Enabling High Performance Wireless Connectivity - Investor Presentation March 2019
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Enabling High Performance
Wireless Connectivity
Investor Presentation
March 2019
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. © Copyright 2019 Airgain, Inc. All Rights Reserved.
NASDAQ:AIRG 1
Important Caution Regarding Forward Looking Statements
This presentation contains forward-looking statements. significantly, including based on seasonal risk factors, represent a significant portion of our sales, and if we lose place undue reliance on these forward looking
All statements other than statements of historical facts which makes our future operating results difficult to any of these customers, our sales could decrease statements, which speak only as of the date here of, and
contained in this presentation, including statements predict and could cause our operating results to fall significantly; we rely on a few contract manufacturers to we undertake no obligation to revise or update this
regarding our future operating results, financial position below expectations or our guidance; risks and produce and ship all of our products, a single or limited presentation to reflect events or circumstances after the
and cash flows, our business strategy, our 2018 financial uncertainties related to recent management changes and number of suppliers for some components of our products date hereof. All forward- looking statements are qualified
outlook, and plans and our objectives for future any difficulties or delays we encounter in identifying a and channel partners to sell and support our products, in their entirety by this cautionary statement, which is
operations are forward-looking statements. In some successor CEO; a slower than anticipated rollout of and the failure to manage our relationships with these made under the safe harbor provisions of the Private
cases, you can identify forward-looking statements by certain customers' deployments; our products are subject parties successfully could adversely affect our ability to Securities Litigation Reform Act of 1995.
terms such as “believe,” “may,” “will,” “estimate,” to intense competition, including competition from the market and sell our products; if we cannot protect our
“continue,” “anticipate,” “plan,” “target,” “project,” customers to whom we sell, and competitive pressures intellectual property rights, our competitive position This presentation also contains estimates and other
“contemplate,” “predict,” “potential,” “would,” from existing and new companies may harm our business, could be harmed or we could incur significant expenses statistical data made by independent parties and by
“could,” “should,” “intend” and “expect” or the sales, growth rates and market share; our future success to enforce our rights; our international sales and us relating to market size and growth and other data
negative of these terms or other similar expressions. depends on our ability to develop and successfully operations subject us to additional risks that can about our industry. This data involves a number of
These statements involve known and unknown risks, introduce new and enhanced products for the wireless adversely affect our operating results and financial assumptions and limitations, and you are cautioned
uncertainties and other important factors that may cause market that meet the needs of our customers; risks that condition; our ability to identify and consummate not to give undue weight to such estimates. In addition,
our actual results, performance or achievements to be we may not fully realize the benefits associated with the strategic acquisitions, and risks associated with projections, assumptions and estimates of our future
materially different from any future results, performance partnerships we have entered into, or that existing completed acquisitions adversely affecting our operating performance and the future performance of the
or achievements expressed or implied by the forward- partnerships may be terminated by either party; our results and financial condition; and other risks described markets in which we operate are necessarily
looking statements. These risks, uncertainties and other business is characterized by short product development in our filings with the Securities and Exchange subject to a high degree of uncertainty and risk.
factors include, without limitation: the market for our windows and short Commission (SEC), including under the heading “Risk
antenna products is developing and may not develop as product lifecycles; we sell to customers who are Factors” in our Annual Report on Form 10-K and any
we expect; our operating results may fluctuate extremely price conscious, and a few customers subsequent filings with the SEC. You are cautioned not to
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 2
Who We Are
• Airgain (NASDAQ: AIRG) is a leading provider of
advanced antenna technologies used to enable
high performance wireless networking across a
broad and increasing range of consumer,
enterprise, and automotive applications.
