Ssni investor presentation august 2015

© Silver Spring Networks, Inc. All rights reserved. Silver Spring Confidential.
Silver Spring Networks
August 2015

Forward-Looking Statements
This presentation contains forward-looking statements that involve risks and uncertainties. These
forward-looking statements include statements regarding the momentum in Silver Spring Networks’
business, the performance, capabilities and benefits of our recently announced Gen5 networking platform
and products, intended future analytics applications for the SilverLink Sensor Network, and future growth
and future financial results. Statements including words such as "anticipate", "believe", "estimate" or "expect"
and statements in the future tense or about future events are forward-looking statements. These forward-looking
statements are preliminary estimates and expectations based on current information and are subject to business and
economic risks and uncertainties that could cause actual events or actual future results to differ materially from the
expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially
from the statements herein include: timing around customer decisions and deployment pace; dependence on a
limited number of customers and key suppliers; general economic risks; specific economic risks in different
geographies and among different industries; failure to maintain or increase renewals and increase business from
existing customers; uncertainties around continued success in sales growth and market share gains; lengthy sales
cycles with no assurances that a prospective customer will select Silver Spring’s products and services; amounts
included in backlog may not result in billings or revenue; adverse publicity about, or consumer or political opposition
to, the smart grid; security breaches involving smart grid products or services; the ability to integrate technology into
third-party devices and Silver Spring’s relationship with third-party manufacturers; execution and customer adoption
risks related to new product introductions and innovation, including our recently announced fifth generation
networking platform and products; the ability to attract and retain personnel, including members of Silver Spring’s
management team; changes in strategy; technological changes that make Silver Spring’s products and services less
competitive; competition, particularly from larger companies with more resources than Silver Spring; international
business uncertainties; the ability to acquire and integrate other businesses; and other risk factors set forth from time
to time in Silver Spring’s filings with the SEC, copies of which are available free of charge at the SEC’s website at
www.sec.gov.
All forward-looking statements in this presentation reflect Silver Spring’s expectations only as of the date hereof.
Silver Spring undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking
statements in this presentation in light of new information or future events.

Our Company
3
We are the platform for the
next generation smart grid networks,
smart cities and connected infrastructure
We are making the internet-of-things
a reality for smart infrastructure

Long Term Market Vision
4
Time
Devices
10s of
Millions
100s of
Millions
Billions
Smart
Grid
Networks
Smart City
Infrastructure
Networks
Internet
of
Things
Open, standards-based, secure, reliable network platform

The Leader in Smart Infrastructure
• A decade of innovation and global success
• Volume leader with 21.5M homes and businesses networked
• Proven multi-application network for smart grid and smart city applications
• Broad ecosystem includes technology integrators, partners and resellers
• 140+ granted and pending patents in the US
• Named as a “2015 Smart Grid Company to Watch”
5
2015
IoT Evolution
Product of the
Year
Gen5 / Milli5
2014
Smart grid
product of the
year
SilverLink
2014
American
Tech award
Street lights

0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015
DeliveredEndpoints(MM)Proven Success at Leading Utilities
6
AMI
Street Light
City of Paris
Street Light
Bristol
CPFL DA

Silver Spring Networks Benefits in Action*
7
• 61 million annual meter reads avoided
• Time-of-Use pricing for EV customers
• 70K homes restored 24-hours after Napa
Quake
• $30 million operational cash savings for 2014
• Increased reliability by over 20% in past 5
years
• North America’s largest street light project
• Record reliability in 1H15 – 879K outages
avoided despite severe weather.
• Outage avoidance has saved customers an
estimated $175 million
• Largest 2-way residential program with 100K
in-home smart thermostats
• Ranked #1 in Customer Satisfaction in 2013
and 2014 by JD Power
• Piloting street light project
* Source: Florida Power & Light 5/25/15 PR, ComEd 4/22/15 PR and company reports, 5/5/15; PG& E Q1 2015 earnings call, OG&E company reports, SSNI internal data

