Exhibit 99.01
Exhibit 99.01
Guidance™
SOFTWARE
Transforming Digital Investigations
Investor Presentation
November 2007 NASDAQ: GUID
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that forward-looking statements in this presentation involve risks and uncertainties that could cause actual results to differ materially from current expectations. There can be no assurance that demand for the company’s products will continue at current or greater levels, or that the company will continue to grow revenues, or be profitable.
There are also risks that the company’s pursuit of providing network security and eDiscovery technology might not be successful, or that if successful, it will not materially enhance the company’s financial performance; that the company could fail to retain key employees; that changes in customer requirements and other general economic and political uncertainties could impact the company’s relationship with its customers; and that delays in product development, competitive pressures or technical difficulties could impact timely delivery of next-generation products; and other risks and uncertainties that are described from time to time in Guidance Software’s periodic reports and registration statements filed with the Securities and Exchange Commission.
The company specifically disclaims any responsibility for updating these forward-looking statements.
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Guidance Software Highlights
Large and Rapidly Growing $5.5 Billion Market
for Digital Investigation Solutions (projected for 2008/2009)
The Market Leader
Diversified, Blue Chip Customer Base Across Geography and Industry
High Barriers to Entry
Attractive Business Model with Significant Growth Opportunities
Seasoned Management Team with Deep Forensics and Software Experience
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What Analysts Are Saying.
Guidance Software is “the de-facto industry standard for remote desktop collection software.”
FORRESTER
Barry Murphy, Principal Analyst
The eDiscovery Vendor Landscape, July 2007
Forrester Research, Inc.
“Guidance Software’s technology is a game-changer.Spending in its sector (eDiscovery) is currently skewed toward labor intensive and inefficient solutions for which Guidance Software offers significant ROI enhancement”
Morgan Stanley Software Analyst Team
2007 Research Report
Morgan Stanley
“Guidance Software is the leading pure-play provider of eDiscovery software”
Lehman Brothers—Global Equity Research Group Lehman Brothers Market Research Report, May 2007
“The company’s products are unique in that they have a proven track-record of court admissibility”
IDC
Vivian Tero, Sr. Analyst
Worldwide Legal Discovery and Litigation Support Infrastructure 2007-2011
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Our Business
Leading Provider of Digital Investigative Software Solutions
Founded: 1997
Product: EnCase Forensic, EnCase Enterprise, Professional Services & Training
Funding: IPO-December 2006; No VC Financing
Employees: 348, as of September 30, 2007
Product Generations: 6
Headquarters: Pasadena, CA
Customers Trained: 4, 000 + Trained Annually
Customers: Almost 500 EnCase Enterprise Customers, includes major Federal Government Agencies, more than half of the Fortune 50, nearly half of the Fortune 100, and over 100 of the Fortune 500
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Corporate Risks Today Require Digital Investigations
eDiscovery Requests
Regulatory Inquiries
UBS
Morgan Stanley
PHILIP MORRIS
INTERNATIONAL
Carporate Internal Investigations
BROADCOM.
The Need to Search, Collect and Preserve Data in a Timely and Cost Effective Manner, with Court Admissibillity
at&t
SBC
COMVERSE
MERCURY
UnitedHealthcare
IT Breaches
ChoicePoint
DSW
Companies Identified Based on Publicly Available Information, Such as Media Reports or Court Filings.
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We Pioneered the Digital Investigations Market
DIGITAL INVESTIGATION SOLUTIONS
ENTERPRISE CLASS
TECHNOLOGY
2006-
2005
2004
Information Assurance, AIRs
2003
eDiscovery
2001
1997
EnCase Forensic
2002
EnCase Enterprise
Snapshot
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Enterprise Investigative Infrastructure
Enterprise Investigative Infrastructure
Internal Investigations
Computer Related Incident Response
eDiscovery
Fraud/HR Investigations
Policy & Regulatory Compliance
IDS Alerts
Compromise Assessment
Info Assurance
Litigation Support
M&A
EnCase Enterprise Software & Services
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Large and Growing Market Opportunity
eDiscovery Solutions1
Security Investigation Solutions2
CAGR33% (2005-2009)
CAGR24% (2005-2009)
$1.3B
$1.4Bn
$600MM
$4.1B
2005
2009
2005
2009
Notes:
Socha-Geltman
IDC, Worldwide Security Investigation and Cyber Forensics Forecast, 200+2009
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End-to-End Digital Investigation Solutions
Add-on Suites
Software Products
Software Products
eDiscovery Suite
Automated
Incident
Response Suite
EnCase Enterprise
Information
Assurance
Suite
En Case Forensic Software
Professional Services
Consulting
Professional Services
eDiscovery
Network Security Incident Response
Civil/Criminal
Digital Investigations
Implementation Of EnCase Enterprise
Packaged
Consulting
Services
Training
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EnCase Enterprise
Add-On Suites
eDiscovery
AIRS
Info. Assurance
Authenticate/Authorization
Enterprise Connections
Laptop
Desktop
Server
Servlets Installed on Computers
Search Results
EXAMINER
Full Integration with IT Systems for IDS, Data Leakage
SAFE
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Significant eDiscovery Opportunity
Discovery is Required
Companies Have Lots of Civil Litigation
Avg. Corporations > $1B = 389 Domestic Lawsuits1
Discovery = eDiscovery
Paper to Digital
New Federal Rules of Civil Procedure (FRCP)
1. Fulbright & Jaworski L.L.P., 2006 Litigation Trends Survey
2005 2006 Dec. 1 2006 FUTURE
(Anticipated)
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Guidance Simplifies the eDiscovery Process
Traditional eDiscovery
Manually Acquire Enormous Amounts of Data
Extract Potential Relevant Data
Process Data
Legal Review
and Analysis
eDiscovery with EnCase eDiscovery Suite
Acquire Potentially Relevant Data
Automatically Process Data
Legal Review and Analysis
LARGE FORTUNE 500 COMPANY
“In one large case, we were able to cull 9.2 million documents to 600,000 for collection. On that case,
we saved approximately $3 million in processing and attorney review costs.” Ronald Perkowski, Senior Counsel—Halliburton, Inc.
