Company Overview March 12th 2019 - Pareteum · 3/3/2019 · © Pareteum 2019 (Nasdaq: TEUM)...

Pareteum® CorporationCompany OverviewMarch 12th 2019

2© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation

Forward Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plansand objectives, projections, expectations and intentions. These forward-looking statements are based on currentexpectations, estimates and projections about Pareteum’s industry, management's beliefs and certain assumptions made bymanagement. Readers are cautioned that any such forward-looking statements are not guarantees of future performanceand are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involverisks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed orimplied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance onsuch forward-looking statements.

Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertaintiesor to announce publicly the result of any revisions to the forward-looking statements made here. Additional informationconcerning certain risks and uncertainties that could cause actual results to differ materially from those projected orsuggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC ormay be obtained upon request from Pareteum.


• 180 Countries• 1,000+ GSM• 200 CDMA SMS Global Agreements

Things

People

Data

F l e x i b l e C l o u d P a a SE n d - t o - E n d C o n t r o l

I o T M 2 MS m a r t C i t i e s

G l o b a l C o m m u n i c a t i o nS e r v i c e s

S e c u r e , b l o c k c h a i ne n a b l e d - E - c o m m e r c e

Platform Enabled Global Connected Communications

• 55 Million Wi-Fi Hotspots• 10.4 Million Connections• 62 MNO Global Agreements


• Re-imagined Communications:• Global cloud software communications

platform company

• On a mission to connect every person and every(thing)™

• Creates communications marketplaces

• Delivers user experiences: • Bringing enjoyment and creating value

• Requiring no heavy technology investments

Digital Economy Transformation: Big Data + AI = Relationships & Experiences

The world’s largest taxi company, owns no vehicles

The most valuable retailer, has no inventory

The world’s largest accommodation provider, owns no real estate

The world’s largest movie house owns no cinemas

Products1970s

Product + Services1990s

Customer Centric2000s

Experiences Today & Relationship Centric

Engagement

Product and Services Evolution


Industry Evolution

Pareteum

CSP

Global Connections 55M Wi-Fi + 1,200

Text msg. + 62 MNOs in 180 countries

Broadband

Experiences define Value

NETWORK EVOLUTION

Enterprises

TEUM Global Cloud

Class 5:local central office

Local Loops

Tandem office

Class 1:regional centers

Class 2:sectional centers

Class 3:primary centers

Class 4:toll centers

CLEC

VoIP Providers

Traditional Retail Phone

Providers

Broadband

Hosted PBX / IP PBX

Local Loops

PSTN Internet

Virtual Hosted PBX

Virtual Call Centers

Broadband

MNO

IP Nets Internet RAN

Virtual Telco Apps

Developers

50s to the 80s Mid 80s to 2000 Late 90s to the mid 2000s

TEUM Smart Network


EnterprisesCommunications as a Service:

• Fortune 5000, Education and Government

• Flexible, scalable & secure• Enable business process • Global connectivity: cellular, Wi-Fi & Sat.• Best of breed solutions:• Voice, text, data, messaging, • Call center with self service portal mgt.

Pareteum Strategies: a rapidly growing cloud software communications platform company with a mission to connect every person and every (Thing)™

Any Device, Anywhere

Software defined platform enabling real-time:-Connectivity/access/SMS/Mobile airtime/Streaming media-Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies-Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning-Market and product management (rapid entry and innovation)-Unified Account management (multi channel/platform access and control)-Policy management (Control and present new service offers)-Online real-time charging (Control, unbundle and rate to retain and drive ARPU)

IoT & Application Developers• Communications Platform

• Global ConnectivityIoT, Smart Cities, Vertical Markets

API’s to bring communications into applications, things, or processes• Scalable and simple to use

Communication Service ProvidersCloud software communications platform• Software stack: scalable & flex deployed• Mobile operator elements virtualized• Rapid deployment for rapid time to benefit • Speed of demand


Communications Service Provider: Mobile Network Operator Case Study:

Customer Success Platform: Any Device + Any Network + Anywhere …Pay as you go @ The Speed of Demand…

PROBLEMS

Legacy upgrades are costly

Integration of new solutions

New competitors (OTT)

