WINTER 2020 INVESTOR PRESENTATION - Artificial Intelligence Meets Ecommerce - The ...
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Artificial
Intelligence
Meets
Ecommerce
WINTER 2020 INVESTOR PRESENTATION
1
Disclaimer
CAUTION CONCERNING FORWARD- All forward-looking statements are NON-GAAP FINANCIAL MEASURES
LOOKING STATEMENTS based upon current estimates and In addition to financial results prepared
This presentation includes “forward- in accordance with U.S. generally
expectations about future events and
looking statements” with the meaning accepted accounting principles
financial and other trends. There is no
(“GAAP”), this presentation contains
of Section 27A of the U.S. Securities guarantee that future results, certain non-GAAP financial measures.
Act of 1933, as amended, and Section performance, or events reflected in the Such non-GAAP financial measures in
21E of the U.S. Securities Exchange Act forward-looking statements will be this presentation may differ from
of 1934, as amended. achieved or occur. similarly named non-GAAP financial
All forward-looking statements are No person assumes responsibility for measures used by other companies.
subject to a number of risks, Management believes that in addition
the accuracy and completeness of the
uncertainties and assumptions, and you to using GAAP results, non-GAAP
forward-looking statements, and, financial measures can provide
should not rely upon forward-looking except as required by law, no person meaningful insight in evaluating the
statements as predictions of future undertakes any obligation to update Company’s operating performance. You
events. You can identify forward- any forward-looking statements for any are encouraged to review the
looking statements by words such as reason after the date of this company reconciliation of non-GAAP financial
“anticipate,” “believe,” “could,” presentation. measures with their most direct
“estimate,” “expect,” “intend,” “may,” comparable GAAP financial results set
“plan,” “potential,” “predict,” “project,” forth in the Appendix to this
INDUSTRY & MARKET DATA
presentation.
“should,” “will,” “would,” or the negative Certain data in this presentation was
of those terms, and similar expressions obtained from various external sources.
For a full discussion of the Company's
that convey uncertainty of future events Neither the Company nor its affiliates,
risks, you should review the Company's
advisers or representatives have
or outcomes. existing SEC filings including the
verified such data with independent
Company's most recently filed Form
sources. Accordingly, neither the
10Q for the period ended September
Company nor any of its affiliates,
30, 2019
advisers or representatives make any
representations as to the accuracy or
completeness of that data or to update
such data after the date of this
presentation. Such data involves risks
and uncertainties and is subject to
change based on various factors.
2
WHO IS MOHAWK?
Mohawk is
Proprietary technology
the Consumer leveraging AI to automate
● Identifies new market opportunities
Products various aspects of
● Launches new products
● Manages marketing variables
Company eCommerce:
of the Future
Categories Home Consumer
Appliances Kitchenware Electronics Beauty Products
Marketplaces
FocusMohawk Sits
High Growth CPG
at the Intersection
of CPG & Technology
Direct-to-Consumer Technology
platform
4The Decline of WHERE CUSTOMERS BEGIN SEARCHING FOR PRODUCTS (1)
Brand influence
Brands in a World is declining
of Data Driven 60%
2015
2016
Over half of millennials,
Consumers 50%
51%, have no real
preference between
private-label and
40% national brands
To derive the most
value from a product, 30%
Only 22% of searches on
shoppers are driven by Amazon include a brand
data using 20% name (2)
a mixture of:
10%
Search keywords
highlight how Amazon
0%
Reviews + Social Media + Store-to-store shoppers’ behavior is
Sources pricing shifted from a brand-
driven world observed
Amazon Search Retailers elsewhere to a needs-
Engines based decision process
5
1: BloomReach, State of Amazon 2016 2: Marketplace Pulse Article July 1, 2019Massive and Growing RETAIL ECOMMERCE SALES WORLDWIDE &
