January 2020 Investor Presentation - Grom Social€¦ · Overview •Grom Social Enterprises...
Transcript of January 2020 Investor Presentation - Grom Social€¦ · Overview •Grom Social Enterprises...
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Disclaimers / Statements
DisclaimerThis document is based on information provided by Grom Social Enterprises, Inc. (OTC:GRMM) (the “Company”, “our”, or “we”) and other sources that theCompany believes are reliable. Nothing in this document is, or may be relied upon as, a promise or representation by the Company as to the past or the futureinformation or results. This is not an offer or the solicitation of an offer to buy any securities of the Company, and readers should not construe the contents ofthis document as investment, legal or tax advice. The information contained in this document is made as of the date hereof, and does not reflect any events thatmay occur subsequent to the date hereof. The Company undertakes no duty or obligation to update or revise the information included in this presentation.
Forward Looking StatementsThis presentation includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the private securities litigation reform act of1995. Forward-looking statements reflect our current views with respect to future events and involve inherent risks and uncertainties which could cause actualresults to differ materially from our historical experience and present expectations or projections as a result of various factors, including those risks anduncertainties described in the risk factors and in management’s discussion and analysis of financial condition and results of operations sections of our annualreport on form 10-k and subsequently filed quarterly reports on form 10-q, filed with the Securities and Exchange Commission. One can find many (but not all) ofthese statements by looking for terms such as "believe," "expect," “hope,” ”project,” "may," "will," "should," “would,” "could," "seek," "intend," "plan,""estimate," "anticipate" and similar terms. all statements other than statements of historical facts included in this presentation, including statements regardingour strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements.
We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon anysuch forward-looking statements, which represent our estimates and assumptions only as of the date hereof. Except as required by law, we undertake noobligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information,future developments or otherwise. We anticipate that subsequent events and developments will cause our views to change.
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Overview
• Grom Social Enterprises (OTCQB: GRMM) is a media, technology and entertainment company for kids.
- Grom Social has reached over 17 million users since inception
- Recently launched Grom Social mobile app expands user base
• Profitable Top Draw Animation subsidiary creates 2D content for tier-1 studios
- Significant content creation synergies with Grom’s social media platform
- Blue chip clients include Disney, Warner Brothers and DreamWorks
• Attractive & scalable business model with high gross margins (44.6%) 2
• Proven management team with a strong track record in commercialization, technology and media verticals
Grom Social Enterprises (OTCQB: GRMM)
Share Price1 $0.09
Market Cap1 $15.0 M
Revenues (TTM)2 $9.1 M
Gross Margin (TTM)2 44.6%
Enterprise Value $17.4 M
FD Shares O/S1 193.6 M
Float 162.4 M
HeadquartersBoca
Raton, FL
Employees1,3 515
Insider Ownership1 29.9%Mission:
Making the internet safe for kids through teaching and monitoring, giving parents
the tools they need for piece of mind.
1) As of January 6, 20202) TTM = Trailing twelve months ended
September 30, 20193) Employees are predominantly animation
staff in Southeast Asia
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Media Coverage
social media
story
Hottestth
– Entrepreneur Magazine
5
The next Mark Zuckerberg?Is Zach Marks
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Stats
1,250Hours of exclusive
live streaming contentDisneyDreamWorksNickelodeon
Warner BrothersHasbro ToysScholastic
Total users on all platforms since inception 6/2012.
Content Hours
BillionsWeb attempts in schools we filter
Security
6
Blue Chip Clients
7 MillionParent Emails Collected
Since Inception
Parents Reached
10 Million +Children that have used our
platforms since inception
Children/Students Reached
17 Million +
Families Reached
Children, parents & students who have used our platforms
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Our Subsidiaries
Top Draw Animation, IncWorld-Class Animation Studio
Grom Social, IncSafe, Social Media App for Kids
Grom Educational Services, IncWeb Filtering for Schools, Government and Private Business
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Top Draw Animation, IncWorld-Class Animation Studio
• Award-winning 2D animation studio since 1999
• Over 500 artists
• State-of-the-art studio in Manila, Philippines
• The company produces:
o Over 250 half-hour episodes of 2D animation each year
o Over 2,000 half hours created
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Top Draw Animation, IncWorld-Class Animation Studio
Blue Chip Clients Produced:
• Disney Television Animation• Warner Bros.• Nickelodeon• Cartoon Network• Scholastic• Hasbro Toys
The Hollow
Netflix
My Little Pony
DHX Media
The Tom & Jerry Show
Slap Happy Cartoons
Penn Zero
Disney Television Animation
George of the Jungle
DHX Media
Monster Beach
Cartoon Network
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Top Draw Animation, IncWorld-Class Animation Studio
Top Draw Animation enters into 3D animation market with Tier-1 Animation and media giant.
Animation Revenue EBITDA
2017 $6,803,380 $1,574,103
2018 $7,801,157 $2,333,304
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Grom Social, Inc.Safe, Social Media App for Kids
Are Kids Safe Online?
Many parents worry about their child’s online safety.
• Who are they communicating with?• Is the media content age appropriate?• Is the media content consistent with the parent’s values? • How can I monitor their activity?
Yes, Thanks to Grom SocialGrom Social keeps kids safe, and parents worry free.
