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8-K - 8-K - GLOBALSCAPE INCglobalscape8k050517.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