Curiositystream Inc. · NASDAQ:CURI
Curiositystream — Software Acquisition Group — SPAC Merger (September 2020)
41 slides from Curiositystream's SPAC merger presentation, Sep 17, 2020
Slide 1: Investor Presentation – September 2020
© 2020 CuriosityStream, Inc., Silver Spring, Maryland, All Rights Reserved. Investor Presentation – September 2020
Slide 2: Disclaimer
Disclaimer This presentation contains statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or pro jec tions regarding future events or future results and therefore are, or may be deemed to be, “forward - looking statements.” These forward - looking statements c
Slide 3: Transaction Overview
Transaction Overview Transaction Overview Timing Management and Board • Software Acquisition Group, Inc. (Nasdaq: SAQN, “SWAG” or the “Company”) has entered into a definitive agreement to merge with CuriosityStream, Inc. (“CuriosityStream”) • The combined company will be well capitalized, with ~$511
Slide 4: Valuable and Expanding Content Library
▪ Over 3100 HD & 4K titles ▪ Higher production quality and resolutions compared to older libraries ▪ $1.3B estimated original production value ▪ Library has global appeal to viewers regardless of age or language ▪ Vast library covers all major categories of factual entertainment Valuable and Expandi
Slide 5: Management biographies
• Leads all strategy and operations for CuriosityStream • 28 years of traditional and digital global media experience across programming, production, content development, marketing, operations, advertising sales, and network and program distribution • Leadership roles ranging from SVP to Founder/CEO
Slide 6: John Hendricks, Visionary Founder
Summary Biography 1982 Cable Educational Networks founded by John Hendricks Market Cap ($USD in billions) Discovery 1982 - 2014 2014 John Hendricks steps down as Chairman of Discovery Communications 2014 $28B Market Cap Awards 1985 Discovery Channel raises $5M Series A and debuts on cable TV 2015 Cu
Slide 7: Founding Purpose and Editorial Mission
Founding Purpose and Editorial Mission CuriosityStream was founded to satisfy humanity’s enduring curiosity about our world with premium factual content that informs, enchants and inspires 5
Slide 8: The Third Revolution of Television is Here
We are in the midst of a massive shift in consumer behavior 1st Revolution BROADCAST 1940 - 1974 2nd Revolution CABLE 1975 - 2006 3rd Revolution ON - DEMAND STREAMING 2007 - Future PIONEER PIONEER PIONEER 4 Content Categories MOVIES & SCRIPTED SERIES FACTUAL GENERAL TV ENTERTAINMENT • Sitcoms • Crim
Slide 9: The Perilous Niches of SVoD
The Perilous Niches of SVoD SVOD NICHE International MOVIES & SCRIPTED DRAMA BritBox Acorn TV Masterpiece Go Russia Vemox BoB Viewster cLassics ] 0 SCLFUFANTASY | ACTION FACTUAL CuriosityStream NATURE, SCIENCE HISTORY DRAMA/SERIES | HORROR THRILLERS COMEDY PEOPLE HOME CUISINE ‘TRAVEL LEARNING S AMUS
Slide 10: CuriosityStream Delivers the Full Category of Factual Entertainment
CuriosityStream Delivers the Full Category of Factual Entertainment 8
Slide 11: Significant and Growing Audience Share for Factual Content
Significant and Growing Audience Share for Factual Content 9
Slide 12: Stream Unlimited Documentaries Anytime, Anywhere
Stream Unlimited Documentaries Anytime, Anywhere 10
Slide 13: David Attenborough travels to the Jura Mountains in the Swiss Alps, to find out
David Attenborough travels to the Jura Mountains in the Swiss Alps, to find out about one of the largest animal societies in the world, where over a billion ants live in peace. FEATURED 52m 97% 13 11
Slide 14: Engagement & Gratitude
Engagement & Gratitude Tricia Lawrence @authorblogger Jan 13 Just subscribed to @CuriosityStream. I will never leave my house again. #lovedocumentaries Hard to believe I just cancelled my @netflix account because all I watch now is @CuriosityStream - the Netflix for documentaries. So many great docs
Slide 15: Impressive Growth Trajectory
Impressive Growth Trajectory • Doubling YOY revenue for the last three years with plenty of strong growth ahead, 50% CAGR • >60% Gross margins • Significant recurring revenue • Positive AOIBDA in 4Q 2022 13
Slide 16: Revenue & Market Opportunity
Revenue & Market Opportunity World's Factual Content Solution for consumers, distributors, corporations, associations, educational institutions, brands, and media companies OTHER ● Program Sales ● Advertising ● Sponsorships STREAMING • DTC • Partner Direct • Bundled MVPD/Wireless* • Corporations • A
Slide 17: Content acquisition and distribution ecosystem
Content Acquisition & Production Management TVF ZDF Enterprises PBS ZED NHK BBC Laptop, desktop, PC or Mac via modern web browser Interface Platforms CDN Servers CenturyLink StackPath Cloudfront Cable, Satellite, and Internet Distributors Internet Global Consumers Global Consumers Android device iPh
Slide 18: Total Direct & Partner Subscriber Growth
Total Direct & Partner Subscriber Growth *Does not include bulk corporate subscriptions 16 Direct, Partner Direct, and Total Direct
Slide 19: Direct & Partner Direct Subscriber Net Adds by Quarter
Direct & Partner Direct Subscriber Net Adds by Quarter *Does not include bulk corporate subscriptions 17 Net Direct and Net PD
Slide 20: Global Bundled Distribution
Global Bundled Distribution Bundled pay TV distribution in 8 3 countries in 5 languages English, Mandarin, Spanish, Swedish, Russian 18 Long term recurring revenue via multi - year fixed fee agreements Control global rights to most content Factual travels better than any category
