Exodus Movement, Inc. · AMEX:EXOD
Exodus Movement — Reg A Offering (March 2021)
39 slides from Exodus Movement's offering presentation, March 2021
Slide 1: Exodus Movement, Inc.
Exodus Movement, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “belie
Slide 3: Projections & Financial Information
Projections & Financial Information Use of Projections and Financial Information This presentation contains financial forecasts relating to the anticipated future financial performance of Exodus. For example, projections of future [Revenue, Revenue Diversification, New Applications on Platform] and
Slide 4: By 2030, half the world exits the traditional financial system
By 2030, half the world exits the traditional financial system.
Slide 5: Exodus makes cryptocurrency easy and secure for everyone
Exodus makes cryptocurrency easy and secure _ for everyone. = oS |Z STORE 7) SEND |Z “RECEIVE
Slide 6: Growing cryptocurrency market opportunity
+ Growing cryptocurrency market opportunity + Delivering unique, easy-to-use, Secure crypto wallet on highly scalable platform + Driving user and revenue growth with innovative apps, strong word-of-mouth, and unparalleled customer service + Initiating marketing campaigns to accelerate user growth +
Slide 7: Major Monthly Growth Over The Last Year
Major Monthly Growth Over The Last Year 2020 ANNUAL 2021 MONTHLY GROWTH MONTHLY MONTHLY Jan me SAM te $450M ae | $3M = 130K Fi 600K woauesee 12M 12x 15M sola 70K 7 500K
Slide 8: Daily Growth Over The Last Year
Major EXODUS VOLUME EXODUS APPLE PAY VOLUME ACTIVE USERS MOBILE APP OPENS APP DOWNLOADS Daily Growth Over The Last Year 2020 ANNUAL 2021 WAI GROWTH DAILY demaReD DAILY Jan-Feb $130 10% $14M $100K 15K 134 200K 38k 15% 600K 2k m 15K
Slide 9: Exodus Growth
Exodus Growth NEW FUNDED WALLETS. 175,000 125000 30% will make first deposit into Exodus sooo within 90 days of downloading, 45% after 180 days. 55,000 15,000 i I ! I io =m os oO OB | | | | 2 “a ~) S ’ R <a
Slide 10: Cryptocurrency Market Presents Significant Growth Opportunity
Cryptocurrency Market Presents Significant Growth Opportunity ba + Cryptocurrency market capitalization reached $1T in January 2021, up from ~$18B on December 31, 2016. + Current market capitalization is still $s in trillions very small compared to the ~$226T in global wealth in investable assets an
Slide 11: Non-Custodial Wallet Benefits
Non-Custodial Wallet Benefits The Exodus Platform is a non-custodial wallet that enables customers to store and access their crypto assets in a Secure environment. Customers can store, send, receive or exchange crypto assets over The Exodus Platform The speed of centralized crypto exchanges without
Slide 12: Competitive Landscape
Competitive Landscape Exodus competes with the world’s leading crypto wallets, exchanges, and select traditional financial services. coinbase <~BINANCE GEMINI Robinhood# bakkt «Kraken _Cryptoourrency Exchanges , yw bitpay (adh BRD CashApp venmo Is!
