CVT Profile - Covata
Covata Limited (ASX: CVT) is a next generation cyber security company with a disruptive approach to IT security, enabling true ownership and control over data in the cloud and over mobile services. The Company delivers data-centric security solutions without compromising simple usability; providing a true end-to-end security platform for enterprises of various sizes to access, store, share, and manage their content/information. Data is always protected wherever it may travel – inside your network, beyond the domain, to mobile devices and to the cloud – with granular access controls that extend to external ad hoc users, view-only restrictions, real time revocation and complete visibility and auditability. INDUSTRY: SECTOR:
Technology Data Security Technology
INVESTMENT HIGHLIGHTS
Covata Limited 11190 Sunrise Valley Drive, Ste. 140 Reston, VA 20191 Phone: +1-703-657-5260 154-156 Clarence Street, Level 4 Sydney, NSW 2000 Australia Phone: 61-2-8412-8200 www.covata.com
Company Contact
Nikki Parker VP Growth & IR +1-571-353-4273 [email protected]
Patented data centric security solution that addresses an ever increasing problem of high profile security breaches in large enterprises Covata is at an inflection point as full commercialization of its Safe Share lead product 'Safe Share' began in the most recent quarter with Fortune 100 OEM & Telco Channel Partners https://vimeo.com/153267089 Newly signed Fortune 100 Technology partner Cisco Systems (NASDAQ: CSCO) and multi-billion Telco distribution partners The number of high profile breaches continue to rise driving demand for data centric security solutions Covata's two business arms create a strong global business with diversified revenue and customer base Distribution of Safe Share through Telco parnters generates monthly recurring user revenue The Covata Platform service is building a high volume transaction based service for the future of Internet of Everything (IoE) and Software Defined Networking
Investor Relations Contact Chris Tyson Managing Director MZ North America Main: 949-491-8235 [email protected] www.mzgroup.us
COMPANY OVERVIEW Covata arms global enterprises with the tools they need to fight cyber crime and safeguard their most important asset - their data. By leveraging the power of the Covata Platform, businesses and government organizations all over the world can protect, share and store their corporate data - any time and from anywhere.
Data-Centric Security Company Founded in 2007 in Australia C-level management domiciled in Washington DC with offices in: Sydney (Engineering), San Francisco & London Patented technology with numerous internationally recognized certifications granted Established relationships with industry leaders Cisco, T-Systems (Deutsche Telekom), Colt Technology Services and Macquarie Telecom Strong team executing on a targeted go-to-market strategy with highly scalable revenue model
Contracts Signed in FY 2016
2/3/16 - 10-year, non-exclusive deal for New 'Key-as-a-Service' (KaaS) offering with Cisco Systems (NASDAQ: CSCO)
1/5/16 - 20,000 user, 3 year enterprise deal with T-Systems, (subsidiary of Deutsche Telekom), to deploy Safe Share to protect sensitive data for German health insurance company, Barmer GEK
11/19/15 - Safe Share accepted as a secure file sharing application for the UK Public Sector, allowing organizations to purchase without the need to run a full tender
MARKET OVERVIEW
SELECT FINANCIALS
Market Cap (3/1/16)
Current Price (3/1/16)
52-Week Price Range
June 30 A$176.5 M A$0.39 A$0.20 - A$0.69
Avg. Volume
775 K
Ordinary Shares on Issue
452 M
Cash (At 12/31/15)
Markets and Markets expects the global Cyber Security Market to grow from $106.32 Billion in 2015 to $170.21 Billion by 2020
Companies continue to invest heavily in cyber security as they move to the cloud
The number of cyber security breaches are on the rise
ASX : CVT Fiscal Year End
A$10.1 M
Secure File Sharing on Any Device
Cloud Security Spending ($ Billions)
THE COVATA PLATFORM
SAFE SHARE: Right Product, Right Time
The Covata Platform has been developed as an enterprise specific solution to manage data security at an object level, providing an outward facing data-centric approach.
The Safe Share product leverages capabilities of the Covata Platform to provide an Enterprise File Sharing and Synchronisation (EFSS) solution. Safe Share provides business users with an IT sanctioned corporate drop box for the secure distribution of files. Safe Share combines usability with government grade security. Safe Share is targeted at the global Managed Service Provider, Telco and Cloud Markets.
