BlueRush Inc. Investor Presentation - TSX-V: BTV July 2019
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BlueRush Inc.
Investor Presentation
TSX-V: BTV
July 2019
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com
Disclaimer
This presentation (the “Presentation”) about BlueRush Inc. (“BlueRush”) is dated as of July 2019. It is information in Should any factor affect BlueRush in an unexpected manner, or should assumptions underlying the forward-looking
a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or information prove incorrect, the actual results or events may differ materially from the results or events predicted.
potential investors and does not take into account the investment objectives, financial situation or needs of any Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover,
particular investor. BlueRush does not assume responsibility for the accuracy or completeness of such forward-looking information. The
forward-looking information included in this press release is made as of the date of this press release and BlueRush
No representation or warranty, express or implied, is made or given by or on behalf of BlueRush or any of its undertakes no obligation to publicly update or revise any forward- looking information, other than as required by
affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the information or applicable law.
opinions contained in this Presentation and no responsibility or liability is accepted by any person for such
information or opinions. BlueRush does not undertake or agree to update this Presentation or to correct any By your acceptance of this presentation you and any person reviewing this Presentation agrees not to distribute,
inaccuracies in, or omissions from, this Presentation that may become apparent. No person has been authorized to copy; reproduce; transmit; make available; or condone any of the foregoing, without the prior written consent of
give any information or make any representations other than those contained in this Presentation and, if given BlueRush. Any unauthorized use of this Presentation is strictly prohibited.
and/or made, such information or representations must not be relied upon as having been so authorized. The
contents of this Presentation are not to be construed as legal, financial or tax advice. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale
of the securities of BlueRush in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to
Certain statements contained in this press release constitute "forward-looking information" as such term is defined registration or qualification under the securities laws of such jurisdiction. The securities of BlueRush have not been
in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or
"intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to BlueRush, are any state securities laws and may not be offered or sold within the United States, unless an exemption from such
intended to identify forward-looking information. All statements other than statements of historical fact may be registration is available, information concerning the assets and operations of BlueRush included in this Presentation
forward-looking information. Such statements reflect BlueRush's current views and intentions with respect to future has been prepared in accordance with Canadian standards and is not comparable in all respects to similar
events, and current information available to BlueRush, and are subject to certain risks, uncertainties and information for United States companies.
assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or
implied by such forward-looking information to vary from those described herein should one or more of these risks Recipients of this Presentation who are considering acquiring securities of BlueRush are referred to the entire body
or uncertainties materialize. Examples of such risk factors include, without limitation: changes in law, large increase of publicly disclosed information regarding BlueRush. The information is subject to material updating, revision and
in competitors, litigation, the ability to implement business strategies and pursue business opportunities, state of further amendment, and is qualified entirely by reference to BlueRush’s publicly disclosed information.
the capital markets, future capital requirements, the availability of funds and resources to pursue operations, new
technologies, the ability to protect intellectual property rights, the ability to obtain patent protection for products,
third-party intellectual property infringement claims, regulatory changes affecting products, failing research and
development activities, the ability to reach and sustain profitability, dependence on business and technical experts,
the ability to effectively manage business operations and growth, issuance of debt, dilution of existing securities,
volatility of publicly traded securities, potential conflicts of interest, unlikelihood of dividend payments, the
potential costs stemming from defending third-party intellectual property infringement claims, the ability to secure
relationships with suppliers and customers, dependence on key management and employees, as well as general
economic, market and business conditions, as well as those risk factors discussed or referred to in BlueRush’s
documents filed with the securities regulatory authorities in certain provinces of Canada and available at
www.sedar.com.
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 2
The Problem BlueRush Solves:
Customer Engagement
The Problem The Solution
Information Overload Personalized Video
• People are inundated, attention With interactive and personalized video
spans are limited we are able to achieve superior and
• 6 second ads are not the answer quantifiable levels of engagement, which
• The problem is not going away drives meaningful business results.
Attention Spans Recent BlueRush Case Study
• The average attention span by year: As part of a pension fund personalized
• 2000 – 12 seconds video project, the average viewer was
• 2015 – 8.25 seconds engaged for 75 seconds.
• The average attention span of a
goldfish is 9 seconds!
