Phunware, Inc. · NASDAQ:PHUN
Phunware — Stellar Acquisition III — SPAC Merger (March 2018)
30 slides from Phunware's SPAC merger presentation, Mar 19, 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
Slide 2: Disclaimer and Important Notices
Disclaimer and Important Notices © 2018 Phunware, Inc. This Investor Presentation (the “Investor Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instrume
Slide 3: Parties to the Business Combination
Parties to the Business Combination Stellar Acquisition III, Inc. (“Stellar”, NASDAQ: STLR), a special purpose acquisition company (SPAC), completed a $70.4 million IPO (1) in September 2016 Stellar’s management team has successfully completed two prior SPAC transactions Announced business combinati
Slide 4: Global investor and customer base provides unmatched distribution for Phunware's platform
Global investor and customer base provides unmatched distribution for Phunware’s platform Top - Tier Investors and Customers © 2018 Phunware, Inc. Investors Indicative Customers by Industry 4 Real Estate Gaming Healthcare Retail Aviation Sports Media & Ent. 6 Financing Rounds Raised >$100 million
Slide 5: Phunware Executive Team
Phunware Executive Team © 2018 Phunware, Inc. 5 Global Technology Finance Lead, Sony Computer Entertainment Head of Worldwide Financial Planning and Analysis, Midway Games MBA, San Diego State University and BA, UC San Diego Matt Aune CFO, Phunware Co - Founder and Managing Partner, TEXO Ventures So
Slide 6: Board of Directors – Post-Transaction
Board of Directors – Post - Transaction © 2018 Phunware, Inc. 6 Founder and CEO, Vovida Networks (acquired by Cisco Systems) Founder and Director, Telverse Communications (acquired by Level 3 Communications) Director, vCIS (acquired first by Internet Security Systems and then IBM) Cisco Systems, Nor
Slide 7: Transaction Overview
Transaction Overview Overview Attractive Valuation Phunware Total Enterprise Value: $301 million (2) − 4.9x purchase price multiple of 2018E Revenue of $61 million which translates into a 5.5x pro forma 2018E EV/Revenue multiple 3 (3 ) − Phunware ended 2017 with SaaS backlog of $28 million and is pr
Slide 8: Pro Forma Capitalization and Ownership
Pro Forma Capitalization and Ownership 8 © 2018 Phunware, Inc. Note: No additional funds are included other than existing cash; Phunware cash at closing increases rollover equity. Certain Phunware stockholders (including officers, directors, and holders of more than one percent (1%) of the outstandi
Slide 9: Attractive Valuation Relative to Peers
Attractive Valuation Relative to Peers 9 © 2018 Phunware, Inc. 5.5x 5.7x 8.4x 8.0x 10.2x 11.5x 5.7x 10.3x 11.2x 7.5x 6.5x PHUN - TGE PHUN PFPT ZEN MULE OKTA TTD COUP AYX APPF TLND Median: 8.4x Note: Phunware multiples based on pro forma diluted enterprise value at close. Source: SEC filings, CapIQ (
Slide 10: Attractive Growth Relative to Peers
Attractive Growth Relative to Peers 10 © 2018 Phunware, Inc. 39% 36% 29% 28% 32% 32% 26% 24% 32% 23% 28% PHUN - TGE PHUN2 PFPT ZEN MULE OKTA TTD COUP AYX APPF TLND Median: 28% Source: SEC filings, CapIQ (data as of March 13, 2018). 2017 – 2018E Revenue Growth (Organic) 2018 – 2019E Revenue Growth (O
Slide 11: Transformational Market Opportunity
Transformational Market Opportunity 11 ▪ The Internet is undergoing a transformational wave driven by rapid data decentralization ▪ The way data is gathered, stored, and shared is changing as consumers and marketers become more wary of walled gardens ▪ Consumers are seeking self - sovereignty , or c
Slide 12: Massive Addressable Market
Users spend 66% of online time on mobile devices (2) Mobile advertising revenue now 54% of all digital ad revenues (2) Big data market growing from $130 billion in 2016 to $203 billion in 2020 (3) (11.7% CAGR) 175 billion app downloads annually (1) (+60% since 2015) $86 billion in worldwide mobile a
Slide 13: The Phunware Multiscreen as a Service (MaaS) Platform
MEDIA AND DATA Global mobile footprint Platform touches 1 in 10 devices worldwide 2+ billion Phunware IDs 1 billion monthly active unique devices (MAUDs) 1 trillion database events APPLICATIONS Fortune 500 customer base Over 5,000 apps deployed Embedded within core customer business processes Recurr
Slide 14: The Phunware MaaS Platform (cont'd)
PhunCoin Ecosystem The Phunware MaaS Platform (cont’d) 14 Vertical Application Solutions Horizontal Application Platform Products Location - Based Services Alerts and Notifications Analytics Content Management Marketing Automation Audience Building, Engagement and Monetization Branded Mobile Applica
Slide 15: Mobile Application Lifecycle Management
