2019 investor overview - snipp.com · gross margin for q4’18 vs 66% in q4’17 69% cash+ar $4mm...
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Snipp Proprietary and Confidential 2019
2019 INVESTOR OVERVIEWSNIPP INTERACTIVE INC.TSX-V: SPN OTCQB: SNIPF
DISCLAIMERThis presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Snipp Interactive Inc.’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s securities in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a representation of the Company’s potential cash generation performance in any way.
Some of the financial information included in this presentation is preliminary, forward-looking, unaudited and subject to revision.
All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document. All forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labor relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected.
The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by law. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material. The reader is cautioned not to put undue reliance on such forward-looking statements.
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SNIPP - WHAT WE DO
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Snipp provides brands with an intelligent technology platform
that generates unique first party data through the
turnkey implementation of promotions and cross channel
loyalty programs.
OUR CLIENTS ARE TOP MULTINATIONAL BRANDSLESS THAN 10% PENETRATED INTO OUR CURRENT CUSTOMERS
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CPG
ALCOHOL
PHARMA
HOME & OUTDOOR
TELECOM
LIFESTYLE
EUROPE
OTHERS
AGENCIES & PARTNER COMPANIES
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INCENTIVE MARKETING NETWORKS
ADVERTISING & MARKETING AGENCIES
RETAILERS
RETAILERS
SOME OF OUR PROGRAMS
TRUSTED BY GLOBAL FORTUNE 500 COMPANIES
Loyalty Promotion API/License API/License Promotion Promotion Rewards Store Promotion
SOME OF OUR PROGRAMS
B2BLoyalty
Gamification&Instant WIn
Rebate ReceiptProcessing
Sweepstakes ContinuityProgram
Rewards Loyalty(Ziploop)
AND BY MID-SIZE BRANDS
SNIPP – WHERE WE PLAY…TODAY
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Who Is My Customer?
Where Can I Find Them?
How Do I Target Them?
Did They Buy My Product?
How Do I Keep Them Coming Back?
Market Research
Advertising Technology
Marketing Technology
$50B
$563B
$80B
*Global Spend as reported by Statista
Market Size Industry Category
WHY IS OUR PLATFORM IMPORTANT?
Consumers
Retailers
Brands “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”
- John Wannamaker
“The problem for many advertisers is that the vast majority of consumer purchases take place offline. So the question becomes: if I buy advertising on Facebook, how do I know that someone bought a can of beans in the supermarket because of it?”
Retailers have the power of purchase data, Brands have none
1 Advertising has a measurement problem
2
$
$
Connecting brands directly to the consumer with effective advertising and incentives
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SNIPP TODAY
EMPLOYEES: 44% IN ENGINEERING85
GROSS MARGIN FOR Q4’18 VS 66% IN Q4’1769%
CASH+AR$4MM
EBITDA IMPROVEMENT 2018 VS 201758%
57%+ REVENUE CAGR SINCE LISTING (2012-18)
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3 CONSECUTIVE YEARS (2016-18) ON DELOITTE’S TECHNOLOGY FAST 500TM, A LIST OF THE 500 FASTEST GROWING COMPANIES IN NORTH AMERICA
CASH FLOW FROM OPERATIONS FOR FY’2018+
BOOKINGS INCREASE FOR 2018 VS 201725%
2018 BOOKINGS – HIGHEST IN HISTORY$15.5MM
Loyalty ProgramPurchase Program
B2B ProgramRebate Program
SNIPP – HOW WE DO IT
Receipt / Purchase Validation
Rewards Platform
Loyalty Engine
Technology Engines / Platform Industry Solutions Future Solutions
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Modular Technology Stack Enables Multiple Business Models…
Rebates Platform
Contests & Promotions
Receipt & Image recognition
Instant Win
Sweepstakes
Gift With Purchase
Social Media Promotions
Punchcard / Continuity
Rebate Programs
Enterprise Loyalty
Insights & Analytics
Loyalty in-a-box (Ziploop)
Research Solutions
MOBILE INFLUENCER PLATFORM
Incentive & Influencer Programs
% of 2017Rev
REVENUE MODEL TODAYDIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS
% of 2016Rev
69%
Promotions / Rewards
• High no of repeat clients• Campaign sizes continue to
increase
Loyalty & Rebate Solutions
