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Broadview Networks Holdings, Inc.
Company Overview
Updated on August 31, 2016
Quarter Ended
June 30, 2016
© Broadview Networks Holdings, Inc.
Safe Harbor Statement
This presentation may contain forward-looking statements, including statements regarding, among other items, the
Company’s expected financial position, business, risk factors and financing plans. These statements may be identified by
the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “estimates,” or “anticipates” or
the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks
and uncertainties. These forward-looking statements are subject to a number of uncertainties and risks, many of which are
outside of Broadview’s control that could cause actual results to differ materially from such statements. Some of these risks
can be found in Broadview's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the
Securities and Exchange Commission.
Adjusted EBITDA, Free Cash Flow and other financial measures as presented herein are not necessarily comparable with
those of other companies. Adjusted EBITDA as presented herein represents net loss before depreciation and amortization,
interest income and expense, other income, provision for income taxes, severance and related separation and retention
costs, certain non-recurring professional fees, post-petition reorganization items, early lease termination costs and certain
other adjustments. Adjusted EBITDA is not a measure of financial performance under GAAP. Adjusted EBITDA is a non-
GAAP financial measure used by our management, together with financial measures prepared in accordance with GAAP
such as net loss, income from operations and revenues, to assess our historical and prospective operating performance.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date
they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements,
whether as of a result of new information, future events or otherwise.
© Broadview Networks Holdings, Inc. 2
Broadview Highlights
© Broadview Networks Holdings, Inc. 3
Proprietary Cloud-Based UCaaS Platform – We Own It
100% Cloud, using specialized protocols and advanced web technologies to deliver responsive,
user-centric services. Voice, presence, chat, contact center, video/web collaboration, CRM
integration and mobile applications, managed through an industry-leading portal
Nationwide Distribution
National sales team supporting nationwide channel partners and customers
Unlevered Free Cash Flow
16% LTM Adjusted EBITDA margin and ~8% LTM free cash flow margin
Proprietary Support Services and Systems
Leverages Integrated Operational Support System (OSS) to provide award-winning portals for
customers and channel partners resulting in industry leading customer satisfaction
Top Ten National Provider of Unified Communication Services
Serving business customers of all sizes nationwide
Corp
o
rate
Metric
s
(2
)
Total Business
Customers >20K
Avg. Monthly Revenue
per Customer ~$980
Total
Revenue
$290M
~300 Master Agents
Thousands of Distribution
Partners Nationwide
~ 750 Employees
including ~ 115 Sales Reps
Cloud Services – Delivered!
LQA Wholesale
Cloud Revenue $6M
~ 165K End-User Licenses
~ 7,200 Customer Accounts
(1) LQA Cloud Revenue Qtr ended 6/30/16 includes Cloud Access Revenue
(2) Corporate Metrics as of June 2016
2Q15 to 2Q16
~ 19% Pure Cloud Growth
~ 9% Cloud Access Growth
$89 Million Cloud Business(1)
LQA End-User
Cloud Revenue $83M
© Broadview Networks Holdings, Inc. 4
Carrier “White Label” of OfficeSuite
License Revenue from Proprietary IP
Data Collocation Revenue
+ +
Solid platform for
wholesale partners
Empower employees to
improve their own work
Online collaboration tools
included to get work done
Know your business with
big data & analytics
Instantly communicate
from any device or office
See who is available
before try to connect
Turn smartphones and
laptops into your office
Make your business apps
UC enabled to save time
Add employees and
offices anywhere instantly.
5 © Broadview Networks Holdings, Inc.
TM
PC and Mobile Softphones
Voicemail Transcription
Call Recording
HD Video, Audio Meeting
Online Fax
Secure chat
Advanced Reporting
Integrations with Google,
Microsoft, Salesforce etc.
Call Center Services
Premium Customer Service
24/7 Help
Natively Multi-location
Online management
call. chat. meet. connect. done.
