Investor Presentation April 2017 TSXV:PGV - prodigy.ventures€¦ · Prodigy Ventures Inc. TSXV:PGV...
Transcript of Investor Presentation April 2017 TSXV:PGV - prodigy.ventures€¦ · Prodigy Ventures Inc. TSXV:PGV...
Investor PresentationTSXV:PGV
April 2017
Forward Looking Statement
TSXV:PGV 2
This presentation (the "Presentation") contains" forward-looking information" and "forward- looking statements"(collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. Allstatements, other than statements of historical fact, are forward-looking statements and are based on expectations,estimates and projections as at the date of this Presentation. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often butnot always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate","plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrasesor stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or beachieved) are not statements of historical fact and may be forward-looking statements.In this Presentation, forward-looking statements relate, among other things, to its aggressive expansion into additionalfinancial institutions and other enterprise clients, acquisition opportunities to further accelerate growth, net newrevenue opportunities with Venture Builder, statements relating to the anticipated growth of the mobile enterpriseapplications market, Prodigy's plans for organic growth and growth through acquisitions and the potential revenue perbank client from iVideo Greetings SDK. All forward-looking information entails various risks and uncertainties that arebased on current expectations and actual results may differ materially from those contained in such information.These uncertainties and risks include, but are not limited to, risks relating to the timing and size of new contracts;acquisitions and other corporate developments; the ability to attract and retain qualified personnel; market competitionin the rapidly evolving information technology industry; and general economic and business conditions. Risks anduncertainties about Prodigy's business are more fully discussed in the disclosure materials filed with the securitiesregulatory authorities in Canada, which are available on SEDAR under the issuer profile of Prodigy at www.sedar.com.Readers are urged to read these materials and should not place undue reliance on any forward‐looking statement andinformation contained in this Presentation. Except as required by law, Prodigy assumes no obligation to update theforward‐looking statements of beliefs, opinions, projections, or other factors, should they change, except as required bylaw.
Prodigy Ventures Inc.
TSXV:PGV 3
Company Overview
• Prodigy Ventures Inc. (TSXV: PGV) is an innovation company
• The company operates two divisions:
• Prodigy Labs – Enterprise technology service provider with core expertise in mobile solutions, providing services to financial institutions and others (“Services Provider”)
• Venture Builder – Creating business platforms and applications in emerging technologies, including mobile video, augmented reality, artificial intelligence, wearables and proximity
• Headquartered in Toronto
Venture Builder Services Provider
PGV Stock Performance
Prodigy Ventures Inc.
TSXV:PGV 4
Company Highlights
• $11m revenue in FY 2016 – Over 55% YoY growth
• Increased investment in management and sales for aggressive expansion into additional financial institutions and other enterprise clients
• Acquisition opportunities to further accelerate growth
• Net new revenue opportunities with Venture Builder
Company Information
Ticker (TSX:V) PGV
Shares OutstandingFloat
113.7M25.7M
Stock Price (04/10/17) $0.32
Market Cap (04/10/17) $36.4M
Warrants ---
Options (Avg $0.10, expire Dec 31, 2018)
1.34M
CEO Ownership 56%
Cash (12/31/16) $2M
Debt (LT +Current Portion of LT)
$149K
Year End Dec 31
Staff 85
$0.00$0.05$0.10$0.15$0.20$0.25$0.30$0.35$0.40
Our Business Model: Innovate, Create, Deliver
TSXV:PGV 5
Venture Builder Services Provider
• Develop applications for large
enterprise clients
• Acquire complimentary businesses
• Attract and retain top talent
• Manage cost savings in
infrastructure, administration,
marketing and sales
• Develop technology relevant to the
fastest growing technology sectors
• Share management resources
• Streamline access to capital for all
ventures via cash flow from services
business
• Portfolio approach to new
investments across a pipeline of
projects
Our Two Complementary Businesses Create Growth Opportunities for Each Other
Venture Builder Services Provider
Where Do We Play?
TSXV:PGV 6
Service Provider: Prodigy Labs
Services Provider
TSXV:PGV 7
Mobile Market Opportunity Continues to Grow
6.1B
Sources: smartinsights.com, researchandmarkets.comTSXV:PGV 8
Our Focus is in Mobile Enterprise Applications
• Mobile Enterprise Applications expected to be the fastest growing segment of the market
• Banking, Financial Services and Insurance expected to hold the largest market share
• Banks strategically choose to outsource their short term projects $98B
Mobile Usersby 2020
Mobile Enterprise Application market size by 2021
Services
• Technology service provider to leading financial institutions and other large enterprises
• Provide consulting services for strategy, design, project management, development, quality assurance, maintenance, and staff augmentation
• Services for custom enterprise applications and Prodigy’s Venture Builder platforms
• Projects include: mobile banking applications, online banking development, video
Apps In-Market
IOS
Apple Watch
TSXV:PGV
Prodigy Labs: Onshore, On-site, On Point
9
Android
Mobile Banking
IOS
Wallet
Android
Wallet
IOS
Apple Pay
IOS
Mobile Banking
TSXV:PGV
Prodigy Labs: Partnering to Deliver
10
Fast, Flexible, Trusted and Proven
• Developed & delivered award-winning solutions
• Proven track record of successful co-development
• An exceptional talent pool to draw on flexibly
• Innovation partnerships with Venture Builder
“We are committed to providing the maximum value to our clients through our unique innovation
model and agile partnership capabilities.”
