Fan Engagement and Rewards WE make PEOPLE PAY ATTENTION - NASDAQ: VS February 2022 - cloudfront.net
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Fan Engagement and Rewards
WE make PEOPLE PAY ATTENTION.
NASDAQ: VS February 2022
1
Disclaimer
This presentation contains forward-looking statements, including, but not limited to, statements regarding the plans,
objectives, expectations and intentions with respect to future operations. All statements other than statements of
historical fact are statements that could be deemed forward-looking statements. Versus Systems Inc. (“we,” “us,” “our,”
or “the Company”) may not actually achieve its plans or product development goals in a timely manner, if at all, or
otherwise carry out the intentions or meet the expectations or projections disclosed in these forward-looking
statements. These statements are based on management's current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause actual results to differ materially from those
described in the forward-looking statements, including, among others, general business and economic conditions,
including risk related to the impact on our business of the COVID-19 pandemic or similar public health crisis; the need
for and ability to obtain additional financing; the risk that the Company's intellectual property may not be adequately
protected; and the other factors described in the risk factors set forth in the Company's filings with the Securities and
Exchange Commission or the System for Electronic Document Analysis and Retrieval from time to time. The
Company undertakes no obligation to update the forward-looking statements contained herein or to reflect events or
circumstances occurring after the date hereof, other than as may be required by applicable law.
2
Versus Systems at a glance
The multi-trillion-dollar media landscape is
undergoing a massive sea change
Audiences want more. They want content that is
more personal, contextual, interactive, and
rewarding
Versus adds interactivity and rewards to games,
live events, and streaming media – increasing
the time that audiences engage with the
content
Versus-enabled content becomes more valuable
for content creators, and for their advertisers
Versus’ products, patents, and team are uniquely
positioned to take advantage of the massive
changes occurring right now
In the last six months, Versus has added as
customers some of the biggest live event and
media companies on the planet and it’s only the
beginning...
3
All content creators, from live events, to streamers,
broadcasters and advertisers, need audience
engagement
Personal, contextual, interactive & rewarding
content is more engaging – but few content
companies offer these extra elements
Versus has deep expertise, a world-class team, and
proprietary tech to engage via interactivity and
rewards - and we can add that tech to any content
According to Statista, the global media market was $2 Trillion in 2020.
4
Versus is a world leader in audience engagement
Adding interactivity and rewards to all kinds of content
Interactivity Rewards
Versus adds trivia, games, polling, sentiment, Our patented platform allows audiences to
and social elements to second-screen win real-world rewards for their activities
experiences like apps that are played alongside inside Versus-enabled content
sports, concerts, streams, and live events
5
Versus makes people pay
attention to content by
Versus has shown up to a
adding interactivity and
earned-rewards 40% increase in
The more attention audiences minutes played/
pay, the more valuable the
content becomes minutes watched
Versus case studies in 2019 and 2020 of time in-game with rewards/interactivity vs non-reward control groups.
Studies performed with HP and with NASCAR Heat Mobile. 6
Brands, creators, and consumers
benefit from increased
engagement
Brands Win Content Creators Win
Higher engagement. People play longer.
Better recall. Fans watch more, and more often.
Better affinity. Fans tune in-live.
Higher transactions.
Audiences & Players Win
Earned rewards create more positive
consumer experience.
Everyone loves winning.