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 3
IndiVideo Case Studies
Mortgage Affordability IndiVideo for AFP Habitat Pension
WATCH THE VIDEO
one of Canada’s “Big Six” Banks Statement IndiVideo
Objective Objective
Improve conversion performance of client’s mortgage Engage and educate AFP Habitat’s 2.3M clients to increase
affordability calculator pension account openings and contributions
+ % + %
30 70 40+ % + % +
90 70 % +65 %
Of viewers Of visitors watched Lift in Satisfaction Watched entire Increase in
clicked CTA >60 seconds of video conversions rating IndiVideo account openings
and contributions
These successful customer results drove increased
SaaS revenue, deferred revenue and total billings
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 4
B2C Video Marketing
Opportunity
• Video is 69% of all Internet traffic, and is projected to
grow to 80% by 2021 (Cisco 2017)
• In 2018, 2.4 billion people consumed video content,
of which 78% was viewed on mobile (eMarketer 2018)
• 95% of consumers watch video to understand
products/services (HubSpot 2018)
• 96% of marketers plan to maintain or increase
investment in personalization in 2019 (Evergage 2018)
• “The video format has surpassed all other major
marketing formats, especially among the young, and
consumers often choose it when seeking advice or help
online” (International Data Corporation 2019)
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 5
Video Marketing Landscape
IndiVideo’s Current Addressable Financial Institution Market
(for Tier 1, 2, and 3 financial institutions in North America with AUM of at least US$2 billion):
Video advertising market by 2021 Total 10% Market Share
US $ 22
BILLION
~US $
MILLION in ARR
450 ~US $ 45
MILLION in ARR
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 6
Lead Investor
Founded in 2003, based in Toronto
• Public since 2004, the Company’s history is Growth-stage venture capital firm investing in
primarily providing one-time digital media services Canadian information technology companies including:
• Lavalife, Skywave, FloNetwork, Softimage, Fortiva
• Commenced transition to SaaS model in late 2017
with appointment of CEO Steve Taylor • Hubdoc: exit to Xero for ~$100M (July 2018)
• Revitalized: new SaaS strategy Round13 provides guidance for:
• Strategic planning
• Recapitalized: fresh capital
• Sales & marketing
• Restructured: new leadership team
• Fiscal 2018 revenue: $3.0 million Own ~38% of BlueRush Inc. after initial investment and
exercise of warrants (2018)
• YTD Fiscal 2019 revenue (nine months): $2.7 million
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 7
Management
Dave Badun, CPA, CA / Jeff Bilyea /
CFO; 2018 COO; 2018
Richard Pineault / Ted Mercer /
Steve Taylor / CEO, Director; 2017 VP Tech; 2008 VP Sales; 2018
Strong track record leading emerging, high-
growth companies:
• SaaS-based compliance: 2002-2015
(Exit to Klass Capital)
• Mobile: 2005-2012 (Split company in two, Larry Lubin / Len Smofsky /
resulting in sale of both) President, Co-Founder, EVP, Co-Founder;
• E-commerce: 1995-2001 (IPO) Chair; 2003 2003
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 8Our Products
Applications Verticals
Creates a memorable customer • Billing & statements • Financial institutions
experience, simplifying complex products
and ensuring immediate relevancy. What is IndiVideo?
• Customer care • Insurance
The platform’s data-driven video content WATCH VIDEO
seamlessly fits into existing marketing
infrastructure to accelerate the buyer journey. IndiVideo cost-effectively • Customer engagement • Telecommunications
scales with no compromise to data security.
• AdTech • Utilities
• Proxies • E-commerce
Content engagement platform that aligns
sales, marketing, and compliance.
The platform facilitates the centralization, • Healthcare
What is DigitalReach?
personalization, distribution and associated
tracking of customer-centric content. WATCH VIDEO • Cannabis
DigitalReach empowers personalized client communications, ensuring a
seamless digital experience and emotional brand connection.
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 9Re-positioning for Growth
Transformation to SaaS Product Development Business Growth
CEO identified prime products with Integration with Microsoft Power BI Focus on increasing predictable
SaaS ability, thus altering the business enhances IndiVideo analytics & reporting. recurring revenue through
from one-time services revenue to IndiVideo AI strategy advances through higher direct & partner sales
recurring revenue model. partnerships with 3rd party data vendors. and document composition
opportunities in 2019.
