Analyst Presentation London, 5 July 2018 - Avast PLC
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Analyst Presentation London, 5 July 2018
Disclaimer
THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY
JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION IS UNLAWFUL.
This presentation has been prepared and issued by, and is the sole responsibility of, Avast Holding B.V., being the current holding company of the Avast group (the “Group”) and is solely for your information and for use at an analyst presentation on 9th March 2018 in connection with the proposed initial offering of ordinary shares
in the capital of the Group (the “Global Offer”). For the purposes of this notice, “presentation” means this document, the slides that follow, any oral presentation, any question-and-answer session and any written or oral material discussed or distributed during the analyst presentation meeting. This presentation may not be copied,
distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organisation or firm) or published in whole or in part, for any purpose or under any circumstances.
This presentation is being supplied to you solely for your information and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation or any offer to buy or subscribe for or otherwise acquire, any securities of the Group in any jurisdiction, or an inducement to enter into
investment activity. This presentation does not purport to contain all of the information that may be required to evaluate any investment in the Group or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This
presentation is intended to present background information on the Group, its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made. Any investment decision should be made solely on the basis of an approved prospectus (together with
any supplementary prospectus, if relevant) in relation to the proposed Global Offer. Certain data in this presentation, including financial, statistical, and operating information are based on the actual unrounded figures whereas certain data in the prospectus (if published) has been rounded. As a result of the rounding, certain
figures contained in this presentation may differ slightly to the figures presented in the prospectus. The merit and suitability of an investment in the Group should be independently evaluated and any person considering such an investment in the Group is advised to obtain independent advice as to the legal, tax, accounting,
financial, credit and other related advice prior to making an investment
The Group has not made any final decision whether to proceed with any offering of its securities or to apply for admission of its securities to trading on a regulated market in the United Kingdom or elsewhere. Any such offering or application for admission will be based exclusively on a prospectus (including any amendment or
supplement thereto) prepared for that purpose. Such prospectus will supersede all information provided to you before the date of the prospectus. Any purchase of or subscription for securities in the Group should be made solely on the basis of the information contained in a prospectus relating to such securities. This presentation
and the materials distributed in connection with this presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction in which such distribution, publication, availability or use would be contrary to law or regulation or
which would require any registration or licensing within such jurisdiction, including, but not limited to, the United States, Australia, Canada, Japan or South Africa. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Any person into whose possession this
presentation comes should inform themselves about, and observe, any such restrictions. The securities to which this presentation relates have not been and will not be registered under the US Securities Act or under any securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold,
taken up, exercised, renounced, transferred or delivered, directly or indirectly, in or into the United States, except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the US Securities Act of 1933, as amended (the “US Securities Act”). Any person into whose possession this
presentation comes should inform themselves about, and observe, any such restrictions. The Group does not intend to make any public offering of securities in the United States. The securities of the Group have not been and will not be approved by the US Securities and Exchange Commission, any state securities commission
in the United States or any US regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of any proposed offering of securities of the Group or the adequacy or accuracy of this presentation. Any representation to the contrary is a criminal offence in the United States. In the United States,
this presentation is directed only at persons who are qualified institutional buyers (“QIBs”) as defined in Rule 144A of the US Securities Act.
This presentation is an advertisement for the purposes of the United Kingdom Prospectus Rules and not a prospectus. Investors should not subscribe for or purchase any securities referred to in this presentation except on the basis of the information in the prospectus (together with any supplementary prospectus, if relevant) to
be published by the Group in due course in connection with the admission to listing of its ordinary shares to the premium segment of the Official List of the United Kingdom Listing Authority and to trading on the London Stock Exchange plc's main market for listed securities. If published, copies of the prospectus will, be available
at the registered address of the Group at Pikrtova 1737/1A 140 00 Prague 4 and on its website at www.avast.com. This presentation is, and the Global Offer when made will be, only addressed to and directed at persons in member states of the European Economic Area (the “EEA”) other than the United Kingdom who are
“qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended, including by EU Directive 2010/73/EU to the extent implemented in the relevant member state) (“Qualified Investors”). In the United Kingdom, this presentation is directed only at Qualified Investors who are (i)
persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”); (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) other persons to whom it can
otherwise lawfully be distributed (each a “Relevant Person”). This presentation must not be acted or relied upon by persons other than Qualified Investors in any member state of the EEA other than the United Kingdom and Relevant Persons in the United Kingdom and any investment or investment activity or controlled
investment or controlled activity to which this presentation relates will only be available to such persons and will be engaged in only with such persons.
A prospective investor considering acquiring shares in the Global Offer is reminded that any such acquisition must be made only on the basis of the information contained in the prospectus to be made available in due course if the Global Offer and the proposed admission of the entire issued and to be issued ordinary share
capital of the Group to the premium listing segment of the Official List of the FCA and to trading on the Main Market for the London Stock Exchange (“Admission”) proceed, which may be different from the information contained in this presentation, and on its own judgement as to the merits of the suitability of the shares for its
purposes, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances. This presentation is confidential and may not be reproduced, redistributed or forwarded, directly or indirectly, to any other person or published, in whole or in part, for any purpose without the prior written
consent of the Group. The information contained in this presentation has not been independently verified and some of the information is still in draft form.
Neither the Group, Morgan Stanley & Co. International plc (“Morgan Stanley”) or UBS Limited (“UBS” and together with Morgan Stanley, the “Joint Global Coordinators”), nor any of their respective parent or subsidiary undertakings, or the subsidiary undertaking of any such parent undertakings, or any of their respective partners,
shareholders, directors, officers, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information or opinions presented or contained in this presentation nor shall they accept any responsibility whatsoever for, or make any representation or
warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this presentation (or whether any information has been omitted from the presentation) or any other information relating to the Group, its subsidiaries or associated companies, in any form whatsoever, howsoever transmitted or
made available or for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. In addition, no duty of care or otherwise is owed or will be deemed to be owed by any such person to recipients of the presentation or any other person in relation to the presentation.