GLOBAL BUSINESS STRUCTURE The Company operates two distinct business arms: OEM/Technology and Provider Telco Division The Covata Platform is a powerful piece of technology that allows the Company to continue
to grow, scale and diversify Selling to end users through channel partners allows Covata to access a wide market while
managing capital expenditure The two business arms provide distinct revenue streams, both with high earnings potential OEM/Technology - Covata uses a Key-as-a-Service transaction based pricing
model for the Covata Platform. This services enables any developer or vendor to secure individual pieces of data and pay per transaction from an independent audited service Provider Telco Division—Covata operates a revenue share
business model with leading global Telco Channel partners which delivers rapid scalability
Illustration of Periodic Growth of the Telco Business Model No of Active Telco/MSP 2-3
3-4
4-6
End User Seats
6,000-8,000 $214k-$266k
800-1,200
Annual Run Rate* $USD $25k-$32K
4-6
6-8
6-8
8-10
8-10
36,000-45,000 120,000-150,000 285,000+
600,000+
1,100,000+
1,700,000+
$1.3M -$1.6M $4.1M-$5.2M
$21.2M+
$36.6M+
$59.3M+
$10.1M+
MANAGEMENT Trent Telford, Chief Executive Officer - Trent is the founder and CEO of Covata. He is responsible for the vision and product innovation that has underpinned the Company’s market position today. Trent started his career in large financial organizations in Europe including Bankers Trust and Deutsche Bank before becoming an IT Management Consultant across Australia and Asia. He has advised blue-chip companies on government strategies, IT architecture, change management and business transformation. Trent also founded one of Australia’s first mobile marketing technology company with STW Group, part of WPP, the world’s largest advertising company. He successfully sold the company to a digital company within WPP. Nick Chiarelli, Chief Financial Officer and Company Secretary - Nick is responsible for strategic planning, developing and maintaining the Company’s corporate governance and risk framework, all aspects of financial planning and reporting, and operations planning and management. Nick joined Covata in 2009 and has more than 15 years finance experience in Sydney, London and Washington DC. His experience includes professional practice, hedge funds, investment banking, private equity and software development. Nick is a member of the Institute of Chartered Accountants Australia & New Zealand, and holds a Bachelor of Business from the University of Technology, Sydney.
BOARD Charles Archer, Non-Executive Chairman - Charles (Chuck) is a senior executive with Government and Industry experience of exceptional breadth. Chuck culminated his 28 years of Federal Government service as Assistant Director of the FBI in charge of the FBI’s Criminal Justice Information Services Division (CJIS). He has testified before multiple Senate and House committees on advancing technology for Criminal Justice. DISCLAIMER: This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument or to participate in any trading strategy. The summary may include “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. This document has been furnished to you solely for your information.
Technology Data Security Technology
INVESTMENT HIGHLIGHTS
Covata Limited 11190 Sunrise Valley Drive, Ste. 140 Reston, VA 20191 Phone: +1-703-657-5260 154-156 Clarence Street, Level 4 Sydney, NSW 2000 Australia Phone: 61-2-8412-8200 www.covata.com
Company Contact
Nikki Parker VP Growth & IR +1-571-353-4273 [email protected]
Patented data centric security solution that addresses an ever increasing problem of high profile security breaches in large enterprises Covata is at an inflection point as full commercialization of its Safe Share lead product 'Safe Share' began in the most recent quarter with Fortune 100 OEM & Telco Channel Partners https://vimeo.com/153267089 Newly signed Fortune 100 Technology partner Cisco Systems (NASDAQ: CSCO) and multi-billion Telco distribution partners The number of high profile breaches continue to rise driving demand for data centric security solutions Covata's two business arms create a strong global business with diversified revenue and customer base Distribution of Safe Share through Telco parnters generates monthly recurring user revenue The Covata Platform service is building a high volume transaction based service for the future of Internet of Everything (IoE) and Software Defined Networking
Investor Relations Contact Chris Tyson Managing Director MZ North America Main: 949-491-8235 [email protected] www.mzgroup.us
COMPANY OVERVIEW Covata arms global enterprises with the tools they need to fight cyber crime and safeguard their most important asset - their data. By leveraging the power of the Covata Platform, businesses and government organizations all over the world can protect, share and store their corporate data - any time and from anywhere.
