NEEDHAM 21 st ANNUAL GROWTH CONFERENCE January 16, Dan Mondor, Chairman and CEO Steve Smith, EVP and CFO

Transcription

1 NEEDHAM 21 st ANNUAL GROWTH CONFERENCE January 16, 2019 Dan Mondor, Chairman and CEO Steve Smith, EVP and CFO

2 Safe Harbor Safe Harbor Statement The following presentation contains statements about expected future events that are forward-looking and subject to risks and uncertainties. For these statements, we claim the safe harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of For a discussion of factors that could cause actual results to differ materially from expectations, please refer to the risk factors described in our filings with the SEC. Non-GAAP Financial Measures Non-GAAP gross margins, operating expenses, and earnings per share exclude restructuring charges, share-based compensation expenses, amortization of the debt discount and debt issuance costs associated with our convertible notes, charges related to acquisition and divestiture activities and acquisition-related intangible-asset amortization. This presentation contains references to certain non-gaap financial measures and should be viewed in conjunction with our press releases and supplementary information on our website ( which present a complete reconciliation of GAAP and Non-GAAP results. 2

3 Inseego 4G/5G Device-to-Cloud Solutions Enable Transformation of the Global Economy 3

4 NORTH AMERICA (GLOBAL HQ) EUROPE NASDAQ: INSG Inseego HQ (Corp and Regional) ASIA AUSTRALIA & NEW ZEALAND AFRICA DigiCore (Ctrack)Est. Feeney Wireless Est. Feeney Wireless Acquisition Rebranded to Inseego Novatel Wireless Est. Listed Nasdaq DigiCore (Ctrack) Acquisition 1M+ Global SaaS subscriptions under contract 9 Aviation customer deployments ~450K Ctrack vehicle tracking & management ~640K Subscription Management (incl. enterprise customers) Tens of Millions devices shipped Presence in over 50 markets worldwide ~870 employees globally ~$200M trailing 12 months revenue 4

5 Transformation to Inseego 2.0 GROWTH & DELEVERAGE Deliver New High Margin Products and Services Focus on High Growth Markets Grow Adj. EBITDA Generate Cash to Deleverage Balance Sheet PLAN & EXECUTE ON NEW STRATEGY Launched Inseego 2.0 with 3 Year Growth Strategy Development of Comprehensive 5G Portfolio 1st Mover in Aviation Vertical (Ctrack) RESTRUCTURING & CREATE FOCUS Eliminated Near-Term Liquidity Risk Annualized OPEX Reduction Greater than $30M New Management Team 5

6 Leadership Team DAN MONDOR Chairman & CEO STEVE SMITH EVP & CFO ASHISH SHARMA CMO & EVP IoT & Mobile Solutions JOHN WELDON SVP Enterprise SaaS Solutions SPECTRALINK MITEL CONCURRENT NORTEL TETRAVUE MICROPOWER XITRON APPLIED MICRO SPECTRALINK GRAYMATICS ERICSSON QUALCOMM VERIZON TELOGIS COMTECH SIMON RAYNE SVP & Managing Director UK, EMEA & APAC SPECTRALINK MICROSOFT SONY/ERICSSON MARK FRISCH SVP Service Providers, Americas ERICSSON NORTEL COMSAT RICK HARRIS SVP Enterprise, Americas SYMANTEC IBM NORTEL JACQUES FRADET SVP Operations KYOCERA QUALCOMM DENSO 6

7 5G and IoT Device-to-Cloud Growth Opportunity* * Annual U.S. TAM Fixed & Mobile $5B+ IoT & Mobile Solutions U.S. TAM IIoT Solutions $1.5B+ $ Enterprise SaaS Solutions Intelligent Connected Assets Aviation & Other IoT Cloud Verticals Global TAM $6B+ Global TAM $2B+ Multi-Billion Dollar Revenue Opportunity 7