We Connect and Empower
a Multi-Application Network Platform
8
ISV Utility SSN
Silver Spring Network Environment
IPv6 Network
Network Control Software
SilverLink / Data Platform
Applications
App Store
Bridge
Distributed Intelligence
Communication modules
and Access points

Extending the Menu to New Solutions
9
Fault Location,
Isolation and
Service Restoration
Voltage
Optimization
Network Monitoring
PV & Renewable
Integration
Direct Load Control
Price Response
Energy Efficiency
Electricity
Water
Non-Technical
Loss
Prepay
Gas
SilverLink
Insights Service
Customer IQ
Marketing Services
Street Lights
Traffic Control
Noise Sensors
Environment
Sensors
Advanced
Metering
Distribution
Automation
Demand Side
Management
Insights &
Analytics
Customer
Engagement
Smart
Infrastructure
AMI New Solutions

Significant Opportunity to Drive Value
10
$47.6
$10.0
$16.0
$5.1
$7.6
($15.0)
$7.0
$6.9
$1.3
$1.5
$3.0
$4.2
$60
$50
$40
$30
$20
$10
0
($10)
($20)
NetBenefits($/endpoint/year)
Network
Cost
Meter
Reading
Remote
Connect Billing Outage
Demand
Response
Dynamic
Pricing
Energy
Efficiency
Theft
Detection
Distribution
Automation
CVR
Net
Benefits
Source: Silver Spring Networks estimates. Net benefits calculated based on annualized benefits and costs.

Gen5: Designed for Internet of Things
Outdoor machine to machine communications
11
• Up to 50 mile range for remote rural areas
• Battery powered at 1/7 the size to enable new use cases
- Water, gas, environmental sensors, parking
- Up to 20 year life on AA Lithium Ion batteries
• Low latency for mission critical apps
- Grid Reliability
• Up to 10X computing performance over Gen4
Gen5 Communications Module Gen5 Milli Communications Module

SilverLink Platform & Ecosystem
Analytics Solutions from Silver Spring and Partners
12
Customer
Engagement
Demand-Side
Management
Customer Case and
Outreach
Network
Analytics
Network
Analytics
CustomerIQ App Suite Operational Apps

Detectent Analytics Platform
13
CIS/MDM
Systems
Work Order
Systems
EE/DR
Systems
Utility
Analysis
Business
Listings
Premise
Data
Weather
Data
GIS/SCADA
Data
Asset Mgmt
Data Sources
I
N
T
E
G
R
A
T
I
O
N
S
A
C
C
E
S
S
Customer Intelligence Platform
Applications
Customer
Programs
Grid Operations
Revenue
Assurance

Smart City Infrastructure Vision
14
More Control, Less Energy, More Security, Less Traffic,
More Services, Less Pollution, More Decisions in Less Time
Camera
LED
Electrical
Car Chargers
Traffic Light
Sensors
Speed Radar
Low Voltage
Electrical
Cabinets
Information Panels
Bus Stops
Bike
Stations
Network
Routers
Intelligent Traffic Control
Public Lighting
Cabinets
EV Charging
Infrastructure
Smart Streets
Video Surveillance
Sensors
Pollution,
Water Meters,
Noise
City Communication
Networks
City Info Panels
Advertising Panels

Diversifying the Business
Non-GAAP Revenue – % of Total
15
2009A
By Type:
Product 91%
Managed Services & SaaS 4%
Professional Services 5%
By Solution:
Network / AMI 100%
New Solutions 0%
By Geography:
U.S. 94%
International 6%
1H15
65%
19%
16%
79%
21%
83%
17%

Our Business Model
Every Home & Business We Network Increases Our Value
16
Time
$
+19%
+32%
(9%)
2014
Results
Endpoint
Monetization
$2-$3/
Year(1)
Products(2):
~$65 - 75
Services:
~$15
18
20
8
8
26
28
2013 2014
Cumulative Endpoints (M)
Endpoint is a connected home or business.
1. Based on the current model and delivered cumulative endpoints.
2. Based on the current model and new endpoints delivered within the year.
Deployed
Contracted