Information siloes

Cost and complex operations

LEGACY SYSTEMS

RadioNetworks

2G 3G 4G

Future 5G

SupportSoftware

B/OSS*

ERP/APPS**

Smart Cities & Internet of Things Enabler:

API Development Platform & SDK Developer's Toolkit

3rd Party Connectivity Enabled App Exchange

APIS

One Integrated Software Apps View

Sales, Marketing, Customer Service, Subscribers,Dealers, Employees

Cloud Connectivity Content

Complete software platform enabling real-time:• Market and product management (rapid entry and innovation)• Unified Account management (multi channel access and control)• Policy management (Control and present new service offers)• Online real-time charging (Unbundle retain and drive ARPU)

• Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning,…• Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies,…

• Connectivity/access

APIS

TEUM Smart Network ™Global Connections 55M Wi-Fi + 1,200 Text msg.

62 MNOs in 180 countries

Mobile Network Operator Radio Access Network

* Business & Operations Support System (B/OSS) ** Enterprise Resource Planning / Applications (ERP/APPs)

Hybrid Connectivity


Smart City Use Case:

IoT customers need:• Seamless & Ubiquitous Access• Payment Systems

• Cryptocurrencies & Blockchain• Security & Identification Services• City & Citizen Services

• Purchasing/payments/settlements/ commerce• Scalable Platform Services• Artificial Intelligence• Machine Learning• Predictive analytics “insights”• Cloud Connectivity• Monetized Transaction Exchange

Pareteum’s Cloud Based Communications Software Platform: makes all of this possible … this is the Internet of Things

Application Developers’ Communications Platform:

Citizens can make payments, report incidents, send photo and localization information, check the status of the incident