8 Inseego Firsts - Mobilizing the Intelligent Enterprise IoT & MobileSolutions 2G 3G 4G NR Fueling the mobile revolution: FIRST Modem for PDAs Empowering the masses with access to mobile data: FIRST Mobile Hotspot Leveraging innovation catapults IoT applications: FIRST Cat 18 LTE Gigabit MOBILE HOTSPOT Nationwide broadband footprint EARLY MOVER with mmwave and sub s 2000 s 2010 s TODAY Enterprise SaaS Solutions 1st GSM based Fleet Management platform in Europe Award-winning Cloud Telematics solution for high-value asset management Industry s 1 st end-to-end Airport Asset Tracking solution 8

9 5G Secure Device-to-Cloud Solution Connected Airport Mobile Solutions Intelligent Insights Integration with Customer Systems Smart City Internet of Things Smart Edge Solutions SaaS Solutions Enterprise Integration Integrated Solutions Connected SMB Connected Enterprise IoT Solutions Subscription Management Secure Data Connected Car Connected Assets 9

10 The Trillion Dollar Global Economic Impact A UNIFIED GLOBAL PLATFORM GLOBAL OPERATORS CONFIRMED TRIALS/DEPLOYMENT 3 KEY RANGES OF NEW SPECTRUM Sub 6 GHz 28 GHz 39 GHz 10

11 Inseego #Making5GReal 5G Fixed Wireless N. America: Support world s first 5G fixed wireless launch with Verizon Full 5G NR Portfolio Inseego introduces complete 5G NR portfolio for Mobile, Fixed Wireless and IIoT Asia-Pac: Selected by Tier-One operator for 5G NR sub-6ghz North America: Verizon announces Inseego 5G mmwave mobile hotspot 5G NR Mobile 2019 Asia-Pac: Telstra announces Inseego 5G sub-6ghz mobile hotspot 11

12 Fixed Wireless Routers 4G/5GNR Common Platform - Rapid deployment into new Operators - Foundation for new categories - Proven, proprietary antenna design Designed and Developed in USA - Superior security - Controlled development Mobile Hotspots IIoT Gateways 12

13 Intelligent Connected Light Commercial Vehicle Management Assets Unified Platform 360 Visibility Vehicle Driver Cargo Safety, Security and ROI Heavy Commercial for Enterprises Aviation Asset Management High Growth, Nascent Market Purpose-Built for Aviation Strategic Partnership: KLM 13

14 Inseego Device-to-Cloud Solutions Trusted by Blue Chip Companies Fortune 500 Customers and Partners // Government and Enterprise Customers IoT Solutions Mobile Solutions 5GAdditional *under NDA South Africa Enterprise SaaS Solutions 14

15 Financials

16 Q Results Record Adjusted EBITDA 70,000 Revenue 6,000 Adjusted EBITDA 60,000 50,000 5,000 4,000 3,000 40,000 30,000 2,000 1,000-20,000 10,000 (1,000) (2,000) (3,000) - Q1-17 Q2-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-18 Q2-18 Q2-18 Q3-18 (4,000) Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Enterprise SaaS Solutions IoT & Mobile Solutions Consolidated Consolidated 80.0% Non-GAAP Gross Margin 25,000 Non-GAAP Operating Expense 70.0% 60.0% 20, % 40.0% 15, % 10, % 10.0% 5, % Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Enterprise SaaS Solutions IoT & Mobile Solutions Consolidated - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q

17 Inseego Target Operating Model KEY GROWTH DRIVERS 5G Fixed and Mobile Accelerating SMB/Fleet Telematics Growth Aviation Plus New IoT Cloud Verticals Industrial IoT TARGET Revenue Growth Adj. EBITDA Margin FCF as % of Adj. EBITDA Net Leverage Ratio > 25% CAGR > 15-20% > 60% 2x 17

18 Investment Highlights Management Team with Proven Track Record 5G, Industrial IoT and Cloud are Growth Drivers Recurring Revenue, High Margin Enterprise SaaS Solutions Early Mover Advantage in Emerging 5G Device-to-Cloud Market Deleverage and Strengthen the Balance Sheet 18

19 NASDAQ: INSG Global HQ: San Diego, CA THANK YOU For more information contact: Investor Relations Media Relations