The information and opinions presented or contained in this presentation (including forward-looking statements) speak as of the date hereof (unless otherwise stated) and are subject to updating, revision, verification and amendment without notice and such information may change materially. In particular, certain unaudited
financial information contained herein related to the Group and AVG Technologies N.V. (along with its subsidiaries as at the date of the acquisition by the Group of AVG Technologies N.V.) (“AVG”) is expected to be audited prior to the publication of any final prospectus which may be published by the Group in connection with the
Global Offer. Neither the Group, the Joint Global Coordinators nor their respective affiliates or advisers or any other person intend to, or are under an obligation to, correct, update or keep current the information contained in this presentation or to publicly announce or inform you of the result of any revision to the statements made
herein except where they would be required to do so under applicable law. This presentation is made on the express understanding that it does not contain all information that may be required to evaluate the Group. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection
with, any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Group. The information and opinions in this presentation are not based upon a consideration of your particular investment objectives, financial situation or needs. This presentation does
not constitute an audit or due diligence review and should not be construed as such nor has it been approved by any regulatory or supervisory body. You must make your own independent assessment and investigations as you deem necessary. You may wish to seek independent legal, regulatory, accounting, tax and such
professional advice as appropriate with regards to the contents of this presentation.
This presentation contains financial information prepared in accordance with UK generally accepted accounting principles ("UK GAAP") that have been extracted without material adjustment from audited UK GAAP financial statements and/or extracted or derived from unaudited accounting records that have been used to prepare
UK GAAP financial statements. UK GAAP differs in certain respects from International Financial Reporting Standards ("IFRS"). Reference to these non-GAAP financial measures should be considered in addition to GAAP financial measures, but should not be considered a substitute for results that are presented in accordance
with GAAP. The UK GAAP financial information included in this presentation may not be comparable with financial information for the Group that is prepared in accordance with IFRS included in any final prospectus which may be published by the Group. This presentation also contains certain non-GAAP and non-IFRS financial
measures (including Billings, Adj. Cash EBITDA and uFCF) which have not been and will not be audited. These non-GAAP and non-IFRS financial measures are not recognised measures of financial performance or liquidity under UK GAAP or IFRS, but are measures used by the Group's management to monitor the underlying
performance of the Group's business and operations. These non-GAAP and non-IFRS measures may not be indicative of the Group's historical operating results nor are such measures meant to be predicative of future results. These measures and ratios may not be comparable to those used by other companies under the same
or similar names. As such, undue reliance should not be placed on these non-GAAP and non-IFRS financial measures. Certain numbers in the Information are unaudited and are based on internal records and/or estimates. It is intended that certain numbers will be subject to further review in due course. Once they have been
reviewed such numbers may be amended and the final numbers may differ from those set out in the Information. However, for the avoidance of doubt, none of the Group, the Joint Global Coordinators nor their respective affiliates or advisers or any other person is under an obligation to update such numbers, except where they
would be required to do so under applicable law. Until such time as that review is complete and any final numbers are published in a prospectus, no reliance shall be placed on, and the Group, the Banks and their respective advisors, shall not be liable in any way in respect of, such numbers or measures.
This presentation includes forward-looking statements. The words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the Group’s intentions, beliefs
or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Group operates. The forward-looking statements in this presentation are based on numerous assumptions regarding the Group’s present and future
business strategies and the environment in which the Group will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results,
performance or achievements of the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Group's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour
of other market participants, the actions of regulators and other factors such as the Group 's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions. Past performance should not be
taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Some of the information is still in draft form and will only be finalised, if legally verifiable, at the time of the final prospectus. The Group and each of the Joint Global Coordinators
expressly disclaims any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this presentation or to update or to
keep current any other information contained in this presentation. Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this presentation.
To the extent available, the industry and market data contained in this presentation has come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the
accuracy or completeness of such data. Certain information regarding market size, market share, market position, growth rate and other industry data pertaining to the Group and its business contained in this presentation consist of management estimates based on Group data, data compiled by professional organisations and
data from external sources. The Group has not independently verified the data contained therein and there is no guarantee of the accuracy or completeness of such data. Accordingly, no representation, warranty or undertaking, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions herein. No responsibility or liability (including in respect of direct, indirect or consequential loss or damage) is assumed by any person for such information or opinions or for any errors or omissions. In addition, certain of the industry, market and competitive position data
contained in this presentation come from the Group's own internal research and estimates based on the knowledge and experience of the Group's management in the markets in which the Group operates. While the Group believes, acting in good faith, that such research and estimates are reasonable and reliable, they, and their
underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. The Group cannot guarantee that a third party using different methods to assemble, analyse or compute market information and data would obtain or generate the same results.
Further, the Group’s competitors may define the Group’s and their markets differently than the Group does. Accordingly, you should not place reliance on any of the industry, market or competitive position data contained in this presentation.
The Joint Global Coordinators are authorised and regulated by the FCA and are acting exclusively for the Group and no one else in connection with the Global Offer, will not regard any other person (whether or not a recipient of this presentation) as a client in relation to the Global Offer and will not be responsible to anyone other
than the Group for providing the protections afforded to their respective clients nor for giving advice in relation to the Global Offer, Admission or any transaction or arrangement referred to in this presentation
By attending and otherwise accessing this presentation, you warrant, represent, undertake and acknowledge that (i) you have read and agreed to comply with the foregoing limitations and restrictions including, without limitation, the obligation to keep this presentation and its contents confidential (until notified by the Joint Global
Coordinators that research publication is permitted), (ii) you are able to receive this presentation without contravention of any applicable legal or regulatory restrictions, (iii) if you are in the United States, you are a QIB, (iv) if you are in a member state of the EEA (other than the United Kingdom), you are a “qualified investor” and
(v) if you are in the United Kingdom, you are a Relevant Person; and (v) you acknowledge that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of this presentation.