Recurring Revenue Grows with Footprint
17
21.5M Delivered
Endpoints
8M Endpoints in
Backlog*
Expanded Menu
into a Growing
Footprint
Building Higher
Visibility
Recurring
Revenue Base
Cumulative Endpoints (M)
Non-GAAP Managed Services & SaaS**
($M)
* Backlog as of Dec. 31, 2014.
** Non-GAAP revenue financial measures.
19.1 19.7 20.3 20.8 21.5
Q214 Q314 Q414 Q115 Q215
$10.9
$11.5 $11.6
$12.6 $13.0
Q214 Q314 Q414 Q115 Q215

Q215 Financial Results
18

• Solid Q2 results
• Cash Flow from Operations of $10 million
• Strongest deployment quarter in 2 years
• International sales up triple-digits
• Gross profit up 41% on double-digit growth for SSN
technology
• Increased deal activity in every region we operate
State of Business
19

$64
$69
Q214 Q215
Q215 Financial Results
Non-GAAP Revenue Non-GAAP Revenue by Type
Non-GAAP Services Revenue Network Footprint (Cumulative Endpoints)
$Millions, Endpoints in Millions
$42 $45
$21
$24
Q214 Q215
Services
Product
Note: Some figures may not add due to rounding
* Excludes 3rd-Party
19.1
21.5
Q214 Q215
+13%
+6%
+14%
$11 $11
$11
$13
Q214 Q215
Managed/SaaS
Prof. Services
+19%
+9%
+9%
Double Digit
Growth
3rd-Party
SSN Content*
20

32.4%
41.9%
Q214 Q215
$2.18 $2.26
Q214 Q215
$57 $54
$7 $15
Q214 Q215
Q215 Financial Results (continued)
21
$Millions, except Recurring Revenue per Cuml. Endpoint
Recurring Revenue per Cuml. Endpoint Non-GAAP New Solutions Revenue
Non-GAAP Revenue by Region Non-GAAP Gross Margin
+10 pts
* TTM refers to the trailing twelve month period
TTM*
$12 $13
$52
$56
Q214 Q215
AMI
New Solutions
+125%
US
International
+8%
+11%

Q215 Non-GAAP Gross Profit Margin
22
$Millions
Q214 Q215
Product 29.5% 43.6%
Managed / SaaS 43.1% 43.2%
Professional Service 32.5% 33.7%
Service 37.9% 38.8%
Total 32.4% 41.9%
Services
$8
Services
$9
Product
$12
Product
$19
$21
$29
Q214 Q215
41%

Q215 Financial Results (continued)
Non-GAAP Operating Expenses Non-GAAP EPS
Non-GAAP Net Income Cash & Equivalents
$Millions, except EPS
$15 $13
$7 $7
$9
$7
$31
$28
Q214 Q215
$(0.20)
$0.02
Q214 Q215
$(10)
$1
Q214 Q215
$111
$119
Q115 Q215
+$0.23
+$11M
G&A
S&M
R&D
-8%
23