ONE CLICK >
CHAT. CALL. CONFERENCE.
Boost personal productivity by knowing who
is online or ready for a call. Connect with
team members without scheduling anything.
CHANGE & EVOLVE,
IN REAL-TIME
No more calling the help desk for changes!
Adapt the service in an instant from a
browser or smartphone. Click and done.
ANY DEVICE, ANYWHERE,
ANYTIME – GO GO GO
Make calls, listen or read voicemail, fax virtually
anything, even video conference from a PC,
MAC or smartphone.
GO FACE-TO-FACE
ANYWHERE
Collaborate with anyone, anytime and from
any device with HD video and audio quality.
Share thoughts or the whole screen instantly!
WEATHER ANYTHING
Staying connected with colleagues and
customers has never been easier. Even if
your offices are closed, your business is up
and running…safe and secure in the cloud.
THE ULTIMATE WEB
APP ENABLER
Employees become more productive when
they can unify communications and activities
across leading business applications.
Unifying All Communications to
Improve Flexibility and Productivity
®
© Broadview Networks Holdings, Inc. 6
Unified Communications with MyOfficeSuite®
Enhancing business efficiency with presence, chat and analytics
© Broadview Networks Holdings, Inc. 7
2
2
OfficeSuite® Call Center Services
Delivering intelligence and clarity to call centers of all sizes
© Broadview Networks Holdings, Inc. 8
Consistently Recognized for Products,
Innovations & Support
2015, 2014, 2013
2015, 2014, 2011, 2010 2015, 2014, 2013
2012, 2011
2016, 2015, 2013, 2012, 2010
For Sales & Customer Service
Stevie
Award
© Broadview Networks Holdings, Inc. 9
All Other
Traditional
Products,
16.2%
Traditional
Voice Attached
to a T-1, 15.5%
T-1 & IP Based
Services, 34.5%
Cloud Access
Services, 8.4%
Pure Cloud
Services,
25.4%
Diversified, High Quality End-User and
Wholesale Revenue Base
© Broadview Networks Holdings, Inc. 10
(1) Percent of End-User Voice & Data revenue (excludes certain ancillary revenue classified as Voice and Data).
33.8% of End-User Voice and Data Revenue from Cloud-based Services
83.8% of End-User V&D Revenue from Accounts with T1 & IP + Cloud-based Services
20%+ of Wholesale Revenue is Cloud-based
End-User Revenue by Product 2Q16
(1)
End-User
88%
Wholesale
9%
Carrier
2%
Other
1%
Total Revenue by Type 2Q16
$0 - $500
11%
$500 - $1,000
12%
$1,000 - $5,000
37%
$5,000-$10,000
12%
> $10,000,
28%
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
Jun '12 Jun '13 Jun '14 Jun '15 Jun '16
Average MRR per End-User Business Customer
Q2 2016 Revenue Loss OfficeSuite vs. Non-OfficeSuite (1)
(1) Average of monthly revenue loss. Broadview’s calculation of revenue loss is a comprehensive metric and
may not be comparable to revenue loss or churn metrics reported by other companies in the industry.
