Slide 1: Interim Results 2018
INTERIM RESULTS 2018 Six months ended 30 June 2018 David Richards Chairman & Chief Executive Officer Erik Miller Chief Financial Officer © WANdisco 2018 | wandisco.com 1
Slide 2: Business Update
Business Update p David Richards, Chairman & CEO © WANdisco 2018 | wandisco.com 2
Slide 3: 2018 strategic priorities
2018 strategic priorities TRANSITION DEEPENING CONTINUED TO PARTNER CUSTOMER RECURRING RELATIONSHIPS TRACTION REVENUE MODEL ©© WANdisco WANdisco 2018| | wandisco.com 2018 wandisco.com 3
Slide 4: H1 2018 financial highlights
H1 2018 financial highlights Bookings Revenue Adj. EBITDA $9.0m $5.7m ($6.8m) ($6.6m)* H1 17 $10.2m H1 17 $9.7m H1 17 $0.3m Cash Overheads Cash Balance $14.6m $18.0m H1 17 $11.5m FY 17 $27.4m *pre‐IFRS 15 equivalent © WANdisco 2018 | wandisco.com 44
Slide 5: TAM update
TAM update © WANdisco 2018 | wandisco.com 5
Slide 6: Rapid growth in cloud adoption continues
Rapid growth in cloud adoption continues ratte 100 Q2 Y/Y Growth % G 50 #1 #2 #3 #4 Market leaders in cloud infrastructure (IaaS/PaaS) Source: excerpts from reports from Canalys (Cloud Analysis July 2018) and Synergy (Cloud Infrastructure Services Q2 2018) © WANdisco 2018 | wandisco.com 6
Slide 7: Cloud data growth driving market size
Cloud data growth driving market size Forecasted growth of all stored data worldwide (exabytes) 1400 • Forecasted stored data 1200 increased c7% since last 1000 36% CAGR report 800 • Data centre to data centre traffic now 600 forecast to be 14% of all 400 data stored (vs 9% in last Cisco report) 200
Slide 8: TAM expansion driven by data growth and use cases
TAM expansion driven by data growth and use cases TAM for live data replication of cloud enterprise data, in billion USD $25 • Growing amount of data $20 centre to data centre traffic • Adoption of multi‐cloud Billiion USD $15 likely to accelerate the need for LiveData $10 • Adding data types increa
Slide 9: Deepening partner relationships
Deepening p g partner p relationships p Efficient go-to-market model © WANdisco 2018 | wandisco.com 9
Slide 10: Status of strategic partners
Status of strategic partners Enhanced Royalty, minimum commitment Strategic co-sell partnership, strategic customer wins OEM into Alibaba cloud first product delivered and launched Marketplace listing, incentivised sales and product integration g Highest accreditation based on Oracle p proven best p
Slide 11: Deepening Microsoft Relationship
Deepening Microsoft Relationship Progress during the period: ◆ Joint go-to-market with a packaged Microsoft Azure offering ◆ Signed four strategic customer deals with significant growth potential ◆ Expansion of use cases: ◆ Hybrid Cloud/Migration ◆ Multi-Cloud, M lti Cl d multi-region lti i cloud l
Slide 12: Deepening IBM Relationship
Deepening IBM Relationship Progress during the period: ◆ Announced upgraded OEM deal - renegotiated royalty from 30% to 50% ◆ Guaranteed annual minimum royalty commitment ◆ Joint development for IBM Big SQL planned for release in H2 - significantly expands TAM ◆ New customers in insurance insurance,
Slide 13: Deepening Alibaba Relationship
Deepening Alibaba Relationship Alibaba launched OEM solution: ◆ First set of product launched in September ◆ Joint engineering underway to provider tighter ◆ Additional products scheduled for release during H2 integration of products and seamless customer to further expand use cases onboarding exper
Slide 14: The need for LiveData for Multi-Cloud
The need for LiveData for Multi Multi-Cloud Cloud WANdisco Fusion for Multi-Cloud replication: ◆ Enables continuous replication of data across multiple cloud vendors and locations LiveData for Multi-Cloud ensures: ◆ Consistent global data – customers can replicate data across a Multi-Cloud architect
Slide 15: Continued customer traction
Continued customer traction Multiple industries and opportunity to scale © WANdisco 2018 | wandisco.com 15
Slide 16: Why customers buy Fusion
