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8-K - FORM 8-K - BROADSOFT, INC. | d312057d8k.htm |
Investor Presentation
March 7, 2012
1
Exhibit 99.1 |
2
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements may be identified by
their
use
of
terms
and
phrases
such
as
believe,
will,
estimate,
continue,
anticipate,
intend,
should,
plan,
expect,
predict,
could,
potentially
or the negative of these
terms or other similar expressions and include statements concerning future
financial and operating performance. The outcome of the events
described in these forward-looking statements is subject to known and
unknown risks, uncertainties and other factors that could cause actual
results to differ materially from the results anticipated by these forward-looking
statements, including, but not limited to: the Companys dependence on the
success of BroadWorks and on its service provider customers to sell services
using its applications; claims that the Company infringes the intellectual
property rights of others; the Companys dependence
in
large
part
on
service
providers
continued
deployment
of,
and
investment
in,
their IP-based networks; and the Companys ability to expand its product
offerings, as well as those
factors
contained
in
the
Risk
Factors
section
of
the
Companys
Form
10-K
for
the
year
ended December 31, 2011 filed with the SEC on February 29, 2012 and in the
Companys other
filings
with
the
SEC.
All
information
in
this
presentation
is
as
of
March
7,
2012.
Except
as
required by law, the Company undertakes no obligation to update publicly any
forward-looking statement
made
herein
to
conform
the
statement
to
actual
results
or
changes
in
the
Companys expectations. |
3
BroadSoft Overview
3
Service providers are
transforming their business
models through IP-based
applications
Our software is the platform over
which these applications are
delivered
We are the global market leader
BroadSoft ®, Inc. 2012. |
Investment Highlights
4
Large, Converging Markets
Global
movement
to
all
IP
networks
Rapid broadband and IP enabled device growth
Increasing demand for varied, hosted communications options
Worlds Leading Platform & Solutions
Broadest feature set, proven scalability and 99.999% reliability
Seamless integration with next-generation networks
Worldwide market share leader
Global Customer Footprint
Over 500 customers in more than 65 countries
18 of 25 top service providers
Top 5 North American Hosted VoIP and UC service providers
Accelerating Growth
2011 revenue growth of 44% to $138.1 million
2011 non-GAAP diluted EPS of $1.23
Data source: Infonetics & Company results
BroadSoft ®, Inc. 2012. |
Service Provider Movement to All IP
is
Creating a Foundation To Deliver Applications
5
Network Modernization
4G Mobile Rollout
Triple Play Rollout
Enterprise VoIP
5
BroadSoft ®, Inc. 2012.
Network
Transformation
Application
Enablement |
Quick
Deployment of Cloud Based Services 6
Transformation
6
BroadSoft ®, Inc. 2012. |
7
Data source: Wainhouse Research, Infonetics
Significant UC Growth Forecast Ahead
BroadSoft ®, Inc. 2012.
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2009
2010
2011
2012
2013
2014
$ B
Worldwide Hosted/Managed
UC Services Market
North Amer
EMEA
APAC
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Hosted UC
IP PBX
IP Hosted vs. IP PBX Line
Growth Q3:10
-
Q3:11
0
5
10
15
20
25
30
35
40
45
50
2009
2010
2011
2012
2013
2014
2015
Worldwide IP Phone Market
Deskphones
Softphones
46%
9% |
The
BroadWorks Solution 8
BroadSoft ®, Inc. 2012. |
Our
Applications Application server software
Software hosted by a service provider
Calling, messaging and collaboration
White label cloud services
Cloud platform hosted by BroadSoft
Services resold by service provider
Android, iOS, Blackberry, Mac, Windows apps
On smartphones, tablets, laptops, desktops
Easy to use experience
BroadSoft ®, Inc. 2012. |
Our
Focus on the User Experience 10
Analyze their
communication
challenges
Empower to
communicate using
their preferred service
anywhere at anytime
Develop solutions
to improve the
experience
BroadSoft ®, Inc. 2012. |
11
Telstra Hosted UC Offering
11
Target for UC offering:
Multi-site enterprises
Government
Expanding to SMBs
BroadSoft Services
Hosted UC
Telstra IP Telephony
(TIPT) and Digital Business
Microsoft OCS rollout
SIP Trunking
Call Center
Hosted Video Conferencing
BroadSoft ®, Inc. 2012. |
12
SIP Trunking
Connects IP PBXs to a service
providers network over IP
Value proposition:
Enables voice and data network
access consolidation
Ensures business continuity
Enables hybrid PBX/hosted
solutions that leverage
BroadWorks capabilities
BroadSoft ®, Inc. 2012.