Slide 13: Exodus Evolution
Exodus Evolution Qi 2017 Raised $250k Friends & Family Q3 2016 Raised $300k BnktotheFuture MAR 2021 Public Offering to be available on Exodus Platform. 13
Slide 14: Exchange and Mobile App
<a EXCHANGE Ihave 441,99376 Chainlink © LINK 65 ov | want Tezos @ xIz 498.97834 vn HALF AL ener G5 LINK ‘$1,566.5 ae +498,97834 XTZ ++$1,498.55, a-> ( \ ee oe $106,520.49 = BTC 1.3658619 $5112.83 $37,434.12 +3.96% ETH 1.664034 $1917368 ‘$1,643.83 +6.13% LINK 441.99376 $10,652.08 ‘$24.10 2.35% ieee @
Slide 15: Desktop portfolio and Trezor hardware wallet
>« $174,815.34 XK Exodus 2th Change +$2,930.03 overview © My Trezor (5106,52049) * a va $106,520.49 6 Assets ° Now Highest Balance Portfolio Age Best 24H Asset $47,839.82 2Year, 3 Month, 30 Days Bitcoin +2.89% se7anus2uso A ho Desktop + Trezor Hardware Wallet Worst 24H Asset Ethereum -1,25% © What's
Slide 16: Desktop Hot Wallet
> 174,815.34 *« = Q *__Biteoin 0.60205215 arc $37,434.12 43.65% On 2 XRP Tether USD Cosmos 0.60205315 sre $22,537.30 uso @ Send ) C Receive )®@ Desktop Hot Wallet ale)
Slide 17: Exodus Exchange Aggregator
dK $174,815.34 976 @ rrez0R 3 Bros [ BTC Bitcoin | 2 | ETH Ethereum a) 1.29621116 BTC | $48,696.12 USD S| 1 BTC = 22.0129272ETH = EXCHANGE oe 0.20 BIC 4.40258544 e BTC 02 7,513.61 usD 7,200.93 uv enn ohana ena 0.20 BTC e +o 4,40258544 ETH © ETH 4.40258544 Hee Cane Tg eae fee 7 ssa Exodus Exchange Ag
Slide 18: Rewards App
© Rewards App The Exodus Rewards App enables users to earn interest on their staked crypto. 18
Slide 19: Rewards App staking assets and APY
SK 9174,815.34 $14,1426.50 +$719.14 @ £ eo * Tezos (X12) Cosmos (A0M) Algorand (Ai 60) Cardano (ADA) 5.17% APY 9.36% APY 7.45% APY 4.27% APY #12708185 x12 4#19.806213 ATOM “}OALGO “AOADA overview ovenview Ontology (007) NEO (NEO) VeChain (ver) Rewards App ale)
Slide 20: Growing Asset Staking
Growing Asset Staking The Exodus Rewards App has enabled users to stake significant amounts of assets that are earning yield and generating passive income. 319M 10% $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 Jan-20
Slide 21: Exodus Platform Flywheel
x Exodus Platform Flywheel PRODUCTION CAPITAL. 21
Slide 22: Exodus Apps
[e) Exodus Apps Developed exclusively by Exodus to help you secure and control your wealth ‘Track your portfolio details, market movements, asset prices, 24hour price change, and more. Securely manage over 100 cryptocurrencies. View lv price charts and transaction details, Featured Apps Developed by
Slide 23: Apple Pay
Apple ay + Exodus + Exodus is Wyre’s #1 affiliate for Apple Pay by volume. + Wyre has successfully serviced over $17.5M in volume total, however, Exodus customers on iOS have attempted to purchase over $78.3M worth of crypto assets. + As we integrate more fiat affiliates, users will have an even bet
Slide 24: Our easy-to-use platform provides a best-in-class user experience
Our easy-to-use platform provides a best-in-class user experience, design, products and customer service. The non-custodial functionality is encrypted locally on users’ own devices and Exodus can never access or take control of our customers’ funds. Trusted brand name, all growth through 2020 was or
Slide 25: 2020 Revenue
$21.3M 2020 Revenue *Preliminary & Unaudited 168% 2020 Revenue Growth Revenue is g Revenue Model enerated from subscription (primarily U.S.) and transaction (primarily International) fees. Transaction after the cus Transaction ees are paid by the application provider omer triggers an interaction. ee
Slide 26: Revenue Growth Drivers
