Cloudastructure, Inc. Class A Common StockCSAI
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Cloudastructure, Inc. Class A Common Stock Micro-Cap Virtual Conference

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Transcript

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Aashi ShahAnalyst

Good afternoon, everyone. Welcome to day one of the Sidoti Conference. My name is Aashi. I am an analyst here at Sidoti. With me today, I have Cloudastructure. It trades under the ticker CSAI on NASDAQ. I am happy to welcome James McCormick, the CEO, and Greg Smitherman, the CFO of the company. We have 30 minutes today, including the Q&A. The audience, I would like to request, if you have any questions, please submit them at the Q&A section at the bottom of your screen. With that, I will leave the floor for you guys.

James McCormickCEO

Thank you. Great. Thanks, Aashi.

James McCormickCEO

Okay, let's talk a little bit about Cloudastructure, who we are and what we do. At the highest level, we are a video surveillance company using artificial intelligence and humans in the loop to protect enterprise customers in a proactive way, and we stop events or threatening activities before they become a problem.

Greg SmithermanCFO

We will give you a few seconds to read. I am sure you have seen plenty of these, and we will move forward.

James McCormickCEO

Wonderful. Some interesting statistics here. There is over 1 billion surveillance cameras that are deployed on a global basis that are capturing over 1.4 trillion minutes of video footage daily. The vast majority of that footage is not being reviewed. It is passive. It is used for forensic purposes. We are just the opposite. 100% of the video footage that we capture is evaluated using our artificial intelligence models, and we turn video from being something that is passive into active protection. So we built our system from day one to be cloud-based, hence the name of the company, Cloudastructure. 100% of our videos, nothing goes to a hard drive initially, right? Everything goes through an appliance that we have developed. Sends the video up to the cloud, down to our AI servers for evaluation. We offer enterprise businesses video surveillance, analytics.

James McCormickCEO

We actually index customer videos much the same way that Google indexes the web or web results. It makes it very easy if a customer wants to go back and find a specific event or a specific person or a specific vehicle, for instance, they can do that very easily because we index all their videos for them. The last bullet point, the remote guard services or humans in the loop. What we do, and one of the things that differentiates us is, once our artificial intelligence determines that something might be a threatening activity for the cameras that are protected or include our remote guarding solution, it actually goes to humans that will evaluate the event that was triggered by AI.

James McCormickCEO

If they determine that it's something that requires further intervention, either a talk-down through a speaker or contacting local authorities, 98% of the time, we stop the event before it becomes a problem. Huge differentiator for us and one of the main reasons that our customers absolutely love working with us.

Greg SmithermanCFO

It's always good to see it in action. You're going to see video from two of our customers, both happen to be in the mail rooms of their respective buildings, and how quickly, once the guard starts talking, the people walk away.

Greg SmithermanCFO

Sure. They come in, an alert is sent.

Greg SmithermanCFO

Is this bad? The guy's trying to- There's something to be crank open the mailbox.

Greg SmithermanCFO

Yeah. You are being watched and recorded by a live agent.

Greg SmithermanCFO

Please leave immediately. Once that voiceover comes down, off they go. Instead of damage in the mail room, instead of stuff stolen from a car in a parking garage, and the next day, the only thing that the property manager gets instead of a line out the door of upset tenants, is a report from us in their email detailing the event, gives them video clips, description of what happened, our guard's interaction, and the resolution of the case. Fantastic for keeping tenants there. Dramatically lowers repair costs, damages to mailbox or other parts of the property. It ends up driving their bottom line. That's why they stay with us. And stay they do. We have a 99% customer retention rate.

Greg SmithermanCFO

The market we're going after, and this is just looking at the AI video surveillance space, not surveillance. The surveillance market as a whole is even larger than this. AI has been getting a lot of press lately. It's really taken off in video surveillance. We, from day one built for this. The founder actually had the idea over 20 years ago, 15 years ahead of the time before the technology even existed to make this happen. We are jumping on this wave. It's growing much faster than the overall market, and we think there's tremendous opportunity for us going forward. As I kind of hinted, while the company technically was founded over 20 years ago, we really started becoming a commercial company after we'd raised $35 million through Regulation A in 2020, 2021, into 2022.

Greg SmithermanCFO

We had our first multifamily customer, and that was our first sort of anchor industry in 2022. After that, we built our remote guarding seamlessly into our system, hired our first remote guarding team in 2023. By 2024, we had six of the top 10 largest property management firms as customers. Today, we've got eight of the top 10. So over our brief history, we have really made significant penetration into very, very large customers. We went public last year, had 270% year-over-year revenue growth, really just starting the beginning of what we believe is going to be long-term significant ramp in revenues.

James McCormickCEO

It's always nice to get external validation of what you're doing. Here's a sample of some of the awards that we have been given over time. If you look at the upper left-hand corner, just recently, like in the last month, we were awarded the PropTech Property Management Solution of the Year award for 2026. So it's not just us saying, "Hey, we're doing good things and we've got good statistics." There's also external validation of our solution, what we call an award-winning solution.

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