2
Today’s Agenda
12:15 Start
1 Business and Market Overview V. Steckler
2 Technology O. Vlcek
3 Consumer Direct Desktop O. Vlcek
4 Consumer Direct Mobile G. Singh
13:45 Q&A #1 / Break
5 Consumer Indirect V. Steckler
6 SMB V. Steckler
7 Growth Strategy V. Steckler
8 Financials P. Marshall
15:05 Q&A # 2
15:30 Close
3
Today’s Presenting Team
Vincent Philip Marshall Ondrej Vlcek Gagan Singh
Steckler CFO CTO & GM, GM,
CEO Consumer Mobile
4
1 Business and Market Overview
Avast’s Equity Story In a Nutshell
1 Global Leader in Consumer 2 Leading Global Consumer 3 Differentiated Cybersecurity
Security with a Strong Brand Platform Underpinned by Technology Supported by
Awareness Distinctive Ability to Market Three Decades of Innovation
Software to Consumers
$811M
Annual Adj. 435M+ Next-Gen Machine
Billings(2) Active Users Security Engine Learning
Technology
Up Indirect Cross
#1 #2 Selling Monetization Selling
>35x Top Websites Ranking in Platform ~2Bn 390TB
Computer Security(3) Prevented of Quality
435M+ Active Users Attacks per Data
Month
4 Diversified Product Offering 5 Large, Attractive and Growing 6 Highly Attractive Financial
$23M and Increasing Customer Global Market Opportunity(5) Profile
Annual Billings(1)
1,700 Monetization
Billings (%)
Employees
~10%
~$21.3Bn ~9% 88%
CAGR
3.1
Adj. Billings Subscription
49% CAGR 2015-17 Revenue
~$14.5Bn
61% 1.8
65
10.4
6.9
Employees
39%
51%
7.8
58% 76%
5.9
Adj. Cash Cash
EBITDA Margin Conversion
2008 2017 2015 2017 2017 2021
Non AV AV(4) Consumer Consumer SMB
Direct Indirect
Notes:
Figures for Adj. Billings, Adj. Cash EBITDA Margin and uFCF Conversion refer to 2017, and CAGR refers to 2015 – 2017
excluding discontinued business and Piriform. Piriform pre-acquisition is included in EBITDA, uFCF conversion only
includes post-acquisition EBITDA 3. Excludes siteadvisor.com as it is not a main security website and China 6
1. Not adjusted for AVG acquisition or any other business acquired by Avast during the period 4. Consumer Desktop AV, Corporate AV and Cloud Products Billings
2. 2017 adjusted for Piriform pre-acquisition results 5. Company Market Study
Avast at a Glance: Scale, Growth & Cash
$811M $780M ~58% ~76% ~3x
Adj. Billings Adj. Revenue Adj. Cash uFCF PF Net Leverage(1)
EBITDA Margin Conversion
~9% ~8%
Adj. Billings CAGR 2015-17 Adj. Revenue CAGR 2015-17
290M+ 11M+
Global Desktop Users Desktop Customers(2) 144 Prague
Consumer Patents Headquarters
Platform 435M+ 145M+ 5M+ 1,700+
Active Users Mobile Users Mobile Customers(2) Employees 45%+ 25
Employees in R&D Offices Worldwide
BEST IN CLASS SECURITY PRODUCTS ESTIMATED OWNERSHIP STRUCTURE
(Fully Diluted)
Founders CVC Summit Partners
36% 21% 5%
Best Highly
#1 Best Perfect Score
Free Free Downloaded
Download Antivirus Management, Board
Antivirus Security App
for PC Antivirus for Android Free Float
for Mac 100 – 500M Category and Employees
25%
13%
Notes:
Figures for Adj. Billings, Adj. Revenue, Adj. Cash EBITDA Margin and uFCF Conversion refer to 2017, and CAGR refers to 2015 – 2017 excluding discontinued business and Piriform. Piriform pre-
acquisition is included in EBITDA, uFCF conversion only includes post-acquisition EBITDA. Please refer to Appendix C for more details
1. Pro-forma, including c. $200M of primary proceeds at IPO
7
2. Desktop and mobile customer numbers are not deduplicated; mobile customers represent number of mobile subscriptions
Our Journey to Market Leadership
(1)
We Are The #1 Consumer Security Company Globally
Long history of organic and inorganic growth Piriform Acquisition
Continued innovation beyond PC to capture the full lifecycle of the consumer
AVG Acquisition $811M
Avast growth engine + AVG scale drives massive value creation AVG Enters Mobile Carrier
Channel
Mac
Avast Goes to Mobile
Launch of Free Model
First
Windows
Product
(3) (3) (4)
1988 1995 2001 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Future CTO
Ondrej Vlcek joins Avast
New CEO Avast Enters Utilities Market
Vince Steckler joins Avast
The Start
Pavel Baudiš and Eduard Kučera help establish
the burgeoning antivirus market
Group Adj. Billings (2)
Notes:
1. By Avast Consumer PC Users vs. Peers. Please refer to page 22
2. 2008-2014 Avast Group Adj. Billings not adjusted for Gross Up
3. 2015-2016 adjusted for Gross Up
8
4. 2017 adjusted for Piriform pre-acquisition results
Cybercrime is Now a Professional
Organization that is Targeting Consumers
Lost Time, Money and Sense of Safety
( Extortion Threats Fear
) $172Bn
was lost by consumers
dealing with cybercrime
globally in 20173
Cybercrime is at the forefront of consumer's minds4
of consumers
experience
cybercrime or know
someone who has2
53% 51%
believe it's become
harder to stay safe and
secure online over the
past 5 years2
How often do you, yourself, worry about the following things?