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Grom Social, Inc.Safe, Social Media App for Kids
“As pioneers in the kids social media space, we are the first and only company to create a site for kids by kids’ that is monitored 24/7 and requires parent or guardian approval to participate.”
• COPPA-Compliant• Ages 5-16• Parental Oversight• Monitored 24/7• Age Appropriate Content
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Grom Social, Inc.Safe, Social Media App for Kids
Grom Social App is what Kids Want!
We have included all the popular features of social networks and provided them to kids in a safe platform for kids. Making us the only COPPA-Compliant application to offer these features.
Features:• Record and Share Videos• Real Commenting• Hashtags• Streaming Video Content• And More
Exclusive Features:• Direct messaging to kids• Video recording and posting • Exclusive Grom TV content• Message and chat with
cartoon characters
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Safe Platform + Teaching Online Safety = Competitive Advantage
Giving kids a safe platform keeps them safe while using it, but teaching safety keeps kids safe online indefinitely.
• Digital Citizenship Course• Exclusive Safety Messaging• Safe Kid Friendly Advertising• Live 24/7 Monitoring• Limited Data Collection
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Grom Social, Inc.Safe, Social Media App for Kids
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Grom Social, Inc.Safe, Social Media App for Kids
MamaBear Parenting Application
Parents can protect all their children with our MamaBear parenting app while monitoring what their child does on Grom Social.
• Social Media Monitoring• Location Tracking with Alerts• Family News• Speeding Alerts
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Grom Social KPI’s
Device Usage3
Gender Breakdown3
Active User Increase Since APP Launch Geographical Breakdown3
Average Daily User Activity – New App
Total Users1 18,361,893
Total Monthly Active Users2 2,203,673
Average Child Online Duration3 56.4 Minutes
Average Parent Online Duration3 4.3 Minutes
Bounce Rate4 29.8%
United States 41.0%
India 15.9%
Brazil 12.5%
Indonesia 11.0%
Australia 9.4%
User Data
Male 43%
Female 57%
Mobile 78%
Tablet 16%
Desktop 6%
1) Total users (incl. parents) on all platforms since inception June 1, 2012.2) Total monthly active users as of December 31, 2019.
3) Device usage, gender breakdown, most popular sections and geographical breakdown as are as of December 31, 2019.4) Bounce Rate is as % of visitors to a website who navigate away from the site after viewing only one page.5) Data obtained from Google Data Analytics, and Joomla Content Management System.
May June July Aug Sept
100
90
80
70
60
50
40
30
20
10
Online duration increased 10x
6%
78%
16%
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-
World Ranked #2 Grom Social Ambassador,
Caroline Marks Qualifies for the 2020 Olympics
2019 Media Appearances:
● Today Show● Good Morning America● Sports Illustrated● Jimmy Kimmel
● Time Magazine● USA Today● Vanity Fair● Forbes● People Magazine
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What is a User Worth?
Company Market Cap Active Users User Value
$364 B 2.0 B $182
$227 B 1.4 B $158
$42 B 600 M $70
$24 B 302 M $81
$24 B 364 M $69
$4.0 B 160 M $28
$3.0 B 142 M $25
Source: Arkenea
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Grom Educational Services, IncWeb Filtering for Schools, Government and Private Business
Protecting Kids In School
Grom Educational Services provides schools K-12 with online safety tools for CIPA compliance and to provide and teach online safety in schools.
Also provides funnel for new Grom Social users at zero cost.
• Web Filtering• Online Activity Monitoring• Digital Citizenship License Course• Exclusive Educational Content
Children’s Internet Protection Act (CIPA) requires technology protection measures and internet safety policies for any government facility providing internet access.
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Our Team
| Executive Management
Zach Marks – Founder / Chief Content Developer
Darren Marks – Chairman / CEO / PresidentOver 30 years of public company experience at the CEO and Director level
Melvin Leiner – Vice Chairman / Executive Vice President / CFOOver 40 years of high-profile senior executive level experience in the public and private sectors
Wayne Dearing – Founder and Managing Director of Top Draw AnimationOver 40 years of industry experience as manager and executive
| Independent Directors
Robert Stevens Founded Somerset Capital Ltd in 2001
Norman RosenthalFounded Tempest Systems Inc. in 1986
Dr. Thomas J. RutherfordWorld-renowned oncologist and a national expert in cancer
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Key Highlights
$0.8 MillionFY18 WebFiltering Revenue
$7.8 MillionFY18 Animation Revenue
Pre-RevenueNew Grom App
2019 Grom Revenue Streams• Advertising• Monthly Subscription
Future Grom Revenue Streams • Merchandise• Corporate Sponsorship• Content Distribution• Polling/Research
• Blue Chip Clients including Disney, Warner Brothers and DreamWorks
• Strong partnerships and initiatives driving platform adoption and growth
• TDA produces animation for some of the largest distribution platforms in the world
• Grom Social keeps kids safe, and parents worry free
• Grom Educational provides K-12 schools with online safety tools
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Contact Us
Investor RelationsGreg Falesnik or Luke ZimmermanMZ Group – MZ North AmericaMain: (949) [email protected]
2060 NW Boca Raton Blvd., Ste. #6Boca Raton, Florida 33431
gromsocial.com