>125
Employees > 245 ~ 30%
2003 2016 Patents &
Improved >1000 > 250M
Founded IPO throughput over Antenna SKUs Wireless Devices
> 40% Applications
Engineering Industry standards Shipped
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 3
Who We Work With
• Tier One Service Providers
• Chipset Partners
• Global OEMs & ODMs
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 4
World Class Leadership Team
Years Experience Past Companies Experience
Jim Sims • Chairman of the Board since November 2003
Chairman and 35+ • C-Level leadership experience with multi-billion dollar
Chief Executive Officer public companies across the technology space
• 13 years in global sales leadership roles at Airgain
Jacob Suen 20+
President • Sales, marketing, operations, and business development
roles
• Finance and technology industry experience
Anil Doradla
20+ • Wall Street experience along with a variety of strategic
Chief Financial Officer
and engineering roles
Kevin Thill • Deep domain expertise in antenna systems & platforms
Senior Vice President, 30+ • Founder of Antenna Plus that grew into a multi-million
Engineering dollar per year business
Kathy Pearson • HR leadership roles in building global organizations
Vice President, Global 20+ • Specializes in small to mid-size growth companies across
HR and Administration multiple industries
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 5
Airgain’s Global Presence
Cambridge, UK Munich, Germany
Chicago, IL
Boston, MA
San Diego, CA Suzhou, China Seoul, South Korea
Kansas City, MO
Scottsdale, AZ Marrakesh, Morocco
Melbourne, FL Shenzhen, China
San Antonio, TX Taipei, Taiwan
Design Center
Sales/Satellite Office
Manufacturing
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 6
Solid Financial Execution and Strong Momentum
3 Consecutive Quarters of
Double Digit YoY Growth Return to Consistent Profitability
Record Revenue
Annual Revenue ($M) 2018 Adjusted EBITDA ($M) 2018 Revenue by Quarter ($M)
$60.6
$15.8
$49.5 $16.6
$43.4 $15.0 $15.8
$13.3
$1.84
$27.8
$1.04
$.39
$-.51
2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
*based on 2018 annual growth guidance NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 7
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 8
Airgain’s Targeted Markets
Airgain will be focusing on 3 targeted markets with an aggregated TAM in excess of $6.7B by 2022
26% CAGR
15% CAGR
9% CAGR
$780M $1.6B $4.4B
Consumer Automotive Enterprise
(Connected Home & IoT) (Fleet & OEM) (M2M & Industrial IoT)
We believe we are well positioned to take advantage of the anticipated
growth in current and new markets
Sources: ABI Research Forecasts, 2018 + Airgain ASP assumptions NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 9
Airgain’s Product Markets
Targeted markets have increasing product diversification.
Emerging fragmentation provides more opportunity to develop more technology and sell into more applications.
Consumer Enterprise Automotive
Gateways Set Top Boxes Routers & Enterprise Access Carrier Grade Outdoor Mass Commercial Fleet
Access Points Points Access Points Transportation Management
Wi-Fi Smart TV OTT Devices
Extenders
Smart Utilities Kiosks ATM Machines Public Safety: Law Intelligent Warehouse
Enforcement, Fire, EMS
Sensors Smart Meters
IIoT / LPWAN Wi-Fi Hotspots Femtocells Auto OEM Infotainment
Home Wi-Fi IP Security
Automation Speakers Cameras
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 10Complex Antenna Systems: The Next Frontier
Competitive Advantage:
Airgain’s expertise in system performance 64 Element Massive
optimization has become core to enabling
FD-MIMO MIMO
connectivity DU
5G
802.11ax
802.11ac
802.11n Antenna design becomes the most critical
element in optimizing wireless systems –
Significant
802.11b/g especially with smaller enclosures and much
wireless performance
more complex designs
Wireless performance enhancements rely on better
Chipsets key for wireless improvement via chipsets antenna systems
performance – antennas were becomes more limited
an afterthought in the design
process
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 11NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 12
