.pdf
Slide 2: Safe Harbor Statement
SAFE HARBOR Statement This presentation contains forward-looking statements that involve risks and uncertainties, including, without limitation, forward-looking statements relating to the Company’s quarterly and annual revenue guidance, its financial prospects and other projections of its performanc
Slide 3: Smith Micro – Experts in Mobile
Smith Micro – Experts in Mobile RICH HERITAGE DEEP EXPERTISE Wireless Connectivity Heterogeneous Networks Device/Policy Management Voice/Video Comms 2D/3D Content Heterogeneous Networks Multi-Platform, Multi-OS Scalable Architectures Industry Standards INDUSTRY PROVEN Mobile Network Operators, Cable
Slide 4: Company Focus
Company Focus NETWORKS Enriching Mobile Lifestyles DEVICES APPS CONTENT © 2016 Smith Micro Software, Inc. All rights reserved. 4-
Slide 5: NetWise Policy-on-Device Platform
NetWise Policy-on-Device Platform Wi-Fi / Discovery/ Authentication Location /Event Triggers Policy-on-Device Network Device Connectivity IoT Management 7:26A Device analytics Quality of Service(QoS) Wi-Fi ON 3G/4G IDLE Analytics Service (QoS) © 2016 Smith Micro Software, Inc. 5 * All rights reserve
Slide 6: CommSuite Visual Messaging Platform
CommSuite Visual Messaging Platform Visual AniMates Voicemail Voice-to-Text -line Advertising 19M Subscribers Proven Revenue Engine (Revenue Share) 90 Device Models 3rd Party App integration >1B Messages Per Quarter Carrier and Enterprise Integration © 2016 Smith Micro Software, Inc. 6 * All rights
Slide 7: 2015 Results – Sep YTD 2015 vs. 2014
2015 Results* – Sep YTD 2015 vs. 2014 Up Up Down Up $3.1M $4.0M $4.4M $8.4M 12% 21% 16% 100% Revenue Gross Operating OpEx Margin Income Revenue growth – new NetWise customers Profitability – Near Breakeven Cash – YE 2015 will be Net Neutral with YE 2014 * Non-GAAP © 2016 Smith Micro Software, Inc. 7
Slide 8: 2015 Challenges
2015 Challenges Early Projections Unmet o Restated Guidance in Q3 o Now expect $39M -$40M in revenue for 2015 versus $37M in 2014 New Customer Delays o Consolidation in Carrier/Cable Industries Slowed Deal Flow o Customer Roll-outs Taking Longer than Expected o Hiring Slower Than Expected Largest Cu
Slide 9: Expected Impact on 2016
Expected Impact on 2016 Sprint Revenues Slow Revenue Ramp Q1 Down From Q4; Down from New Deals Gap-filling in Q2-Q4 New 2016 Enterprise Deals New 2016 Carrier & Cable/MSO Business 40000 35000 30000 25000 $ K 20000 2016 Sprint Revenues 15000 Pprojected Down 10000 25-32% YOY 15000 10000 5000 2015 2016
Slide 10: Drivers of Recovery – New Deals
Drivers of Recovery – New Deals 1st Captivate Customer Mobile Marketing in Hospitality Q2-16 Rollout Major Phone OEM Device Management Q4-15 Launch, Growing in 2016 2nd Cable/MSO Device Analytics/Wi-Fi QoS Q1-16 Rollout New Tier 1 Operator 3G/4G/Wi-Fi Management Q2-16 Rollout © 2016 Smith Micro Soft
Slide 11: NetWise Captivate – Mobile Marketing
NetWise Captivate – Mobile Marketing PROMOTIONS RIGHT PLACE, RIGHT TIME OFFERS Jewelry Watches On Sale RETAIL/BRANDS Apply for Credit VIRTUAL ASSISTANCE ENTER Exit Bank You are Survey rd How was 3 in FINANCIAL your line; visit? Est. wait SERVICES 10 mins LOYALTY PROGRAMS FOOT TRAFFIC/ RETENTION HOSP
Slide 12: Drivers of Recovery – Hot Markets
Drivers of Recovery – Hot Markets Mobile Marketing IDC Analyze the Future Digital Device Use Influences $1.7 Trillion in In-Store Retail Sales Mobile usage before, during shopping trips drivers $970 Billion in brick-and-mortar sales June 11, 2015 Retail & Ecommerce “Big Data” Analytics New IDC Forec
Slide 13: Evolving to Meet New Market Needs
Evolving to Meet New Market Needs Wi-Fi Cellular Connections Analog Connections Connections Founded 1982 2016 FAX PC Smartphone Connected Tablet World © 2016 Smith Micro Software, Inc. 13 * All rights reserved.
Slide 14: Smith Micro Advantages
Smith Micro Advantages Best Quality of Great Products Experience INVESTORS Richer Long Term Consumer Customers Engagement Hot Markets Better Intelligence CUSTOMERS Improved Financials Increased Revenue/ Efficiency Stock Trading at <1X Revenue © 2016 Smith Micro Software, Inc. 14 * All rights reserve
Slide 15: Smith Micro Software
Smith Micro Software NASDAQ: SMSI www.smithmicro.com Smith Micro Software, Inc. Corporate Headquarters 51 Columbia Aliso Viejo, CA 92656 +1 949-362-5800 +1 949-362-2300 © 2016 Smith Micro Software, Inc. All rights reserved. SMITH MICRO SOFTWARE forward thinking, Delivered Today.