(% frequently or occasionally)
67% 66%
$1,107 36% ~2x 38% 36%
Average ransom size, growth of ransomware Consumer fearfulness of 30%
up ~4x from $2941 detections1 digital vs. physical crime2
Financial Info Identity Theft Car Stolen Home Burglarized Victim of
Stolen By Hackers Victim Terrorism
Notes:
1. 2017 Symantec Internet Security Threat Report – 2015 to 2016
2 Norton Cyber Security Insights Report 2016 9
3. Norton Cyber Security Insights Report Global Results 2017
4. Gallup Poll – Americans' Top Worries; comparison of the average fearfulness of being a victim of identity theft and financial information stolen by hackers versus having a car stolen, home burglarized or becoming a victim of terrorism
Desktop Retains its Critical Importance, While Mobile
and Smart Home Devices are an Opportunity for Growth
PC market is worth $166Bn per year…
…now what we get are the really engaged PC users Smartphones projected by 2020, growing at a 5
Lillian Tay, Principal Analyst, Personal Technologies, Gartner, 2017
Premium Ultramobile1 devices are expected to grow 1.6Bn 9% 2.9Bn
at from 2017 to 2021 # of CAGR # of
smartphones smartphones
2014 2020
for
personal activities as opposed to Average time spent with Forecasted Smart Home Spending in 20216
2 digital media in 20163
On average, we found that of browser-based purchases $0.2Bn 66% $2.3Bn
are made (versus mobile)4: Smart Home CAGR Smart Home
Spend Spend
2016 2021
Notes:
1. Premium ultramobiles are user-interface-optimized for media consumption, while retaining capabilities for full-scale data processing. It will, therefore, be an alternative to a notebook, dependent on the tradeoffs that
users wish to make between the characteristics of devices and their expected usage pattern. This category includes Microsoft's Windows 8, Intel x86 products and Apple's MacBook Air
2. Gartner Survey (as of October 2017)
3. Refers to Adults in US
4. Based on internal Jumpshot data. Logos are examples based on company analysis 10
5. Statista, number of smartphone users worldwide from 2014 to 2020
6. Company Market StudyWe Offer A Comprehensive Set of Solutions
CONSUMER DIRECT CONSUMER INDIRECT SMB
8% Adj. Billings
77% of Adj. Billings ($629M)(1) 15% of Adj. Billings ($118M)(1)
($65M)(1)
PREMIUM UTILITIES VPN ADVERTISING AND SECURE ENDPOINT
NEXT-GEN ANTIVIRUS DISTRIBUTION BROWSING AND PROTECTION
COMMERCE SOLUTIONS
Secures your digital life Cleans your devices for Ensures online privacy at
optimal operation home or mobile Ad and 3rd party software Secure web browsing and
and activities placements shopping products
Secures small business with
managed AV protection
PASSWORDS FAMILY SHIELD SMART HOME ANALYTICS TOOLBARS
(Discontinued Business)
MANAGED SERVICE
SOLUTIONS
Prevents key loggers from Monitors online behavior Protects your connected Toolbars installed with 3rd
stealing identity and protects from online home and all its devices Market intelligence tools party products and
threats browser clean-up Cloud-based endpoint
security and management
services for IT service
Next-Gen Free Antivirus – Global Platform for Up and Cross Selling providers
platform
435M+ ACTIVE USERS
$3.1Bn TAM –
$7.8Bn TAM – 7% CAGR(2) $10.4Bn TAM – 11% CAGR(2)
15% CAGR(2)
Note:
1. 2017 adjusted for Piriform pre-acquisition results
2. Company Market Study, 2021 TAM, 2017-2021 CAGR 11The Avast Direct Sales Model Advantage
Retail OEM Partnerships FREE to PAID
Antivirus promoted through traditional sales force Antivirus pre-installed Antivirus promoted through targeted
and material marketing spend through expensive partner contracts sales, marketing and word of mouth
(1,2)
UP TO 10% (3)
~4% ~96%
Fees! Paid Conversion Paid Free
Slotting | Promotional | Stocking SWITCH
upon expiry of free trial OVER TIME
11M+
Customers
…revenue shared with Retailer …revenue shared with OEMs
(3) (3)
UP TO 100% UP TO 50% 2¢
Service Cost
per Year
$$$ Continued
Cross-Sell
Notes:
1. Refers only to PC Users (including Piriform users)
2. Revenue sharing applies only to mobile downloads and renewals 12
3. Indicative figure based on company estimatesUsers Shifting to Free Model
Driving Share Gains vs Traditional Players
Users Are Moving Avast Is Gaining
Towards Our Model Market Share
Total Consumer PC Users Consumer Security Revenue CAGR
(excluding China)(1) Reported Numbers/Gartner
9.0%(2)
25%
45%
81%
75%
55%
19% 0.1%(3)
2005 2010 2017
(2.3%)(4)
(3.0%)(5)
Free AV Traditional
2015-17 2013-16 2015-17 2015-17
CAGR CAGR CAGR CAGR
Notes:
1. Calculated using Gartner forecasts, Company estimates and internal data
2. Including Consumer AV, Utilities and VPN Revenue for Avast
3. Gartner CAGR 2013-16 for McAfee (Based on Gartner Market Share - Security Software, WW (April 2017))
4. Calendarized data from Annual and Quarterly Reports for Symantec, 2017 revenue not considering Lifelock acquisition revenue contribution, Lifelock revenue contribution computed annualizing the reported 13
$67M revenue contribution in the period 9 Feb-31 Mar 2017
5. Sum of consumer segment quarterly data for Trend Micro (2015-2017) sourced from https://www.trendmicro.com/enAvast Continues to Add Differentiated Value on Win10
The Penetration of Windows 10 in the Avast User Base is Very Similar
to the Overall Penetration of Windows 10
Windows 10 Penetration in Avast User Base Compared to General Windows 10 Market Share 1
US W10
70% Penetration
in Avast
60% Base
W10 Penetration of PC base
US W10
50% per USA.gov
40%
30%
Global W10
20%
Global W10 Penetration
per Google in Avast
10% Base
0%
Jan Feb Mar Apr May Jun Jul Aug Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2016 2017
Note:
1. Weekend traffic only
14Massive Global User Footprint and Large Scale Presence
Across Geographies
(1)
Global Scale with 59 Countries with 1M+ Active Users
20M
14M
26M
26M
54M
14M 17M
9M
13M 17M
44M
BRIC-plus: 114M(2)
#1 435M+ 290M+ 145M+
Downloaded Consumer Security Largest User Base PCs/Macs Mobile Devices
Software Company by Users(4)
Notes:
1. Please refer to appendix “Non-GAAP Metrics” for the definition of Active Users
2. BRIC-plus defined as Brazil, Russia, India, China, Mexico, Turkey
3. Countries in violet are those with 1M+ users; numbers include desktop and mobile from Consumer, B2B, and Carriers
15
4. Avast PC Users vs. Peers. Please refer to page 22Clear Market Leadership and Strong Brand Awareness
Avast Consumer PC Users vs. Peers Active Users vs. Consumer Internet Platforms(5) Brand Awareness in Named Search(6)
(M) (M) (%)
(1) 21.8
290+ 2,070 20.0
1,300
963 9.5
8.6
800
6.4
500 467 435+
(2) (3)
50 47 3.6
330 310 2.8
(4) 200 168 2.0
15 1.5
435M+ Strong
Brand Awareness
Deep Behavior
Insights
Broad Monetization
Opportunity
Active Users
Notes:
1. Count includes Windows and Mac, 2017 5. Data as of Q3 2017, aside for WhatsApp (July 2017), WeChat (Q2 2017), Amazon (Q1 2016) and
2. Symantec Report , 2017
3. Statista, Microsoft, Opswat 2015
LinkedIn (Q3 2016), Dropbox (23 Feb 2018)
6. Google Trends (Jan ‘17 through Nov ‘17)
16
4. Company estimates based on internal dataAvast’s Leadership: Geeks Awareness & Recommendation
Serves as a Key Source of Acquisition for AV
Geeks Brand Awareness Geeks Recommended
(Spontaneous) (in previous 6 Months)
51% 32%
41% 30%
39% 26%
USA 25% 22%
24% 21%
4% 17%
Avast was the most frequently recommended antivirus brand in the past six months in the US
82% 38%
61% 23%
59% 18%
Brazil 44% 12%
43% 11%
8% 9%
Avast is the leader for awareness, usage and recommendation in Brazil
67% 33%
50% 13%
40% 12%
France 31% 12%
16% 9%
6% 9%
Avast is the leader for awareness, usage and recommendation in France
N: USA = 1,001, BR = 500, FR = 500. 2 studies run in H1 and H2 2017. Studies conduced by GFK – Geeks determined by if they work in certain IT roles.