Tom Beckerman, Founder & CEO
Prodigy has built its reputation onsuccessfully delivering cutting edgesolutions through co-innovation withclients
150+Contracts
A History of Rapid Revenue Growth
TSXV:PGV 11
Prodigy Labs: Performance
25%CAGR of Revenue Growth
55%YoY RevenueGrowth
Year ended March 31, 2015
Nine months ended* December 31, 2015
Year ended December 31, 2016
*The company only had 9 month fiscal year in 2015 because the company went public in September 2015
Total Revenue:$2,730,698
Total Revenue:$6,187,766
Total Revenue:$11,020,658
R&D
Net Income
Organic Growth
• Continue to grow presencewithinexisting clients
• Expand sales and marketing efforts to gain new clients
• Differentiate offering with VentureBuilder platforms
Acquisitions
• Acquire service providers that have...• Positive and growing EBITDA• Potential cost synergies• Established customer base• Complementary services• Differentiated technology• Complementary skill sets
12
Prodigy Labs: Growth Strategy
TSXV:PGV
Venture Builder: Prodigy Ventures
Venture Builder
TSXV:PGV 13
Building Businesses With the Emerging Technology
With our positive cash flow we are able to invest in emerging technologies, such as:
TSXV:PGV 14
Mobile video will dominate internet traffic
by 2018, with social, short duration content leading
the growth curve.
Mobile Video
Proximity marketing, social and payment apps offer unlimited potential for in-the-
moment “up close and personal” content,
interactions and transactions.
Proximity
New wearables and apps are changing how we
behave, connect, interact, consume and create
content – right in front of your eyes, on your wrist, even in your clothes and
accessories.
Wearables
The future is happening now, and it’s an
immersive, enhanced experience – in virtual and augmented realities, and
dynamic 3D content.
Augmented Reality
Focus on Hyper Growth Opportunities
Sources: Cisco Visual Networking Index, ooyala.com, streamingmedia.com, businessinsider.com, echidnainc.com, globenewswire.com
TSXV:PGV 15
Will grow at a CAGR of 62% from 2015 –2020, with 54% of mobile viewing spent on content running 10 minutes or less
Mobile Video
62%iBeacon market will grow at CAGR of more than 221% from 2015 - 2019
Proximity
With a CAGR of 44%, more than 600 million wearable devices will be sold by 2020
Wearables
Expected CAGR from 2015-2019 in actively used apps of 76.1%
44%
221% 76.1%
TSXV:PGV 16
Venture Builder Pipeline
4Apps in market Apps in development
2Apps in strategy phase
7✓ iVideo✓ iVideo Greetings✓ iVideo Gifts✓ iVideo Greetings SDK
TSXV:PGV 17
Prodigy’s In-Market Mobile Video Apps
iVideo
iVideo Greetings SDK
iVideo Gifts
iVideo Portfolio
• iVideo: Nexgen social video with leading edge functionality
• iVideo Greetings: Professional quality, personal video e-greeting cards – without the work
• iVideo Gifts: Over 90 top brands of e-gift cards with iVideo Greetings e-cards included
• iVideo Greetings SDK: Adding emotional and social gift value to e-transfers, e-payments and retail
iVideo Greetings
iVideo
TSXV:PGV 18
• First in the suite of iVideo products
• Competes with Snapchat, Instagram, Youtube
• Available on iOS, Android, Apple Watch and Apple TV
• Users share personal videos with each other, add special FX
• Free app with unique user experience
• Over 200K downloads
iVideo Greetings
TSXV:PGV 19
• Second in the suite of iVideo products
• Proprietary library of pro-quality iVideo themes (intro + trailer) for all greeting card occasions
• Consumers insert their selfie video into an iVideotheme to make custom e-greeting card
• Email + web delivery of greetings to recipients
• Launched in November 2016
• Available on iOS and Android
• Pay-per-use and subscription revenue mode
• Greeting card industry is a $10B industry in North America, not yet digitally disrupted
Source: Global Industry AnalysisInc.
iVideo Gifts = e-Gift Cards + iVideo Greetings
…And Many MoreU.S. Retailers…
TSXV:PGV
Source: Global Industry AnalysisInc.
