Slide 1: Local Corporation Corporate Overview 4Q2012
1 …………………………..……………………………………. Local Corporation We connect local businesses with online consumers Corporate Overview: 4Q2012 Exhibit 99.1
Slide 2: Forward looking statements
2 ………………..……………………………………. Forward looking statements The forward looking statements include, but are not limited to, any statements containing the words “expect”, “anticipate”, “estimates”, “believes”, “should”, “could”, “may”, “possibly”, and similar expressions and the negatives thereof. These for
Slide 3: Local Corporation Overview
3 ……………………………………………….. Local Corporation Overview Founded IPO Date Ticker Reach Network of Websites Direct SMB Subscribers Patents Headquarters 1999 2004 LOCM (NASDAQ) ~1 million consumers/day Over 1,000 ~900 10 issued + 11 pending Irvine, CA KEY FACTS REVENUE IN MILLIONS
Slide 4: The Opportunity
4 …………………………...…………………. The Opportunity Digital media is going local.... …& we have assets in all areas
Slide 5: Our Model
5 PROPRIETARY NETWORK OF 1,000+ SITES Traffic x Monetization = 5 ……………………………………...…….………. Our Model LOCAL BUSINESS DATA (may include deals, coupons, product info, business content, events, activities, ratings & reviews and more) WE AGGREGATE & PUBLISH LOCAL CONTENT THAT CONTENT IS INDEXED BY SEARCH
Slide 6: The Challenge for SMBs
6 SMBs spend thousands and need multiple vendors to solve for their most basic marketing and advertising needs CORPORATE OVERVIEW | 4Q2012 ……………………………………………………. The Challenge for SMBs Only 33.4% Only 22% Just 6.7% Only 6% have a local phone number on their home page have an email address on their we
Slide 7: Our SMB Solution
7 SMBs could spend over $1,000/month with other providers to get everything that is already included in our one solution. ...………….…. Our SMB Solution • Monthly subscription sold to SMBs starting at $249 per month • Powered by our own proprietary technology • Launch by Local announced August 2012
Slide 8: Mobile
8 Mobile Apps and mobile-enabled available for consumer sites: • Local.com • Spreebird.com Launch by Local solution offers a mobile-optimized website for SMBs …………………………………………….…………….……………………….. Mobile Source: BIA/Kelsey
Slide 9: Why Local Consumers Matter
9 Search Term Click Bids* Premium ………….…………………..…. Local customers are worth more! Plumber $9.55 282% Plumber Los Angeles $26.91 Credit Union $0.91 235% Seattle Credit Union $2.14 Restaurant $1.39 139% San Francisco Restaurant $1.93 Moving Company $10.82 114% Denver Moving Company $12.38 Wedding Flo
Slide 10: Simple Growth Strategy
10 Simple Growth Strategy Number of sites Volume of traffic per site Mobile ..……………………………………………….…………. Grow Traffic Increase Monetization Direct customers
Slide 11: Strategy Momentum: Traffic
11 ..……………..……………………………………. Strategy Momentum: Traffic
Slide 12: Strategy Momentum: Monetization
12 ..…..……………………………………. Strategy Momentum: Monetization
Slide 13: Organic Traffic & Revenue Goals
13 ………..………..……………………………. • More balanced revenue • Higher margin • More predictable • Better visibility Organic Traffic & Revenue Goals Organic/direct revenue includes revenue from organic traffic and direct advertiser relationships
Slide 14: Goal: Improved Higher Margins As We Grow Organic
14 …...…..………. Goal: Improved Higher Margins As We Grow Organic • Expected to be high-margin revenue • Expected to improve gross margins significantly Note: Actual results could differ materially from these projections. Organic/direct revenue includes revenue from organic traffic and direct advertis
Slide 15: Assets
15 …………………………………………………………...……………………….. Assets • 10 Patents issued/11 pending • Aggregate & publish local content • Proprietary platform for SMB Solution • Greater than 30M MUVs on our site and network • ~ 300K daily deal subscribers • Channel Partners • Regional media publishers • SMB Solution rese
Slide 16: Experienced with Strategy Discipline
16 ……………………..……….………. Experienced with Strategy Discipline Heath Clarke Founder, Chairman & CEO 20+ yrs exp Founded Local in ’99 VP eCommerce LanguageForce CEO/Founder AFP (Australia) Ken Cragun CFO 20+ yrs exp CFO Modtech SVP MIVA CFO ImproveNet CFO NetCharge.com CPA; Big 4 Exp . Mike Sawtell Presi
Slide 17: Long Term Growth
17 …………………………………………..………….…….………. Long Term Growth • 20% YoY revenue growth (Q3’12 over Q3’11) • ~40% CAGR 2006-2012 • FY12 Guidance: ~$100M revenues: ~27% YOY growth and ~$750K Adjusted Net Income • Forward-Looking: Increased organic revenue = higher margins and improved bottom line Note: See recon
Slide 18: 3Q12 Balance Sheet & Cap. Table
18 Key Balance Sheet Items (in thousands) Capitalization (in thousands) ………………………………...………. 3Q12 Balance Sheet & Cap. Table Additional Data: I. $12 million credit facility. Interest rate approximately 5% II. September 30, 2012 Cash $3,706* Accounts Receivable 13,954 Total Assets 58,784 Total Debt 7,
Slide 19: Why Invest in Local Corporation?
19 …………………………..…….………. Why Invest in Local Corporation? • Track record of growth • Strong management team with proven agility • Leverage via new and growing revenue streams • Proprietary platform
Slide 20: Digital Media Landscape
20 ……………………………………………………… Digital Media Landscape
Slide 21: Thank You
21 Thank You Heath Clarke Founder, Chairman & Chief Executive Officer hclarke@local.com Ken Cragun Chief Financial Officer kcragun@local.com 949.784.0800 http://www.localcorporation.com
Slide 22: Local SMB Customer: Fabi's Hair Studio
22 Facebook and Twitter pages engage customers and increase awareness Mobile-optimized site features directions and click-to-call Beautiful site design and web hosting with geo-targeted URL and custom content A consistent brand and user experience across multiple channels add to business credibility
Slide 23: Local SMB Customer: Fabi's Hair Studio
23 Display ad and enhanced listing on Local.com raise awareness in local markets Search engine optimization ensures page 1 placement by business category and keyword on a major search engine …..…….………. • More direct customers = » Better monetization » Greater margins » Greater defensibility » More v
Slide 24: P&L Trend
24 Description FY-10 FY-11 FY-12 ……………………………………………………………….……….………. P&L Trend Actual Actual Forecast Revenue $ 84,137 $ 78,259 $99,000-100,000 Sequential revenue growth 49% -8% 27% Gross Margin 37,620 29,001 Gross Margin % 45% 37% Other Operating Expenses 33,908 43,629 Operating income (loss) 3,712 (
Slide 25: Reconciliation: Adjusted Net Income to GAAP Net Income
25 Description FY-10 FY-11 FY-12 ……..………. Reconciliation: Adjusted Net Income to GAAP Net Inc Actual Actual Forecast Adjusted Net Income (Loss) $ 13,775 $ (1,090) $ 750 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (178) (200) Less amortization