What We Do
• High end custom engineering shop
• IP and system performance expertise
• Each design is high volume
Custom Engineering /
Standard Product Market
Mass Manufacturing Market
• 3-6 month design cycle • Up to 6 month design cycle
• Manufacturing 1-5m units • Manufacturing 5-10k units
• Life cycle 2-4 years • Life cycle 4-5 years
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 13How We Do It
Antenna Simulation System
Engineering Custom Validation
Design & & Initial Throughput
Review Integration & Quality
Placement Testing Optimization
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 14NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 15
Driver 1: 802.11 Wi-Fi
Drivers of the Wi-Fi Revolution Today in the US alone:
• Accelerating broadband speeds • Carriers serve 94M homes, with bandwidth now
• Demand for increased throughput providing up to 1 GB Wi-Fi access points /
• Increasing number of devices used concurrently gateways with 4-12 antennas each
• More indoor and outdoor applications • Potential subscriber units to be upgraded: 233M*
Sources: 1-CableLabs / 2-Wi-Fi Findings by D-Link, September 2014
3-Cisco Router Switch Blog, October 17 / 4-ITU Report M.2410-0, November 2017 NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 16Driver 2: 5G Market Opportunities
New 5G market opportunities
• New product cycles = more system designs 25% Network Traffic
• New applications = new business opportunities Projected by 2023*
• New spectrum = more antennas needed
Highly integrated designs require close relationship with OEM and
Chipset Vendors
Custom solutions and Performance focus align Airgain’s strategy
and strength as a Performance and Integration leader
New Applications New Spectrum
Small Cell 5G Fixed Wireless Massive MIMO Sub 6GHz mmWave
Indoor and Outdoor Point-to-Point Beamforming
*ABI Research, 2018 NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 17NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 18
Growth Opportunities
Strategic M&A Manage Fragmented Markets
Highly scalable platform for Cross-over opportunities within Consumer,
inorganic growth Enterprise, and Automotive
Execute Against Verticals
Diversified, broad base of blue chip customers driving
consistent revenue growth, with long product lifecycles
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 19NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 20
Revenues
Quarterly Revenue ($M)
$60.6
$49.5 $16.6
$43.4
$12.8
$12.6 $15.8
$27.8 $12.4
$9.3 $12.4
$15.0
$13.0
$6.7
$9.9
$6.1 $15.0 -
$11.3 $13.3
$5.7 $8.5 15.25
2015 2016 2017 2018 2019
(Projected)
Q1 Q2 Q3 Q4
*based on 2018 annual growth guidance NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 21GAAP Financial Model
December FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018
Sales $43.4M $11.3M $13.0M $12.4M $12.8M $49.5M $13.3M $15.0M $15.8M $16.6M $60.6M
Gross Profit
44.4% 47.0% 47.0% 48.2% 46.0% 47.1% 46.6% 44.1% 43.5% 41.4% 43.7%
% of Sales
Operating Expenses $15.8M $4.9M $6.2M $5.8M $5.4M $22.3M $7.4M $10.3M $6.6M $5.7M $29.9M
Op Ex as a % of Sales 36.4% 43.2% 48.0% 46.6% 42.3% 45.1% 55.3% 68.5% 41.5% 34.6% 49.3%
Operating Income (Loss) $3.4M $0.4M -$0.1M $0.2M $0.5M $1.0M -$1.2M -$3.7M $0.4M $1.2M -$3.3M
Operating Margin 7.9% 3.8% -1.0% 1.6% 3.9% 2.0% -8.7% -24.4% 2.8% 6.8% -5.6%
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 22First Quarter 2019 Guidance
December FY 2016 2017 2018 Q1 2019 Guidance
Sales $43.4M $49.5M $60.6M $15.0-$15.25M
Gross Profit Up Sequentially from Q4
44.4% 47.1% 43.7%
% of Sales 2018
Operating Expenses $15.8M $22.3M $29.90M
OpEx as a % of Sales 36.4% 45.1% 49.3%
Operating Income $3.4M $1.0M -$3.39M
Operating Margin 7.9% 2.0% -5.6%
GAAP EPS $0.40 $0.11 -$0.27 Break Even - $0.01
Non-GAAP EPS $0.31 $0.22 $0.04 - $0.05
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 23Contact
Anil Doradla
CFO
Anthony Mariucci
IR Contact
investors@airgain.com
Airgain, Inc.
3611 Valley Centre Drive
Suite 150
San Diego, CA 92130
NASDAQ:AIRG © Copyright 2019 Airgain, Inc. All Rights Reserved. 24You can also read