Slide 21: 10X YOY Bundled Subscriber Growth
10X YOY Bundled Subscriber Growth 19 0 2 4 6 8 10 12 2016-01 2017-01 2018-01 2019-01 2020-Q1 Million Quarter
Slide 22: Corporate & Educational Partnerships
Corporate & Educational Partnerships • Primary focus on multiyear, multimillion $ partnerships with corporations and associations. • Deal elements include co - branded member streaming services powered by Curiosity, joint content creation, brand advertising, and corporate sponsorship of CuriosityStr
Slide 23: Corporate Partnership Deal Examples
Corporate Partnership Deal Examples 3 Years, $30M • Co - Branded Streaming Service • Content+Companion Docs • Studio Collaborative for New Content Member/Trade Association Professional Services Pharmaceuticals 3 Years, $1.2M • Sponsor Districts in Key Markets • TCS AI to Assess Lexile Levels in Titl
Slide 24: Co-Branded Member Streaming Service
SUMMARY RELATED Apollo 13 Similar Topics Apollo Program Space Lunar Module Astronaut NASA Moon Browse Collections John Search ACME 22 Co - Branded Member Streaming Service Powered by CuriosityStream
Slide 25: Advertising / Sponsorship Revenue
Advertising / Sponsorship Revenue High $ Digital Brand Partnerships & Traditional 24/7 Linear We will light up revenue generating ad inventory in the form of traditional “spots and dots” advertising across our linear ne two rks in November 2020, as well as launch multi - platform branded content cam
Slide 26: Brand Partner Media
Brand Partner Media Full Series Underwriting (All Full Eps + 5 Custom) Branded Social Media Promo Videos TV Spots Digital Display (CuriosityStream Retargeting) CuriosityStream 4K Annual Subscriptions (DTC Price & Discounted) Millions of Trackable Media Impressions Short Form Episode Views Audio (Rad
Slide 27: Sample Brand Partnership Proposal
Sample Brand Partnership Proposal Impressions & Cost Guaranteed views and impressions will be delivered by CuriosityStream within USA, unless otherwise requested by partner. Full Series Sponsorship (Messaging on all full episodes, 1 or more full length episodes presented in front of paywall by brand
Slide 28: Program Sales
Program Sales REPRESENTATIVE PROGRAMS REPRESENTATIVE BUYERS 26 Factual Solution for Media Companies • Tapping the $ 120B + spent in non - sports content annually (1) • Multi - year, multi - million $ “Curiosity Selects” packaged agreements • Long term pre - sales commitments to high - end blue chip
Slide 29: Elite Veteran-Led Management Team
Elite Veteran - Led Management Team Clint Stinchcomb President and CEO Jason Eustace Chief Financial Officer Tia Cudahy Chief Operating Officer and General Counsel Andre Silva Chief Technology Officer Devin Emery Chief Product Officer and EVP, Content Strategy Rob Burk Head of Original Programming D
Slide 30: Strong Key Performance Indicators Driving Superior Top-Line Growth
28 Strong Key Performance Indicators Driving Superior Top - Line Growth (1) AOIBDA: adjusted operating income before depreciation and amortization
Slide 31: Revenue Bridge - 2020 to 2021
Revenue Bridge - 2020 to 2021 (in $ Millions) 29
Slide 32: Investment
2020 2021 2022 2023 2024 2025 Investment Marketing Total Direct Advertising 33,557 37,513 43,388 46,825 60,575 74,325 Blended CPA $ 55S 56 OS 50 § 45° $ 47 S$ 50 Programming - Investment Cash Investment 19,500 60,000 90,000 120,000 135,000 150,000 Programming Premiere Hours Placed in Service Origina
Slide 33: Business Combination
CuriosityStream Business Combination
Slide 34: Operating / Valuation Metrics Comparable Company Analysis
34 Operating / Valuation Metrics Comparable Company Analysis 2021P Revenue Growth EV / 2021P Revenue Source: S&P Capital IQ; data as of September 14, 2020 market close; projected figures based on consensus analyst estimates 32 64.0% 40.3% 44.5% 55.6% 25.8% 64.9% NM 2021P Gross Margin: 79.9% 17.5% 34
Slide 35: Transaction summary and footnotes
(1) Assumes estimated cash held in trust at business combination based on March 31, 2020 trust balance and no redemption of SWAG pub lic shares (2) Value of consideration to CuriosityStream shareholders assuming 100% stock deal based on 4.25x 2021P revenue multiple and CuriosityStream 2021P revenue
Slide 36: Thank you!
Thank you!
Slide 37: Appendix
APPENDIX 35
Slide 38: CuriosityStream at a Glance
CuriosityStream at a Glance Award - winning non - fiction programming 3,000+ titles available on virtually any device that can stream video Globally relevant, regionally optimized programming strategy Serving the full category of factual including science, nature, space, history, food, travel, and m
Slide 39: Market Scope Details
39 Market Scope Details 37 Bundled Distribution Global # of Operators 884 2019, GSA Report (MNOs actively investing in LTE) Global # of Active LTE Operators 769 2019, GSA Report (Active LTE operators) 2019 2022 # of 4G Subscribers worldwide (in M) 4,150 5,100 Source: 2019, TeleGeography; 2022 Foreca
Slide 40: Direct & Partner Direct Platforms
Direct Platforms (O&O) Smart TVs Partner Direct Direct & Partner Direct Platforms 38
Slide 41: Forward-Looking Statements
Forward-Looking Statements Certain statements in this communication may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Software Acquisition Group’s and CuriosityStream’s expectations or predictions
Software Acquisition Group — SPAC Merger (September 2020) on 6ix