Local,inc. · TSE:470A
Local,inc — Investor Presentation (January 2015)
22 slides from Local,inc's investor presentation, Jan 14, 2015
Slide 1: Local Corporation Corporate Overview
Local Corporation Corporate Overview
Slide 2: Forward-looking statements and Adjusted EBITDA notice
Certain matters being discussed by Local Corporation’s management today include forward looking statements which are made pursuant to the Safe Harbor provisions of section 21-E of the Securities Exchange Act of 1934. Investors are cautioned that statements which are not strictly historical statement
Slide 3: Audience, reach, intent, technology and reasons to invest
Audience 226M consumers Reach 3B impressions per month Intent Locally-focused consumer search Technology Patented content & localization engine Founded/IPO Ticker Flagship Site 1999/2004 LOCM (NASDAQ) Local.com – Top US Site Headquarters Employees Patents Irvine, CA ~70 13 + applications pending Rea
Slide 4: Old business model vs. new business model
AUDIENCE 226M consumers OLD BUSINESS MODEL: NEW BUSINESS MODEL: Opportunistic short term focus High revenue concentration risk Limited innovation Focus on complex SMB market Long term value creation; bottom-line driven Diverse revenue streams Rapid, lean product iteration and innovation Differentiat
Slide 5: Publisher Partner Network
Publisher Partner Network Flagship local search destination White labeled hosted search White labeled hosted directory Display advertising
Slide 6: 3B search queries monthly
3B search queries monthly 42M queries monthly 17M unique users monthly 10M queries monthly 26M mobile subscribers Soon to = 200M+ global monthly searches Direct advertisers Programmatic retargeting Audience Intention Behavior Location Device $ Then monetize via direct advertisers and programmatic re
Slide 7: Programmatic display spending reaches over $20B by 2016
Reaches over $20B by 2016 Programmatic Digital Display Spending in the U.S. (Billions) Valuation of peers in the space Where we play Rubicon $591M (2015) Pubmatic ~$1B (2013) Admeld $400M (2011 – Google acquired) -Business Insider, Nov. 2014
Slide 8: Programmatic and RTB automate the digital media supply and demand equation
Programmatic and RTB automate the digital media supply and demand equation REPEAT = AUDIENCE BUYING “© aie GR pee oo 5@: VS PUBLISHER AD INVENTORY BUYING ean SERVER
Slide 9: Local's advantage: we own our audience
Advertisers Quality controls DMP platform First party search data Media buying expertise Optimization platform Smart segmentation Publishers Local’s advantage: We own our audience. = in progress = in place
Slide 10: Preliminary results and 2015 guidance
Preliminary results and guidance as of January 12, 2015. An explanation of the Company’s use of Non-GAAP measures is set forth on Slide 20 Preliminary results Full Year 2014 • $82.8M - $83.3M in revenue • $5.5M - $5.7M in net loss • $2.2M and $2.4M in Adjusted EBITDA 2015 Guidance • Revenue between
Slide 11: Four drivers of growth
Four drivers of growth • nQuery carrier expansion • Network programmatic media buying • Programmatic audience extension • Expansion of O&O category pages Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end
Slide 12: Leadership team
Leadership team
Slide 13: Focused on driving profitable growth and asset value
Focused on driving profitable growth and asset value Owner of large scale premium commercial intent audience Moving into rapidly growing programmatic market Building large captive mobile phone user base
Slide 14: Fred Thiel and Ken Cragun contact details
Fred Thiel Chairman & CEO fred@local.com Local Corporation | 7555 Irvine Center Drive | Irvine CA 92618 | 949.784.0800 | www.localcorporation.com Ken Cragun CFO kcragun@local.com
Slide 15: Appendix
Appendix
Slide 16: Patent settlement and enforcement
The patent descriptions herein do not constitute the legal opinion or advice of the patent owner or their counsel. The reader is encouraged to seek the advice of their own counsel regarding the scope of any domestic or foreign patents. Settlement reached In September, the lawsuit against Fry's Elect
Slide 17: Improved user experience and new verticals
• Improved user experience • Scalable template • Positive margin upside • Expands audience acquisition • First of many new verticals include: – Yellowpages – Movies – Homes for sale – Jobs – Weather – Coupons
Slide 18: Board of directors
Fred Thiel Chairman of the Board & Chief Executive Officer • Director since January 2013, chairman since May 2014 • 25+ years leading technology, data communications, Internet, Big Data, digital media and software companies • Formerly CEO at GameSpy Industries and Lantronix (LTRX) and executive at T
Slide 19: Peer market cap to sales comparison
Company Symbol Price Market Cap (in millions) 2014E Sales (in millions) Market Cap/Sales *Estimate Blucora, Inc. BCOR $ 13.15 $ 539.1 $ 575.0 0.9 The Rubicon Project, Inc. RUBI $ 16.49 $ 591.3 $ 123.0 4.8 Angie's List, Inc. ANGI $ 5.58 $ 326.5 $ 314.0 1.0 Marchex, Inc. MCHX $ 4.31 $ 177.9 $ 177.0 1.
Slide 20: Non-GAAP financial measure: Adjusted EBITDA
This document includes the non-GAAP financial measure of “Adjusted EBITDA” which we define as net income (loss) excluding: provision for income taxes; interest and other income (expense), net; depreciation; amortization; stock based compensation charges; gain or loss on derivatives’ revaluation, net
Slide 21: Adjusted EBITDA to GAAP net income reconciliation
Description FY-09 FY-10 FY-11 FY-12 FY-13 FY-14P* FY-15E** Adjusted EBITDA $3,041 $13,775 $3,247 $777 $4,533 $2,300 $3,500 Less interest and other income (expense), net (27) (275) (413) (425) (2,321) (2,200) (1,100) Less provision for income taxes (158) (102) (178) (111) (139) (100) (100) Less amort
Slide 22: Revenue by business unit
% of Total Revenue by Business Unit 37% 63% 39% 61% 51% 49% Quarterly Revenues by Business Unit $7.6 $12.9 $8.3 $13.2 $11.6 $11.1 $ in Millions Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14E Network $ 7.6 $ 8.3 $ 11.6 $ 14.5 $ 16.1 $ 14.8 $ 9.9 $ 6.4 $ 7.5 O&O $ 12.9 $ 13.2 $ 11.1 $ 8.9 $ 10