Service Provider Networks
PBX
SBC
PBX
SBC |
XO
SIP Trunking and Hosted UC 13
Target:
Small, mid-size & large enterprises
BroadSoft Services:
IP Flex
-
Integrated access for SMBs
XO SIP
-
SIP trunking for SMBs
XO Enterprise SIP
SIP trunking for
large enterprises
XO Anywhere
Fixed-Mobile
Convergence
XO Enterprise Cloud Communications
Hosted UC
BroadSoft ®, Inc. 2012. |
14
Consumer: Triple Play
Delivery of multimedia
communications services from a
service providers network and
BroadSoft cloud
Integrates with household devices
Benefits:
Complete bundle at very attractive
prices
Potential new cool applications
Integration between wireline and
wireless
BroadSoft ®, Inc. 2012. |
France Telecom Triple Play
Target:
Consumers
Current BroadSoft Services:
Consumer Triple Play
Largest IMS deployment worldwide
Upcoming BroadSoft Services:
Enterprise/Business Trunking (SIP)
15
BroadSoft ®, Inc. 2012. |
16
BroadSoft Market Leadership
18 of top 25 Global Carriers
BroadSoft ®, Inc. 2012.
Over 500 Customers in More Than 65 Countries |
17
Growth Dimensions
Subscriber
Growth
Additional
Applications
New
Applications
New
Customers
BroadSoft ®, Inc. 2012. |
18
Verizon UC, SIP Trunking
& FiOS Triple Play
Target:
Consumers
Small, mid-size & multinational
enterprises
BroadSoft Services:
2004: Hosted Unified Communications
2007: IP (SIP) Trunking
2009: FiOS Digital Voice -
Consumer
Triple Play
2010: FMC rollout in Europe
BroadSoft ®, Inc. 2012. |
Best
of Breed Pure Play Software Vendor Deployments
High
High
19
BroadSoft ®, Inc. 2012. |
Why
We Win 20
Independent of core switching platforms
Consumer, enterprise, and mobile service offerings
Rapid application delivery
Pure Application Layer Focus
Reference base
18 of top 25 worldwide carriers
Five 9s reliability
TL 9000 certification
Carrier Grade Reliability
Call Control
Collaboration: HD voice & videoconferencing, online
content sharing, Instant Messaging, etc.
Mobility extension
Broadest Unified
Communications Stack
Xtended
BroadCloud
BroadTouch
BusinessLink
Continuous Innovation
20
BroadSoft ®, Inc. 2012. |
21
Right Team to Move Forward
21
David Bukovsky
VP, Products
Robert Weidenfeller
VP, Operations
Ken Rokoff
VP, Business Dev.
Leslie Ferry
VP, Marketing
Michael Tessler
President and CEO
Scott Hoffpauir
Chief Technology Officer
James Tholen
Chief Financial Officer
Craig Decker
VP, Sales EMEA
Jonathan Reid
VP, Sales APAC
Mary Ellen Seravalli
VP, General Counsel
Greg Callanan
VP, Sales Americas
Greg Pounds
VP, Cloud R&D
Sam Hoffpauir
VP, Engineering
BroadSoft ®, Inc. 2012. |
22
Financial Overview |
Strong momentum in 2011
Revenue of $138.1 million, 44% year over year growth
Non-GAAP diluted EPS of $1.23
Substantial revenue visibility
85 -
90% of revenue from existing customers
Significant maintenance recurring revenue base
Strong balance sheet & cash flow
$192
million
in
cash,
cash
equivalents
and
marketable
securities
as
of December 31, 2011
Generated $28.6 million in operating cash flow in 2011
Financial Highlights
23
BroadSoft ®, Inc. 2012. |
24
Financial Performance
Revenue ($mm)
Non-GAAP diluted EPS
$1.23
$1.18 -$1.30
$(0.43)
$(0.18)
$0.48
Non-GAAP diluted EPS
$0.29
$0.18
$0.17-$0.23
$0.38
BroadSoft ®, Inc. 2012.