7
Partners seeresults:
Partners see results:engagement,
engagement, reach
reach andand returns
returns
2
1
Versus delivered
Versus delivered
for Crush, Canelo
for the Pittsburg
Alvarez/Billy Joe
Penguins
Saunders fight
30+
minutes of engagement
2M+
incremental ad impressions
21+
minutes of engagement
>50%
transaction rate on PPV
per fan, per game per game during the flight and codes and 2L Crush offer
hours more pre-fight
1) Versus and Xcite case studies for the 2020-2021 sporting season
2) Versus and Xcite combined case study with Kureg Dr. Pepper and Frias Agency 8
Proprietary XEO platform
The XEO platform allows users the control to update both the First Screen and Mobile screen in real time. XEO brings the
show experience of an arena, stadium, or conference center to TV, mobile, and desktop devices with many available
extensions that provide a deeper experience and stronger user engagement
1. XEO CONTROL PANEL
This feature allows real time control over 1. XEO CONTROL PANEL
all of your outputs and engagements,
including the white label games, trivia, 3. FIRST SCREEN PREVIEW
predictive and polling
2. TIMELINE
The timeline allows a producer to program
a full show to timecode
3. FIRST SCREEN PREVIEW 4. MOBILE PREVIEW
First Screen preview allows a producer to
see in real time what will be displayed on 2. TIMELINE
their first screen
4. MOBILE PREVIEW
Understanding the mobile experience is
central to the engagement. XEO is built in
mobile web and works on any modern
smart phone
9
Critical patents in rewards, engagement, & “play-to-earn”
The USPTO has issued multiple granted US patents with over 60 patent-protected claims related to:
Determine player identity using Establish and certify prize eligibility Display to players/viewers on the
location, age, and other across multiple jurisdictions prizes that they are eligible to win
characteristics
Distribute prizes to players based on Dynamic Regulatory Compliance Create campaigns inside existing games
eligibility and in-game performance allows content partners to offer and apps with and dashboards that allow
prizing consistent with federal, state, game creators and brands to change
local and international laws campaigns instantly
10Versus business model: three growing revenue sources
2
3
1
Advertising Revenue
Share and Scalable
(CPC/CPA) Revenue
Licensing & Software
as a Service (SaaS) We charge partners for fan
engagement. On a cost per-click
Selling access to our XEO and (CPC) or cost per action (CPA) basis,
Professional Services rewards platforms as per brands, agencies, and affiliates pay
month/season/game software based on fans interactions with the
Developing bespoke software or license VS platform (rewards or other
producing live events interactive ads) and we split those
revenues with our content partners
11 11Versus growth roadmap…
PHASE 3 – Advertising and Other Scalable
Revenue Share (CPC, CPA, etc.)
The largest opportunity for growth is engagement-based
pricing and engagement-based advertising
This is the critical differentiator,
REVENUE POTENTIAL
the center of our patent portfolio, and the our highest-
performing feature set for our partners
PHASE 2 - Licensing & Software as a Service (SaaS)
Licensing is the fastest growing part of the portfolio
With the launch of the XEO platform—a software platform that manages games, trivia, polling,
sentiment, and social elements all in one location for teams and broadcasters
PHASE 1 - Professional Services
Historically the largest source of Versus revenues, professional services has grown significantly in 2021 with
the acquisition of Xcite Interactive
TIME
12… and the next evolution for expansion
PHASE 4 – Streaming Media + OTT / Interactivity
The transformative opportunity is scaling the Versus model through
potential partnerships with streaming media / OTT platforms such as
YouTube, Twitter and Twitch
REVENUE POTENTIAL
PHASE 3 – Advertising and Other Scalable Revenue Share
PHASE 2 - Licensing & Software as a Service (SaaS)
PHASE 1 - Professional Services
TIME
13The four key performance indicators
1
Number of Contracts:
partners, teams, leagues, etc.