End-User Monthly Recurring Revenue (MRR) by Account Size
Delivering Enterprise-Grade Systems and
Services to Any Size Organization
© Broadview Networks Holdings, Inc. 11
Trended Revenue Loss By Account Size (1)
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
$0-$500 $500-$10,000 >$10,000
2012 2013 2014 2015 LTM 2Q160.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Non-OfficeSuite OfficeSuite BV TOTAL
Compelling OfficeSuite® Cloud Economics
© Broadview Networks Holdings, Inc. 12
Greater profitability of Cloud-based OfficeSuite® customers compared to
traditional and T-1 access based products
- Incremental gross profit margins of SaaS business model achieved on pure cloud revenue
Greater expected revenue retention/customer life of OfficeSuite® customers
results in greater lifetime value of customer relationship
- Revenue loss experience roughly 50% better than T-1 based and traditional telecom products
Opportunity for more products per customer in OfficeSuite® bundle
Direct
47%
Channel
Partners
33%
Wholesale
20%
Pure
Cloud
Services
50%
Cloud
Access
Services
12%
NonCloud-
based
Services
38%
Diversified Channel Strategy with
Cloud-based Focus of New Sales Efforts
~ 115 Quota-bearing sales reps across all channels
Direct - 47% of new sales
• Dedicated teams focused on new customer acquisition,
conversion, renewals and customer retention
• Operations team up-selling based on existing customer needs
Channel Partners - 33% of new sales
• Approximately 300 agents
• Primary go-to-market for cloud-based services nationwide
Wholesale - 20% of new sales
• Sells our cloud and traditional products and services to other
carriers and service providers
© Broadview Networks Holdings, Inc. 13
Last Twelve Months (LTM) as of June 30, 2016.
Sales of End-User Cloud-based Services
(1)
60%+
All sales channels selling Cloud-based Services
Last Twelve Months (LTM) as of June 30, 2016.
(1) Cloud-based Services includes Cloud Access.
Extensive Cloud and Network
Service Offerings
Comprehensive Systems
and Product Development
Proprietary, Comprehensive and
Integrated Software Development
We “own the code” and set the development
priorities for OfficeSuite
®
Phone and build
software and applications which provide:
• a high degree of automation for service
delivery
• a higher degree of value beyond just
“integrated” services
• intuitive interfaces/systems for both
customers and our employees
• an ability to combine off-the-shelf
and customized software and applications
for cost-efficient deployments
• award-winning internally developed
applications in modern, scalable
languages
© Broadview Networks Holdings, Inc. 14
Broadview’s Back Office Systems
Are a Strategic Differentiator
© Broadview Networks Holdings, Inc. 15
Building Blocks
• Singular applications
• Integrated systems
• Consolidated data
• High degree of automation
• System consolidation enabler
…A well designed solution
What it means…
• Higher customer satisfaction
• Reduced operating costs
• Faster revenue realization
• Effective sales experience
• Increased sales
• Scalable
• Adaptable
Completely Integrated Company with
Proprietary Cloud/Hosted Platform and OSS
© Broadview Networks Holdings, Inc. 16
2005
Allow Broadview to
control the
developmental roadmap
to key OfficeSuite ®
technology
O
b
je
c
ti
v
e
Enhance scale,
diversify product
portfolio, expand
fiber network O
b
je
c
ti
v
e
Create merger of
equals with a new,
T-based strategy,
scale and
operational
efficiencies
O
b
je
c
ti
v
e
2008 2007 2006 2009
Improve product
offerings and
strengthen and increase
market footprint O
b
je
c
ti
v
e
Strengthen presence in
existing market, expand
next-gen product
portfolio O
b
je
c
ti
v
e
2013
Broaden OfficeSuite® IP
control, expand next-gen
product portfolio O
bje
c
ti
v
e
© Broadview Networks Holdings, Inc.