Revenue Growth Drivers “~~ + Integrating fiat onboarding system for customers : ee ee~ «Pay from legacy financial systems to drive growth. + Staking and earning yield on a growing set of assets provides new opportunities for users to grow wealth. + Increasing marketing and user acquisition budget to
Slide 27: Scalable Operating Leverage
Scalable Operating Leverage + Rapid growth highlights the opportunity to improve margins. + Despite capturing a very small part of the cryptocurrency market, adjusted EBITDA* margins grew significantly $21.3 $8.9 eo a s s 2 = E £& # 2) Bs i a $3.6 2 £ 5 $71 $7.9 Fi @ 3 a 2 ¢ 2) 2018 2019 2020 2018 2
Slide 28: Leadership
JP Richardson Coding the technical magic behind the scenes, JP has published hundreds of open source libraries receiving over 80M/downloads a month. He sets ‘our company vision and keeps us all on mission. Daniel Castagnoli From subtle sounds to smooth animations Daniel takes care of each detail. He
Slide 29: Revenue Outlook
Revenue ($s in millions) Revenue Outlook $100.6 $21.3 $7.1 $7.9 2018 2019 2020 2021 Prelim 7 Actual ZUnaudted Projected Key Assumptions: + January 2021 unaudited revenue was $7M, implying a run rate of $84M for 2021. The price of Bitcoin remains largely stable at ~$32,000 (as of 1/25/2021). Fees/Sub
Slide 30: Summary Operating Statement
Summary Operating Statement Revenue $ 7.1 = =$ 7.9 $ 21.3 Y/Y revenue growth 11.0% 168.3% Gross profit $ 47 § 13 $ 12.4 Gross margin 66.2% 16.4% 58.6% Adjusted EBITDA* § 3.6 $ (0.2) §$ 8.9 Adjusted EBITDA Margin* 50.3% -2.5% 41.7% . Preliminary cna & Unaudited $s in Millions *See appendix for a reco
Slide 31: Transaction Summary
Issuer Distribution Offering size Valuation Overview Voting Power Use of proceeds Transaction Summary Exodus Movement, Inc. Exodus Platform $75M Regulation A offering ($52.5M from the sale of shares by the company, $8.1M from the sale of shares by the employees, $7.5M from the sale of shares by pre-
Slide 32: Valuation Overview
($s in millions) $799 EV/User 1.25M JAN21 USERS EV/'21Sales S100M Projected 2021 Valuation $1,096 Average DCF ‘See appendix for Key Valuation Model Assumptions & Definitions $21.3M 168% 2020 Revenue* 2020 Revenue Growth* 1.25M 41.7% Funded Users 2020 Adjusted EBITDA Margin** + EV/'21 sales assumes a
Slide 33: Peer Comparison
Peer Comparison Using public and private valuation metrics for comparable companies in the crypto space, we get a more accurate picture of Exodus’ relative potential valuation. Coinbase $50,000 $1,277 39.2x 43.0 $1,163 Robinhood $11.2 $0.72 15.6x Revolut $5,500 $223 247x 100 $550 pune be oe : aoe Ro
Slide 34: Q020-t- <= es
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Slide 35: Exodus makes cryptocurrency easy and secure for everyone
Exodus makes cryptocurrency easy and secure _ for everyone. @e sit = <
Slide 36: Appendix
APPENDIX
Slide 37: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation includes non-GAAP financial measures. Management believes the information is important in understanding the company’s financial performance. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess fina
Slide 38: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAA Reconciliation Net income $ 1.9 $ (0.2) § 8.2 Income tax expense / (benefit) (1.3) 0.1 1.3 Interest expense = 0.0 0.0 Interest income (0.0) (0.1) (0.1) Depreciation and Amortization 0.0 0.1 0.7 EBITDA $ 06 $ (0.1) $ 10.1 Gain on digital assets (2.6) (3.1) (5.0) Impairment of digital
Slide 39: Key Valuation Model Assumptions & Definitions
Key Valuation Model Assumptions & Definitions Revenue calculation = transaction value * average transaction/subscription fee * number of transactions + Bitcoin's price remains stable throughout the estimate period. 2020 transaction value was $1.1B and the transaction count was 1.5M. January 2021 tra