Commtouch Software Ltd

Transcription

1 Commtouch Software Ltd (NASDAQ: CTCH) December 2013

2 Shlomi Yanai, President Brian Briggs, CFO Commtouch, Inc., Headquarters 7927 Jones Branch Drive, Suite 2250 McLean, VA 22102, USA Tel: Fax: Investor Overview: Company Confidential Real Security. In Real Time.

3 Safe Harbor and Forward Looking Statements This presentation contains forward-looking statements, including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of For example, statements in the future tense, and statements including words such as "expect," "plan," "estimate," "anticipate," or "believe" are forward-looking statements. These statements are based on information available to us at the time of the presentation; we assume no obligation to update any of them. The statements in this presentation are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including business conditions and growth or deterioration in the Internet market, commerce and the general economy, both domestic as well as international; fewer than expected new-partner relationships; competitive factors, including pricing pressures; technological developments, and products offered by competitors; the ability of our OEM partners to successfully penetrate markets with products integrated with Commtouch technology; a slower than expected acceptance rate for our newer product offerings; availability of qualified staff; and technological difficulties and resource constraints encountered in developing new products, as well as those risks described in the text of this presentation and the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through Commtouch Software Ltd. Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Commtouch, Authentium, Command Antivirus and Command Anti-malware are registered trademarks, of Commtouch. U.S. Patent No. 6,330,590 is owned by Commtouch 2 Investor Overview: Company Confidential Real Security. In Real Time.

4 The leading security company you ve never heard of Leading market position ~30% of the mail security market runs on Commtouch software Market leading detection services see more than 12 billion transactions/day, over 80x more than any other vendor Leading edge technology Patented statistical algorithms (Recurrent Pattern Detection) are future proof, threat agnostic and enable real-time detection Pioneered behavior heuristics for anti-virus Blue chip, diversified customer base Over 180 OEM and service provider customers Antivirus solution powers Google s Gmail and Microsoft offerings Messaging security underlies HP s Unified Threat Management products Recurring revenue model Security as a Service business model 100% of revenue recurring, 90% under multi-year contracts Partner revenue share - share in customers success Unique go-tomarket strategy Offer a complete cloud based private label security solution to OEMs, service providers and distributors Own and operate cloud infrastructure with 12 data centers globally 3 Investor Overview: Company Confidential Real Security. In Real Time.

5 Commtouch powers 30% of the mail security market Vendors Service Web App Providers Security Hardware Antivirus Network Devices Client Software Hosting Saas ISP/Telco Partner focus drives Commtouch success * Our top 10 customers represent 37% of Annual Revenue (2012) 4 Investor Overview: Company Confidential Real Security. In Real Time.

6 Cloud-based detection a key competitive advantage Patented anti-spam technology Pioneered cloudassisted detection First to block image based spam Language agnostic New threats distribution unique diagnostics Commtouch Security Lab 24X7 real time detection 5 Investor Overview: Company Confidential Real Security. In Real Time.

7 Large, high growth market opportunity $2.6 B $1.8 B Web $1.0 B $1.6 B CAGR Web 18% 11% Security continues to be something organizations can't do without. This is especially true as organizations, of all sizes, turn to Security Software as a Service (SaaS) IDC, Worldwide Security Software as a Service Web $0.6 B $1.2 B Good opportunities are being made available in a number of security segments to technology and service providers with cloud delivery capabilities Gartner, Market Trends: Cloud-Based Security Services, September, Source: Gartner Market Trends: Cloud-based Security Services, September, Investor Overview: Company Confidential Real Security. In Real Time.

8 Transforming for growth Transforming from a technology service provider to a complete cloud-based Security-as-a-Service provider New management team located in US, closer to customers New global salesforce focused on lead generation New leading-edge product portfolio: Q1 2013: introduced Mail SaaS, Mobile security for Android, and a new on-premise solution for service providers Continued technology innovation: Web SaaS to be delivered in Q Investor Overview: Company Confidential Real Security. In Real Time.

9 Commtouch Detection services (OEM) offering Network Model Financial Impact Detection Services is this spam? Yes SMB Vendor device/ Service Provider Internet Low % revenue share Market user price - ~$50 For Commtouch: 3-5% from user sell price 8 Investor Overview: Company Confidential Real Security. In Real Time. 8

10 Commtouch Private label Security-as-a-Service offering Network Model Financial Impact Detection and full Services SMB/ Enterprise Internet High % revenue share (Resell) Market user price - ~$50 For Commtouch: 55-75% from user sell price 9 Investor Overview: Company Confidential Real Security. In Real Time.

11 Cloud offering enhances partners value proposition Partner benefits: Significantly expands market opportunity beyond large enterprises to SMBs Increases product and service capability Enterprise/SMB benefits: Reduces costs (opex vs. capex) Supports service level agreements (SLAs) Enables faster upgrades Solves security issues for out-of-office employees 10 Investor Overview: Company Confidential Real Security. In Real Time.

12 Low $ High $ Commtouch product suite $2.8B * $2.4B * $9.1B * WEB AV/AM Security SaaS Private Label Web Service On Premise Private Label Web Service On Premise Cloud-Assisted Detection Services Messaging Suite On-premise for SPs Web Filtering AV SDK Mobile Security Endpoint apps APT Detection Note: Roadmap Items in Blue * 2013 Market sizes: Source: IDC Investor Overview: Company Confidential Real Security. In Real Time.