Supplemental
24

Silver Spring believes that its results of operations under generally accepted accounting principles, or GAAP, when considered in isolation,
may only provide limited insight into the performance of its business in any given period. As a result, Silver Spring manages its business,
makes planning decisions, evaluates its performance and allocates resources by assessing non-GAAP measures such as non-GAAP revenue,
recurring non-GAAP revenue, recurring non-GAAP revenue per endpoint, cost of non-GAAP revenue, non-GAAP gross profit (loss), non-GAAP gross
margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share, and adjusted EBITDA, and total backlog,
in addition to other financial measures presented in accordance with GAAP. Silver Spring believes that these non-GAAP and other financial measures offer
valuable supplemental information regarding the performance of its business, and will help investors better understand the sales volumes, and gross margin
and profitability trends, as well as the cash flow characteristics, of its business. The non-GAAP measures should not be considered in isolation from, are not a substitute
for, and do not purport to be an alternative to, revenue, cost of revenue, gross profit (loss), gross margin, operating income (loss), net income (loss), earnings (loss) per
share or any other performance measure derived in accordance with GAAP. Silver Spring may consider whether other significant non-recurring items that arise in the
future should also be excluded in calculating the non-GAAP financial measures it uses.
Non-GAAP revenue represents amounts invoiced for products for which ownership, typically evidenced by title and risk of loss, has transferred or services that have
been provided to the customer, and for which payment is expected to be made in accordance with normal payment terms. Non-GAAP revenue excludes amounts for
undelivered products, services to be performed in the future, and amounts paid or payable to customers. Non-GAAP revenue is initially recorded as deferred revenue and
is recognized as revenue when all revenue recognition criteria have been met under Silver Spring’s accounting policies as described in Silver Spring’s filings with the
Securities and Exchange Commission. Silver Spring reconciles revenue to non-GAAP revenue by adding revenue to the change in deferred revenue in a given period.
Recurring non-GAAP revenue is non-GAAP revenue from managed services and SaaS, as well as customer support and other service offerings. Recurring non-GAAP
revenue is primarily recurring in nature and includes managed services, hosting and software maintenance, and support fees, as well as one-time managed services and
SaaS set up fees. Customer support and other services are provided to customers outside of managed and SaaS offerings, and are also recurring in nature.
Recurring non-GAAP revenue per endpoint represents a trailing twelve month non-GAAP revenue per cumulative endpoints deployed inception-to-date.
Cost of non-GAAP revenue represents the cost associated with products and services that have been delivered to the customer, excluding stock-based compensation,
amortization of intangibles, and acquisition-related charges. Cost of product shipments for which revenue is not recognized in the period incurred is recorded as deferred
cost of revenue. Deferred cost of revenue is expensed in the statement of operations as cost of revenue when the corresponding revenue is recognized. Costs related to
services are expensed in the period incurred. Silver Spring reconciles cost of revenue to cost of non-GAAP revenue by adding cost of revenue and the change in deferred
cost of revenue, less stock-based compensation, amortization of intangibles, and acquisition-related charges included in cost of revenue, in a given period.
Non-GAAP gross profit (loss) is the difference between non-GAAP revenue and cost of non-GAAP revenue. Non-GAAP gross margin is non-GAAP gross profit (loss)
as a percentage of non-GAAP revenue.
Non-GAAP operating income (loss) represents operating loss adjusted for non-GAAP revenue and cost of non-GAAP revenue and excludes expenses related to the
amortization of intangible assets, stock-based compensation, acquisition-related charges, restructuring and legal settlements.
Non-GAAP net income (loss) represents net income (loss) adjusted for changes in deferred revenue and deferred cost of revenue, and excludes expenses related to
the amortization of intangible assets, stock-based compensation, acquisition-related charges, income tax benefit related to acquisitions, restructuring, and legal
settlements.
Non-GAAP income (loss) per share represents non-GAAP net income (loss) divided by weighted average shares outstanding for the period.
Adjusted EBITDA is net income (loss) adjusted for changes in deferred revenue and deferred cost of revenue, other (income) expense, net, (benefit) provision for income
taxes, depreciation and amortization, stock-based compensation, acquisition-related charges, restructuring, legal settlements, and certain other items management
believes affect the comparability of operating results.
Non-GAAP and Other Financial Measures
25

Q215 GAAP to Non-GAAP Reconciliation
26
* Net of Foreign Currency Translation
$Thousands,
except per share amounts GAAP Financial
Statements
Change in Deferred
Revenue and Deferred
Cost of Revenue *
Stock-based
Compensation
Amortization of
Intangibles
Restructuring &
Litigation
Acquisition
Related Costs
Non-GAAP
Financial
Information
Product revenue 54,711$ (10,015)$ -$ -$ -$ -$ 44,696$
Service revenue 22,456 1,988 - - - - 24,444
Net revenue 77,167 (8,027) - - - - 69,140
Product cost of revenue 40,533 (14,488) (560) (260) - - 25,225
Service cost of revenue 16,678 - (1,649) - - (60) 14,969
Total cost of revenue 57,211 (14,488) (2,209) (260) - (60) 40,194
Gross profit 19,956 6,461 2,209 260 - 60 28,946
Product Margin 25.9% 43.6%
Service Margin 25.7% 38.8%
Total Margin 25.9% 41.9%
Operating Expenses
Research and development 16,050 - (2,832) - - (27) 13,191
Sales and marketing 8,912 - (1,287) (153) - - 7,472
General and administrative 10,455 - (2,333) (9) - (664) 7,449
Restructuring 1,078 - - - (1,078) - -
Total operating expenses 36,495 - (6,452) (162) (1,078) (691) 28,112
Operating Loss (16,539) 6,461 8,661 422 1,078 751 834
Operating Margin -21.4% 1.2%
Other income (expense), net 74 - - - - - 74
(Benefit) Provision for income taxes (290) - - - - 124 (166)
Net loss (16,175)$ 6,461$ 8,661$ 422$ 1,078$ 627$ 1,074$
Income (Loss) per share
Basic (0.32)$ 0.02$
Diluted (0.32)$ 0.02$
Number of shares used in
computation
Basic 49,862 49,862
Diluted 49,862 51,390

