Elauwit Connection (ELWT) IAccess Alpha Virtual Best Ideas Spring Investment Conference summary

Market opportunity and business model

• Targeting the $26 billion conventional multifamily internet market, focusing on properties with 100+ units for NOI improvement and service quality differentiation.

• Offers a robust, enterprise-grade network solution, enabling building owners to participate in telecom wallet share and enhance property value.

• Operates with SaaS-like margins (60%-75% gross), leveraging a utility-like recurring revenue model with long-term, low-churn contracts.

• Not geographically limited; can serve all 50 states, appealing to national apartment owners.

• Market is highly fragmented, with no provider holding more than 1% share, presenting significant growth potential.

Financial products and impact

• Two financial models: Managed Service (owner funds network, higher NOI increase) and Network-as-a-Service (Elauwit funds network, owner pays higher service fee).

• Managed Service yields 60% gross margin, 45% IRR for owners, and $3.1 million average property value increase.

• Network-as-a-Service yields 75% gross margin, 35% unlevered IRR for Elauwit, and $2 million property value increase for owners.

• Typical payback period for Network-as-a-Service is about 2.5 years on a 10-year contract.

• Decision between models depends on owner's access to capital; retrofit projects often use Network-as-a-Service.

Growth, operations, and competitive landscape

• Post-IPO, expanded sales and marketing team, resulting in a strong pipeline (8,200 new units identified in 6-8 weeks).

• As of last Q3, 32,000 units under contract and $36 million backlog, with significant growth expected.

• Uses W2 project managers and local subcontractors for scalable installations; network design centralized in South Carolina.

• Competes by offering building owners direct participation in internet revenue and superior service, unlike traditional telcos.

• Large telcos unlikely to adopt this model due to negative impact on their subscriber-based valuations.