• Long-term recurring revenue• We run 3 of the largest
consumer loyalty programs –Kellogg, Starbucks and Huggies
Licensing (Previously called API Sales)
• Our technology is modular enabling us to gain licensing revenues
20% 11%53% 38% 9%
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49% 42% 9%
SAAS Style Recurring Revenues
% of 2018Rev
% of 2017Rev
REVENUE MODEL TODAYDIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS
% of 2016Rev
80%
Promotions / Rewards
• High no of repeat clients• Campaign sizes have nearly
doubled year-over-year
Loyalty & Rebate Solutions
• Long-term recurring revenue• We run 3 of the largest
consumer loyalty programs –Kellogg, Starbucks and Huggies
% of 2015Rev
Licensing (Previously called API Sales)
• We license our technology and partner with leading couponing & promotions platforms
14% 6%69% 20% 11%
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53% 38% 9%
SAAS Style Recurring Revenues
% of 2017Rev
REVENUE MODEL TODAYDIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS
% of 2016Rev
80%
Promotions / Rewards
• High no of repeat clients• Campaign sizes have nearly
doubled year-over-year
Loyalty & Rebate Solutions
• Long-term recurring revenue• We run 3 of the largest
consumer loyalty programs –Kellogg, Starbucks and Huggies
% of 2015Rev
Licensing (Previously called API Sales)
• We license our technology and partner with leading couponing & promotions platforms
14% 6%69% 20% 11%
7
53% 38% 9%
SAAS Style Recurring Revenues
% of 2017Rev
REVENUE MODEL TODAYDIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS
% of 2016Rev
80%
Promotions / Rewards
• High no of repeat clients• Campaign sizes have nearly
doubled year-over-year
Loyalty & Rebate Solutions
• Long-term recurring revenue• We run 3 of the largest
consumer loyalty programs –Kellogg, Starbucks and Huggies
% of 2015Rev
Licensing (Previously called API Sales)
• We license our technology and partner with leading couponing & promotions platforms
14% 6%69% 20% 11%
7
53% 38% 9%
SAAS Style Recurring Revenues
CURRENT TRENDS: METRICS Q4’2018
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% of Revenue with Recurring Components
Increasing Campaign Size
Improving Margins
Higher Campaigns Booked
Booking Backlog
Q4’ 2017
44%
66%
$39,815
$6.3MM
Q4 New Bookings $4.1MM
58%
69%
$66,036
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$8.0MM
$4.4MM
Q4’ 2018
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CURRENT TRENDS: METRICS 2018
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% of Revenue with Recurring Components
Increasing Campaign Size
Improving Margins
Higher Campaigns Booked
Booking Backlog
2017
47%
70%
$42,153
$6.3MM
Bookings $12.4MM
51%
65%
$49.037
318
$8.0MM
$15.5MM
2018
314
REVENUE VS EBITDA TREND
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Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
$2.11
$2.82$3.31
$2.99$2.48
2.85
3.73.84
2.87 3.02 2.943.32
-2.46
-1.54-1.18 -1.3
-1.01 $(0.71) 0.01 $(0.22) $(0.47) -0.67
$0.25 0.09
Revenue Vs EBITDA (USD, $MM)Revenue EBITDA
2012 2015 2018PHASE#1 PHASE#2
Phase#1 Key Milestones • Raised seed capital • Launch of Minimum Viable Product• Established the Receipt Processing Industry • Acquired Leading Fortune 500 customers• Raised $10MM to fund solution development
Phase#2 Key Milestones• Built + Bought technical components • Completed Integrations of companies • Launched disruptive industry solutions • Exiting 2018 with +ive EBITDA for H2• Crossed $15MM in bookings for 2018
Public on TSX with $2MM offering
LaunchedReceipt Processing Engine
Acquired HipDigitalRewards Solution
Crossed $10MM in Sales
Raised $10MM in Equity
Acquired SwissPostLoyalty Engine
Acquired ZiploopMachine Learning Engine
Crossed $15MMin Sales Bookings
Completed Integration of all Acquired Entities
Acquired Leading Fortune 500 Pilot customers
REVENUE MIX: BUILDING LONGER TERM RECURRING REVENUE STREAMS
Full Time Employees 8 10 48 118
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$15,323,727
$12,590,231
$19,179,019
85
$20,151,286
2013 2014 2015 2016 2017 2018
$870,420
$3,562,045 $11,890,231 $11,223,727 $12,879,019 $12,151,286
$700,000
$4,200,000
$6,300,000$8,000,000
Snipp USD Revenue & Bookings Backlog
Revenue Bookings Backlog
FOCUSED ON PROFITABLE GROWTH SNIPP IS POISED FOR GROWTH
Focused on ramping our sales capability & performance1
Low hanging fruit in servicing our existing clients in overseas market2