% OF TOTAL RETAIL SALES (1)
Total Addressable
Market $ In trillions
$7.0 $6.5
$6.0 $5.7
$4.9
Worldwide eCommerce $5.0
$4.2
Sales are expected $4.0 $3.5
to grow: $2.9
$3.0 $2.4
$4.2 trillion 22.0%
$2.0
in 2020 20.0%
18.1%
$1.0 16.1%
$6.5 trillion 14.1%
12.2%
by 2023 10.4%
$-
2017 2018 2019 2020 2021 2022 2023
CAGR: 18.1%
6
1: eMarketer, Worldwide Retail and e-Commerce Sales: eMarketer’s Estimates for 2017 - 2023AIMEE Multi-Channel
eCommerce Platform
1 2 3
AIMEE ingests Defines right product Targets high intent
massive amounts specs consumers
of data
USABLE WITH ANY PRODUCT AND ANY BRAND
7Thank
AIMEE You
DemonstrationTime Advantages vs Incumbents
18 - 24 Month Go-To-Market Cycle 3 Month Marketing Cycle
Standard
Business
Model
● Idea ● Manufacturing ● Agents ● Retailer
● Focus Group ● Shipping ● Distributor ● Customer
● R&D ● Warehousing ● Ad Agency
AIMEE Idea Generator AIMEE Trading Engine
Mohawk
Business Real Time ● Manufacturing Data Driven Automated ● Marketplaces
Model Data Driven Opportunity & ● Shipping Marketing & Product Lifetime ● Customer
Trend Tracking ● Warehousing Management
6 - 8 Month Go-To-Market Cycle 1 min - 1 hr Marketing Cycle 9Proven Product Success
Offers quality hair products and tools Brings quality home appliances from
~250 at a cost effective price Window ACs to Ice Makers, delivering the
SKUs features consumers want
~80%
of Product Provides affordable, user-friendly home Offers Cube, a mobile mini projector and
Revenue Reaches and kitchenware Sound Cube, a wireless, Bluetooth mini
Sustain speaker
10Platform Leverage Effect
Business Model
AIMEE’s automation creates
operating leverage and
allows us to manage a
growing number of products
while keeping operating
costs growing linearly
Demand for existing and
new products combined with
growing shift in consumer
consumption to e-commerce
Products
leading to market share Cost OPS
gains
11AIMEE Delivering Results
Number of $500k Products Top 20 Products Average Review Count
40 37 1,400
1,203
35 1,200
30 1,000 923
25
21 800 717
20 18
600
15
400
10
6
200
5
0 0
2016 2017 2018 2019E 2017 2018 2019
Average Review Score Average Review Score Products Listed in Top 5
(All Mohawk Products): 4.5 Stars (>$500k Products): 4.6 Stars in Amazon Searches: 47
12
* Data accurate as of 12/2019Business Model Driving Improved Y/Y Results
($mm) 2017 2018
0%
$140
-10%
$120 $114-$115*
$100 -20%
-30%
-39%
$80
$73
$60 -40%
-59%
$40 $36 -50%
$20
-60%
$0
2017 2018 2019E -70%
Revenue Adjusted EBITDA % of Revenues
*2019 Estimates 13Business Model Driving Improved Y/Y & Q/Q Results
($MM) 1Q19 2Q19 3Q19
($MM) ($MM) 1Q19 2Q19 3Q19 $4
$45 $0
$40
+64% $2
$3.1
($1) $0
$35 ($2.7)
$30
+108% ($3.7) ($2)
($2) ($4.4)
($5.6)
$25 ($4)
($40.6)
($3) +40%
$20 +25% ($6)
$15 ($30.4)
($4) +55% ($8)
($11.9)
$10 ($17.8)
($10)
$5 ($5)
$0 ($12)
1Q19 2Q19 3Q19 ($6)
+33%
($14)
Cash Used in Operating
Revenue Adjusted EBITDA
Activities
14Multiple Opportunities
to Drive Growth / Profitability
1 2 3 4
Pursue higher value Expand into Continue to optimize Continue to expand into
products and larger international markets unit economics new domestic
product markets and other online on existing product eCommerce
marketplaces portfolio marketplaces
5 6 7
Monetize AIMEE Opportunistically add Drive manufacturing
platform by providing new products and and logistics costs
access to third-party categories through down from purchasing
brands acquisition power
15Investment
Highlights
1 2 3 4 5
Rapidly growing Proprietary AI / ML Massive and Improving Founder-led
and highly scalable tech platform to drive growing financial metrics and experienced
business model addressable with clear management team
● New product market pathway to
ideation profitability
● Automated sales
and marketing
● Real-time supply
chain visibility
16Thank You Appendix
Management
Team
Yaniv Sarig Fabrice Hamaide Peter Datos Roi Zahut Tomer Pascal
Co-Founder & CEO CFO COO CTO CRO
PRIOR EXPERIENCE
Deep experience in
eCommerce, CPG &
Tech
18Non-GAAP Reconciliations: Adjusted EBITDA
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