Transcript Sample Investor Deck

Aspira Networks
The Changing View of Networks
• New services create ever higher bandwidth requirements for
networks
• Despite the bad economy, people are shopping at home, on their
phones, at the office and via free Wi-Fi networks
• The beneficiaries of these online services and sales are the
affiliate networks, the consumers and the retailers
• The networks field the costs of the traffic with pricing pressure
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Changing the Network Revenue Model
• Establishing an opt-in loyalty &
rewards model on a network level
– Tie in focused marketing and
contextual location based targeting
to drive traffic
– Capture profound data in aggregate
• With Aspira technology, networks
earn revenue from commercial
(shopping) traffic
– Shopping traffic creates affiliate
referral commissions
– Traffic loads and user experience
don’t change
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Shopping
Revenue
Network
Expense
Aspira Networks
• An industry-leading affiliate marketing company for
network owners
• 7 Full-time employees
– Seasoned team with a history of commercially successful
products
– Experience working with every significant wireless carrier
& OEM
• Extensive network of contractors
• Patents pending
• Partnered with 1200+ retailers and service providers
– More being added every day
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The Aspira Networks Solution
The Network
Targeting Data (Future)
Internet Traffic
Sell Products
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Users
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•
User Notifications
when a traveling to
a member site
“Specials” Pop-up
Cash Back for
Purchases at
member stores
User Opts In
Aspira
Deployed
Servers
Reporting
Reporting
Internet Traffic
Internet Traffic
Aspira
System
Drive Traffic
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Branded Portal
Member Store List
Newsletters (Targeted)
SMS Ads
MMS Ads
Email Ads
Captive Portal w/ads
Link Data
Ad Content
Marketing
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Link Data & $
Ad Content
Retailers
Purchasing Example With Aspira
• User (or network owner) opts into program
• Receives a newsletter – e.g. “How to Purchase a PC”
• User window shops at www.hp.com
– User is notified via URL bar and interstitial that if they
purchase, they will receive 4% cash back
• Improving chances of a sale
– User is presented with coupons for HP: 25% off HP Elite PC
of $899 or higher expiring in 2 days
• Adding sense of urgency improves chances of sale
– User makes purchase for $648 saving 28%
– Store makes a sale
– Aspira and Network earn commission
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Aspira Networks Deployment Options
Large Networks
Corporate Offices
Small Businesses
Single Site
• Large Data Centers
• Large Network
Providers
• ISPs
• Fortune 1000
• Large Offices
• Small & Medium Data
Centers
• Large Hotels
• Apartment Groups
• Small Hotels
• Small Offices
• Large Sit-down
Locations
• Small Apartments
• Coffee Shops
• Wi-Fi Hot Spots
• Public Spaces
(2-6 Months) ~40%
Core Focus (1-3 Week) ~55%
Aspira Interchange Software
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(3-4 Week) <5%
Competitive Advantage: Data
•
Network Targeting
Depending upon the deployment
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Data is collected in aggregate
(no identity)
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Main focus of local data is for
“Aspira” targeting
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Always used to profile network
location
• Contextual Location Based
Data
• Category Analysis
Retailer Targeting #1
•“Free” Upstream History
•Limited Life Data
Retailer Targeting #2
• “Pay to Play” Upstream
History for Purchases
• Limited Life Data
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Aspira Demo
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Our Retail Relationships
• 1200+ stores in
North America
• 20-50 stores added
each week
– Pending with over
300 new stores in US
and Canada
• 1000s of additional
stores available
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Retail Management System (RMS)
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Commission
Junction
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Linkshare
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Google Affiliate
Network
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Aspira Partners
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Other Affiliate
Networks
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Other Retailers
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Retailers in the US
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Aspira Interchange is a Learning System
• Identifies new commercial
sites based on consumer
buying behavior
– Automatically adds new
sites to your portfolio
New Retail
Sites
• Provides information on
customer purchasing – at
the aggregate level
– We can integrate with
billing systems
New
Service
sites
• Provides location-based
information (WiFi & LBS)
– Enables you to charge for
location-based advertising
Non –
commerce
sites
• Over time, the system
enables data-based
customization, maximizing
revenue opportunities
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• Add to database
• Track popularity
• Track location
data
• Add to database
• Track popularity
• Track location
data
• No action taken
Why LiliDeals?