Q214 GAAP to Non-GAAP Reconciliation
27
* Net of Foreign Currency Translation
$Thousands,
except per share amounts GAAP Financial
Statements
Change in Deferred
Revenue and Deferred
Cost of Revenue *
Stock-based
Compensation
Amortization of
Intangibles in
Cost of Revenue
Litigation and
Restructuring
Acquisition
Related Costs
Non-GAAP
Financial
Information
Product revenue 24,751$ 17,438$ -$ -$ -$ -$ 42,189$
Service revenue 16,856 4,559 - - - - 21,415
Net revenue 41,607 21,997 - - - - 63,604
Product cost of revenue 13,414 16,801 (442) (48) - - 29,725
Service cost of revenue 14,781 - (1,488) - - - 13,293
Total cost of revenue 28,195 16,801 (1,930) (48) - - 43,018
Gross profit 13,412 5,196 1,930 48 - - 20,586
Product Margin 45.8% 29.5%
Service Margin 12.3% 37.9%
Total Margin 32.2% 32.4%
Operating Expenses
Research and development 17,342 - (2,695) - - - 14,647
Sales and marketing 8,854 - (1,754) - - - 7,100
General and administrative 11,888 - (3,183) - 100 - 8,805
Total operating expenses 38,084 - (7,632) - 100 - 30,552
Operating Loss (24,672) 5,196 9,562 48 (100) - (9,966)
Operating Margin -59.3% -15.7%
Interest income, net 85 - - - - - 85
Provision for income taxes 4 - - - - - 4
Net loss (24,591)$ 5,196$ 9,562$ 48$ (100)$ -$ (9,885)$
Loss per share, basic and diluted
(0.51)$ (0.20)$
Number of shares used in computation,
basic and diluted
48,315 48,315

UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN
GAAP AND NON-GAAP
28
YoY%
TYPE Change
GAAP net revenue:
Product net revenue $ 24,751 $ 16,321 $ 60,034 $ 105,035 $ 54,711 121%
Service net revenue
Managed services and SaaS (a) 8,584 7,546 10,569 12,974 10,608 24%
Professional services 8,272 4,174 6,808 25,631 11,848 43%
Total service net revenue 16,856 11,720 17,377 38,605 22,456 33%
Total GAAP net revenue $ 41,607 $ 28,041 $ 77,411 $ 143,640 $ 77,167 85%
% Product 59% 58% 78% 73% 71%
% Service 41% 42% 22% 27% 29%
Change in deferred net revenue:
Change in deferred product revenue $ 17,438 $ 33,238 $ (9,991) $ (64,034) $ (10,015)
Change in deferred service revenue:
Managed services and SaaS 2,326 3,960 984 (419) 2,387
Professional services 2,233 5,649 1,962 (16,088) (399)
Total change in deferred service revenue 4,559 9,609 2,946 (16,507) 1,988
Total change in deferred revenue $ 21,997 $ 42,847 $ (7,045) $ (80,541) $ (8,027)
Non-GAAP revenue:
Product net revenue 42,189 49,559 50,043 41,001 44,696 6%
Service net revenue:
Managed services and SaaS (a) 10,910 11,506 11,553 12,555 12,995 19%
Professional services 10,505 9,823 8,770 9,543 11,449 9%
Total service net revenue 21,415 21,329 20,323 22,098 24,444 14%
Total non-GAAP net revenue $ 63,604 $ 70,888 $ 70,366 $ 63,099 $ 69,140 9%
% Product 66% 70% 71% 65% 65%
% Service 34% 30% 29% 35% 35%
2015
Q4 Q2
2014 20142014 2015
Q2 Q3 Q1