Why customers buy Fusion DISASTER RECOVERY Automated recovery with no disruption CLOUD MIGRATION Without downtime or data loss HYBRID CLOUD Real-time sync y between on-prem p and cloud ANALYTICS INFRASTRUCTURE Always-accurate insights at every location MULTI CLOUD MULTI-CLOUD C Continuous consistenc
Slide 17: Why cloud platform providers need Fusion
Why cloud platform providers need Fusion ◆ Only viable solution for LiveData ◆ Accelerates consumption of partner services ◆ Expands Partner’s TAM ◆ Access to available support Only Accelerates Expands Partner’s solution consumption TAM f for off cloud l d LiveData services © WANdisco 2018 | wandisc
Slide 18: Winning with Microsoft in Automotive
Winning with Microsoft in Automotive One of the world’s largest manufacturers of premium cars and trucks selects WANdisco Fusion for hybrid cloud & cloud migration Data shared between Azure Cloud Hybrid cloud and migration Accelerating and on-premises Hadoop clusters of business critical Azure migra
Slide 19: Winning with Microsoft in Retail
Winning with Microsoft in Retail Very large multi-channel retailer wanted to merge customer data from acquired business with its existing customer data to utilize its advanced analytics platform Data shared between Azure Disaster Recovery / High Accelerating Cloud and two different on- Availability
Slide 20: Winning with Microsoft in Financial Services
Wi i with Winning ith Microsoft Mi ft in i Financial Fi i l Services S i Very large financial institution wanted to exploit the power and flexibility of the cloud while meeting regulatory demands across multiple Azure cloud regions Data migrated to the cloud Multi-cloud, multi-regional Enabled with
Slide 21: Winning with Microsoft in Manufacturing
Winning with Microsoft in Manufacturing High-tech chip manufacturer wanted to 1) employ advanced analytics to help accelerate its innovation cycle time 2) cut operational costs by moving to the cloud 3) could not afford any system outage during migration Migration to Azure HDInsight Multiple data in
Slide 22: Transition to recurring model
Transition to recurring g model Predictable annual recurring revenue base © WANdisco 2018 | wandisco.com 22
Slide 23: Multi-year customer journey
Multi-year customer journey -Long-term L t Hybrid H b id and d multi-cloud lti l d Year 3-5 D t expansion ◆ Data i c200x ◆ Value expansion $ Data 50-70x under replication Year 1 ◆ Single Project ◆ Multiple projects ◆ <50TB of data ◆ >10PB of data ◆ ~$150k ARR ◆ ~$5-10m ARR © WANdisco 2018 | wandisco
Slide 24: Transition to more predictable recurring revenue model
Transition to more predictable recurring revenue model Year 3 $ Year 2 Year 1 ◆3 customers ◆ ◆ ◆Renewal and uplift p ◆Renewal and uplift ◆4 new customers ◆4 new customers © WANdisco 2018 | wandisco.com 24
Slide 25: Financial Update
Financial Update p Erik Miller, CFO © WANdisco 2018 | wandisco.com 25
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS H1 H1 2018 2017 Bookings $9.0m $10.2m Recognised revenue $5.7m $9.7m Cash overheads $14.6m $11.5m Adjusted EBITDA* ($6.8m) $0.3m 30 Jun 18 31 Dec 17 Cash Balance $18 0m $18.0m $27 4m $27.4m * Adjusted EBITDA (loss)/profit excludes exceptional items, share-based payments, capital
Slide 27: Big Data Bookings Metrics
BIG DATA BOOKINGS METRICS Number of new deals Total bookings Average selling price 12 $6.2m $0.5m Split of Big Data bookings 100% 100% 92% 80% 62% 60% 38% 40% 20% 8% 0% 0% H1'16 H1'17 H1'18 Royalty/perpetual Licence © WANdisco 2018 | wandisco.com 27
Slide 28: Recognised Revenue
RECOGNISED REVENUE • Bookings late in period reduced recognised revenue H1 H1 Bookings to revenue ($m) 2018 2017 • Majority of H1 Bookings to be recognised in H2 Sales bookings g 9.0 10.2 • IFRS 15 Adoption reduced opening deferred revenue New deferred revenue (6.0) (6.6) carried forward from prior
Slide 29: Profit & Loss