Enhanced Value of Customer Base Revenue $M
Cloud is Our Growth Engine
Revenue trajectory
Cloud revenue growing and
becoming material % of Total
Revenue
Legacy/traditional revenue decline
slowing as increasingly bundled with
Cloud and T-1 & IP
Shifting revenue to higher
value-added “UCaaS”
cloud services
Cloud offers higher margin
services for Broadview and
enhanced features and
functionality for customer
Greater % of revenue coming from
larger clients, resulting in reduced
churn
Higher life time value of
revenue/customers being added
compared to revenue/customers
churning
30% 30%
28% 29%
27% 27%
50%
47%
45% 45%
43% 42%
20%
23%
27%
26%
30% 31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2Q-15 1Q-16 2Q-16
Total Revenue %
Total Cloud
T-1 Acct Revenue
Other Revenue
17
'14 / '15 / Q2-16/
'13 '14 Q2-15
End-User Pure Cloud $40.7 $45.5 $53.5 $13.2 $15.0 $15.7 11.6% 17.6% 19.3%
End-User Cloud Access 16.9 17.5 19.2 4.7 5.1 5.2 3.4% 9.8% 9.0%
End-User Cloud 57.7 63.0 72.7 17.9 20.1 20.9 9.2% 15.5% 16.5%
Whls Pure Cloud 1.9 2.4 2.6 0.6 0.7 0.7 30.2% 6.1% 11.6%
Whls Cloud Data Collo & Cloud Access 4.0 3.9 3.2 0.8 0.8 0.8 -2.7% -19.6% -0.5%
Wholesale Cloud 5.9 6.4 5.8 1.4 1.5 1.5 7.7% -9.8% 4.7%
TOTAL CLOUD 63.6 69.4 78.5 19.3 21.6 22.3 9.0% 13.1% 15.7%
T-1 & IP Accts 156.1 141.6 130.3 32.8 31.1 31.0 -9.3% -7.9% -5.5%
Other Revenue 95.6 89.5 82.3 21.0 19.2 19.5 -6.4% -8.1% -6.8%
Total $315.4 $300.5 $291.1 $73.1 $71.9 $72.9 -4.7% -3.1% -0.3%
1Q-16 2Q-162Q-152014Revenue Trend 2013 2015
$40.7 $45.5
$53.5 $58.3
$62.7
$0
$20
$40
$60
$80
$100
2013 2014 2015 LTM 2Q16 LQA 2Q16
Whls Data Collo & Cloud Access Whls Pure Cloud End-User Cloud Access End-User Pure Cloud
$13.2 $13.5 $14.2
$15.0 $15.7
$0
$5
$10
$15
$20
$25
2Q15 3Q15 4Q15 1Q16 2Q16
Whls Data Collo & Cloud Access Whls Pure Cloud End-User Cloud Access End-User Pure Cloud
Revenue Years
$21.6
$19.3
$20.7
$19.8
$M $M
Cloud Revenue Trends
$22.3
© Broadview Networks Holdings, Inc. 18
Revenue Quarters
$84.5
$63.6
$78.5
$69.4
$M
$89.4
$21.8
$15.1 $14.2
$21.9
$0
$5
$10
$15
$20
$25
2013 2014 2015 LTM 2Q16
$23.3
$24.2
$25.4
$23.9
$22
$23
$23
$24
$24
$25
$25
$26
$26
2013 2014 2015 LTM 2Q16
$45.1
$39.3 $39.6
$45.8
14.3%
13.1% 13.6%
15.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$0
$15
$30
$45
$60
$75
2013 2014 2015 LTM 2Q16
Reinvesting Free Cash Flow in Transformation
• Continued spend to expand
OfficeSuite® functionality and
service offering
• Capital expenditure increase driven
by success based expenditures, only
made once new revenue is acquired
• Redirecting new revenue acquisition
spend on nationwide distribution
Unlevered Free Cash Flow (1,2)
Capital Expenditures Adjusted EBITDA (1)
(1) 2013 Adjusted EBITDA and Unlevered Free Cash Flow include add back of $1M
non recurring tax charge recorded in 4Q13.
(2) Unlevered Free Cash Flow defined as Adjusted EBITDA less Capital Expenditures.
$M $M
$M
© Broadview Networks Holdings, Inc. 19
$9.7 $10.3
$11.4 $11.5
$12.6
13.3% 14.0%
15.8% 16.0%
17.2%
0%
5%
10%
15%
20%
-$1
$1
$3
$5
$7
$9
$11
$13
2Q15 3Q15 4Q15 1Q16 2Q16
$19.3 $19.8 $20.7 $21.6
$22.3
$0
$15
$30
$45
$60
$75
$90
2Q15 3Q15 4Q15 1Q16 2Q16
Other Re ve nue T-1 & I P Accts Cloud
$3.4 $3.1
$6.3
$5.7
$6.8
$0
$2
$4
$6
$8
2Q15 3Q15 4Q15 1Q16 2Q16
(1) Unlevered Free Cash Flow defined as Adjusted EBITDA less Capital Expenditures.