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What Industry is Saying .
“EnCase Enterprise saved us more than $1mm in the first 6 months of use. It also allowed us to complete a critical M&A discovery issue that would have been impossible with any other options in the market today”
Ted Barlow, CSO S VP, Risk Management McAfee, Inc.
“Guidance Software’s solution addresses virtually every aspect of information security and eDiscovery. It saves money, saves time, and produces better results whether the task is internal investigation or eDiscovery.”
Tracy Holland, Litigation Counsel
Dell, Inc.
“[EnCase Enterprise with the eDiscovery Suite is the only] product that offers the capability to conduct detailed searches across an entire organization’s IT system and to return individual user files that respond to the search criteria. . In many instances, the cost savings on one significant piece of litigation can pay for the entire EnCase License.”
Scott Carlson, Partner
Seyfarth Shaw
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Competitive & Complimentary Technology Landscape
Computer
Forensics &
Investigations
Criminal Investigations
I nternal C orporate Investigations
eDiscovery Search, Collection, Processing, Review
CT Summation Storage/Archiving
eDiscovery Services
Investigative &
eDiscovery
Services
Investigation Services
IR Services
Data Leakage & Loss Protection
Information Security & IR Software
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High Barriers to Entry
Proven Technology
Used in Tens of Thousands of Cases i 6 Generations of Software Over 9 Years
Broad & Deep Customer Relationships
Almost 500 Enterprise Customers, includes major Federal Government Agencies, more than half of the Fortune 50, nearly half of the Fortune 100, and over 100 of the Fortune 500
High Switching Costs
Over 25,000 Trained on EnCase and Growing Annually by 4,000+ Online Community with 10,000+Users
GUID users conference “CEIC” Has Become a Leading Gathering Place for the Industry
Significant Leverage in Financial Model
Significant Annual and Y-o-Y Quarterly Revenue Growth Largely Operating Cash Flow Positive Since Inception Diversified Customer Base Across Industry and Geography Pricing Model Provides Significant Future Upsell Opportunities
Significant Proportion of Business From Recurring / Predictable Revenue Components
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Sources of Revenue
Product Revenue 57% of Revenue*
EnCase Enterprise (Perpetual License) EnCase Forensic (Mostly Subscription)
Services and Maintenance Revenue 43% of Revenue *
Professional Services 15% of Revenue*
Consulting Services Implementation Services
Training Services Maintenance Services
11% of Revenue* 17% of Revenue*
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| Source: Note 10, Guidance Software 10Q for Third Quarter 2007, 9 Montha of 2007 |
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Annual Revenue Growth
Revenue ($MM)
WM
CAGR 39% (2005-2007)
100 90 80 70 60 50 40 30 20 10 0 $5.6
$10.5
$17.7
$27.6
$39.5
$55.9
$74-$76 Estimated
$94-$99 Estimated
2001
2002
2003
2004
2005
2006
2007
2008
Product Revenue Consulting, Training & Maintenance Revenue
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Significant Y-o-Y Quarterly Revenue Growth
Revenue ($MM)
18 15 12 9 6 3 0
$5.0 $6.5 $7.5 $8.5 $7.8 $9.0 $10.3 $12.4 $11.2 $12.9 $14.8 $17.0 $17.6 $18.5 $20.3
$2.4
$2.6
$3.1
$3.2
$3.1
$3.7
$4.0
$4.0
$7.7
$5.0
$6.2
$7.0
5.6
$9.2
$6.3
$10.2
$7.5
$8.2
$10.3
$8.7
$11.6
1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q
1Q 2Q 3Q
2004 2005 2006 2007
Product Revenue Consulting, Training & Maintenance Revenue
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Revenue Composition
By Geography By Industry
Europe 13%
Asia
5%
Other 6%
Defense
Contractors
12%
Pharmaceuticals 5%
Manufacturing 4%
Telecom
6%
Retail 4%
Other
13%
Technology
16%
Government
23%
US
77%
Financial Services
17%
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| Source: Me 10, Guidance Softoire 1CIQ tor Thid Quarter 2007, 9 Months of 2007 |
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