Mobile Application Lifecycle Management 15 STRATEGIZE Application experience definition: devices, operating systems, feature sets and use cases LAUNCH Application discovery: user acquisition and audience building CREATE Application portfolio completion: build, buy or lease DISTRIBUTE + MONETIZE Data
Slide 16: Global Reach and Scale
Monthly Active Users (MAU) in millions Source: Statista , 2018 Global Reach and Scale 16 Platform touches 1 in 10 devices globally 1000s of applications launched 5TB (terabytes) of daily data generated 1 in 10 2,130 © 2018 Phunware, Inc. 1,500 1,200 1,000 800 330 250
Slide 17: Customer Highlights
Customer Highlights 17 © 2018 Phunware, Inc. • Develop, manage and support streaming capabilities for 500+ hours of live Olympics content (vs. 200 across all TV networks) • First mobile application to include Nielsen tags • Over 7 million iOS and 2.5 million Android users during the event • Downtime
Slide 18: Customer Highlights (cont'd)
Customer Highlights (cont’d) 18 © 2018 Phunware, Inc. • iOS and Android app for billion - dollar mixed - use development using Phunware vertical solution and platform SDKs • Shoppers: access directory and transportation info, receive turn - by - turn directions to any point of interest, reserve amen
Slide 19: Growth Strategy
Inorganic Growth Strategy ▪ Continue to identify, target and acquire value - enhancing platforms – Phunware is an experienced acquirer with 5 completed acquisitions to date ▪ Areas of acquisition interest include AI, big data, and mobile software (SaaS) ▪ Intend to utilize Transaction cash and publi
Slide 20: PhunCoin: a Real Token with Real Utility
PhunCoin: a Real Token with Real Utility Phunware intends to raise capital via a token generation event (TGE) and launch PhunCoin − Secure, transparent and incentive - based way to connect businesses and target consumers directly − Neutralizes centralized intermediaries such as Facebook and Google L
Slide 21: PhunCoin Value Exchange
PhunCoin Value Exchange Without PhunCoin With PhunCoin DATA $$ DATA Etc. Consumers DATA DATA Fortune 500 Companies $$ DATA $$ DATA DATA DATA Etc. Fortune 500 Companies Consumers DATA DATA DATA DATA $$$ 21 © 2018 Phunware, Inc. PHUN Brands leverage consumers’ data without compensating them Consumers,
Slide 22: PhunCoin Leverages Phunware's Enormous Ecosystem
PhunCoin Leverages Phunware’s Enormous Ecosystem Today, the system allows intermediaries such as Facebook and Google to profit from consumer data provided to them for free by users PhunCoin tokens would enable consumers to regain control of their data by creating a value - based exchange Consumers,
Slide 23: PhunCoin Token Ecosystem
▪ Crypto - wallet will be capable of storing ERC - 20 tokens ▪ Will be governed by underlying smart - contracts framework ▪ Will maintain token balances and process transactions PhunCoin Token Ecosystem 23 © 2018 Phunware, Inc. ▪ Will allow registration of sovereign identity and hosts wallet ▪ Will
Slide 24: Financial Highlights and Estimates
Over 90% of revenue derived from recurring multi - year software and data subscriptions (SaaS/ DaaS ) and reoccurring transactions 2017 Backlog: $27.8M $ 8 .4M Deferred Revenue $18.7M Deferred Revenue Financial Highlights and Estimates 24 © 2018 Phunware, Inc. Revenue Mix Backlog 2018 Backlog: $55.4
Slide 25: Financial Model Inputs
(1) Over 90% of revenue derived from recurring multi - year software and data subscriptions (SaaS/ DaaS ) and reoccurring audience building, audience engagement and audience monetization transactions. Financial Model Inputs 25 2017 Ending Backlog $28M 2018 Bookings $88M 2018 Revenue $61M (1) $26M Sa
Slide 26: SaaS Metrics
SaaS Metrics © 2018 Phunware, Inc. 26 $131K $203K $234K 2015 2016 2017 12.8 months 15.9 months 19.9 months 2015 2016 2017 $11.0M $11.2M $15.9M 2015 2016 2017 LTV:CAC >6.0 Annual Contract Value ARR Average Contract Length
Slide 27: Investment Highlights
Investment Highlights © 2018 Phunware, Inc. 27 World Scale Mobile Platform Pioneering Multiscreen as a Service (MaaS) platform, the only fully integrated software platform that equips the Fortune 500 to engage, manage and monetize their mobile application portfolios globally at scale Provides everyt
Slide 28: Appendix
Appendix 28 © 2018 Phunware, Inc.
Slide 29: Resources and Geography
Resources and Geography AUSTIN MIAMI CANADA REMOTE SAN DIEGO NEWPORT BEACH 75 1 9 30 53 9 1 LONDON CREATIVE QA / QC OTHER PROD & ENG SALES & MKT OPS TOTAL: 178 29 12 33 84 14 26 9 © 2018 Phunware, Inc.
Slide 30: Intellectual Property Summary
Intellectual Property Summary © 2018 Phunware, Inc. ISSUED PATENTS 1. Method and System for Accessing Wireless Account Information (Patent # 7,979,350) 2. Server - Side Wireless Communications Link Support for Mobile Handheld Devices (Patent # 8,009,619) 3. Client - Side Wireless Communications Link