Capital Expenditures
Adjusted EBITDA
$6.3
$7.2
$5.1
$5.8 $5.8
$0
$2
$4
$6
$8
2Q15 3Q15 4Q15 1Q16 2Q16
Revenue
Unlevered Free Cash Flow (1)
$71.9 $73.1 $72.1 $73.0
$M $M
$M $M
Reinvesting Free Cash Flow in Transformation
$72.9
© Broadview Networks Holdings, Inc. 20
Balance Sheet
© Broadview Networks Holdings, Inc. 21
Components of Debt $M
($ Millions) 12/31/15 06/30/16
Assets
Cash and Cash Equivalents $15.2 $15.8
Certificates of Deposit 1.0 1.0
Accounts Receivable 23.2 22.4
Other Current Assets 6.5 6.9
Total Current Assets 45.9 46.1
Gross PP&E 340.3 351.9
Accumulated Depreciation (286.2) (300.1)
Property & Equipment, net 54.1 51.8
Goodwill 98.2 98.2
Intangible Assets, net 1.4 1.0
Other Assets 3.3 3.3
Total Assets $202.9 $200.3
Liabilities & Stockholders' Deficiency
Current Liabilities $34.4 $32.4
Current Portion of Debt 0.3 0.2
Total Current Liabilities 34.7 32.6
Revolving Credit Facility 12.5 11.5
Long Term Notes 150.0 150.0
Capital Lease Obligations 0.2 0.1
Other Liabilities 16.3 16.5
Total Liabilities 213.7 210.7
Total Stockholders' Deficiency (10.8) (10.4)
Liabilities & Stockholders' Deficiency $202.9 $200.3
12/31/15 06/30/16
Revolving Credit Facility $12.5 $11.5
Capital Lease Obligs. (incl. CP) 0.5 0.4
Senior Secured Notes 150. 150.0
Total Debt $163.0 $161.9
Debt and Liquidity
© Broadview Networks Holdings, Inc. 22
• Top Down Run Rate – $45.8M LTM Adjusted EBITDA less $23.9M LTM Capex less
$17M interest and related debt service
• Cash balance at 6/30/16: $15.8M
• $7.8M Interest Coupon was paid 5/13/16
• $25M revolving credit facility due October 2017 provided by CIT, $11.5M drawn at
6/30/16
• $150M 10.5% senior secured notes due November 2017
Broadview Highlights
© Broadview Networks Holdings, Inc. 23
Proprietary Cloud-Based UCaaS Platform – We Own It
100% Cloud, using specialized protocols and advanced web technologies to deliver responsive,
user-centric services. Voice, presence, chat, contact center, video/web collaboration, CRM
integration and mobile applications, managed through an industry-leading portal
Nationwide Distribution
National sales team supporting nationwide channel partners and customers
Unlevered Free Cash Flow
16% LTM Adjusted EBITDA margin and ~8% LTM free cash flow margin
Proprietary Support Services and Systems
Leverages Integrated Operational Support System (OSS) to provide award-winning portals for
customers and channel partners resulting in industry leading customer satisfaction
Top Ten National Provider of Unified Communication Services
Serving business customers of all sizes nationwide
APPENDIX
© Broadview Networks Holdings, Inc. 24
EBITDA Reconciliation (Non GAAP measure)
© Broadview Networks Holdings, Inc. 25
Fiscal Year Ended December 31, June 30, Sept 30, Dec 31, March 31, June 30,
($ in Thousands) 2013 2014 2015 2015 2015 2015 2016 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Statement of Operations Data:
315,363$ 300,469$ 291,109$ 73,079$ 73,040$ 72,137$ 71,923$ 72,865$
147,505 139,412 129,977 32,313 32,101 31,995 31,309 30,818
167,858 161,057 161,132 40,766 40,939 40,142 40,614 42,047
124,001 122,354 123,667 31,212 31,188 30,237 29,097 29,844
32,839 29,831 29,440 7,350 7,348 7,283 7,175 7,134
11,018 8,872 8,025 2,204 2,403 2,623 4,342 5,069
(1,072) - - - - - - -
(17,196) (16,790) (16,485) (4,017) (4,019) (4,226) (4,189) (4,202)
33 23 26 5 6 8 10 8
(7,217) (7,895) (8,434) (1,808) (1,610) (1,595) 163 875
(1,264) (1,332) (1,358) (415) (332) (280) (323) (306)
(8,481)$ (9,227)$ (9,792)$ (2,223)$ (1,942)$ (1,875)$ (160)$ 569$
Other Financial Data:
42,785$ 38,703$ 37,465$ 9,554$ 9,751$ 9,905$ 11,517$ 12,203$
44,098 39,265 39,622 9,701 10,260 11,406 11,531 12,551