2017
Growing Sales Pipeline Strengthened Team
Sourced quality leads moving pipeline BlueRush continues to strengthen its
from $1M (Oct’17) to $5M (today) executive team (CFO, COO) while
including 75 IndiVideo deals. acquiring A-level talent within
Greenfield: 70/75 non-competitive. sales & development.
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 10Strong IndiVideo Sales Momentum
IndiVideo Monthly Recurring Revenue (MRR)
$60,000
Accelerating demand for IndiVideo from financial
$50,000 services firms since start of 2019
$40,000
Increasing market awareness of IndiVideo’s ability to
$30,000 boost customer engagement, retention and market-
driven insights
$20,000
$10,000 Continued enhancements make platform more
versatile and attractive
$0
Jan-18 Apr-18 Jun-18 Aug-18 Oct-18 Jan-19 Apr-19
IndiVideo MRR surpassed $50,000 in April 2019, exceeding Company’s forecast of $45,000
Committed IndiVideo MRR now exceeds $100,000
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 112019 Awards and Recognition for IndiVideo
“Best Financial “Best of Show” “Unique Business
Services Online Value for Banks and
Video” Consumers”
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 12Blue Chip Customers Strategic Partners
(S. America) (UK & Europe)
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 13Strong SaaS Growth in Q3 20191
Growth in SaaS revenue and gross margin reflects $ Millions except percentages Q3 2019 Q3 2018
rising IndiVideo demand and per share amounts 3 months 3 months
Revenues
SaaS Revenue Deferred SaaS Revenue Subscriptions & Support $0.4 $0.3
increased increased Services $0.6 $0.6
Total Revenue $1.0 $0.9
$73k $617k Cost of Sales
Subscriptions & Support $0.1 $0.1
SaaS Gross Margin SaaS Gross Margin Services $0.3 $0.4
($) (% of SaaS Revenue) Total Cost of Sales $0.4 $0.5
$0.25M 71%
66% Gross Profit $0.6 $0.4
$0.19M
SaaS Gross Margin 71% 66%
Services Gross Margin 52% 41%
Net Loss ($0.8) ($1.0)
Per Share (basic & diluted) ($0.01) ($0.02)
Q3 2018 Q3 2019 Q3 2018 Q3 2019
1 Three months ended April 30, 2019 CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 14Appendix
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 15Investment Summary
1 2 3 4
Large and Strong IndiVideo is a Blue Chip
Growing Market Management and Superior Product Customers and
Opportunity Lead Investor Strategic Partners
• Video is the fastest- • CEO Steve Taylor, lead • Highly scalable, • Clients include leading
growing online medium investor Round13 personalized and banks, insurance and
• Epidemic engagement Capital both have track customized SaaS solution asset management
problem records of value • Disruptive delivery and firms
creation pricing model • Partners drive global
• Superior gross margins footprint and
accelerate technical
• Strong sales momentum roadmap
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 16Board of Directors
Larry Lubin, Chair
As original founder, Chairman and CEO of Fitech, now part of CGI, Larry began innovating in sales, software development, and financial services early on. Many leading
applications for financial institutions including the Reality Check™ series for Scotiabank were developed by Larry and his Fitech team. In September of 2003, he co-founded
BlueRush. His vision of an optimized and fully integrated sales and customer experience that leverages the power of technology is at the heart of all BlueRush products.
Steve Taylor
More than 25 years' experience driving profitable growth in the Enterprise SaaS, eCommerce and Digital Media industries. Steve is the former CEO and founder of Resolver
Inc., a SaaS-based governance, risk and compliance company that was successfully sold to Klass Capital in 2015. Steve joined as Director of BlueRush in 2017 and successfully
closed a non-brokered private placement with Round13 Capital. Shortly thereafter he was appointed CEO of the Company.
Paul Smith
Currently the Chief Executive Officer and Director of Frontline Broadband Inc., a private telecommunications and information technology service provider in Canada. Paul
was Chair of VIA Rail Canada Inc.’s board of directors from 2010 to 2014 after having joined the board in September 2006. Prior to that, Paul was President & Chief
Executive Officer of Equity Financial Holdings Inc., a TSX listed issuer, and a Canadian financial services firm he co-founded whose principal subsidiary is an OSFI-regulated
deposit-taking institution. Paul is a director of several companies and, before joining the private sector, served as Executive Assistant to the Prime Minister of Canada.
