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8-K - 8-K - GLOBALSCAPE INC | globalscape8k050517.htm |
Exhibit 99.1
© 2017 Globalscape Globalscape (NYSE: GSB) April 2017 Global Leader in Secure Information Exchange INVESTOR PRESENTATION
Safe Harbor Statement 2 © 2017 Globalscape This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "would," "exceed," "should," "anticipates," "believe," "steady," "dramatic," “expect,” and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s Annual Report on Form 10-K for the 2016 fiscal year, filed with the Securities and Exchange Commission on March 27, 2017.
Who We Are 3 © 2017 Globalscape Globalscape is a pioneer and leader in the secure and reliable exchange of business information Our managed file transfer (MFT) platform secures and enables mission-critical exchanges of data We help organizations control, manage and transfer data seamlessly across multiple locations Trusted and relied upon by thousands of customers all over the world
Globalscape by the Numbers 4 © 2017 Globalscape 95+%CustomerRetention $86MMarket Cap 13,000 Customers in150+ Countries Headquartered inSan Antonio, TX 136employees 18consecutive quarters of profitability $26MCash + investments $0debt 1.5% dividend yield Data as of 3/31/2017
OPPORTUNITY 5 © 2017 Globalscape NYSE MKT: GSB
The Problem The Solution All organizations need to manage their dataSome because their data is highly sensitive, others because their industries require it due to industry regulations and compliance mandatesBut they also need to access iteasily and efficiently Challenge: How do organizations keep files under lock and key, but also readily accessible at the same time? Managed File Transfer (MFT)Helps organizations manage and protect their sensitive information in any situationUsed by some of the largest organizations in the worldAutomated, quick, simple solution to a highly complex data management problem © 2017 Globalscape 6
Billion-Dollar Global MFT Market 7 © 2017 Globalscape 1Source: MarketsandMarkets Data SecurityGovernanceCompliancePerformance ImprovementsCost Efficiency Cloud-based solutions gaining tractionHeavy investment in MFT by North American enterprises to improve the processes and B2B integration Scalability Lower upfront costs compared to on-premises solutionsReduced maintenance costs Expected to Reach $1.5B by 20201 GrowthDrivers IndustryTrends AdoptionIncentives
8 © 2017 Globalscape The Different Types of File Transfer Automated transfer between two servers with no (error-prone) human interaction Server-to-Server File Transfer A software application sends a file to a server or an email address, or sends a notification that a file is available for pickup Server-to-Person File Transfer Users send files to each other through email, such as Outlook, or an online portal Person-to-Person File Transfer A user sends a file to a server, such as a shared drive in your office, where it is available to your coworkers or the server itself Person-to-Server File Transfer
9 © 2017 Globalscape I need to seamlessly integrate systems. I need visibility and control over my data. My department needs to comply with industry and government regulations. My organization needs the ability to scale painlessly. Why Do Customers Purchase MFT?
10 © 2017 Globalscape Industries That Need MFT Healthcare Retail Financial Services Entertainment & Media Government
What We Do 11 © 2017 Globalscape AUTOMATED DATA TRANSFER EASILY INTEGRATE LEGACY SYSTEMS MULTI-LAYERED SECURITY CLOUD/ VIRTUALIZED ENVIRONMENT-CAPABLE SHARE FILES VIA MOBILE DEVICES OR THE WEB MODULAR DESIGN CENTRALIZED MANAGEMENT IDENTITYAND ACCESS MANAGEMENT A ROBUST PLATFORM DESIGNED TO SECURELY TRANSFER DATA ENHANCED FILE TRANSFER (EFT) OPERATIONAL EFFICIENCY VISIBILITY AND REPORTING COMPLIANCE GOVERNANCE Globalscape Features Broader Industry Applications Globalscape Core Solution
Go-to-Market Strategy © 2017 Globalscape Multiple Customer Facing Sales Teams Channel Facing Sales Team Dedicated Sales Engineering Resources Business Development Resources Demand GenerationSignificantly Increases Reach 12
World-Class Customer Base 13 © 2017 Globalscape Financial Services Entertainment & Media Technology Retail Healthcare Government
Case Study: U.S. Army 14 © 2017 Globalscape U.S. Army Standard Army Management Information System (STAMIS) Relies on Globalscape to Protect Critical Data Globalscape helps the Army ensure safe delivery of mission-critical logistics and maintenance data around the world, allowing the Army to comply with rigorous data security requirements, while minimizing the cost and timelines for both software development and sustainment. Working relationship for over a decade NYSE MKT: GSB