14.0% 13.1% 13.6% 13.3% 14.0% 15.8% 16.0% 17.2%
(8,481)$ (9,227)$ (9,792)$ (2,223)$ (1,942)$ (1,875)$ (160)$ 569$
17,196 16,790 16,485 4,017 4,019 4,226 4,189 4,202
(33) (23) (26) (5) (6) (8) (10) (8)
1,264 1,332 1,358 415 332 280 323 306
32,839 29,831 29,440 7,350 7,348 7,283 7,175 7,134
42,785 38,703 37,465 9,554 9,751 9,905 11,517 12,203
Costs associated with early termination of lease................ - - - - - - - 91
Severance and related separation costs............................ 241 562 193 147 46 - - -
Professional fees related to strategic initiatives.................. - - 696 - 463 233 14 257
Reorganization items....................................................... 1,072 - - - - - - -
Costs associated with settlements................................... - - 1,268 - - 1,268 - -
44,098 39,265 39,622 9,701 10,260 11,406 11,531 12,551
(23,335) (24,203) (25,431) (6,288) (7,185) (5,121) (5,822) (5,763)
20,763$ 15,062$ 14,191$ 3,413$ 3,075$ 6,285$ 5,709$ 6,788$
(1) Adjusted EBITDA represents net loss before depreciation and amortization, interest income and expense, provision for income taxes,
and other non-recurring items described in the table above that are not part of our core operations.
(2) Capital expenditures reflect all additions to PP&E during the calendar year, regardless of timing of cash payments for such purchases. Such presentation differs from
the Cash Flow statement in the Company's SEC-filed financial statements.
(3) 2013 capital expenditures includes full pro forma cost of Common Voices acquisition.
(4) Free Cash Flow defined as Adjusted EBITDA less capital expenditures.
Free Cash Flow (4)................................................................
Revenues...............................................................................
Cost of revenues (exclusive of depreciation and amortization)......
Selling, general and administrative............................................
Depreciation and amortization..................................................
Gross profit..........................................................................
Income (loss) from operations................................................
Adjusted EBITDA (1)...............................................................
Reorganization items...............................................................
Provision for income taxes.......................................................
EBITDA..................................................................................
Net loss...............................................................................
Interest expense.....................................................................
Adjusted EBITDA margin.........................................................
Capital expenditures (2), (3).....................................................
Interest income.......................................................................
Loss before provision for income taxes....................................
Net loss.................................................................................
Interest expense.....................................................................
Depreciation and amortization..................................................
Interest income.......................................................................
Provision for income taxes.......................................................
Adjusted EBITDA..................................................................
EBITDA................................................................................