27 slides from Intelligent Protection Management's IPO roadshow presentation, Nov 26, 2018
Slide 1: PeerStream, Inc. Investor Presentation November 2018
Ticker: PEER INVESTOR PRESENTATION PeerStream, Inc. | NASDAQ: PEER November 2018 Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Number 333 - 226003 November 21, 2018
Slide 2: Forward-looking statements disclaimer
Ticker: PEER 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 “f
Slide 3: Free Writing Prospectus Statement
Ticker: PEER This presentation highlights basic information about us and the proposed offering. Because it is a summary, it does not conta in all of the information that you should consider before investing. We have filed a registration statement (including a preliminary prospectus) with the SEC for
Slide 4: Offering Summary
Ticker: PEER Offering Summary: 4 Issuer: PeerStream, Inc. Expected Offering Size: Approximately $7,500,000 1 Securities Offered: 1,300,000 units Over - allotment: 15% of offering size Unit Composition: Listing / Symbol 2 : One share of common stock and one warrant to purchase one share of common sto
Slide 5: Core Technology Base
Ticker: PEER 5 Ticker: PEER 5 Core Technology Base Social Video Apps for Consumers Commercial Blockchain Software Technology Professional Services Since 1998 Since 2017 Launched 2018 26 Patents, licensed to MSFT, Sony, etc. 80 Technologists in 4 tech centers* Driving adoption of emerging blockchain
Slide 6: Investment Highlights
Ticker: PEER Investment Highlights 6 Experienced management team combines entrepreneurial drive with enterprise leadership Transformative blockchain technology is driving a high growth market opportunity to build foundational technology and drive adoption Strong balance sheet to support organic grow
Slide 7: Seasoned Leadership with Diverse and Complementary Expertise
Ticker: PEER 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
Slide 8: Blockchain Advisory Board
Ticker: PEER • 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 recently complete
Slide 9: Consumer Apps Business: Social Video Apps
Ticker: PEER 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 Secure, Private Video Messaging App. PoC expected Dec. 2108 SHARED COMMON INTERESTS 24/7 ENTERT
Slide 10: Consumer Apps: Backchannel
Ticker: PEER D ecentralized media delivery No p ersonally i dentifiable information F reemium app with token payments 10 10 Consumer Apps: Backchannel Backchannel will be a secure, private video messaging app powered by blockchain using PSP Bought by Facebook in 2014 for $19B; Had 1.5B MAUs in 2017
Slide 11: Blockchain is Disrupting the Way Business is Done
Ticker: PEER 11 Opportunity for blockchain technology to impact virtually every key sector Cost Efficient Enhanced Privacy Highly - Scalable More Secure Blockchain is Disrupting the Way Business is Done BLOCKCHAIN
Slide 12: Blockchain High Growth Market Opportunity
Ticker: PEER • Enterprise and government sectors are embracing the value of blockchain tech • Nearly 6 in 10 large corporations considering blockchain deployment 1 • The market for blockchain services was approximately $695MM in 2017 and expected to grow to more than $79 billion by 2025 2 • IBM rece
Slide 13: PeerStream Solutions Build on Blockchain
Ticker: PEER PeerStream Solutions Build on Blockchain 13 Symbiotic Relationship Between Service Offerings Blockchain Software Apps for Enterprise Consumer Apps Integration Services 13 Leveraging the best of blockchain to build and operate innovative apps for consumers and now B2B Blockchain services
Slide 14: Proprietary Software: PSP
Ticker: PEER PSP SERVES 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 Proprietary Software: 14 Slated for Summer 2019, PSP will route live rich media strea
Slide 15: Proprietary Software: Unleashing the Power of Protocols
Ticker: PEER 15 Proprietary Software Powerful, but still emerging, blockchain protocols present rich opportunity for enhancement OPPORTUNITY APPROACH MONETIZATION Developing blockchain - based software that can support decentralized applications in many industry verticals Focusing development on mid
Slide 16: Business Solutions: Enterprise Blockchain Integration
Ticker: PEER Business Solutions: Enterprise Blockchain Integration Enterprise interest in blockchain and a global tech talent shortage create our market opportunity 16 16 PEERSTREAM BUSINESS SOLUTIONS B2B revenue streams are expected to include blockchain strategy consulting, implementation and supp
Slide 17: Business Solutions Launch Client: ProximaX
Ticker: PEER 17 The Project The Engagement • PeerStream to supply multimedia streaming and communication solution • Licensing and integration of PeerStream Protocol (PSP) into the ProximaX platform • Service fees payable in cash or highly liquid cryptocurrencies and ProximaX tokens* • First client f
Slide 18: Multiple Potential Revenue Streams
Ticker: PEER 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 - trans
Slide 19: Impact of ProximaX Deal on Q2 2018 and Beyond
Ticker: PEER Impact of ProximaX Deal on Q2 2018 and Beyond 19 • The deal is valued in total at $13.4MM • The upfront payment of $5MM and $3.4MM in tokens will be recognized ratably over the contract term, beginning with Q2 2018 • Upfront net cash received of $4.9MM 1 • Upfront 216MM XPX tokens initi
Slide 20: Income Statement Highlights
Ticker: PEER Income Statement Highlights ($000s) 20 1 Adjusted EBITDA is a non - GAAP measure. See Appendix for a reconciliation of Adjusted EBITDA to net loss, the most directly comp arable financial measure calculated in accordance with GAAP. Revenue $19,825 $18,886 $24,841 Net Loss $(3,243) $(4,5
Slide 21: Third Quarter Highlights: Revenue
Ticker: PEER • Q3 2018 revenue of $6.7MM increased 12.8% vs. Q3 2017 reflecting Technology Services revenue from the ProximaX Technology Services Agreement • Year - to - date 2018 revenue of $19.8MM increased 5.0% vs. year - to - date 2017 revenue Third Quarter Highlights: Revenue 21 $5,447 $4,907 $
Slide 22: Third Quarter Highlights: Profitability
Ticker: PEER Third Quarter Highlights: Profitability 22 • Q3 2018 net loss of $570K driven principally by non - operating losses resulting from a $576K impairment loss on digital tokens received in connection with the ProximaX technology services agreement • Q3 2018 adjusted EBITDA was approximately
Slide 23: Balance Sheet Highlights
Ticker: PEER Balance Sheet Highlights ($000s) 23 September 30, 2018 Cash and Cash Equivalents $7,217 Digital Tokens $833 Total Assets $25,418 Deferred Revenue $7,001 Total Liabilities $9,997 Shareholder’s Equity $15,421 Total Liabilities and Shareholders Equity $25,418
Slide 24: Capitalization Table as of September 30, 2018
Ticker: PEER Capitalization Table as of September, 30, 2018 24 1 Shares outstanding include 158,571 unvested restricted shares 2 Does not include shares and/or warrants that may be purchased pursuant to the underwriters’ overallotment option Outstanding Securities Common Shares Outstanding pre - off
Slide 25: Next Steps to Fuel Strategic Growth
Ticker: PEER Next Steps to Fuel Strategic Growth 25 Branding/ marketing/ build market awareness and presence Assessing future proprietary software to expand addressable market Evaluating tuck - in acquisitions Exploring lead generation partnerships and joint ventures Enhance client execution capabil
Slide 26: Thank You
Ticker: PEER ir@peerstream.com 26 THANK YOU PeerStream, Inc. | Ticker: PEER
Slide 27: Non-GAAP Financial Measures
Ticker: PEER Non - GAAP Financial Measures Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, n et, income tax expense (benefit), depreciation and amortization expense, loss on disposal of property and equipment, impairment los