Data-Centric Security Company Founded in 2007 in Australia C-level management domiciled in Washington DC with offices in: Sydney (Engineering), San Francisco & London Patented technology with numerous internationally recognized certifications granted Established relationships with industry leaders Cisco, T-Systems (Deutsche Telekom), Colt Technology Services and Macquarie Telecom Strong team executing on a targeted go-to-market strategy with highly scalable revenue model
Contracts Signed in FY 2016
2/3/16 - 10-year, non-exclusive deal for New 'Key-as-a-Service' (KaaS) offering with Cisco Systems (NASDAQ: CSCO)
1/5/16 - 20,000 user, 3 year enterprise deal with T-Systems, (subsidiary of Deutsche Telekom), to deploy Safe Share to protect sensitive data for German health insurance company, Barmer GEK
11/19/15 - Safe Share accepted as a secure file sharing application for the UK Public Sector, allowing organizations to purchase without the need to run a full tender
MARKET OVERVIEW
SELECT FINANCIALS
Market Cap (3/1/16)
Current Price (3/1/16)
52-Week Price Range
June 30 A$176.5 M A$0.39 A$0.20 - A$0.69
Avg. Volume
775 K
Ordinary Shares on Issue
452 M
Cash (At 12/31/15)
Markets and Markets expects the global Cyber Security Market to grow from $106.32 Billion in 2015 to $170.21 Billion by 2020
Companies continue to invest heavily in cyber security as they move to the cloud
The number of cyber security breaches are on the rise
ASX : CVT Fiscal Year End
A$10.1 M
Secure File Sharing on Any Device
Cloud Security Spending ($ Billions)
THE COVATA PLATFORM
SAFE SHARE: Right Product, Right Time
The Covata Platform has been developed as an enterprise specific solution to manage data security at an object level, providing an outward facing data-centric approach.
The Safe Share product leverages capabilities of the Covata Platform to provide an Enterprise File Sharing and Synchronisation (EFSS) solution. Safe Share provides business users with an IT sanctioned corporate drop box for the secure distribution of files. Safe Share combines usability with government grade security. Safe Share is targeted at the global Managed Service Provider, Telco and Cloud Markets.
GLOBAL BUSINESS STRUCTURE The Company operates two distinct business arms: OEM/Technology and Provider Telco Division The Covata Platform is a powerful piece of technology that allows the Company to continue
to grow, scale and diversify Selling to end users through channel partners allows Covata to access a wide market while
managing capital expenditure The two business arms provide distinct revenue streams, both with high earnings potential OEM/Technology - Covata uses a Key-as-a-Service transaction based pricing
model for the Covata Platform. This services enables any developer or vendor to secure individual pieces of data and pay per transaction from an independent audited service Provider Telco Division—Covata operates a revenue share
business model with leading global Telco Channel partners which delivers rapid scalability
Illustration of Periodic Growth of the Telco Business Model No of Active Telco/MSP 2-3
3-4
4-6
End User Seats
6,000-8,000 $214k-$266k
800-1,200
Annual Run Rate* $USD $25k-$32K
4-6
6-8
6-8
8-10
8-10
36,000-45,000 120,000-150,000 285,000+
600,000+
1,100,000+
1,700,000+
$1.3M -$1.6M $4.1M-$5.2M
$21.2M+
$36.6M+
$59.3M+
$10.1M+
MANAGEMENT Trent Telford, Chief Executive Officer - Trent is the founder and CEO of Covata. He is responsible for the vision and product innovation that has underpinned the Company’s market position today. Trent started his career in large financial organizations in Europe including Bankers Trust and Deutsche Bank before becoming an IT Management Consultant across Australia and Asia. He has advised blue-chip companies on government strategies, IT architecture, change management and business transformation. Trent also founded one of Australia’s first mobile marketing technology company with STW Group, part of WPP, the world’s largest advertising company. He successfully sold the company to a digital company within WPP. Nick Chiarelli, Chief Financial Officer and Company Secretary - Nick is responsible for strategic planning, developing and maintaining the Company’s corporate governance and risk framework, all aspects of financial planning and reporting, and operations planning and management. Nick joined Covata in 2009 and has more than 15 years finance experience in Sydney, London and Washington DC. His experience includes professional practice, hedge funds, investment banking, private equity and software development. Nick is a member of the Institute of Chartered Accountants Australia & New Zealand, and holds a Bachelor of Business from the University of Technology, Sydney.
BOARD Charles Archer, Non-Executive Chairman - Charles (Chuck) is a senior executive with Government and Industry experience of exceptional breadth. Chuck culminated his 28 years of Federal Government service as Assistant Director of the FBI in charge of the FBI’s Criminal Justice Information Services Division (CJIS). He has testified before multiple Senate and House committees on advancing technology for Criminal Justice. DISCLAIMER: This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument or to participate in any trading strategy. The summary may include “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. This document has been furnished to you solely for your information.