2
Average Contract Value:
includes all three forms of revenue
3
% of High-Margin Contract Elements:
- Software Subscriptions
- CPC/CPA and other Advertising Revenues
4
Audience Metrics
- Viewers and players
- Time on site
- Opt-in rates
14Growing our content partner portfolio
KPI: Contracts
Versus has grown from 1 partner to 50+ world-class
teams and content partners in the last 6 months
New Partners decrease concentration risk, blunt the
effects of seasonality, & drive revenues
Contracts create direct content partner revenues
and are key to growing audience size
15Increasing our global reach
KPI: Contracts
Added India, Mexico, and UK capability via
HP in the last three months
Cricket, boxing, soccer, Japanese baseball,
and NCAA Football
all added in Q2 and Q3 2021
Locally relevant content opens new markets
with new audiences
16Add new features, increase reach, improve network effects
KPI: Contract value
Develop XEO as a consolidated
platform for games, trivia,
predictive, sentiment
Grow the number of rewards
partners (brands, agencies)
Add TV, OTT, and streaming
capability
New social media integration
Continue to grow the patent portfolio
17Grow the percentage of high-margin elements
More software subscriptions, more CPC/CPA and advertising revenues
XEO version 0.10 in market now
with multiple teams – a stand-
alone platform for teams to do fan
engagement
XEO version 1.0 to be released in
Q2 2022
Adding Cost-Per-Click (CPC) and
Cost-Per-Action (CPA) elements
into new contracts to capture
value from engagement lift
Developing multiple tools,
including Shopify app, to make
self-serve advertising possible
18Growing audience metrics
As of December 31, 2021:
10+ million viewers since July 1
~1 million viewers a week
Adding Cost-Per-Click (CPC) and
Cost-Per-Action (CPA) elements
into new contracts to capture
value from engagement lift
Versus enabled content has been
viewed at over 500 events globally
in the proceeding 100 days
19BigWins
Big wins in
in 2021
2021
Jen Prince, ChiefGrowing the Team.
Commercial Officer Of the LAAdding
Rams, World-Class Expertise
Former Global Head of Content Partnerships for Twitter,
Former Head of Industry, Media and Entertainment for
YouTube, Joins the Versus Systems Board
Acquired Xcite Interactive in June, the industry leader in
live-event fan interaction
Added venue producers, game-operations experts, live
events and sports-presentation teams from the Olympics,
Dallas Cowboys, Pittsburgh Penguins, Edmonton Oilers,
Toronto Raptors, Madison Square Garden, FIFA Women’s
World Cup, and others
Added a team with multiple Emmy-awards, Webbys, and
championship rings from major sports teams
20A team of world-class experts
Management
Versus is an incredible team, led by a dynamic
collection of experts in media, entertainment,
technology and advertising.
The board includes media, entertainment, capital
markets, and governance expertise including
leaders like Jen Prince (Chief Commercial Officer
Matthew Pierce Craig Finster Amanda Armour Sean Hopkins Alex Peachey
of the LA Rams & former Global Head of
Partnerships at Twitter) and Keyvan Peymani
Board of Directors (Chief Brand and Commercial Officer of Cirque du
Soleil, formerly of Amazon, Warner Bros, & Netflix)
The advisors and team include award-winning
television and game producers, and executives
from Google, Sony, Adobe, Marvel, Studio 71,
Madison Square Garden. They have led multiple
Keyvan Peymani Michelle Gahagan Brian Tingle Paul Vlasic Jennifer Prince billion-dollar initiatives, and earned scores of
Emmys, Webbys, Addys, World Championship
Rings, and other accolades.
Advisors and Key Employees
21Key financial highlights
Key Metrics
Over 50 partnerships with professional sports franchises
strengthen and diversify the Company’s revenue streams
~1 million 10 million +
Views per week Views across all
Strong viewership in 2021 with the Company surpassing 10 in October 2021 platforms since
million viewers across all platforms since July 1, 2021 and July of 2021
~1 million viewers per week since the beginning of October
The Company’s three largest customers in 2021 have been the 40% + 97%
Dallas Stars, New Jersey Devils, and the New York Jets, and Increase in Of users say
those revenues are in addition to the multi-year contract with overall session rewards improved
HP time for Versus content
Rewards Users experience
Three distinct revenue streams available for all new contracts:
professional services, SaaS, and scalable revenue features
50+ 3
New partners / Revenue streams
contracts added available with each
in 2021 new contract
22Right now, a $2 trillion dollar industry is evolving
Media and entertainment are changing
drastically as we speak .
Content is becoming more engaging, more
interactive, more personal, more rewarding.
Versus has the right. team and the right
technology to capitalize on this moment.
Welcome to Versus Systems
According to Statista, the global media market was $2 Trillion in 2020. Nasdaq: VS 23You can also read
