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Q1 2025 UpdateTransforming data into business value with AI, Fast. www.nowvertical.comNowVertical Group TSXV: NOW
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Disclaimer and Forward-looking StatementsThis presentation has been prepared by NowVertical Group Inc. (“NowVertical” or the “Company”). The data, information and opinions contained or referenced herein (collectively, the “Information”) is for general informational purposes only and is not tailored to specific investment objectives, the financial situation, suitability, or particular need of any specific reader or recipient of the Information. Neither the Information nor anything contained or referenced herein is intended to be, nor should it be construed or used as, investment, tax, legal or financial advice or an opinion of the appropriateness of any investment. This presentation is not, and under no circumstances is to be construed as an offering memorandum, prospectus, an advertisement or a public offering of securities by the Company in the United States, Canada or any other jurisdiction. No securities commission or similar authority of the United States, Canada, or any other jurisdiction has reviewed or in any way passed upon this Presentation, and any representation to the contrary is an offence. This presentation is not intended, and under no circumstances is to be construed as, as an offer or solicitation with respect to the purchase or sale of any financial instrument, including securities of the Company. The Company does not make any representation or warranty as to the accuracy or completeness of the Information, and Information may not be relied upon by you in evaluating the merits of investing in any securities of the Company. This presentation does not contain, nor does it purport to contain, a summary of all of the material information concerning the Company or the terms and conditions of any potential investment in the Company. This presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. Unless expressly stated otherwise, any opinion expressed herein are opinions of the Company held as of the date appearing in the Information. The Company disclaims any obligation to update the Information contained herein, except as required by law. Unless otherwise indicated, all financial information in this presentation is reported in US dollars.Forward Looking StatementsExcept for any historical information contained herein, the Information and other matters contained or referenced herein contain “forward-looking information” and “forward-looking statements” as such terms are defined under applicable securities laws (together, “forward-looking statements”). These statements relate to future events or future performance and reflect management’s expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including estimates, projections and potential impact of the proposals and plans set forth herein such as the Company’s growth strategy for 2025 and the implementation thereof and anticipated effects resulting therefrom. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “target”, “intend”, “could” or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to market and general economic conditions, the nature of the investor services and investor relations industry and the risks and uncertainties discussed from time to time in the Company’s interim and annual financial statements and associated management discussion and analysis and other public disclosure and filings made available by the Company under its profile on www.sedarplus.com. Although the forward-looking statements contained herein are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Unless otherwise indicated herein, the forward-looking statements herein are made as of May 21, 2025 and should not be relied upon as representing the Company’s views as of any date subsequent to such date. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.
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Disclaimer and Forward-looking Statements Con’tNon-IFRS Financial MeasuresThis presentation refers to certain non-international financial reporting standards (“IFRS”) defined measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. The Company’s definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses non IFRS financial measures including “Adjusted Revenue”, “EBITDA”, and “Adjusted EBITDA”. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and to eliminate items that have less bearing on our operational performance or operating conditions and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.The non-IFRS financial measures referred to in this presentation are defined below. For a reconciliation of such non-IFRS measures, please see the Company’s management’s discussion and analysis for the three months ended March 31, 2024, which will are available on the Company’s SEDAR+ profile.“EBITDA” adjusts net income (loss) before depreciation and amortization expenses, net interest costs, and provision for income taxes.“Adjusted Revenue” adjusts revenue to eliminate the effects of acquisition accounting on the Company’s revenues, which predominantly pertain to free market value adjustments to the opening deferred revenue balances of acquired companies. "Adjusted EBITDA” adjusts EBITDA for acquisition accounting revenue adjustments in “Adjusted Revenue” and items such as acquisition accounting adjustments, transaction expenses related to acquisitions, transactional gains or losses on assets, asset impairment charges, non-recurring expense items, non-cash stock compensation costs, foreign exchange gains and losses and the full-year impact of cost synergies related to the reduction of employees.“Annualized EBITDA” adjusts EBITDA by taking the calculated EBITDA from a shorter period, which is in this presentation the first three fiscal quarters, and multiplying it to reflect a full year.“Annualized Revenue” adjusts Revenue by taking the Revenue from a shorter period, which is in this presentation the first three fiscal quarters, and multiplying it to reflect a full year.