• An important part of the product –
white label
• It provides a test bed for the back-end
systems
– 50% of LiliDeals systems overlap with the support
systems for the server business
• It provides a marketing test bed for
influencing end-users
• A means of exploring other
technologies and validating
assumptions about the market
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Competitive Advantage: Barriers to Entry
•
Protected by Patents
– 3 Technology patents filed
– 4 Additional technologies under investigation
• The Product Approach Requires Unique Knowledge
– In-depth knowledge of router device porting layer and chipset is required
– Understanding of carrier and ISP network architecture
– Experience working with other network services (e.g. MMS, SMS, LBS, ad
systems, affiliate networks)
• Extensive Retail Relationships Required
– Knowledge of retail systems processes
– Ability to establish relationships with 1000s of stores
• Business Approach Eliminates Competitive Opportunities
– As network opportunities are locked down, competitors’ access to the
well dries up
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Key Milestones
Technology
Working Demo
Deployable
Optimized For Environment
Stores
0
500
1000
Pilot Deployments (Sites)
0
1
2
3
4
5
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40K
50K
60K
70K
80K
90K
10 15 Pilot Deployments
Reach of Contracts (Users)
0
10K
20K
30K
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Patents
Team
Idea
Plan
Strategy
Payout
•
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100K
Average Acquisition Cost per
User: $3
Average Revenue per User:
$2.10 per Month
2010 Revenue Projection
Note:
• ISP and corporate partnerships are NOT reflected in the above revenue projections
• Revenue is paid ~60 days after booking
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Projected Financials & Key Stats
Annual Revenue Distribution
Projected Financials
Quarter
Ended
40%
25%
18%
Projection Financials Comparison
17%
2nd Qtr.
3rd Qtr.
4th Qtr.
Total
1st Qtr
Year 1
Revenue
$
5,676.60
$
63,596.61
$
390,664.89
$ 1,799,735.64
$ 2,259,673.74
2nd Qtr
Expenses
$
47,562.23
$
326,006.23
$
589,543.52
$
925,352.66
$ 1,888,464.64
EBITA
$
(41,885.63)
$ (262,409.62)
$ (198,878.63) $
874,382.98
$
3rd Qtr
Year 2
Revenue
$ 2,000,696.64
$ 2,116,782.57
$ 2,643,734.42
$ 11,114,957.33
$17,876,170.97
4th Qtr
Expenses
$ 1,153,823.04
$ 1,258,488.42
$ 1,342,296.11
$ 1,373,541.49
$ 5,128,149.06
EBITA
$
$
858,294.15
$ 1,301,438.31
$ 9,741,415.84
$12,748,021.91
846,873.60
371,209.10
Year 3
Revenue
$ 6,844,734.10
$ 6,910,202.45
$ 8,995,535.44
$ 40,276,779.37
$63,027,251.36
Expenses
$ 1,797,224.94
$ 1,743,224.94
$ 1,636,782.63
$ 1,674,430.32
$ 6,851,662.83
EBITA
$ 5,047,509.16
$ 5,166,977.51
$ 7,358,752.81
$ 38,602,349.05
$56,175,588.53
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1st Qtr.
Projected financials developed from Midlevel (Green) projection
financial comparison
Financials normalized to annual revenue distribution
Revenue numbers assume blue area only (2010 Revenue Projection)
Large ISP or corporate partnership not accounted for in 1st year
Assumption is 1 large network partnership in 2nd year and an
additional one in 3rd year
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Other Potential Applications
• Aspira is focused on large network deployments because they
provide the greatest market opportunity
• Other potential applications of the technology:
Data Reports:
What They
Buy & Where
Product:
Small Local
Network
Deployments
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Product: End
User Router
Deployments
Return for Investors
• Today there are very few players and many opportunities. Key
opportunities include:
– Network providers who would like a stake in the revenue stream of their
competitors or to differentiate their portfolio
– Router manufacturers such as Cisco, NETGEAR, Buffalo and others who
want to significantly differentiate their router portfolios
– Affiliate networks who want to extend their reach into wireless
– Ad networks who are looking to provide end-to-end throughput in wireless
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Questions & Answers
Mark Robinson
CEO
Aspira Networks
(650) 862-8418
[email protected]
www.aspiranetworks.com
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By the Numbers – United States
Assumptions
•
•
•
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$3 off network spend per month (Wireless)
$50 off network spend per month (Wireline Data)
Average overall yield per purchase = 2%
Confidential
Does not assume corporate
Internet volume
Aspira’s Numbers – United States
Assumptions
•
•
•
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$3 off network spend per month (Wireless)
$50 off network spend per month (Wireline Data)
Average overall yield per purchase = 2%
Confidential
Does not assume corporate
Internet volume
Aspira’s Numbers – Canada
Assumptions
•
•
•
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$3 off network spend per month (Wireless)
$50 off network spend per month (Wireline Data)
Average overall yield per purchase = 2%
Confidential
Does not assume corporate
Internet volume