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1STRICTLY CONFIDENTIAL
Investor PresentationMay of 2020
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2STRICTLY CONFIDENTIAL
Safe Harbor Statement and Merger Update
This presentation contains forward-looking statements relating to our expectations, plans and prospects. These statements are based
on information available to us at the time of this presentation and, by their nature, involve risks and uncertainties that could cause
actual results to differ materially from those described in the forward-looking statements. Risks and uncertainties associated with our
business are described in our annual report on Form 10-K for the period ending December 31, 2019 and any subsequently
filed periodic reports on Form 10-K or 10-Q. We assume no obligation to, and do not intend to, update any forward looking statements.
Customers who purchase our services should make sure that their decisions are based on features that are currently available. Please be
advised that any unreleased services or features referenced in this presentation or other public statements are not currently available
and may not be delivered on time or at all.
For details on the proposed merger between Qumu and Synacor, Inc., we encourage you to review our recent SEC filings which can be
found on the investor section of our website.
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Who is Qumu?
Qumu is the leading provider of best-in-class tools to create, manage, secure, distribute and measure the
success of live and on demand video for the enterprise.
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• Qumu provides best-in-class tools to create, manage, secure, distribute and measure the success of live and on-demand video within the enterprise
• We provide comprehensive and flexible connectivity inside or outside of the firewall
• We provide seamless integrations with existing video conferencing and collaboration tools to create, release, secure and distribute video
• We are trusted by Global 2000 firms in Financial Services, Manufacturing, Professional Services, Health Care and Telecom—when security is critical
• We are ranked as a Leader in the EV space in the Gartner Magic Quadrant
• We offer a flexible deployment model with Cloud, Hybrid and On Premise options
• Our Cloud (SaaS) platform is white labeled by partners to support live managed events, and to power learning management system (LMS) video platforms
Business Overview
Who is Qumu?
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High Level Overview
Headquarters: Minneapolis, MN
Full-Time EEs: 124
Ownership: NASDAQ: QUMU
Year Founded: 2002
Financials and Metrics
Global Employees
183 Enterprise Customer Deployments
64% of Customers Installed as Hybrid or Cloud
$19.25MM ARR in FY 2019
92% Customer Retention
>72% Gross Margin in FY 2019
San Francisco (19)
Minneapolis (26)
USA Remote (16) London / Europe (40)
Hyderabad (23)
Qumu by the Numbers
Key Customers and Partners
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1. Wainhouse Research: Enterprise Streaming and Webcasting Report, 2019
Market Leading Enterprise Video Platform
Attractive Market with Favorable Growth Trends
Marquee Customer Baseof Market Leaders
Improving Recurring Revenue Metrics
High-Margin Subscription Business
Experienced ManagementTeam with Deep Industry Roots
39.3%of Customers are Global 2000
$17.1M → $19.3M2018 → 2019 ARR
150+Years of Qumu Senior Leadership Experience
4+ Years Average Customer Tenure
92%2019 Customer Retention
Growing 2.5%+ YoY
124Total Full-Time EEs
66% → 72% 2018A → 2019A Gross Margin
$2.5B2019 Enterprise Streaming Market Size1
15.3% 2018–2022 Market CAGR1
Key Investment Highlights
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Qumu Analyst Summary
CurrentPlacements
Gartner: EVCM Leader
Aragon: EVCM Leader
Wainhouse: EVCM Leader
Aragon: VC Contender
* From an Analyst perspective, this is the best position we’ve ever been in as a company
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Qumu Customers
by the Numbers
• 72 members of the Forbes Global 2000
• 45 members of the Fortune 500
• 14 of the World’s Most Valuable Brands
• 28 of the Fortune Most Admired Companies
• All 5 of the Top 5 Credit Card Companies in the World
• 10 of the Forbes World’s Best Banks
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FinancialServices
Healthcare andLife Sciences
Manufacturing
ProfessionalServices
Telecom andTechnology
Customer Breakdown by Industry and Vertical
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All Qumu Customers by Installation Type
Hybrid15.5%
On Premise35.9%
Cloud48.6%
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All Qumu Customers by Region
APAC26.7%
EMEA29.0%
AMER44.3%
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All Qumu Customers by Industry
Other6.9%
Govt, Utilities & Nonprofit
6.8%Health & Life
Science7.9%
Telecom & Tech8.5%
Retail, Food & Bev9.1%
Pro Services10.2%
Manufacturing13.1%
Banking, Finance & Insurance
37.5%
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The Market Before COVID-19
Market Sizing and Growth Through 2022The Technology Stack
EnterpriseVideo
VideoConferencing
Video Content
Mgmt
Video Streaming
Video Capture/Record
UnifiedComms
$39B growing to $65B
VideoContent
$4B growing to $6B
Collaboration$6B growing to
$11B
Content Mgmt
$6.9B growing to $11B
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The Market Today
Market Sizing and Growth Through 2022The Technology Stack
UnifiedComms
?
VideoContent
?Collaboration
?
Content Mgmt
?
• Consolidation is happening
• Lines between technologies are becoming blurred
• The entire video collaboration space is being redefined as we speak
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Our WorldRight Now
Executives are being challenged with business continuity now more than ever
Employees are scrambling to remain productive in spite of travel restrictions, work at home mandates and canceled events
Enterprises across the globe are adjusting to what will very likely be a ‘new normal’
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What Does the ‘New Normal’
Look Like?