20
• Third in the suite of iVideo products
• e-Gift cards + iVideo Greetings in one app for a unique e-gift offering
• Partnering with leading companies to provide consumer gift cards
• Initial launch February 2017 on iOS, Android to follow
• Prodigy buys discounted gift cards (5.5% to 20%), consumer pays face value
• Gift card industry is a $100B+ industry worldwide, not yet digitally disrupted
Business Opportunity for Gifting in e-Transfers
TSXV:PGV 21
• Greeting card industry is a $10B industry
• Gift card industry is a $100B industry
• Current e-transfer systems only offer capability to send funds with a text message
• Research indicates very low usage of e-Transfers services for gifting
• User experience is inadequate for gifting
• Missing emotional content
• Not cool, fun or memorable
• Lacks social dimension
• We provide the Solution!!!
Source: Global Industry AnalysisInc.
iVideo Greetings SDK
TSXV:PGV 22
• All of the functionality of iVideo Greetings delivered in a lightweight SDK (Software Development Kit)
• Available NOW
• Makes e-transfers into a great gifting experience
• User experience is enhanced for gifting
• Emotional content
• Cool, fun and memorable
• Stimulates social interaction
• Integration services available
iVideo GreetingsSDK
iVideo Greetings SDK
TSXV:PGV 23
• Personalize e-transfers with iVideo greetings
• Provide video themes for all gift-giving occasions
• Package the iVideo Greeting + e-transfer in a virtual gift box
• Provide content moderation as required
$350K/YearLicensing Fee
$0.15-$0.50Per Transaction
Problem: Existing e-transfers = Low value gift experience
160M transactions in 2016, with very few gift e-transfers
Additional opportunities in international money transfer, other e-payment systems, and retail
Potential Revenue/Bank Client*
* Based on discussions with Bank prospects
iVideo GreetingsSDK
Solution: iVideo Greetings + e-transfers = High value gift experience
Experienced Management Team
TSXV:PGV 24
Jeff WattsExecutive Vice President• Over 25 years of global experience in direct sales, channels, marketing,
business and corporate development at SAP, Xerox and 3Com, and startups such as Quack.com (acquired by AOL). Jeff serves on several boards and has contributed to successful exits, including Locationary (acquired by Apple) and Elliptic Technologies (acquired by Synopys).
Tom BeckermanFounder, CEO and Director• Technology veteran with 35+ years of experience in senior leadership roles• Played instrumental roles in success of seven other tech, marketing services,
financial information and medical device companies
Andrew Hilton:CFO and Corp. Secretary• Ten+ years experience providing
financial reporting and corporate secretarial services for public companies
• Chartered Professional Accountant (CPA)
Andrew Kieran:Vice-President• Ten+ years experience in technology
architecture, design and development• A leader in development of
innovative mobile and payment solutions
Hussein VastaniCTO• 8+ years experience in full stack architecture, design and development• Led advanced technology projects at large public companies
• Over 30 years experience •
TSXV:PGV
Board Members Bring Strong Oversight
25
Robert MacLeanChairman, Board of Directors• Co-founder and CEO of
Points International since 2000 (TSX:PTS, NASDAQ:PCOM)
• Has grown Points into globally recognized leader, working with 60+of the world’s largest loyalty programs
• Prior to Points, held impressive list of senior leadership roles in airline and loyalty industries
Stephen MooreDirector
in securities industry inresearch, sales, tradingand corporate finance
• Senior leadership roles at Burns Fry, Lancaster Financial and TD
Securities• Was a Founder and
Managing Director of Kensington Capital, specializing in private equity advisory services
Tom BeckermanFounder, CEO and Director
35+ years of experience in senior leadership roles
• Played instrumental roles in success of seven other tech, marketing services, financial information and
medical device companies
• Currently focused on strategic development and marketing of high tech plaborms and services
Jeffrey ShaulChair, Advisory Board
industry experience in senior positions with major firms including Scotia Capital and TD Securities
• Experience in
underwriting, mergers & acquisitions, private equity and asset management
• Founded independent investment firm Robson Capital in 2003
Technology veteran with • Thirty years securities
Summary
TSXV:PGV
✓ Profitable services business with strong record of revenue growth
✓ Plans to aggressively expand into additional financial institutions andother enterprise clients
✓ Acquisition opportunities to accelerate growth
✓ Net new revenue opportunities with Venture Builder✓ iVideo Greetings, iVideo Gifts and SDK monetization campaigns✓ Pipeline of upcoming Venture Builder apps and platforms
✓ Experienced management and strong board
26
Company contact:
TSXV:PGV 27
Babak Pedram Investor Relations Virtus Advisory [email protected]+1 416.644.5081
Andrew HiltonChief Financial Officer Prodigy [email protected]+1 416.606.8833