13 Cloud-based detection at the core of product portfolio Spam and phishing URLs Malware URLs Threat data sharing between services: Sum is greater than the parts Zero-hour virus samples, Malware URLs Web Antivirus Recurrent Pattern Detection - Patented technology Over 99% detection accuracy Language agnostic Zero-hour detection of global threats Industry-leading performance Commtouch Owned & Operated 550M End Users 12B Transactions Daily GlobalView Cloud Internal Efficiencies High Margins 12 Global Data Centers Operational for 14 years 12 Investor Overview: Company Confidential Real Security. In Real Time.

14 security Industry-leading spam detection: Phishing message and virus outbreak detection Advanced heuristic malware defense Benefits: Instant protection from new outbreaks High catch rates with almost zero false positives Language and content agnostic Simple integration High performance, low maintenance Reduced capital expenditure 13 Investor Overview: Company Confidential Real Security. In Real Time.

15 Antivirus Anti-malware solution for service provider and web security gateways: Cloud-based pattern detection Multi-layer file scanning Benefits: High performance Superior detection Ease of integration and operation Reduced capital expenditure Lower total cost of ownership 14 Investor Overview: Company Confidential Real Security. In Real Time.

16 Web security URL Filtering (URLF) enables customers to provide new levels of service for: Web security Parental control Business productivity management and compliance Mobile devices Benefits: Cloud database provides broadest coverage Real-time, zero-hour security Highest categorization accuracy and quality of service 15 Investor Overview: Company Confidential Real Security. In Real Time.

17 Web Security The challenge Branch office 1 User apps FW Web GW Branch office 2 Applications GW FW Web GW GW Mobile Users Internet Cloud apps Infected site sends malware/ phishing to user 16 Commtouch Company Overview Web Security SaaS Real Security. In Real Time.

18 Commtouch Web SaaS Q Branch office 1 Applications Web SecaaS Phishing site blocked Internet Branch office 2 Mobile Users Malware blocked Infected site sends malware to user 17 Commtouch Company Overview Corporate Overview Real Security. In Real Time.

19 Customer case study: Netgear Product: ReadyNAS network attached storage (NAS) Target Market: Small and medium businesses as well as enterprises Commtouch Service: Antivirus Security is a key factor in offering efficient NAS solutions. With Commtouch Antivirus, we can provide our customers with stateof-the art protection from both known and new viruses, Trojans and other malware threats. Davin Oishi, senior product line manager for NETGEAR Storage 18 Investor Overview: Company Confidential Real Security. In Real Time.

20 Customer case study: Web.com Product: Web hosting, online marketing Target Market: Small businesses Commtouch Services: Inbound Anti-Spam, Outbound Spam Protection, Virus Outbreak Detection With the addition of Commtouch services, we can now better safeguard our customers from the nuisance of spam s, without the risk of having their critical communications erroneously blocked. Jane Landon, Chief Technology Officer, Web.com 19 Investor Overview: Company Confidential Real Security. In Real Time.

21 World class, experienced management team Lior Samuelson Chairman and Chief Executive Officer Joined in 2010 as Chairman and became CEO in Shlomi Yanai - President Joined in 2011, bringing over two decades of experience in the information security industry. Brian Briggs - Chief Financial Officer Joined in 2013, bringing more than 22 years of finance and operations experience building and growing profitable companies. Lior Kohavi - Chief Technology Officer Has more than 20 years of experience as a senior technology executive.. Joy Nemitz - Chief Marketing Officer Has over 20 years of technology and communications experience in the field of Cloud, SaaS and Hosted Services marketing. Pete Shah - Senior Vice President, Worldwide Sales Joined in 2012, bringing over 20 years of experience with international software organizations. Haniel Ilouz - Vice President, Global Engineering Has over 14 years of software development experience including extensive management of large global engineering teams. Mickey Avram - Vice President, Technology Services Joined in 2012, bringing over 20 years of experience in the support and operations management field, many of these in the security industry. Brett Wilson - Vice President, Products Has over 20 years of technology and communications experience, including more than 10 years of experience in the information security industry. Sue Perng Lee - Vice President, General Counsel & Corporate Secretary Joined in 2013, bringing over 10 years of legal experience in both the private law firm and corporate settings. Eva Edwards Markowitz - Vice President, Human Resources Joined in 2013, bringing over 14 years of human resource experience. 20 Investor Overview: Company Confidential Real Security. In Real Time.

22 $ in millions Strong business model Recurring revenue and long term contracts provide stability and visibility Highly profitable core business supports investments in new growth initiatives Solid balance sheet - $4 million in cash and no debt as of September 30, 2013 NOLs no tax payments expected over coming years Revenue Operating Profit Operating Cost CoGs Recurring revenue model 100% Assured backlog 1.5 Years Increased sales 3 Years Higher rate renewal 0 Months Deal signed 3 year revenue commitment 21 Investor Overview: Company Confidential Real Security. In Real Time.

23 Why Commtouch? SAAS EXCELLENCE PARTNER FOCUSED PATENTED TECHNOLOGY FINANCIALS 22 Investor Overview: Company Confidential Real Security. In Real Time.

24 Thank You.