Cowen and Company 42nd Annual Technology, Media, & Telecom Conference

Transforming Mobile Networks from 2G/3G to 4G LTE

Pardeep KohliPresident and CEO

Investor Presentation – May 27th, 2014 2

Forward-Looking Statements

Statements in this presentation that are not historical fact are forward-looking statements. Some of the forward-looking statements contained in this presentation can be identified by the use of forward-looking words such as“anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others.Forward-looking statements include, but are not limited to, statements regarding our intent, belief or currentexpectations with respect to matters such as future industry trends, capital expenditures by mobile serviceproviders, the adoption of 4G LTE technology by mobile service providers and users, and our expectedfinancial performance subsequent to our most recently released financial results. Forward-looking statementsare based on our management’s beliefs and assumptions and on information currently available to ourmanagement. Such statements are subject to risks and uncertainties, and actual results may differ materiallyfrom those expressed or implied in the forward-looking statements due to various factors. Investors shouldreview factors described in our filings with the U.S. Securities and Exchange Commission, including under theheading “Risk Factors” in such filings. Forward-looking statements speak only as of the date they are made,and we do not undertake any obligation to update them in light of new information or future developments or torelease publicly any revisions to these statements in order to reflect later events or circumstances or to reflectthe occurrence of unanticipated events.


Investment Highlights

Transforming mobile operator networks from 2G/3G to 4G LTE

Capitalizing on 2 key network trends: 4G All-IP and cloud-based software

Disruptive software-based mobile services platform

Pure-play vendor focused on 4G LTE infrastructure with industry spending forecast to reach > $38Bn in 2018

A leading provider of converged voice, messaging and video solutions

First Mover Advantage with large and growing roster of Tier 1 carriers

Well positioned at early stage of high growth market


World’s Firsts – Commercial Deployments

Voice over Wi-Fi

Rich Communication

Services

Virtualized 4G

Services

Voice over 4G LTE

(VoLTE)

4G Overlay

5Investor Presentation – May 27th, 2014

Why 4G LTE is a Necessity

Many drivers…

Speed

up to15x faster

Spectrum

up to 10xbetter

Services

more

revenue

Savings

less

cost


4G LTE Progress

Operators globally 1000+

619

<4%

Operators invested in LTE301 launched

Connections on LTE

Source: GSMA, May2014

240million connections


Transforming to 4G All-IP

Launch Voice

over LTE

Launch 4G LTE

Data

Coverage Capacity

“The Two Network Problem” Re-allocate 2G/3G Spectrum


Voice over LTE Announcements

Launches Planned

OperatorsLaunched

OperatorsTrialing

DevicesAvailable

Source: GSMA042314

2014 June July 2nd Half 2014 2015

May 22nd

May 23rd

8 27 7 57Source: GSA 0414


Our Portfolio

NewServices

RCS

BetterVoice

VoLTE

MoreEfficient

Mobile Core

Complete Portfolio of Virtualized 4G LTE Products and Solutions


Session Control

Session Border Controller

Our Products

Voice & Video Enhanced Messaging

4G LTE Core Network

Evolved Packet Core

OSS

Access Network

Rich Message Server

Presence Server

Telephony Server

OSS/BSS

LTE WiFi Fixed

Billing

NMS

SLA

CRM


New Operator Initiatives for 4G Networks

Domain 2.0…based around using (SDN) and (NFV) to cut costs and turn hardware-based network functions into software-based and facilitate the deployment of new services...such as VoLTE.

May 18, 2014

‘Network Vision’ … consolidate multiple network technologies into one new, seamless network …increasing efficiency, enhancing network coverage, call quality and data speeds.

May 5, 2014

“As the industry migrates to NFV, important network functions will stop being performed by dedicated hardware and will instead operate in software form on a commodity-priced server supplied by a 3rd party.May 27, 2014

Era of the Software Defined Operator…Simplification of IP, with NFV and SDN, ..a new model to meet the unparalleled broadband demand with agile, cost effective and fast implementation of new services.Mar 13, 2014


Transforming to Cloud-Based Software Networks

Hardware Based Software Based

INTEGRATED SOFTWARE ONSPECIALIZED HARDWARE

VIRTUALIZED SOFTWARE ONGENERAL PURPOSE HARDWARE


Our Platform

Extracts hardware intelligence into a common carrier grade software platform

Virtualized Solutions Deployed on Cloud-based Infrastructure

Multimedia Services Network

Network Functions Virtualization (NFV)

Open APIs

mOne® Convergence Platform


Mavenir Customer Highlights

VoLTE

14RCS

14CORE 2G/3G/4G

15 120+

Growing Roster of Blue Chip 4G Customers• 3 of top 4 operators in the US; 3 of top 4 operators in Europe

Diversified 4G Customer Base• Across geographies, across product lines

Strong 2G/3G/4G Customer Base • 12 of top 20 operators globally Source: Mavenir 1Q2014 data


