Cyren Ltd. · OTC:CYRNQ
Cyren — Investor Presentation (March 2020)
19 slides from Cyren's investor presentation, Mar 17, 2020
Slide 1: Cyren Overview
Cyren Overview March 2020
Slide 2: Safe Harbor and Forward Looking Statements
Safe Harbor and Forward Looking Statements This pi ion contains forward-lookii including jecti about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts containe
Slide 3: Offering Summary
Offering Summary Exchange: Ticker Nasdaq: CYRN Securities Subordinated Convertible Notes Offering Type PIPE Offer Size $5 -8 Million Use of Proceeds Growth Capital, General Corporate Purposes Sole Placement Agent Craig-Hallum Capital Group Brett Jackson — CEO Management Team Michael Myshrall — CFO C
Slide 4: Next generation, cloud-based cybersecurity provider
is a next generation, cloud-based cybersecurity provider of: * Threat detection services ° Threat intelligence * Email security for Office 365 Our products and services are used by the world’s leading email providers, the largest cybersecurity vendors and enterprises to protect against threats from
Slide 5: Large TAM Across Multiple Security Segments
Large TAM Across Multiple Security Segments Threat hale Cyren's addressable 11.8% CAGR market includes some of the fastest growing — 1 segments within the security market Cloud Email SSF Web Security $3.5B ae 8.4% CAGR 10.1% CAGR Source: Gartner and Wall Sireet Research (1) Addressable market includ
Slide 6: Cyren Key Facts
Cyren Key Facts 38M $38M fy 231 5+ Years ~100 OEM >1000 Ent Revenue) Tenure Customers 2019 Revenue 2019 YE ARR Recurring Employees Average Customer (1) Cyren defines recurring revenue and ARR as the annualized value of all subscription contracts as of the end of the period
Slide 7: What Differentiates Cyren?
What Differentiates Cyren? Unique Global Threat Pal Intelligence Data aN GlobalView Cloud Platform Multiple Proprietary Threat Detection Engines Threat Email Security Researchers, Expertise Automation, Analytics Gc REN © Cyren 2020. All Rights Reserved
Slide 8: New Leadership
\ New Leadership \ | == Driving ARR Growth if q New Strategy J (4 ol | Enterprise Market Priority . , © Cyren 2020. All Rights Reserved
Slide 9: Growth Strategy
Growth Strategy 2020 2021 2022 2023 e pAty Next-Gen | we Messaging am Opportunity — "Anphiehing: Opportunities * * Expand email securi moe eee Market Cray enaaiich ‘i ‘gi * Leverage our 0365 anti- messaging platforms to Enterprise phishing market position to A * Achieve a leading position identify a
Slide 10: Near-Term Planned Growth Initiatives (2020-2021)
Near-Term Planned Growth Initiatives (2020-2021) = Refocus on Core Business & Expand to Enterprise @ (aa Penetrate 0365 Anti-Phishing Market @ = Re-prioritize Threat Intelligence business (historical core business with favorable competitive landscape) = Further penetrate OEM market with focus on new
Slide 11: Cyren Inbox Security
Cyren Inbox Security Anew vision for email security © Cyren Inbox Security Omen) QO User Mailboxes ©@® Continuous monitoring Crowd-sourced Automated response — & detection user detection & remediation XX BRE Estimated General Availability Q2 2020 Ap Security Operations Center Ng ng
Slide 12: Web Security for Microsoft Defender ATP
Web Security for Microsoft Defender ATP e Enhance Microsoft Defender ATP by adding Cyren Web Filtering & Internet Activity Monitoring seamlessly into Defender ATP cYREN _ ; Try Cyren Web Filter FREE ° 9 ic) e Set policies for any selected devices to fonGOidays 1. Connect to Microsoft Defender . . .
Slide 13: Investment Highlights
Investment Highlights G Secular Trends Driving Demand for Cloud Delivered Security Products Proven Cloud-Based Security Platform With Unique Threat Intelligence Industry Leading, Proprietary Threat Detection Engines Architecture & Technology Able to Scale to Serve the Enterprise Market Proven Value
Slide 14: Financial Highlights
Financial Highlights © Cyren 2020 All Rights Reserved. 14
Slide 15: Cyren Revenue Breakdown
Cyren Revenue Breakdown SaaS Business Model 98% Subscription/Recurring Revenue (a) FY2019 GAAP Revenue Strong Threat Intelligence Business 19% Enterprise 81% Threat Intelligence Services © Cyren 2020. All Rights Reserved Focus on US + EMEA @) 7% APAC 47% Americas
Slide 16: Quarterly & Annual Revenue Growth
Quarterly & Annual Revenue Growth 1 $12,000 | $45,000 | | az%cacr | $9,711 $9,496 $9.4M-$9.5M I $40,000 ~$38.4M. H w $10,000 $9,655 $9,562 $9,512 | | $35,900 | 8 $9,191 | $3000 G ! =| $7,959 | $30,799 ' > $8,000 | S7,63 $7,757) $7,561 $7,522 H $30,000 Yy I v 1 1 = 1 $25,000 yy 1 L $6,000 1 1 o ! I £
Slide 17: Balance Sheet & Capitalization Snapshot
Balance Sheet & Capitalization Snapshot SE Cash & Equivalents $11.6M Debt Existing Convertible Note (5.75% interest) $10.0M Matures December 2021; Convertible @ $3.73 Net Cash Outstanding: $1.6M Stock Price (2/28/2020) $1.11 Shares Outstanding 59.9M Options & RSUs (WAEP: $1.75) 91M Warrants (EP: $3.
Slide 18: Equity Ownership Snapshot
Equity Ownership Snapshot Share Ownership Other Shareholders, Warburg Pincus, Mariage ent, — A / 54.3% 5.1%Yelin Lapidot, 8.2% November 2017 — $19.6M private placement with Warburg Pincus @ $1.85 per share December 2017 — Warburg Pincus share tender offer @ $2.50 per share December 2018 — $10.0M con
Slide 19: Use of Non-GAAP Measures
Use of Non-GAAP Measures Non-GAAP net loss consists of GAAP net loss adjusted to exclude: stock-based compensation expenses, amortization of acquired intangible assets, and deferred taxes related to acquisitions, adjustments to earn- out obligations, and capitalization of technology. The purpose of