Annual Stockholders Meeting. March 6, 2014

Transcription

1 Annual Stockholders Meeting March 6, 2014

2 Forward Looking Statements This presentation contains forward-looking statements about the products and services of Sonic Foundry within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward looking statements include statements about our products and services, our customer base, strategic investments, new partnerships, our future operating results and any statements we make about the company s future. These types of statements address matters that are subject to many risks and uncertainties. Actual results could differ materially from the forward-looking guidance we provide. Any forwardlooking statements should be considered in context of the risk factors disclosed in our periodic forms 10Q, 10K and other filings with the SEC. These filings can be accessed on-line at and other websites or can be obtained from the company s investor relations department. All of the information and disclosures we make in this presentation regarding our business, including any forward looking guidance, are as of the date given and we assume no obligation to update or change this information, regardless of subsequent events.

3 Shareholder Value SOFO Volume 6,094 9,005 $6.47 SOFO Price $ day average

4 Guidance Fiscal 2014 Reiterate expectation of 13% growth in consolidated pro forma business, adjusted for currency Adjusted for partial-year impact of acquisitions results in guidance of approximately $39M of billings Upward revision to billings expectations from large international transactions to add between $1.0M to $2.0M in FY 2014 Bottom line results impacted by transaction costs of $450k in Q and non-cash gain of $1.3M in Q Upward revision to pretax earnings guidance to 7-9% of consolidated revenues Fiscal 2015 Billings approach $50M Pre tax 12-15% EPS $ $1.50

5 Shareholder Value: SOFO is Undervalued 1. FY15 PE 2. FY15 EBITDA 3. Other public companies EV/Rev = 2.2x (Stonegate) 4. Private company transactions EV/Rev = 3.3x (Stonegate) $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $22.00 PE Based(1) $15.00 EBITDA $15.00 Public Revx (2) $20.00 Private Revx (3) SOFO $10.08

6 Insider Buying Since 2011 Shareholders Meeting 32 buy reports 500, % increase in ownership, now at 11% of outstanding 4 insiders among top 25 reported shareholders No sales of existing shares 400, , , , % 10% 8% 4%

7 Business Trends

8 Top 5 Enterprise Deals (Billings) 1,400,000 1,200,000 1,000, , , ,000 Deal #5 Deal #4 Deal #3 Deal #2 Deal #1 200,000 0 Q Q Q Q Q Q Q Q Q Q Q1 2014

9 Billings and Non-GAAP Income are Seasonal (in thousands) 18,000 2,500 16,000 2,000 14,000 1,500 1, Net Income (Loss) Non-GAAP Net Income (loss) 12,000 10,000 8,000 6,000 4,000 2,000 Revenue Billings -1,000 1Q11-2Q11 3Q11-4Q11 1Q12-2Q12 3Q12-4Q12 1Q13-2Q13 3Q13-4Q13 0 1Q11-2Q11 3Q11-4Q11 1Q12-2Q12 3Q12-4Q12 1Q13-2Q13 3Q13-4Q13 Note: 3Q11-4Q11 net income excludes $528 thousand of severance

10 Customer Billings: New vs. Existing Q1-Q2 pipeline building Q3-Q4 harvest (in thousands) $10,000 $9,000 $8,000 15% 20% $7,000 $6,000 14% 16% 22% 18% 19% $5,000 19% New $4,000 $3,000 $2,000 81% 86% 85% 80% 84% 78% 82% 81% Existing $1,000 $- Q212 Q213 Q312 Q313 Q412 Q413 Q113 Q114

11 100% 90% Customer Billings: Breakdown By Sector 4% 3% 3% 8% 9% 6% 4% 5% 4% 6% 5% 9% 5% 8% 6% 5% 4% 4% 80% 70% 39% 33% 23% 27% 36% 39% 27% 22% 40% 60% Other 50% Government Corporate 40% Education 30% 20% 53% 54% 64% 64% 56% 47% 63% 66% 50% 10% 0% Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114

12 100% Customer Billings: Domestic vs. International 90% 80% 29% 34% 24% 21% 30% 33% 27% 26% 28% 70% 60% 50% International 40% 30% 71% 66% 76% 79% 70% 67% 73% 74% 72% Domestic 20% 10% 0% Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114