GAAP AND NON-GAAP (continued)
29
YoY%
RECURRING REVENUE PER ENDPOINT Change
Recurring GAAP revenue (TTM) (a) 35,391 32,987 35,220 39,673 41,697
Changes in deferred revenue, net of foreign currency translations 6,179 9,688 9,284 6,851 6,912
Recurring non-GAAP revenue (TTM) (a) $ 41,570 $ 42,675 $ 44,504 $ 46,524 $ 48,609
Cumulative network endpoints delivered 19,081 19,714 20,266 20,814 21,506
Recurring GAAP revenue per endpoint delivered (a) $ 1.85 $ 1.67 $ 1.74 $ 1.91 $ 1.94 5%
Recurring non-GAAP revenue per endpoint delivered (a) $ 2.18 $ 2.16 $ 2.20 $ 2.24 $ 2.26 4%
SOLUTION
GAAP net revenue
Advanced metering infrastructure $ 33,610 $ 21,417 $ 72,456 $ 112,865 $ 66,907 99%
New solutions 7,997 6,624 4,955 30,775 10,260 28%
% Advanced metering infrastructure 81% 76% 94% 79% 87%
% New solutions 19% 24% 6% 21% 13%
Change in deferred net revenue
Advanced metering infrastructure $ 18,113 $ 39,828 $ (12,441) $ (64,828) $ (10,976)
New solutions 3,884 3,019 5,396 (15,713) 2,949
Total change in deferred net revenue $ 21,997 $ 42,847 $ (7,045) $ (80,541) $ (8,027)
Non-GAAP net revenue
Advanced metering infrastructure $ 51,723 $ 61,245 $ 60,015 $ 48,037 $ 55,931 8%
New solutions 11,881 9,643 10,351 15,062 13,209 11%
Total Non-GAAP net revenue $ 63,604 $ 70,888 $ 70,366 $ 63,099 $ 69,140 9%
% Advanced metering infrastructure 81% 86% 85% 76% 81%
% New solutions 19% 14% 15% 24% 19%
Q2 Q3 Q4 Q1 Q2
2014 2014 2014 2015 2015

GAAP AND NON-GAAP (continued)
30
YoY%
GEOGRAPHY Change
GAAP net revenue
United States $ 34,251 $ 15,700 $ 30,017 $ 122,582 $ 72,360 111%
International 7,356 12,341 47,394 21,058 4,807 -35%
% United States 82% 56% 39% 85% 94%
% International 18% 44% 61% 15% 6%
Change in deferred net revenue
United States $ 22,799 $ 48,248 $ 29,176 $ (66,533) $ (17,955)
International (802) (5,401) (36,221) (14,008) 9,928
Total change in deferred net revenue $ 21,997 $ 42,847 $ (7,045) $ (80,541) $ (8,027)
Non-GAAP net revenue
United States $ 57,050 $ 63,948 $ 59,193 $ 56,049 $ 54,405 -5%
International 6,554 6,940 11,173 7,050 14,735 125%
Total non-GAAP net revenue $ 63,604 $ 70,888 $ 70,366 $ 63,099 $ 69,140 9%
% United States 90% 90% 84% 89% 79%
% International 10% 10% 16% 11% 21%
(a) Certain amounts have been reclassified in 2014 from Professional services to Managed services and SaaS related to product support which is recurring in nature to conform to current period presentation.
Q2 Q3 Q4 Q1 Q2
2014 2014 2014 2015 2015

Ssni investor presentation august 2015

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (20)

Semelhante a Ssni investor presentation august 2015

Semelhante a Ssni investor presentation august 2015 (20)

Último

Último (20)

Ssni investor presentation august 2015