$0.38
$30
$32
$36
$41
$36
-
$38
Q1:11
Q2:11
Q3:11
Q4:11
Q1:12E
$62
$69
$96
$138
$158
-
$162
2008
2009
2010
2011
2012E |
25
BroadSofts Revenue Dynamics
** Hosted UC includes applications and other products
APAC
14%
EMEA
24%
Top 10
Customers
40%
Other
Customers
60%
Americas
62%
* Based on Total Billings
BroadSoft ®, Inc. 2012.
2011 Customer Diversity
2011 Geography*
Applications Mix*
Customer Tiers* |
Long
Term Profit Model 26
*
2010 excludes stock compensation of $3.0M and amortization expense of $0.8M.
**
2011 excludes stock compensation of $7.2M, amortization expense of $1.3M
Note: Figures may not sum due to rounding
BroadSoft ®, Inc. 2012.
2010
GAAP
2010
Non-GAAP*
2011
GAAP
2011
Non-GAAP**
Long
Term
Model
Gross Margin
Operating
Expenses
Operating Income
79%
80%
82%
84%
84 -
85%
69%
66%
62%
57%
55 -
56%
11%
14%
20%
26%
28 -
30% |
Investment Highlights
27
Large, Converging Markets
Global movement to all IP
networks
Rapid broadband and IP enabled device growth
Increasing demand for varied communications options
Worlds Leading Platform & Solutions
Broadest feature set, proven scalability and 99.999% reliability
Seamless integration with next-generation networks
Worldwide market share
Global Customer Footprint
Over 500 customers in more than 65 countries
18 of 25 top service providers
Top 5 North American Hosted VoIP and UC service providers
Accelerating Growth
2011 revenue growth of 44% to $138.1 million
2011 non-GAAP diluted EPS of $1.23
Data source: Infonetics & Company results
BroadSoft ®, Inc. 2012. |
28
GAAP / Non-GAAP Reconciliation
BroadSoft ®, Inc. 2012.
March 31,
2011
June 30,
2011
September 30,
2011
December 31,
2011
Low End
High End
GAAP net (loss) income per diluted common share
0.13
$
0.57
$
0.26
$
0.19
$
-
$
0.04
$
Plus:
Adjustment for preferred stock conversion
-
-
-
-
-
-
Stock-based compensation expense
0.04
0.06
0.07
0.08
0.11
0.11
Amortization of acquired intangible assets
0.01
0.01
0.01
0.02
0.02
0.02
Non-cash interest expense on convertible notes
-
0.01
0.04
0.05
0.04
0.04
Tax benefit related to valuation allowance release
-
(0.36)
-
0.04
-
0.02
Non-GAAP net (loss) income per diluted common share
0.18
$
0.29
$
0.38
$
0.38
$
0.17
$
0.23
$
March 31, 2012
Estimate
For the three months ended
December 31,
2008
December 31,
2009
December 31,
2010
December 31,
2011
Low End
High End
GAAP net (loss) income per diluted common share
(1.81)
$
(1.25)
$
0.32
$
1.15
$
0.30
$
0.36
$
Plus:
Adjustment for preferred stock conversion
1.20
0.84
-
-
-
Stock-based compensation expense
0.16
0.19
0.12
0.26
0.41
0.41
Amortization of acquired intangible assets
0.02
0.04
0.04
0.05
0.08
0.08
Non-cash interest expense on convertible notes
-
-
-
0.09
0.18
0.18
Tax benefit related to valuation allowance release
-
-
-
(0.32)
0.21
0.27
Non-GAAP net (loss) income per diluted common share
(0.43)
$
(0.18)
$
0.48
$
1.23
$
1.18
$
1.30
$
December 31, 2012
Estimate
For the twelve months ended |
29
Thank you |