13 Investing in Global Growth Expanded operations to support customers in 58 countries Utrecht Tokyo Madison London

14 Investing in Global Growth Expanded operations to support customers in 58 countries Utrecht Tokyo Madison China London Latin America India

15 Large International Opportunities Continued Progress University of Leeds: o Final contract phase o Expected to result in $1 million+ billings in FY14 Large is defined as >$250,000 Large deals progressing in multiple regions Several >$1M pipeline transactions that dwarf prior large deals These are capital projects with lots of moving parts Each progressing with continued orders in FY14

16 Customer Wins and Expansions Education University of Leeds Mediasite selected for two separate strategic projects: Lecture capture (winning over Panopto and Echo 360) Enterprise-wide video (winning over Kaltura) One of the world s top 100 universities according to QS World Rankings Stanford School of Medicine Complete replacement of capture technology in 20 classrooms Example of continued growth in top ranked (#2) medical schools Temple University Fox School of Business Upgraded 37 rooms and added new ML models

17 Customer Wins and Expansions Events Autodesk Long-term capture partner Captured 237 sessions Seamless integration with Autodesk content distribution system and available in less than 72 hours Dreamforce 2013 Largest event to date, captured 80 rooms & 1,400 sessions in HD Estimated more than 1 terabyte of data edited and pushed to Mediasite Each day s content available via Mediasite in less than 24 hours Workday Captured for two consecutive years Leading to more conference capture with them

18 Customer Wins and Expansions Enterprise United Therapeutics Training and communication Home Depot Mexico Store to store personnel training LG Electronics Standardized training, elearning and communications

19 Building Presence in the Enterprise New Tradeshows World s Largest B2B Media Show Mediasite Events by Sonic Foundry named streaming partner Corporate Training Corporate Communications

20 Building Presence in the Enterprise Webinars and Lead Generation

21 Building Presence in the Enterprise Market Leadership Emerging Market Innovation Award for Lecture Capture and Knowledge Management Global Product Leadership Award for Enterprise Video Webcasting Solutions Frost & Sullivan 2013 Magic Quadrant for Enterprise Video Content Management Gartner, Inc The Forrester Wave : Video Platforms for the Enterprise Forrester 2013

22 Mediasite Community Mediasite Communities around the world include Netherlands, Japan, Australia, New Zealand, UK, Scandinavia, Germany and Czech Republic 8 th annual Mediasite User Conference, Unleash 2014, attracts ~300 customers to Madison in April Mediasite Community European Forum brought >100 customers to Amsterdam Active Mediasite Community has surpassed 1,600 members

23 Mediasite Usage Growth Higher Education customer survey asked for: Student views of courses Hours of content recorded Here s what we learned.

24 A student watches a Mediasite presentation Every second

25 A student watches a Mediasite presentation Every second 30 million views last year

26 A student watches a Mediasite presentation Every second Equivalent of 228 years of video created 30 million views last year

27 A student watches a Mediasite presentation Every second 2 million hours created 30 million views last year Equivalent of 228 years of video created

28 Mediasite views growing 89%YoY Mediasite content creation growing 49%YoY

29 Mediasite Views on Campus Outpace consumer video consumption by 59% Online consumer video consumption is growing 30% year over year (Adobe Digital Video Benchmark, 2013)

30 Mediasite On-Campus Growth 3 million total views Mediasite is still popular and booming. 305% increase in videos created Growth accelerated in Fall 2013 with major adoption from Colleges of Business and Dentistry. 384% increase in videos created Mediasite was initially chosen for its ease of use and excellent ROI. Mediasite continues to provide solutions for our on-line course initiatives.

31 Evolution of Mediasite Supports Customer Growth

32 Mediasite 7: MultiView Immersive multi-perspective video Multi-source recordings from sophisticated meeting rooms/auditoriums Simulations medical, engineering, tech Collaborative classrooms Role-playing moot court, practice interviews Multi-camera events

33 Mediasite 7 MultiView

34 Flipped Classroom My Mediasite Top factors driving flipped classrooms include the greater availability of technologies. Source: Center for Digital Education, 2013

35 Flipped Classrooms My Mediasite

36 What s next?

37 Mediasite 7 Video Conferencing Recording Service My Mediasite Dual Video Capture

38 Mediasite 7 Video Showcase

39 Customization

40 Customization

41 Q&A