17The World’s Largest Consumer Security Network
MALWARE
MACHINE LEARNING 1. WEB SHIELD AVAST CLOUD ENGINE
2. STATIC SCANNER
3. EMULATOR
4. DEEPSCREEN (SANDBOX)
5. CYBER CAPTURE
Every Month, Avast: Every Month, Avast:
Handles 30+ million new 6. BEHAVIOR SHIELD
Prevents ~2 billion
executable files, 25 percent of
malware attacks
which are usually malicious
Continuously sifts through Pushes 50 PB of data
390TB of quality
security data
MONTHLY MONTHLY
ENGAGEMENT ENGAGEMENT
290M+ >10,000 Servers
Across 10 Locations
Worldwide, processing
monthly:
> 300M Files
145M+
> 200Bn URLs
182 Technology
The World’s Largest Consumer Security Network
MALWARE
MACHINE LEARNING 1. WEB SHIELD AVAST CLOUD ENGINE
2. STATIC SCANNER
3. EMULATOR
4. DEEPSCREEN (SANDBOX)
5. CYBER CAPTURE
Every Month, Avast: Every Month, Avast:
Handles 30+ million new 6. BEHAVIOR SHIELD
Prevents ~2 billion
executable files, 25 percent of
malware attacks
which are usually malicious
Continuously sifts through Pushes 50 PB of data
390TB of quality
security data
MONTHLY MONTHLY
ENGAGEMENT ENGAGEMENT
290M+ >10,000 Servers
Across 10 Locations
Worldwide, processing
monthly:
> 300M Files
145M+
> 200Bn URLs
20Training the Avast Machine Learning Engine Purpose-built approach that takes
Security is a Unique Challenge For A.I.
VOLUME SCALABILITY
VELOCITY SPEED
VARIETY ACCURACY
22Deep Learning on Mobile Devices
Avast Leverages a Burgeoning Mobile Ecosystem to Advance
ML-Based Security Processes On-Device
Avast Avast Avast
App1 App2 App3 Avast optimizes performance while agnostic to platforms
TFLite Caffe2Go
Software platforms for AI on mobile devices
(TensorFlowLite) (Caffe2Go)
ML Acceleration Layer Acceleration layer for ML on various chipsets
AI GPU DSP CPU
Specialized AI chips for the Mobile SoC (System-on-Chip)
Mobile SoC
23A War Of The Machines
Malware is being automatically modified Such advances will be harder to track and detect,
and deployed, and we expect machine requiring constant improvement of our techniques
learning to be used to modify and even write
new code in the future
static void do_command(struct seq_file *m, void *v)
{
int column = 32 ch_flags) & Cmd) ? 2 : 1);
else
seq = 1;
for (i = 0; I < 16; i++) {
CLEAN if (k & (1Industry Validation
TRIED. TESTED. TRUSTED.
Avast is committed to participating in all major independent third-party and customer tests, and is consistently rated as a top performer
In 2017, Avast proactively protected its
users against the most dangerous attacks:
Real-World Testing, 2017 AV-Comparatives Next-Gen Vendor Test(2)
100% 100% 100.0% 99.7% 97.1% 91.9%
90% 80% 84.2% 80% WannaCry Emotet NotPetya
70% 60% stopped stopped stopped
50% 40% 30%
0% NA
BadRabbit Adylkuzz Xdata
Frequency of Scoring 99% or better in 2017 Ability to block web-based malware, Ability to block fileless malware(3) stopped stopped stopped
protection results(1) protection rate
The Safe Browsing Test: How Many Malicious URL’s We Detect(4)
WannaCry: all 350 variants prevented
32% More • Independently blocked by two Avast defense layers:
⎼ Network Exploit Filter (Engine layer 1)
⎼ Behavior Shield (Engine layer 6)
14.3K 76.6K 43.3K
BankBot: router attack prevented
Safe Browsing API Web Shield (Layer 1) • Blocked by coordinated Avast defense layers:
⎼ URL Filter (Engine layer 1)
⎼ Script Emulation Engine (Engine layer 3)
Note:
1. Scoring rounded to the nearest whole percentage
2. Real-World Protection Test
3. Scored 97% on average
4. Tested sample of 40M URLs for phishing and malicious content, by comparing Google’s Safe Browsing API and the Avast Web Shield
25Avast Stands Firm Even Against The Most
Sophisticated Cyber-Offensive Attacks
Only Avast Was Able to Identify The CIA’s
“Brutal Kangaroo” on All Tested Platforms (1)
“We installed the (malware)
And Blocked
agent on the test target, and
Identified
when we tried to upgrade to
elite, Avast prevented the
upgrade.”
Logged But
Not Blocked
“We tried different installers but
there was no way Avast would
let the .exe pass through.”
“I scanned my hard drive with
No Detection
AVAST and the (malware) core
is detected as a virus. Seems
like there are a few more
components detected as a
virus as well.”