We expect a high % of long-term high margin contracts3
Scalability makes each incremental relationship more profitable4
This is a fragmented industry, with many opportunities for growth5
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EXPERIENCED MANAGEMENT TEAM
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Wayne WangCTO
An expert in bridging the gap between business needs
and technical implementations with direct experience on projects of
varying size. A successful 15+ years track record of solid contributions in technical
project leadership and people management across
a variety of industries. Proficient in the Agile, SCRUM process with 15 years’ direct
experience in software development, architecture
and high level technical design for enterprise systems. Brings technical innovations, which drives business growth much faster and creates a
huge competitive advantage
Megan has over 10 years of software development and management experience.
As our COO, she is responsible for overseeing
all key operations including project management, product management, client services delivery,
customer service, processing operations and HR. Prior to Snipp, Megan
was an executive at Precision Computer Works, Inc. where she launched
complex systems for societies such as the
American Heart Association and the American Medical Association. She holds an MBA from Johns Hopkins
University.
Atul is a founder of Snippand has over 10 years
experience in the digital media/mobile industry.
Atul’s earlier experience includes serving as the
Executive Director of the Acme Group, a board
role at eSolar, founder of the Finalysis Group and executive positions with
AOL, IBM Business Services, the Boston
Consulting Group and News Corporation. He holds an MBA from the
Australian Graduate School of Management and attended Wharton
Christian HausammannMD Europe
Christian brings over 20 years of experience in the direct marketing, loyalty, gift card and payments industry in Consulting, Business Development and
Key Account Management.
Megan PrikhodkoCOO
Atul Sabharwal CEO and Founder
Rahoul RoyCLO
Rahoul has over 15 years of experience practicing law in both the United States and India, and, prior to
joining Snipp, was running his own corporate law
practice in New York with an international clientele of
serial entrepreneurs and multinational corporations.
Rahoul was a Special Counsel to Brown Rudnick
LLP, Rahoul obtained his BA. LLB., (Hons) from the
National Law School of India, and his LL.M., with
Distinction, from the Georgetown University Law Center where he was also on the Dean’s List and an International Institute of Economic Law Fellow.
Jaisun is Snipp’s CFO. He has over 10 years of experience in the financial accounting industry and is experienced in managing all aspects of public company financial
and management reporting, forecasting and analysis,
corporate governance and risk management. He holds
an MBA from Laurentian University and a Bachelor of
Science degree, with a double major in computer
science and general biology, as well as a Diploma
in Accounting from the University of British Columbia.
He is a Chartered Professional Accountant
(CPA, CGA) and is a member of the Chartered
Professional Accountants of British Columbia.
Jaisun GachaCFO
Tom J. Burgess is a seasoned executive in online and wireless interactive advertising and digital media technology. As a serial entrepreneur and innovator, he has been granted multiple patents for his pioneering work in the wireless, mar-tech and loyalty industries. Mr. Burgess is a frequent speaker at global marketing conferences and has been quoted or featured in Forbes, NY Times, Wall Street Journal, Boston Globe, CNBC and many industry publications. He founded Linkable Networks, a payments loyalty company in 2010 and orchestrated a significant asset sale to the global loyalty company Collinson in September 2017. In 2001 Burgess founded Third Screen Media, a wireless advertising company that was purchased by AOL/TW in 2007. Prior to Third Screen Media, he founded two other successful digital media companies. In 2007 Burgess was inducted into the Entrepreneur Hall of Fame for superior performance by a group of investors. Mr. Burgess is an active Board Member and advisor to early stage ventures, with a focus on corporate development, Board governance and investor relations.