2019 Target Market Segmentation

CSP94%

IOT5%

Enterprise1%

$3.2 BAPAC

$603 MEMEA $280 M

NA$221 M…

$187 MENA

$240 M SubSahAfr

$189 MCIS

APAC EMEA NA LATAM MENA SUB-SAH-AFR CIS

$39.5 BAPAC

$1.4 B EMEA$439 M NA$56 M LATAM

$107 MMENA

$35 MSub-Sah-Afr

$71 MCIS

MNO: $4.9 B MVNO: $41.5 B

APAC$1.1 B

NA$715 M

EMEA$662 M

6%$124 MMENA

$82 MCIS

$40 M Sub-Sah-Afr

8%

APAC NA EMEA LATAM MENA CIS Sub-Sah-Afr

IoT: $2.9 B

Global Addressable: $50 B

$74 MNA

$50 MEMEA

$61 MAPAC

$65 MROW

Enterprise: $249 M

Source: GSMA.comHP report by 2020


Business Model: Cloud Delivered Services & MRR

128% 103%106%

100%

97%

118%170% 206%

145% 105%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

17Q4 18Q1 18Q2 18Q3 18Q4

36-month Contractual Revenue Backlog Conversion

Planned $ Conversion

Total $ Conversion

Planned # Connections

Total # Connections

36-month Contractual Revenue Backlog Conversion Evolution

40147

615800

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2016 2017 2018 YTD Q1 2019

Mill

ion

s

20x4x

2018to

20174x


Key Company Metrics: 2018 Year-End Results

2017 2018 Growth

25 533 2,033%Customers

Revenues $13,548 M $32,436 M 139%

Adj. EBITDA $2,151 M $6,436 M 199%

Connections 1,711 M 4,609 M 169%

147 M 615 M 318%36M-CRB

233 K 415 K 78%Revenue/Employee

3Q18

147%

4Q18

214%Net Dollar Expansion Rate


Quarterly Financial Highlights

256% increase*

17.13% increase*

82% increase*

* Comparing Q417 and Q418

125% increase*

Q417 Q118 Q218 Q318 Q418

Revenue 4,014 4,113 6,003 8,008 14,312

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

$M

illio

ns

Revenue

Q417 Q118 Q218 Q318 Q418

Proforma Revenue 20,756 21,896 22,916 22,740 24,312

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

$M

illio

ns

Proforma Revenue

Q417 Q118 Q218 Q318 Q418

Proforma Adjusted EBITDA 2.37 2.34 2.93 4.09 5.34

-

1.00

2.00

3.00

4.00

5.00

6.00

$ T

ho

usa

nd

s

Proforma Adjusted EBITDA

Q417 Q118 Q218 Q318 Q418

Adj. EBITDA 1.28 0.28 1.30 1.78 2.34

-

0.50

1.00

1.50

2.00

2.50

$ T

ho

usa

nd

s

Adj. EBITDA


2017 2018 2018 Proforma*

Adj. EBITDA 1,576 6,436 18,200

- 2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000 20,000

$ M

illio

ns

Adj. EBITDA

2017 2018 2018 Proforma*

Revenue 13,548 32,436 94,000

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

100,000

$ M

illio

ns

Revenue

Annual Financial Highlights

2017 2018 2018 Proforma*

Adj. EBITDA less CAPEX 1,076 4,502 16,200

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

$ M

illio

ns

Adj. Free Cash Flow

594% increase**

1,055% increase***

1,406% increase**

* Proforma: 4Q18 * 4** Comparing ‘2018 Proforma’ with ‘2017 Actuals’*** Comparing ‘2018 Actuals’ with ‘2017 Actuals’

139% increase***

308% increase**

318% Increase***


Pro Forma Combined Capitalization Table

Pareteum capitalization as of January 11, 2019

Common

TEUM (000's) Share Fully

Equivalents Warrants Options Diluted

Issued & Outstanding 97,853 3,068 3,400 104,321

Convertible Debt 31 722 753

Total Equity 97,884 3,789 3,400 105,074

Transaction Adjustment

IPAS Consideration Shares 9,865 9,865

Post IPASS Acquisition 107,749 3,789 3,400 114,939

% Parteum Stockholders 91% 91%

% IPASS Stockholders 9% 9%

100% 100%

% Pareteum Stockholders


Ticker: TEUM Exchange: Nasdaq

Stock Price (3/11/2019): $4.17

Analysts Price Targets: $5.00 - $7.50*

Avg. Daily Trading Volume for 3 Months (ending 3/11/2019): 1.7M

Shares Outstanding (post iPass acquisition): 107.75M

Market Cap (3/11/2019): $449M

Revenues (Exit Quarter Annualized) (12/31/18): ~ $57.0M **

36 Month Contractual Revenue Backlog (12/31/18): $615M

*12-month price targets: Northland Capital Markets $7.50 Initiated as of 12/20/2018; Lake Street Capital $6.00 Initiated as of9/24/2018; Craig-Hallum $5.00 Initiated as of 1/28/2019; Maxim Group $7.00 Initiated as of 1/11/19; Dawson James $5.00Updated as of 10/25/2018; Taglich Brothers $7.50 Updated as of 2/20/19.

** iPass will be fully included by June 30, 2019

Equity Snapshot


Denis McCarthy, President

Rob Mumby, Chief Revenue Officer

Edward (Ted) O’Donnell, Chief Financial Officer

Patricia Hume, Chief Marketing Officer

Executive Team Highlights

Robert H. (Hal) Turner: Founder, Executive Chairman, Principal Executive Officer

Bart Weijermars, Chief Executive Officer EMEA

Vic Bozzo, Co-Founder, Chief Executive Officer Americas & Asia

Blaz Vavpetic, VP Product

Christine Braelow, VP Enterprise

Laura W. Thomas, VP Corporate Development


Hal Turner: Founder, Executive Chairman &

Principal Executive Officer

Denis McCarthy: President

Laura Thomas: VP Corporate Development

[email protected]

+1 (703) 930-4282

HQ: New York CityOffices: The United States of America, The Netherlands, Spain, Belgium, India, Germany, The United Kingdom, Singapore, Indonesia, Brazil, Bahrain

Contact Us

Investor Relations Contact

Investor Relations:

US +1 (646) 810-2182

[email protected]

Rayleigh Capital IR (Carrie Howes)

CAN +1 (416) 837-0075

mailto:[email protected]

mailto:[email protected]

Company Overview March 12th 2019 - Pareteum · 3/3/2019 · © Pareteum 2019 (Nasdaq: TEUM)...

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Transcript of Company Overview March 12th 2019 - Pareteum · 3/3/2019 · © Pareteum 2019 (Nasdaq: TEUM)...