0 Platforms 1 Platform(2) 2 Platforms(3) 3 Platforms(4)
Note:
1. CIA test data and Hacking Team emails released by WikiLeaks, Vault 7
2. Windows XP, sp3 x86
3. Windows 7 Ultimate, sp1 x86 & x64
26
4. Windows Vista Ultimate, sp1 x86 & x643 Consumer Direct Desktop
Market Dynamics
Strong Growth Driven By Rapid Expansion In Smart Homes, VPN And Utilities
Addressable Market: Consumer Endpoint and IoT Key Growth Drivers
Rapid Demand For Smart Home Solutions Creates A Large Opportunity Consumer PC AV
For Avast Increasingly complex threats created by professional hacking groups
require more advanced protection
Estimated Consumer Security Revenue Share and Smart Home Revenue Share
Mobile
Markets ($Bn)
Mobile carrier demand for value added services (e.g. security software) to
drive growth
$5.9 $7.8
Consumer demand to monitor and secure devices for self and the family
to increase uptake of security solutions (incl. Parental Controls)
VPN
~7% VPN growth is driven by rising awareness of security risks especially on
CAGR mobile
$2.3 Performance Utilities
Strong monetization potential in cross-selling premium products to paying
$0.4 AV and freemium utilities users
Smart Home
43M new smart homes by 2021
46% of consumers expect IoT devices to be increasingly unsecure
$5.5 $5.5 Key Competitors
Consumer Security Smart Home (IoT)
2017 2021
1
Consumer Endpoint Smart Home (IoT)
Source: Company Market Study
Note:
1. Consumer Endpoint includes Parental Controls 28Product Overview
2 Paid Products 3 Paid Products
Upsell Utilities1
Ultimate
(Avast + AVG) (Avast + AVG +
CCleaner)
Premier VPN
(Avast)
(Avast + AVG + HMA)
Internet Security Cross-Sell
(Avast + AVG)
Passwords
(Avast + AVG)
Upsell (Conversion) Total Care
(Avast + AVG)
1 Free Product
Driver Updater
Free Antivirus (Avast + AVG)
(Avast + AVG)
Source: Company information
Note:
1. Also free cleaner product (CCleaner), where users often upsell to a paid version 29We Leverage Opportunities
In Our Markets To Gain Market Share
Consumer Desktop KPIs
EoP customers1
Free $$$
Proven (M)
Track
11.2 11.4
Record of 10.8
Upselling
and Cross-
selling
Users Customers 2015 2016 2017
APPC1
(x)
Massive
Opportunity
1.32
to cross-sell 1.21
1.26
into Privacy
and
Performance 2017-2021 2017-2021
driven by consumer awareness for driven by consumer need to
secure connectivity improve performance of devices 2015 2016 2017
Consumer Security Revenue CAGR ARPC1
2013–2016 – Gartner2 ($)
We Are Able 45.35
To Grow 4.7% 43.09 41.98
0.1%
Our Market
Share (8.0%)
(9.3%)
2015 2016 2017
Source: Company Market Study
Notes:
1. 2017 figures proforma for Piriform acquisition. APPC = Average Products Per Customer. ARPC = Average Revenue Per Customer
2. Based on Gartner Market Share - Security Software, WW (April 2017) 30New Challenges Driving Adoption Of New Solutions
Protection Privacy Performance
Accessing Poor Device
Spora Superfish Evil Twin
Content When Performance
Trojan Adware Hotspots
Growing Travelling
Digital Life
Challenges
Adylkuzz Aggressive
Locky Advertiser
Ransomware mining
malware Tracking
Key AV Features Key VPN Features Key Utilities Features
Our Solutions Wi-Fi Security Application Web privacy Secure Connection
Sandboxing Prevent 3rd parties Log in from public Optimizes App Removes
Addressing from spying on hotspots securely Usage Bloatware
These online activity
Challenges
Anti-Webcam Ransomware High Server Count Frees Up
Spying Protection Hide activity
from advertisers with Disk Space
varied IP addresses
31Our Sophisticated Monetization Engine
Customer Engagement Unique data sets
& Interaction Drivers 290M+ PC Users
46x1 In-Product Messaging (IPM)
Avast Monetization Engine
• Contextual Triggers
No PII
• Smartscan
Used
recommendations Device data
Upsell
• Registration prompts Free To Pay
Conversion
Performance
• Campaigns & Offers Device type
Behaviour data
38x1 In-Product Discovery (IPD)
• UI Product Overview Apps, Data, etc. Cross-Sell
Attach Sale Of
•
Usage Adjacent Products
Dynamic In-app
Elements
• Performance & Status Machine Learning used for:
Reporting
Conversion prediction
Pricing optimization
1x1 Email Campaigns Campaign muting
Churn prediction
Source: Company information
Note: 32
1. Adj. Billings derived factor, i.e IPM generates 46x more billings compared to the email campaignsOur Monetization Engine Drives Significant Growth
Utilities VPN
Avast Cleanup: ~5x Launch Year Adj. Billings Achieved In Just 3 Years Avast VPN: ~13x Launch Year Adj. Billings Achieved In Just 4 Years
4.8x 12.7x
3.2x 7.9x
2.4x 6.2x
1.0x 3.2x
1.0x
2014 2015 2016 2017 2013 2014 2015 2016 2017
Cleanup and VPN Cross-Sells Through our Campaigns Growth Despite Decreasing Number of Messages
Average Messages per Average User per Month
8.8 ~50% reduction
in messaging
Performance Warning Sensitive Content Unsecured Wi-Fi since 2015
5.5
4.1
Internet Service Sensitive Data Privacy Scan
Provider (ISP) Scan (SDS)
2015 2016 2017
33Success Story: Brazil
Gradual Build-up Of User Base Through Free Model, Product Localization, Local
Monetization And Change In Payment Methods Adapted To Local Mindset
Execution Results
The Avast Approach Brazil Customers (K)
~120M
Internet 2004 2017
Step 1: Build large install base
Users Step 1:
through free model Product
2013
localization
► Product Localization
Adaptation of the product to 2011
appeal to a new demographic 2008
(localization≠translation) Step 3:
$15Bn Introduction
In Online of installments
Step 2: Monetize Step 2b:
Retail Sales Step 2a: Boleto Bancário
Introduction of introduced
► Local Monetization local currency
Local pricing/currency and
payment methods e.g. offline Brazil Revenue
Strong payments (Boleto) Brazil now ranked 6th country in revenue / 4th country by customers
Growth ► Installments Top Countries by Revenue Top Countries by Customers
In Middle Part of the Brazilian mind set to 1. United States 1. United States
And Upper pay in instalments (through 2. United Kingdom 2. France
Market partnerships with credit cards) 3. France 3. United Kingdom
4. Germany 4. Brazil
5. Australia 5. Germany
6. Brazil 6. Australia
Sources: Company information, Forrester Research
34Continued Innovation Driving Product Roadmap
Avast Smart Home
Security
• Holistic protection of IoT
devices at home
Avast Family Shield • A combination of
• Both direct-to-consumer software and a hardware box
and carriers/ISP (code-name “Avast Scout”)
Avast HackCheck GTM models • Pursuing both B2C and
Avast AntiTrack • Free of charge • Advanced parental controls B2B2C channels
(location tracking, device
• New product in the • Landing page and possibly insight, smart alerts, etc)
Anonymization category a browser extension
• Protection against • Goal is to get people
aggressive tracking by subscribe and establish
advertisers regular communication
Source: Company information
35An Increasingly Connected Home Demands Security
Kitchen & Home Appliances Bedroom Lighting Baby
Energy & Utilities Safety / Alarm
Smart Speaker Smart Lock
Home Robots
Outdoor
TV & Entertainment Bathroom Health & Fitness
36Our Smart Home Architecture
Differentiated Go-to Market Approach through OEMs and Direct Channel
Avast Scout
ISP/Carrier Internet
Smart Life App
One Destination for Avast Cloud
Security, Control Intelligence Platform
and Insights for all
Your IoT Devices
Avast Security
Layer on Router
Control Path Data Path
37Why Is Avast Well Positioned For
Success In IoT?
We have the access, partnerships, existing customer base, and proven solutions to deliver, fast
AVAST HOME STRONG ADVANCED
KNOWS NETWORK RELATIONSHIP ANALYTICS +
CONSUMERS SCANNER WITH TELCO’S INFRASTRUCTURE
• 140M+ Households1 • Foundational technology • Strong, existing relationships • Industry leading security AI /
deployed since 2015 to accelerate long sales cycles in machine learning
• Trusted Brand burgeoning market
• Knowledge of vulnerabilities • Distributed server farms
• Global market penetration • Global Carrier security RFP win
• Rich source of IoT data including in key markets • Experienced R&D team
• Diverse consumer data
• Great cross-sell channel
Source: Company Market Study
Note:
1. Company estimate derived from unique IP addresses for Avast and AVG as of year-end 2017. Excludes Piriform 38Summary: Direct Desktop
Consumer Desktop Adj. Billings1
($m)
Stable PC market, fuelled by high engagement rate,
productivity benefits, and increased flexibility
543
Unique and disruptive go-to-market approach and user
acquisition model
>5x
Proven track record of upselling and cross-selling of
premium products
Strong technology and innovation pipeline driving product
differentiation
99
Massive opportunities in adjacent markets, including the
new Smart Home segment
2012 2017
Source: Company information
1. Not adjusted for AVG acquisition or any other business acquired by Avast during the period
394 Mobile
Avast’s Strong Presence in Mobile
Attractive Mobile Platform with Large User Base and Comprehensive Product Offering
~75%
AVAST PARTNER PRODUCTS (WHITE LABEL)
Unique Carrier Based Approach
Carrier /
OEM
AT&T T-Mobile AT&T Verizon
FamilyMap FamilyWhere Smart Limits Smart Family
CZ $4.99-9.99/mo
per paying sub
BEST IN CLASS MOBILE SECURITY PRODUCTS Up to 50% 6-9Yrs 7-9Mos.
Revenue Carrier Carrier
Share Tenure(2) Integration
Period
Best Best Free Perfect Score Highly Downloaded AVAST PRODUCTS (OWN LABEL)
Antivirus Antivirus Antivirus Security App Mobile
for Android for Android for Android 100 – 500M Category Customer Security Privacy & Performance
Direct To
Consumer
Mobile Family VPN Cleaner Password Alarm
Security Shield Manager Clock
Extreme
145M+ 5M+ $7.99/yr Up to 70% 100M 10M
Mobile Mobile Customers(1) per paying AV
Devices Net Revenue Avast Mobile Security Avast VPN
customer
Downloads (SecureLine)
~25% Downloads
Notes: Percentage of 2017 Adj. Billings
1. PC and mobile customer numbers are not deduplicated; mobile customers represent number of mobile subscriptions
2. Length of relationship with current US Carriers 41We Leverage Opportunities
in Our Markets to Grow
Strong and Proven Mobile
Huge Opportunity in Our Target Markets Growth Track-record
in 2020 2015-20 CAGR1
Mobile Adj. Billings ($ m)3
Direct to
Consumer
14%
CAGR4
86
2017-21 CAGR2 2017-21 CAGR2
78
66
2017-21 CAGR3
in 2021
Carrier
Opportunity
2015 2016 2017
Notes:
1.Statista, number of smartphone users worldwide from 2014 to 2020
2. Company Market Study as of December 2017
3. Company Market Study as of November 2016; Market defined as unique combination of country and carrier 42
4. Excludes advertising. 2015-2016 represents Aggregated Avast AVG Information. 2017 financials include Piriform
5. Excludes PiriformMobile Product Close Ups
Avast Mobile Security Avast Cleanup
Complete Care for Your Smartphone Keeping your device free of junk
• Next-generation antivirus engine
• Free up storage space
• Trojan & malware removal
• Optimize photo storage
• App Lock, Photo Vault, Web Shield, etc.