Mr. Haji is a qualified CPA, CA having managed audits of both public and private companies while working for Clarkson Gordon and Company (now E&Y) in Toronto. He went to Pakistan and started two successful businesses before returning to Canada in 2009. On his return to Canada he provided consulting services to Par Pak Ltd, Brampton a plastic packaging manufacturing company, assisting them in their sale transaction with The Waddington Group (TWG). He was appointed as Divisional Controller of Polar Pak by TWG after the acquisition. Currently Mr. Haji is the CFO at Lark Investments Inc, assisting them in investment due diligence and analysis.
Mr. Sabharwal is a founder of Snipp and has over 10 years experience in the digital media/mobile industry. He served as Executive Director of the Acme Group, a $2+ billion company based in India. Mr. Sabharwal’s earlier experience includes a board role at eSolar, an Idealabs company funded by Google, GE & Oak Capital, being founder of the Finalysis Group (a consulting group and provider of remote services such as call center management and lead generation to corporate clients), and executive positions with AOL, IBM Business Services (previously PWC Consulting), the Boston Consulting Group and News Corporation. He holds an MBA from the Australian Graduate School of Management and attended Wharton.
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Sarfaraz Haji
Tom J. Burgess
EXPERIENCED BOARD
Atul Sabharwal
…& STRATEGIC ADVISORY BOARDTom was CEO of ExtendMedia, a leading IP video software company serving customers including AT&T, Verizon, Disney and Paramount. Extend was acquired by Cisco Systems (NASDAQ: CSCO) in 2010. Tom also served as CEO of Lightningcast, a pioneer in online video advertising where he led the development of the first advertising technology platform specifically designed for monetizing broadband video and launched the first online video ad network. After AOL (NYSE: AOL) acquired Lightningcast in 2006, Tom was SVP Strategy and Corporate Development at AOL overseeing strategy, strategic planning and corporate and business development for AOL’s advertising businesses. Prior to Lightningcast, Tom founded and served as CEO of Backwire, an online and mobile messaging company that was acquired by Leap Wireless (NASDAQ: LEAP) in 2001
Mr. Dillon is a seasoned shopper marketing professional with almost twenty years of experience in shopper marketing and retail-related promotions. Mr. Dillon is also recognized in Shopper Marketing Magazine’s “Who’s Who in Shopper Marketing”. Mr. Dillon spent 17 years at Pepsico, across brand, innovation, promotions and shopper marketing. Mr. Dillon’s last role at Pepsico was VP, Brand Activation and Shopper Marketing. After Pepsico, Mr. Dillon held executive positions at both [x+1]/Rocket Fuel and Catalina adding a significant expertise in purchase behavior targeting and measurement in the digital space. Currently, Mr. Dillon is the founder and “captain” of Seven C’s…a consulting firm specializing in helping clients navigate the new path to purchase. Mr. Dillon holds a Bachelor of Arts from the University of Georgia and an MBA from the University of Rochester’s William E. Simon School of Business.