PROFIT & LOSS $m H1 2018 H1 2017 $m change New sales bookings 9.0 10.2 (1.2) Revenue 5.7 9.7 (4.0) Later Bookings lowered recognised Cost of sales (0.4) (0.9) 0.5 Lower sales commissions and deferrals under IFRS15 Gross profit 5.3 8.8 (3.5) Cash Overheads on plan, minimal headcount increase Cash Ove
Slide 30: Summary Cash Flow
SUMMARY CASH FLOW • Cash consumption primarily due to lower revenues and a modest increase in cash overheads • Resources sufficient for future needs C h flow Cash fl statement t t t ($m) ($ ) H1 2018 H1 2017 Statutory loss (11.3) (6.3) Adjustments for non-cash items 4.6 6.5 Working capital movements
Slide 31: Summary Balance Sheet
SUMMARY BALANCE SHEET • Reduced deferred income post IFRS 15 due to acceleration of licence component of subscription agreement • Trade and other receivables remain strong at $5.4m Balance sheet ($m) 30 Jun 2018 30 Jun 2017 31 Dec 2017 Non-current assets 8.7 6.6 8.5 Trade and other receivables 5.4
Slide 32: IFRS 15 Restatement
IFRS 15 RESTATEMENT H1 H1 2018 IFRS 15 2018 Key areas of impact: IFRS 15 net impact Restated* PROFIT & LOSS Acceleration of licence component of subscription Revenue $5.7m $0.9m $6.6m arrangement, net impact Sales commissions deferred and matched to new revenue Cost of sales ($0.4m) $0.1m ($0.3m) p
Slide 33: Summary and outlook
Summary y and outlook David Richards, Chairman & CEO © WANdisco 2018 | wandisco.com 33
Slide 34: Summary and Outlook
SUMMARY AND OUTLOOK ◆ Global demand for Live Data use cases in Big Data and Cloud is growing rapidly ◆ Deepened relationships with IBM, Microsoft and Alibaba ◆ Transitioning to subscription and predictable recurring revenue business model ◆ Robust and strengthening sales pipeline underpins the Board
Slide 35: Q&A
Q&A © WANdisco 2018 | wandisco.com 36
Slide 36: Appendix
Appendix © WANdisco 2018 | wandisco.com 37
Slide 37: WANdisco and Blockchain
WANdisco and Blockchain The quest for a scalable, fault tolerant solution © WANdisco 2018 | wandisco.com 38
Slide 38: Computing has evolved around the foundation of trust
Computing has evolved around the foundation of trust Trusted Environment Local Centralised Distributed Consensus Central Intent Information Server Log Repository Engine Unnetworked Networked Distributed © WANdisco 2018 | wandisco.com 38
Slide 39: Moving from the principle of trust to trustless
Moving from the principle of trust to trustless Trusted Environment Distributed Computing Distributed computing enhances centralised Underlying premise of computing It is built computing. trust allows for scalability and algorithmic consensus fault tolerance to be used. Trusted Centralised Computing
Slide 40: The importance of consensus in any Blockchain transaction
The importance of consensus in any Blockchain transaction Consensus allows a decentralised network to arrive at an agreement about the state of the Blockchain. Initiate the Post and record the Immutable, Transaction transaction. transaction to the Broadcast. Validation and encrypted block. completed
Slide 41: Types of Blockchain: Permissioned vs. Permissionless
TYPES OF BLOCKCHAIN Permissioned vs vs. Permissionless Commonality: ● Blockchain is analogous to the Intent Log. Decentralised, peer to peer networks, where “each participant” maintains a replica of a shared append‐only ledger of digitally signed transactions. ● A consensus mechanism is critical. Th
Slide 42: WANdisco Patent
WANDisco Patent Patent submitted for the use of DConE as the consensus mechanism in permissioned Blockchain p Enabling the creation of applications which are: 1 2 3 Fault‐tolerant Secure High‐ Performance With just one example being the AuX Gold exchange createdd by b WANDisco WANDi to illustrate il
Slide 43: DConE has been available for over a decade
DConE has been available for over a decade 2016 2018 Ripple XRP HyperLedger Sawtooth 2005 2017 WANdisco HyperLedger DConE Fabric 1.0 © WANdisco 2018 | wandisco.com 43
Slide 44: Thank You
THANK YOU © WANdisco 2018 | wandisco.com 44