35%CAGR

88M

400M

20131,033M Total Subscribers

Mavenir Customers’ 4G LTE Subscriber Base

4G LTE subscriber penetration in 2013 is 88M (9% of 1,033M total)

4G LTE subscriber growth through 2018 projected at 35% CAGR

Source: GSMA 0414

20181,192M Total Subscribers


4G LTE Competitive Landscape

Software Expertise

Wireless Expertise


4G LTE is a Significant Opportunity

10.7Bn

38.3Bn

2013 2018

29%CAGR

Source: Gartner1Q14

2013-2018 Global LTE CAPEX Spend (Radio & Core)2013 4G LTE CAPEX focused on radio build-out

4G LTE CAPEX spend on core network services >29% CAGR

Mavenir TAM of 24% of 4G LTE CAPEX


Growth Drivers

A “connected world” of billions of IP devices

Software networks enabling new cloud and OTT services

Modernization of mobile operator voice networksVoLTE/RCS

Cloud Networks

Internet of Things

Transforming Mobile Networks from 2G/3G to 4G LTE

Terry HungleCFO


Company Highlights

Founded in 2005 with a vision to lead the transformation from 2G/3G to 4G

Deployed with 3 of top 4 US mobile operators; 12 of top 20 global operators

867 employees, 713 across engineering/ops

Revenues

$101M 2013

37% YoYgrowth

Attractive financial model with growth and significant operating leverage

Proven leadership team consisting of industry pioneers

Revenues

$28.7M 1Q2014

28% YoYgrowth

Investor Presentation – May 27th, 2014 21IncreasingMargin

Svcs

Hw

Svcs

Hw

Sw

Lab Deployment

Initial Production Deployment

Capacity Expansion

NETWORKS

RE

VE

NU

E

SvcsHw

Sw

Typical Deployment Model


Q1 2014 and Q4 2013 Results1Q14 1Q14 B/(W) 1Q14 B/(W) 4Q13 4Q13 B/(W) CY2013 CY'13 B/(W)

Actual 1Q13 4Q13 Actual 4Q12 Actual CY2012

Revenue ($M) $28.7 $6.3 $1.6 $27.1 $10.4 $101.3 $27.5y/y Growth 28% 62% 37%

Gross Margin % GAAP 55.8% -8.6% -2.2% 58.0% 2.1% 55.4% -3.4%

Non-GAAP 56.9% -8.0% -2.1% 59.0% -1.7% 56.2% -4.0%

Operating Loss ($M)GAAP ($2.2) ($0.5) ($0.5) ($1.7) $3.9 ($7.7) $6.9Non-GAAP ($0.2) $0.4 ($0.1) ($0.1) $3.3 ($2.1) $8.1

Net Loss ($M)GAAP ($4.0) $0.2 ($1.2) ($2.8) $3.7 ($15.3) $0.3Non-GAAP ($1.1) $0.5 $0.5 ($1.6) $3.0 ($7.8) $4.0

EPSGAAP ($0.17) $3.04 $0.04 ($0.22) $4.65 ($3.57) $8.52Non-GAAP ($0.05) $0.04 $0.03 ($0.08) $0.18 ($0.42) $0.24


34%66%

Voice and VideoEnhanced Messaging

47%43%

10%

47%38%

15%

Americas EMEA Asia

78%

22%

SW ProductsMaintenance Services

80%

20%

79%

21%

Highly Diversified Revenue Profile

47%53%

48%52%

Direct Channel Partners

By ProductBy ComponentBy SourceBy Region

2013

1Q20

14


Revenue Growth – Next Generation Products

Q1 2014 vs Q1 2013 Revenue Growth

NEXT GENERATION + 95%LEGACY (42%)TOTAL + 28%

31%

69%

78%

22%

51%49%

69%

31%

Next Generation Legacy

2013

1Q20

13

1Q20

14


Long-Term Financial Goals

Long Term

Gross Profit Margin % (Non-GAAP) 69-73%

Research & Development % (Non-GAAP) 17-19%

Sales & Marketing % (Non-GAAP) 21-23%

General & Admin % (Non-GAAP) 8-10%

Operating Income % (Non-GAAP) 21-25%


Business Drivers for Mavenir‘s Growth

Pure-play vendor focused on 4G LTE infrastructure with industry spending forecast to reach > $38Bn in 2018

Leverage Virtualization Technology to Enable Cloud Computing and Service Deployment Flexibility

Expand into Emerging Markets

Selectively Pursue Strategic Relationships

Extend Technology Advantage Through Continued Innovation


Thank You


Long-Term Financial Goals (GAAP to Non-GAAP reconciliation)

GAAP non-GAAP

Gross Profit Margin % 68-72% 69-73%

Research & Development % 18-20% 17-19%

Sales & Marketing % 22-24% 21-23%

General & Admin % 8-10% 8-10%

Operating Income % 18-22% 21-25%

Non GAAP targets exclude stock based compensation and amortization

Cowen and Company 42nd Annual Technology, Media, & Telecom Conference

Investor Relations

Transcript of Cowen and Company 42nd Annual Technology, Media, & Telecom Conference