• Stop hungry apps from draining battery
Avast VPN (SecureLine) Family Shield
Protect and secure your data & privacy Know and Control what your kids do online
• Instantly secure your connection
• Device & network-based location
• Control your location
• Content filtering, App blocking
• Automatically connect to optimal server
• Geo and time based rules
• Anomaly alerts
43
Sources: Company Information and Google Play RankingsStrategy to Win Carrier Market
► Comprehensive product suite, providing partners with unique, bundled offerings
► Carrier-grade and network-integrated solutions
► 10+ years experience working with and supporting top, tier-1 carrier partners
► Building-block architecture
► Global company with global scale
► Best-in-class Global Carrier Sales & Operations team (25+ dedicated FTEs and growing)
44Case Study: VEON
240M+ Subscribers in 10+ Carrier Markets Key Details
NASDAQ and Euronext Amsterdam listed global provider of ► 5 country carrier launches planned for 2018
connectivity, with the ambition to lead the personal internet
► Market-tailored, comprehensive mobile product offerings
revolution for the 240 million+ customers it currently serves
► “Building Block” architecture approach
► Multi-device solutions (desktop security, family bundles, etc.)
► Two planned IoT launches for 2018, including new tier-1
router partnerships
Italy Russia, Kazakhstan, Ukraine Why We Won
and Armenia
► Experience working with large Carriers
► Comprehensive product portfolio
► Flexibility in customization
Pakistan Algeria ► Global product reach including in key Veon markets
Sources: Company Website and Press Releases
45Summary: Direct Mobile
Achievements to Date Strategy Going Forward
Significant progress with carriers Grow Carrier partnerships
► Identified 30+ priority markets1 with addressable
► Won VEON, VOD CZ and AT&T RFPs
subscriber base of ~1.0Bn that can be
► Re-signed & revitalized Verizon relationship considered for entry
► Grew T-Mobile user base by 62% ► Through direct sales and in-direct partnerships
with resellers and strategic alliances
Launched new products Expand business within existing Carrier
► AV and Cleaner products, growing Adj. Billings partners
by 34% yoy ► Through new product sales, e.g. VPN
► VPN products, growing Adj. Billings by more
than 74% yoy
Drive Direct To Consumer business
Completed AVG integration growth
► Focus on bundling and cross-selling
► New OTT products
► Multiplatform license integrations
Grow deeper into In-network products
Sources: Company Information
Note:
1. Defined by a combination of a country and a carrier 465 Consumer Indirect
Segment Overview
1 Platform
Distribution Browser Commerce Search Plugins 2 Mobile 3 Analytics
And Browser Advertising
Cleanup
(Discontinued
Business)
Segment
Product
Pay per install / Secure and fast Price comparison and Search plugins, toolbars In-app Market intelligence
first use 3rd party web browsing discounts for shoppers and extensions for third advertising tools
software party browsers, plus
Offered to eligible Cleanup tool for
Potential for Direct users in cases removing unwanted
additional Google where Chrome cannot browser plugins
products and high be offered
quality third party
branded products Share of advertising
revenue based on user
search
Key Segment
Stats
435M+ Users 2017 Adj. Billings: $79 Million1 $0.18 Adj. Billings per User
Note:
1 Excludes Discontinued Business
48Distribution
Overview Value Proposition To Google
• Distribution of Google Chrome to
Avast users
Google Chrome Install Points
Avast Service
• Windows and Mac only
Business Partner • >8-year partnership, recently
renewed to March 2020
Pricing Model • Free product
• Google pays up-front bounty for
each user who installs Google
$ Business Model Chrome and uses it at least once • Access to high quality user base through a high quality
• Paid monthly brand and product set
• Large size of total user base (enhanced by acquiring
• Distribution to Avast’s overall AVG and Piriform) makes Avast an ideal distributor
Differentiation user base of 435m+
Sources: Company information
49Browser
Overview Value Proposition To Consumers
• Avast Secure Browser (successor to
previous SafeZone (Opera white label) Faster + Safer
• March launch: today over half of all
Avast Product valid SafeZone installations updated
• Migration proceeding with active users +
substantially increased More To
Come
• Mac and Android versions to come Adblock Bank Mode Anti- Anti-Finger-
Tracking Printing
• Avast delivers additional search
Business volume and search share for partners
Partner
Browser Market Momentum
Pricing Model • Free to use
120 %
Worldwide Desktop Browser Usage (% Page Views)
100 %
• Avast sets default search engine and
earns an agreed % share of search 80%
8%
32%
Business provider’s advertising revenue based
$ Model on end user search activity 60%
56%
13%
• Paid monthly 40%
23%
64%
• New fast Chromium browser, synced 20%
32% 38%
with rapid Chromium update cycles
5%
Differentiation • Extra security and privacy built in
0%
2009 2012 2017
• Distribution to user base of 435m+ Chrome Firefox Internet Explorer Safari Microsoft Edge Opera Other
Sources: Company information
50Jumpshot At A Glance
Big Picture Dilemma
$1.5B 18% • 99% of the customers’ online lives
Market in 2017 ’17-21 CAGR take place outside of their own
ecosystem
• How can companies truly
understand their customers if they
only see a tiny sliver of their online
activity?
132 ~70%
Engineering
FTEs
and R&D
Solution
• A leader in enterprise market
Key Facts intelligence
188 4.5T 11PB • Jumpshot is a precise way to
reveal human behavior online
Countries Total Online User Stored Data
Globally Events
• Subscription based solution
Sources: Company information
51Insights Case Study: Cross-Visitations
5.8% of Walmart shoppers bought on Walmart
5.7% of Walmart shoppers bought on Amazon
Passive Actions Conversion Actions
Learn where else your users are browsing, clicking and interacting Learn where else your users are adding, checking out and completing purchases
1
Visited Interacted Added to Cart Started checkout Converted
Customers who visited Customers who interacted on Customers who interacted Customers who interacted Customer who interacted
walmart.com also visited: walmart.com also interacted on: but did not add to cart on but did not start checkout on but did not convert on
walmart.com added to cart on: walmart.com did start checkout on: walmart.com converted on:
1. Amazon.com 1. Amazon.com 1. Amazon.com 1. Amazon.com 1. Amazon.com
27.0% 41.0% 11.6% 6.6% 5.7% (3,744,255)
2. ebay.com 2. ebay.com 2. ebay.com 2. ebay.com 2. ebay.com
11.8% 15.9% 0.9% 1.8% 1.5% (1,002,173)
3. Target.com 3. Target.com 3. Target.com 3. Target.com 3. Target.com
7.5% 8.9% 0.8% 0.2% 0.2% (136,811)
52You can also read
