Iveda sept general investor presentation 092614
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Transcript of Iveda sept general investor presentation 092614
INVESTOR PRESENTATIONSeptember 2014
GO
Enabling Cloud Video Surveillance
This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievement described in or implied by such statements, including statements relating to: (a) Iveda’s future revenue, expenses, margins, profitability, net income, taxes, adjusted net income, adjusted operating expenses and other measures of results of operations; and (b) Iveda Solution's ability to capitalize on industry trends. Actual results may differ materially from the expected results described in our forward-looking statements, including with respect to: development and acceptance of Iveda’s services; competitive risks, including competing technologies, products and services, and the competitive activities of our competitors; risks associated with the introduction of new products and services; risks inherent in strategic relationships, and technology and service integration efforts. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions.
Iveda assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the Iveda Solutions' securities should not place undue reliance on these forward-looking statements.
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FORWARD LOOKING STATEMENT
COMPANY STATISTICS
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Share Statistics Cap Structure Trading Symbol (OTC) IVDA Cash & Restricted Cash $1.7MStock Price (8/30/14) $1.18 Long Term Debt $3.6MShares Outstanding 27.3M Shareholder Equity ($2.3)M52wk Range $1.08 - $2.30
3 Month Avg. Volume 4,610 Financials (TTM)-Legacy
Warrants/Options 3.7M / 5.7M Revenue $3.3MFully Diluted Shares 36.7M EBITDA ($5.9)MInsider Ownership 32.8% Operating Cash Flow ($4.9)MMarket Capitalization $32.2M EPS (per share) ($0.27)Enterprise Value $35.7M Other Full-time Employees 50 Fiscal Year Ends Dec 31st
Public Accounting FirmAlbert Wong &
Co. Website www.iveda.com Corporate HQ Mesa, AZ
Source: S&P Capital IQ
Large & Growing Market− IP Video Surveillance & VSaaS sales are expected to increase at a 37% CAGR over
the next six years.
Unique Business Model− Strategy of licensing a scalable software platform through the reseller/service providers looking for
additional monthly recurring revenue streams (e.g. ISPs, telcos) allows for greater scale and more rapid adoption. Branded or white label cameras also available.
Disruptive VSaaS Innovative Technology− Sentir™ video management platform is designed to work with any device, anywhere—and can easily be
deployed on the public or private cloud− Flexible platform is easy to use, highly scalable and requires minimal set up and maintenance
Signed Contracts Provide Path to Profitable Growth− Iveda has signed contracts w/ two telcos & is in negotiations with several
domestic and international resellers/service providers
INVESTMENT HIGHLIGHTS
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Iveda is a leader in harnessing the cloud to provide innovative IP video surveillance and Video Surveillance as a Service (VSaaS) solutions.#1
#2
#3
High Margin Software Recurring Revenue Model
#4
#5
− Projecting 85% gross margin on software licensing business vertical
MARKET OPPORTUNITY
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Sources: IDC, Allied Market Research
Estimated CAGR for global sales for IP video
surveillance and VSaaS from 2013-2020
37%
$38.6B
$18.7B
$57.3B
Global Cloud Software Revenue Estimates
User Friendly
Customers can securely watch live or recorded
video from multiple cameras anywhere in the world with one log in from their web brower or mobile
app.
No Hardware
Because video footage is stored in the cloud,
customers don’t need a Digital Video Recorder.
Easy to Deploy
Sentir eliminates infrastructure management
and maintnance and support burdens because every aspect is controlled by the service provider.
Devices are Plug and Play.
Camera Agnostic
Iveda’s firmware enables Sentir to be compatable
with any IP-enabled camera.
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Cloud-based video management platform
ENDUSER APPLICATIONS
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Home Small & Medium Businesses
(SMBs)
Enterprise Government
Sentir’s flexibility and cost-effectiveness provides an almost endless number of applications.
SALES STRATEGY
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Telcos
Data Centers
Cable Service Providers
ISPs
Resellers/Service
ProvidersEnd Users
Home
SMBs
Enterprise
Government
STRATEGIC BENEFITS
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For Iveda For Resellers/Service Providers
Reach
Working with reseller/service providers with millions of customers allows Iveda to efficiently maximize its sales efforts.
Scalability
Since the reseller/service provider will handle billing, hardware distribution, and in most cases hosting Sentir on their cloud, Iveda can quickly grow its business without having to make prohibitive investments in back office systems and infrastructure.
Value Add
Sentir provides an easy way for resellers to generate an additional revenue stream from their existing customer base or attract new customers by offering a complementary services that enhances their current offerings..Simple And Cost-Effective
Because Sentir is in the cloud and device agnostic, it is easy to deploy and requires minimal capital investment.
Pay Per Activation Model
No up front fees and immediate positive cash flow to reseller/service providers is an easy purchase decision and builds annuity for Iveda.