Enterprises are rethinking investments in travel and physical office space
Budgets are being adjusted for investment in new collaboration technologies, or the hardening of existing platforms
The secure, scalable and reliable streaming of video within the enterprise is becoming an ‘essential service’
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2020 Market Approach
Sales Channel Core Strategy
Global 2000
Global 10,000+ Vertical Applications
White Label / OEMSMB + Vertical Applications
Financial Services, Manufacturing, Telecom, Professional Services, Life Science, Government and Utilities
Webcasting, Employee Onboarding, Marketing Automation, Crisis Comms, Learning Management, Recruiting
BT, Whitlock, AT&T, Genesis, Yorktel, VCube
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Sales Execution and New Customer Growth Increase volume of qualified leads into sales pipeline Secure top rankings with industry analysts and influencers Invest in top management and sales talent globally Expand channel efforts
Sales Execution and New Customer Growth
Customer Success and Retention
Financial Strength
Market-Focused Product
Innovation
Technical and Operational Excellence
Strong Financial ResultsCustomer Success and Retention
Dedicate management to all accounts Improve retention rate to 92% Convert customers to intelligent hybrid platform Focus on the message of distributed computing
Market-Focused Product Innovation Build on our strengths of Delivery and Extensibility Deliver an Intelligent Video Platform—including architecture,
features and functionality to address self-service and distributed computing within the enterprise
Financial Strength Continuous improvement of operating expenses Deliver new revenue streams via partners Enhance Balance Sheet
Four Core Pillars for Success
Growth Strategy
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What isthe Qumu Enterprise Video as a
Service Platform?
1. A Full Stack Solution
2. Scalability
3. An Open Architecture
4. Extensibility
5. Use Case Flexibility
6. Security
7. Self-Service
EVaaS™ is a Comprehensive Set of Enterprise Video Services with the Following Components:
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The Qumu PlatformEdge Computing
Peer-to-PeerPublic CDN
WebRTCeCDN
Conferencing AppsDesktop WebcamsStudio EncodersMobile DevicesUC Platforms
iPTVDigital SignageLearning ManagementLive and VOD CaptioningVideo Conference Streaming
AnalyticsWorkflowsTranslation
TranscriptionSpeech-to-Text
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The Qumu Platform
Marketing AutomationLearning Management
ECM and WebsitesSocial Business
CRM
WhitlockAVI-SPLYorktelVcube
IGELPexipCitrixHive and KollectiveMicrosoft and Zoom
BTAT&T
Vodafone
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Mobile
Desktop
Screen Capture
Slide Capture
Studio
Unified Comms
Live Events
File Upload
Mobile
Desktop
Public Display
Website
Portal
Intranet
Content Mgmt
Portals
Speech Search
AnalyticsRest APIs
Content Creation
Encoding
Transcoding
Cloud | On Premise | Hybrid
An End-to-End Intelligent Video Platform
Pathfinder
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Professional Services as a Revenue Component
VideoManagement Video
Delivery
UnifiedComms
ProfessionalServices
Implementation Custom Portals Mobile Apps
Advanced Reporting Load Testing Data Migration
APIs Consulting Platform Audits
Partner Integrations Live Event Support Training
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2020 Financial Update
Key HighlightsFinancial Summary• YTD revenue is $6.2 million vs. $7.1 million in the first quarter
2019. PY included large term license renewals, for which the revenue is recognized up front. During the last weeks of March 2020, Qumu received customer orders of $9.7 million total contract value, which were directly attributable to the new working environment caused by the pandemic COVID-19. Of the $6.2 million in Q1 revenue, approximately $0.5 million in revenue was attributable to a large customer order. We expect to recognize revenue from this order of approximately $3.8 million in the second quarter 2020, subject to Qumu’sfulfillment of its delivery and deployment obligations.
• YTD gross margins were 66.5% vs 78.3% in the first quarter 2019, due primarily to product mix
• Renewal rate is performing well at 90%
• Cash remains strong at $8.4 million as of 3/31
Building Momentum Drives Strong First-Half 2020 Results
COVID-19 has been an unprecedented change agent, leading to increased bookings and sales activity, giving us confidence for 2020. Improved execution around the perpetual license to SaaS transition is underway along with top-line growth, strong margins and customer retention. Qumu
has repaid its ESW Credit Facility and repurchased a warrant for 925,000 shares to further improve its balance sheet and capital structure.
High degree of confidence in 2020 revenue guidance, as YTD revenue included a small portion of a multi-million dollar contract, which will also deliver significant revenues in Q2, as well as in the second half of 2020
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Investor Contact
Information
Dave RistowChief Financial Officer
Qumu Corporation
[email protected]+1.612.638.9045
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Appendix
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• On Premise - Traditionally, most large-scale corporate streaming deployments in high-security or compliance-heavy industries fall into this category. All hardware and software is housed in a data center owned and maintained by the enterprise, and the corporate IT team is responsible for managing the solution.
• Cloud (SaaS) - Hosted streaming solutions are deployed in a Qumu data center. Qumu is responsible for product maintenance and upgrades. The enterprise receives all available features and product releases, but pays a subscription fee to cover the costs of ongoing support.
• Hybrid (SaaS) - A Hybrid deployment is essentially a Cloud-based solution, enhanced with on premise elements to increase delivery performance and data security. By placing edge computing technology at the Cloud’s periphery, a company can easily build a video-aware, privatized network on top of a flexible Cloud core. While a growing number of organizations are starting with Hybrid implementations right away, most still initially invest in a Cloud-based platform first and migrate to Hybrid as corporate demand for video increases over time.
Glossary
Page 1
Qumu Deployment Types
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• Annual Contract Value (ACV) Components (One-Time + ARR):
On-Premise: Perpetual License + Hardware + Professional Services <= 1 year + Maintenance & Support <= 1 year
Cloud & Hybrid: Subscription & Support <= 1 year + Professional Services <= 1 year
• Total Contract Value (TCV):
The sum of all ACV components, including multi-year maintenance, committed via signed agreement/order form.
Glossary
Page 2
Financial Formulas