John Eckert
John is a co-founder of the Canadian venture capital firm Round13 Capital and is a co-founder and former managing partner of McLean Watson Capital. Round13 manages $200
million in funds focused on growth-stage technology opportunities. John has been a professional venture capitalist for over 25 years and has invested in over 40 technology
companies. He has backed many of Canada's most successful technology companies including Softimage, FloNetwork, Fortiva, Lavalife, i4i, Skywave and Hubdoc.
Mike Beckerman
Most recently Mike was CEO of North American marketing agencies Ariad Communications and Bluespire Marketing. Ariad is an agency specializing in branding and online
communications. Prior to this, Mike was the Chief Marketing Officer for Bank of Montreal. He led the development of new brand identities for both its Canadian and U.S.
operations which involved more than 1,000 retail locations and over 30,000 employees. Prior to Bank of Montreal, Mike was the Vice President, Marketing for Canadian Airlines
after having served over a decade with Nike in various roles and countries around the world.
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 17Competitors
Company Name Headquarters Investors Investment Raised
Comcast Ventures, Viola Growth,
New York US$74M
Norwest Ventures
New York Marker ~US$10M
Battery Ventures, Bessemer Venture,
Kitchener US$61M
OMERS Ventures
Toronto Round13 CAD$3.3M
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 18Stock Data
Share Price
(Moving 21 Day Average) S/O Basic Options Warrants
75,251,848 12,830,000 6,600,018
$ 0.08 Convertible Fully Diluted 52 Week
As at July 2, 2019
Debenture Figure Range
Market Cap 19,047,619* 113,729,485 $0.07 - $0.15
$6.0M * Assumes conversion at $0.105. The company has ability to invite debenture holders to convert at $0.105
if after October 31, 2019 the shares have been trading for 20 consecutive days at $0.25 or greater. Should
the holder wish not to convert at that time, the conversion changes to $0.15.
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 19Fiscal 2018 Performance Reflects Repositioning
BlueRush’s transition to SaaS model drove $ Millions except percentages
and per share amounts Fiscal 2018 Fiscal 2017
strong financial performance in fiscal 2018
Gross margin growth in SaaS business attributable to: Revenues
Subscriptions & Support $1.0 $1.0
Services $2.0 $2.3
Optimized Company structure by Total Revenue $3.0 $3.3
Successful R&D investments in moving to the Microsoft Azure
IndiVideo and DigitalReach. cloud platform. Cost of Sales
Subscriptions & Support $0.4 $0.6
SaaS Gross Margin1 SaaS Gross Margin1 Services $1.1 $1.3
($) (% of SaaS Revenue) Total Cost of Sales $1.5 $1.9
61%
$0.63M
Gross Profit $1.5 $1.4
$0.45M 44%
SaaS Gross Margin 61% 44%
Services Gross Margin 44% 42%
Net Loss ($3.3) ($1.6)
Per Share (basic & diluted) ($0.06) ($0.05)
Fiscal 2017 Fiscal 2018 Fiscal 2017 Fiscal 2018
1 Fiscal years ended July 31 CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 20SaaS is a superior operating model
Customer Benefits Benefits for SaaS Provider
Less IT engagement required Predictable, stackable revenues
Lower implementation costs Superior operating model (support, upgrades…)
Monthly fees spread over life of contract Robust gross margins that improve over time
Ability to flex between operating versus Stronger trading multiple relative to services
capital expenditure budgets
Conceptual IndiVideo Example of SaaS Margin Potential
Win SaaS deal Initial product Minimal return ~85%-95% gross
US $50,000 development cost: in first 3-4 margins on SaaS
annually US $25,000 months
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 21Competitive Strengths
Traction With Existing/New
Key IndiVideo Elements Client Base + Partners
Scalability Customers
Ability to produce one or millions of videos Top-tier customer base in multiple verticals
High gross margins: minimal COGS increase across Canada, USA, South America &
Europe
Pricing: flat monthly fee
Hybrid Creative Strategy Partners
Builds video content or incorporates from Excellent distribution partners in financial,
outside agencies bill statement, insurance, software and
other industries across Canada, UK and
South America
Data Capture
Loop back to support company objectives and
customer insights
CEO: steve.taylor@bluerush.com SYMBOL: BTV TSX-V: BTV-V @BlueRushdm Bluerush.com 22You can also read
