Slide 1: Annual Results Presentation
ANNUAL RESULTS PRESENTATION Year ended 31 December 2015
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in WANdisco plc (the “Company”) or any company which is a subsidiary of the Compan
Slide 3: Review of 2015
Review of 2015 The Big Data market continued to evolve We grew our customer base and grew our contracts The on-premise Hadoop market grew slower than expected as customers struggled to scale from ‘lab’ to ‘production’ Our Hadoop product became ‘storage agnostic’ Our product evolved into Fusion a
Slide 4: Financials
FINANCIALS Year ended 31 December 2015
Slide 5: Financial Highlights
Financial Highlights 2015 2014 Stable revenue Revenue $11.0m $11.2m Go to market evolved and sales refocused New sales bookings $9.0m $17.4m Reduced cost base ‘Cash’ Overheads $34.6m $36.0m Narrowed EBITDA loss Adjusted EBITDA* ($16.0m) ($17.9m) Net cash position Net cash $2.6m $2.5m * Adjusted EBIT
Slide 6: Big Data and ALM sales
Big Data and ALM sales Big Data Big Data sales metrics (averages) Customer base up from 10 to 26 Value Mix of large rollouts and $120K per contract smaller-scale projects 5 scale-up and renewal deals Price Range of pricing $1,300 New sales bookings $2.5m (2014: $2.8m) per node per year Volume
Slide 7: Revenue: deferred revenue roll-out and ALM renewal rates
Revenue Revenue release from prior year multi-year Bookings to revenue ($m) 2015 2014 bookings Sales Bookings 9.0 17.4 Average subscription term length of over 2 New deferred revenue (6.5) (12.5) years New recognised revenue 2.5 4.9 $7.9m of deferred revenue secured for 2016 Deferred revenue r
Slide 8: Profit & Loss
Profit & Loss $m $m 2015 2014 change ALM refocus and evolving Big Data go to New sales bookings 9.0 17.4 (8.4) market strategy took time to impact sales Revenue 11.0 11.2 (0.2) New sales + deferrals Cost of sales (0.8) (2.1) 1.3 Sales commissions Gross profit 10.2 9.1 1.1 Headcount reduced from 182
Slide 9: Cost base evolution
Cost base evolution $40.2m $25.3m annualised annualised run rate run rate in 2014 in 2016 $40.2m +$4.2m -$5.6m $36.0m $34.6m -$3.9m -$3.6m $25.3m -$1.8m $25.3m 2014 cash Annualised 2015 2015 cash Annualised 2016 2016 2016 cash cost base 2014 reduction cost base 2015 actions actions cost base increas
Slide 10: Cash Flow
Cash Flow Working capital ($m) 2015 2014 Cash flow ($m) 2015 2014 Receivables* 5.1 5.4 Payables (2.7) (3.2) Adjusted EBITDA (16.0) (17.9) Deferred revenue* (9.8) (11.3) Net working capital (7.4) (9.1) Net working capital change (1.7) 3.8 Currency, interest, tax 0.1 0.5 Cash flow from operations (17.
Slide 11: Strategy Update
STRATEGY UPDATE Year ended 31 December 2015
Slide 12: Evolution of WANdisco products
Evolution of WANdisco products Cloud & On-Premise Petabytes DATA VOLUME On-Premise “Data Gravity” pulls spend on applications & Terabytes services to where the data is stored Gigabytes 2005 2006 2013 2016 Distributed Source Hadoop On-Premise Co-ordination Code and & Cloud Engine Management Big Data
Slide 13: Growing and engaged Big Data customer base
Growing and engaged Big Data customer base Contract wins (cumulative) Industry spread 42% Financial Services NEW 31% Utilities & Telecoms 10% Consumer Goods INSTALLED 10% BASE Information Technology Healthcare H1 2014 H2 H1 2015 H2 & Public 7% All customers have scale-up intentions Regulated industr
Slide 14: Six live Big Data customers
Six live Big Data customers Customer testimonial: Manager, Database Platform & Engineering “WANdisco adds almost zero overhead to our production cluster - unlike DistCp, which comes with a lot of administrative overhead, risk of error, latency and data inconsistencies.” “As quick as we’re ingesting
Slide 15: Cloud data platform market – an exciting opportunity
Cloud data platform market – an exciting opportunity Workloads moving to the cloud Big Data in the Cloud is quicker, easier and cheaper Share of Hadoop deployments, 2015 Big Data Cloud On- Infrastructure Infrastructure Premise requirement as a Service Hybrid Cloud Server order Immediate 9-18 Months
Slide 16: WANdisco solves active replication for the Cloud
WANdisco solves active replication for the Cloud Without WANdisco – downtime WANdisco replication – no downtime Time-based copy for low-volume ‘cold’ data Moves data as it changes Data movement always behind Supports migration and hybrid use cases Data consistency not guaranteed Petabyte scale with
Slide 17: Partner-centric go-to-market strategy
Partner-centric go-to-market strategy now Direct Sales complemented by Channel sales Enterprise sales model Transactional model On-Premise Cloud and On-Premise Inside Sales, Sales Engineers, Field Sales Reps Technical support & knowledge transfer to partners All support by WANdisco 1st-level support
Slide 18: Early traction with Cloud data platform partners
Early traction with Cloud data platform partners Storage & Analytics Platform Cloud platform Market share Sales channel Sales traction (Wikibon, 2015 H1) Amazon Web Services Successful customer 27% marketplace trials Amazon sales team IBM sales team Engaged with key 12% opportunities Windows Azure O
Slide 19: Cloud data migration potential
Cloud data migration potential Revenue ($bn) 12 10 Amazon is leading a 8 transformation 6 in cloud revenues 4 2 0 5 10 15 20 25 years The ‘active migration use case’ Cloud 2016 new cloud Migration ‘Active’ migration Platform platform revenue Revenue addressable market Significant Annual growth in an
Slide 20: ALM market opportunity
ALM market opportunity Software development is everywhere 19 million developers 57% of developers are in non-software companies 38% growth* Demand for developers outstrips supply Demand for specialist SOLUTION application efficiency ‘Agile’ methods make developers developers gap ‘Agile’ more eff
Slide 21: ALM strategy
ALM strategy The right market positioning • Centralised Subversion open source environments continue to scale up Share of developers, 2015 • Migration off proprietary platforms continues Distributed Open Source • Subversion combining with distributed Git environments 30% Legacy Proprietary 1-2% a ye
Slide 22: Growth at a lower marginal cost
Growth at a lower marginal cost Sales & Marketing Software development Channel sales model Single “Fusion” replication platform replaces augmenting direct sales separate branches for each storage partner Enterprise sales headcount does Significantly reduced not have to rise with sales growth headcou
Slide 23: Where WANdisco is now: Summary and outlook
Where WANdisco is now Summary and outlook Fusion platform addresses a significant market opportunity With “data gravity” pulling customers to the cloud, we have early traction in the cloud with Amazon, Google and Microsoft First Fusion on-premise ‘scale-up’ deals and live customers evidence in