Case Study: Fast Food Chain 15 © 2017 Globalscape International Fast Food Chain Eliminates Inefficiencies with Globalscape In an effort to replace and consolidate legacy data transfer systems, Globalscape helped streamline data transfer processes and secure all data movement within their network. Globalscape improved overall operational efficiency, as the fast food company saved time with less overall maintenance and no longer faced manpower limitations. Globalscape helped safeguard their business critical and sensitive data, providing the fast food company with greater control over data security within their network. NYSE MKT: GSB
Case Study: Well 16 © 2017 Globalscape Leading UK Pharmacy Simplifies Data Management with Globalscape Globalscape improved overall operational efficiency for Well, saving the Well IT department vast amounts of time by streamlining manual data transfer processes. Well’s financial data transfers are also more secure and have a reduced risk for payment fraud. “We chose Globalscape because it was the right level of functionality with plenty of scope for future improvements, while still fitting our available budget.” " NYSE MKT: GSB
LANDSCAPE 17 © 2017 Globalscape NYSE MKT: GSB
Global MFT Software Revenue by Vendor © 2017 Globalscape 2015 Global MFT Market Share 18 Source: IDC Worldwide Managed File Transfer Software Market Shares, 2015 (May 2016) 2015 MFT Growth (%)(Published May 2016)
19 © 2017 Globalscape Why We Win Industry pioneer with longevity in the marketplace Specialist in the Managed File Transfer market Relentless focus on customers, supported by retention and support rates Technology is easy to set up, manage and use – out of the box Best First Focused Simple
Flexibility: (Fastest Growing Segment) SaaS-based EFT Cloud Services orEFT in Amazon Web Services (AWS) / Microsoft Azure for additional control Our Approach for the Future 20 © 2017 Globalscape Platform or Fully Managed Service Offering: Globalscape and its partners will manage your EFT for you Flexible Licensing: Traditional perpetual model (BYOL), monthly subscription or Hourly, fully metered for dynamically scaling environments Cloud-Focused Moving Forward FLEXIBLE MANAGEABLE ADAPTABLE
FINANCIALS 21 © 2017 Globalscape NYSE MKT: GSB
22 © 2017 Globalscape Selected Financial Data Q1 2017 $0.03 vs. $0.02 in Q1 2016 $751,000 (up to 92% YOY) 2016 Net income $4 million(marking 17 consecutive quarters of profitability) Diluted EPS $0.18 $8.3 million, up 13% YoY 13% increaseQ1 2017 revenue compared to Q1 2016 Revenue $33.3 million, up 8% YoY Adjusted EBITDA $7.1 million Strong Balance Sheet (3/31/2017) $26MCash & Investments $0 notes payable & long-term debt $1.4 million, up 69% YoY
Steady Financial Performance 23 © 2017 Globalscape Gross Profit$ millions Net Income$ millions Revenue$ millions NYSE MKT: GSB
Key Strategic Growth Opportunities 24 © 2017 Globalscape Accelerate organic growth via the EFT platform Expand focus partnerships Creating/developing/acquiring technologies thatare key to the data management strategyof any IT organization: data movementdata integrationdata security Globalscape transforming into a more innovative, scalable, and cloud-centric organization Focus onCloud offerings/consumption models
Key Highlights 25 © 2016 Globalscape Consistent Revenue Growth Industry pioneer in managed file transferDiversified customer base of industry leadersPredictable business model with highly recurring revenue stream18 consecutive quarters of profitabilityExceptional customer retention rate at 95+%Strong balance sheet with $26M in cash and no debt
CONTACT US NYSE MKT: GSB 26 © 2017 Globalscape Investor Relations:Matt Glover or Najim MostamandLiolios Group, Inc.(210) 801-8489IR@globalscape.com
APPENDIX 27 © 2017 Globalscape NYSE MKT: GSB
Leadership Profile 28 © 2017 Globalscape Company leadership team are experts in their chosen fields On average the team has 20 years of experience in the technology and software industries, specifically security and networking Full leadership team is committed to transparency and visibility Role they play executing company strategy is key to our success NYSE MKT: GSB
Leadership Team © 2017 Globalscape 29 Matt GouletPresident & CEO Jim AlbrechtCFO Daniel BurkeVP of Worldwide Sales Peter MerkulovVP of Product Strategy and Technology Alliances Greg HofferVP of Engineering Gary MullenVP of Marketing Adam SniderVP of Operations Andrea FarmerVP of Human Resources