Dave has been involved in the information security field for nearly 20 years, first as a Federal agent pursuing cyber-criminals in the era of floppy disks and 2400 baud modems through his most recent experience as the Global Chief Technology Officer of FireEye, a leading cyber-security solutions provider. While at FireEye Dave provided his insights and expertise in guiding the company’s product strategy, as well as evangelizing and educating practitioners, executives and boards of directors around the globe. He has experience working in a variety of international markets and understands the significant differences in approaches and attitudes towards cyber security in a wide variety of countries. In addition to his evangelism, Dave helped guide the formation of a broader FireEye product portfolio, working with the CEO to expand FireEye’s offerings from networks into both the endpoint and data analytics realms. Prior to FireEye Dave was the Chief Technology Officer and Vice President of Products at Mandiant. He founded the business line for Kevin Mandia in 2006 and oversaw its operation through Mandiant’s acquisition by FireEye in December of 2013. In that time he built and released Mandiant’s endpoint security platform and grew the business to $25M in annual software revenues. The platform also served as a basis for $75M in additional managed solution and services revenues at the time of Mandiant’s acquisition. Before Dave’s 10 years as a solutions provider he spent another decade as a security practitioner, first as a Special Agent in the Air Force Office of Investigations, pursuing cyber criminals and conducting digital forensic investigations, and later as head of AOL’s Technical Security organization. While at AOL he created their first incident response capability, oversaw incident response operations through all of AOL and Time Warner, managed software security and policy programs, and built technologies for AOL’s security infrastructure that could not be procured on the market due to unique scale and scope requirements.
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Tom McIssac
Michael Dillon
Dave Merkel
Mr. Ramkumar has had a 25+ year career as a successful business entrepreneur and has held numerous senior management and board level positions at several different publicly listed companies. He was CFO, VP Operations and GM at Reff Incorporated, a manufacturer of high-end furniture. Subsequently, he was CEO of Inscape Corporation, where he oversaw the growth of the company from $20 million to $170 million in annual revenues. The company was recognized as one of the 50 Best Managed companies in Canada during this period. Both Reff and Inscape went public on the TSX. Mr. Ramkumar is also a principal shareholder and Chairman of Process Research Ortech (“PRO”) and ASL Print FX, a provider of high-end promotional print solutions to CPG companies. He is also a former member of the Board of Toronto Rehabilitation Institute.Mr. Ramkumar was a charter member of TiE, a not-for-profit organization that aims to foster entrepreneurial activity and led the initiative to start TieQuest, which has grown to become one of the leading business venture contests in Canada. He has served on the boards of several publicly listed corporations, including Angoss Software Corporation, a provider of leading edge business analytics solutions to customers (listed on the TSX), Cedara Software, a leading provider of medical imaging software (listed on the TSX and the NASDAQ), and Merge Healthcare (listed on the NASDAQ).
Mr. Cannata is a business strategist and serial entrepreneur with seven start-ups to his credit and senior management experience across several industries including office products, telecommunications, medical devices, system management software, financial services software and patent monetization and advisory services. Mr. Cannata has both private and public company board experience including Selient Inc., a TSX Venture listed corporation and Momentum Inc. a TSX listed company. At both Selient and Momentum he headed the strategic alternative committee that led to the acquisition of Selient by CRI Canada and the acquisition of Momentum by OnXCorporation.Mr. Cannata is the co-founder of Patent Monetization Inc (PMI), a firm specializing in the monetization of patents through sale, licensing or litigation. Mr Cannata has been involved in the monetization of patents since founding BOCA Advisory Services in 2002. In 2005 BOCA advised Northwater Capital Management on the establishment of NW Patent Funding Corporation (NWPF) as a pioneer in the field of patent litigation financing. Through NWPF, Mr Cannata advises and manages patent litigation investments made by the Northwater IP fund.Mr. Cannata has been recognized for his leadership skills at Cybermation a company named one of the 50 Best Managed Private Companies in Canada during his tenure as president. Intellectual Asset Management has also recognized Mr Cannata as a World Leading IP Strategist since the inception of the program in 2009. Mr. Cannata was also a charter member of TiE, a not-for-profit organization that aims to foster entrepreneurial activity.
Ritesh is a co-founder and former President & CTO of Snipp. He has over 10 years experience in the digital media industry and a passion for starting companies. Previously he was at McKinsey & Company for five years in New York in its Media, Technology & Telecommunications practice. He has served as General Manager at Precicompo, an Indian automotive manufacturing business and had also founded Unsurface, a consumer-facing digital media distribution service company (later sold to Sony Music Corp). Ritesh holds an MBA from INSEAD and a BS in Computer Science from Stanford University.
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Michael J. Cannata
Ram Ramkumar
…& STRATEGIC ADVISORY BOARD
Ritesh Bhavnani