Infrastructure Utilization
Sentir resides within the resellers data center allowing them to increase revenues for bandwidth and storage.
REVENUE MODEL
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Resellers are expected to charge their customers $10-$20/per camera/month for Sentir video surveillance management functionality.
The Company generates additional revenue from sales of its branded cameras. The reseller has storage and bandwidth up sell opportunity from the base fee they are charging their customer.
85%
25%
Gross Margin
ILLUSTRATIVE FINANCIALS
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First Year Camera
Activations
Avg. Camera Revenue
First Year Camera Revenue
Monthly Sentirfee per Camera
End of 1st Year Sentir
Fee Annuity
10,000 $100 $1,000,000 $3 $360,000
100,000 $100 $10,000,000 $3 $3,600,000
Small Telecom20MM
SubscribersLarge Telecom
200MM Subscribers
TELECOM CONTRACTS
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PLDT Telecom70MM Subscribers
TELMEX Telecom200MM
Subscribers
Near Term Pipeline Includes:Near Term Pipeline Includes:−JapanJapan−South AmericaSouth America−VietnamVietnam
CORPORATE ROADMAP
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With the launch of Sentir in 2014, Iveda is on course to execute on its licensing strategy culminating with an up list to Nasdaq.
Path to Path to ProfitabilityProfitability
Sign Additional Sign Additional ResellerReseller
AgreementsAgreements
NASDAQ UplistNASDAQ Uplist
Achieve Achieve ProfitabilityProfitability
Sentir LaunchSentir Launch
Existing ResellersExisting Resellers
Iveda Legacy Revenues
FINANCIALS
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Iveda Net Income (Loss)(Millions) (Millions)
Note: Iveda unveiled its new strategy of partnering with telecom resellers in connection with the launch of Sentir in 2Q14. Past and some future revenues are legacy project business.
CAPITALIZATION OVERVIEW
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(millions)
Notes:Short-term debt is arranged through three banks with annual interest rates ranging from 1%-3.26% and maturities through September 2014.
In December 2013 – May 2014, Iveda raised $3.6 million in convertible debentures in an offering that was oversubscribed by $600,000. The notes mature in three years, bear an annual interest rate of 9.5% and can be converted into common stock anytime at $1.50/share.
(As of August 30, 2014)
MANAGEMENT TEAM
David Ly Chairman and CEO
Bob Brilon President and CFO
• 10 years cloud video hosting technology development and go-to-market within the security surveillance industry;
• 14 years Technical Sales and Sales Management wireless data, cellular, IT, & security surveillance
•30 years’ experience as a senior executive at both public and private technology companies
•Public company experience includes InPlay (NASDAQ:NPLA); Duraswitch (NASDAQ:DSWT); Rental Service Corp. (NYSE:RRR) and Go-Video (AMEX:VCR)
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ADVISORY TEAM
Dr. Joseph LeeCloud Architect
Dr. Eric ChenCloud Storage
• Cloud computer expert
• Currently Chief Technology Officer at 21Vianet, largest carrier neutral data center in China
• Senior executive experience at Microsoft, Lucent Technologies, Exxon and Owens Corning
• Ph.D. in Electrical Engineering at Iowa State
•Extensive experience in cloud storage and data services technology; Big Data storage architecture expert
•Founder and CEO of California-based ProphetStor Data Services
•Senior executive experience at FalconStor Software (NASDAQ: FALC), IBM
•Ph.D. in Computer and Information Sciences at Ohio State University
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Large & Growing Market− IP Video Surveillance & VSaaS sales are expected to increase at a 37% CAGR over
the next six years.
Unique Business Model− Strategy of licensing a scalable software platform through reseller/service providers looking for
additional monthly recurring revenue streams (e.g. ISPs, telcos) allows for greater scale and more rapid adoption. Branded or white label cameras also available
Disruptive VSaaS Innovative Technology− Sentir™ video management platform is designed to work with any device, anywhere—and can easily be
deployed on the public or private cloud.− Flexible platform is easy to use, highly scalable and requires minimal set up and maintenance
Signed Contracts Provide Path to Profitable Growth− Iveda has signed contracts w/ two telcos & is in negotiations with several
domestic and international resellers/service providers
INVESTMENT HIGHLIGHTS
18
Iveda is a leader in harnessing the cloud to provide innovative IP video surveillance and Video Surveillance as a Service (VSaaS) solutions.#1
#2
#3
High Margin Software Recurring Revenue Model
#4
#5
− Projecting 85% gross margin on software licensing business vertical
GO
APPENDIX
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True Plug & Play
• Easy to set up • Excellent video quality at an
affordable price • See all your cameras on a single
dashboard • View from your computer, tablet
or smartphone • Cloud hosted, 24/7 Web access
to live & recorded video • Off-site cloud storage for video
security