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We transform data into business value with AI,
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We transform data into business value with AI, Fast. Input
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We transform data into business value with AI, Fast. Output
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We transform data into business value with AI, Technology
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We transform data into business value with AI, Technology Output Input
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Our sustainable organic growth engine The strategic phases for growth 9NowVertical Group TSXV NOW 60% of revenue comes from top 30 accounts with avg. 724k p.a. contract We have 100+ enterprise clients Partners of cloud hyperscalers typically generate 6-8x in services revenue on client cloud spend.
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10NowVertical Group TSXV NOW Q1 2025 Performance OverviewQ1’25 $1.5mVs. $0.1m Loss Operating Income $41.6m Run-Rate$10m Run-Rate $10.4m▲ 23% YoY Revenue $2.5m▲ 119% YoY EBITDA24% Excluding divested businesses - Allegient Defense, Inc., Seafront Analytics LLC and Affinio SocialAll figures expressed in USD. 5 consecutive quarters of consistent YoY growth 3 consecutive quarters with $2m+ EBITDA 3 consecutive quarters with 19%+ EBITDA margin 4 consecutive quarters with positive income from operations $5.1m▲ 15% YoY Gross Profit50%
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$8.4m$10.4m $0.0m $2.0m $4.0m $6.0m $8.0m $10.0m $12.0m Q1'24 Q1'25 Revenue PerformanceFinancial Update 11NowVertical Group TSXV NOW Revenue increased by 23% to $10.4 million for the three months ended March 31, 2025, compared to $8.4 million for the three months ended March 31, 2024. Excluding divested businesses - Allegient Defense, Inc., Seafront Analytics LLC and Affinio SocialAll figures expressed in USD. +23%YoY
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$1.2m $2.5m $0.0m $0.5m $1.0m $1.5m $2.0m $2.5m $3.0m Q1'24 Q1'25 Adj. EBITDA PerformanceFinancial Update 12NowVertical Group TSXV NOW EBITDA increased by 119% to $2.5 million for the three months ended March 31, 2025, compared to $1.2 million for the three months ended March 31, 2024. Excluding divested businesses - Allegient Defense, Inc., Seafront Analytics LLC and Affinio SocialAll figures expressed in USD. 14% 24%+119%YoY
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$-0.1m $1.5m -$0.2m$0.0m$0.2m$0.4m$0.6m$0.8m$1.0m$1.2m$1.4m$1.6m$1.8m Income from operations 13NowVertical Group TSXV NOW Excluding divested businesses - Allegient Defense, Inc., Seafront Analytics LLC and Affinio SocialAll figures expressed in USD. Financial Update Income from operations increased to $1.5 million for the three months ended March 31, 2025, compared to a $0.1 million loss for the same period in 2024. Q1’24 Q1’25
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DebtFinancial Update 14NowVertical Group TSXV NOW Excluding divested businesses - Allegient Defense, Inc., Seafront Analytics LLC and Affinio SocialAll figures expressed in USD. $28.8mEnd of 2023 Debt-$4.1mConsideration -$1.4mShares issued$15.6mEnd of Q1 Debt End of 2023 Debt to EBITDA Ratio5.0x End of Q1’25 Debt to EBITDA Ratio on Q1 Run Rate1.5x -$1.5mRevaluations -$6.2mLTD Payments $3.8mCash balance at April 1, 2025 Q1 2025$1.3mDebt Reduction from $16.9m8%
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Business Update15NowVertical Group TSXV NOW
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16NowVertical Group TSXV NOW Business Update 30 Strategic Accounts in 2024: $4.1mQ1’24 Revenue$6.4mQ1’25 Revenue56%YoY 10 Additional Accounts (now considered strategic): $32kQ1’24 Revenue$716kQ1’25 Revenue6/10Net New
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Business Update 17NowVertical Group TSXV NOW On 4 YearsLATAM 6 MonthsUK
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18NowVertical Group TSXV NOW Strategic Account Example: Leading North American Technology Company = Historic Relationship= Expanded Relationship 18% Increase in margins Business Update
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Business Update19NowVertical Group TSXV NOW
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Q&ATransforming data into business value with AI, Fast. www.nowvertical.comNowVertical Group TSXV: NOW
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NowVerticalGroup Inc.545 King Street WestToronto, Ontario M5V 1M1Sandeep Mendiratta, CEO IR@nowvertical.comwww.nowvertical.com Investor RelationsStefan Eftychiou, Bristol Capital Ltd. 📧stefan@bristolir.com, 1905 3261888 60 Contact Information WWW .NOWVERTICAL.COM21NowVertical Group TSXV NOW