Local,inc. · TSE:470A
Local,inc — Investor Presentation (July 2014)
29 slides from Local,inc's investor presentation, Jul 25, 2014
Slide 1: Corporate Overview: Q2 2014
Core business fueling — g the consumer . throughout the path to purchase 24 million visitors/monthy; 3 billion impressions; thousands of sites Corporate Overview: Q2 2014
Slide 2: Forward looking statements
Forward looking statements 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 st
Slide 3: Who we are / Reasons to invest
3 • Strong profitable core business with strong consumer base • Growing partners and products • Innovative Krillion platform is catalyst for multi-screen expansion • Untapped IP portfolio ready for monetization • Shift in focus to Enterprise sales • Improving financial performance on top and bottom
Slide 4: Convergence around the consumer
To give consumers the most relevant and personalized information at the right time and on the right platform – and continually refine it until it’s perfect. Convergence around the consumer 80% of purchases occur within a 3-mile radius of home 52% of all sales (online & offline) will begin on the int
Slide 5: The path to purchase is a journey
The path to purchase is a journey from Discovery to Decision TM
Slide 6: We are best equipped to help consumers along this journey
We are best equipped to help consumers along this journey *Based on 2012 retail sales of the top U.S. product retailers listed within Stores Top 100, excluding grocery and restaurant retailers
Slide 7: Reaching consumers across all devices
Reaching consumers across all devices Each month we serve billions of impressions to millions of consumers
Slide 8: Increase in online advertising spend expected
60% Increase In online advertising spend expected over the next 4 years Mobile traffic represents 32% of our total overall traffic 8 Total online advertising Online search Source: eMarketer, 2014 Mobile display advertising Source: Borrell Associates, Inc. 2014 Source: eMarketer, 2014 Newer ad format
Slide 9: Working with leading partners to deliver a superior experience
Working with leading partners to deliver a superior experience
Slide 10: Helping retailers increase visibility and connect with more shoppers
Helping retailers increase visibility and connect with more shoppers Represents retailers and brands included within Krillion index 2014
Slide 11: Connecting more consumers with the brands they love
Connecting more consumers with the brands they love Represents retailers and brands included within Krillion index 2014
Slide 12: Local Labs: investing in innovation as a primary vehicle for growth
Local Labs serves as a digital technology lab and start-up incubator focused on innovating the digital ecosystem that converges around the digital shopper’s path from discovery to decision. Investing in innovation as a primary vehicle for growth 48% of employees will work in research & development b
Slide 13: Providing consumers with engaging, relevant search and ad experiences
Providing consumers with engaging, relevant search and ad experiences
Slide 14: Delivering relevant local business information to nearby shoppers
Delivering relevant local business information to nearby shoppers
Slide 15: Powering cross-channel shopping experiences for brands and retailers
Powering cross-channel shopping experiences for brands and retailers
Slide 16: Interactive ad content to consumers at precisely the time they need it
24% performed secondary localized actions after opening (vs. 2.9% industry benchmark) • Highly interactive Animation, rolling text and image carousels • Location aware Nearest store, directions and ambient data • Integrates mobile features Maps, tap to call, and calendar reminders • Localized conten
Slide 17: Price and product comparison at shoppers' fingertips
Price and product comparison at shoppers’ fingertips
Slide 18: Monetize IP portfolio
trial stayed pending completion of administrative action with the USPTO 18 Monetize IP portfolio Positive claim construction ruling Cascading Menu patent Reviewing options to maximize value Pay-Per-Call patent portfolio Transferring patents into dedicated IP holding subsidiary Structure provides mos
Slide 19: Stabilize, Execute, Grow
Stabilize Execute GROW Improving financials Evolving model remains strong Multiple growth drivers Investing for growth (Adjusted EBITDA) Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end. * *Estimate
Slide 20: Continued strong Network revenue growth
$ in Millions Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 20 In the last seven quarters, Network revenue has grown Network Revenue $4.2 $4.1 $5.0 $7.6 $8.3 $11.6 $14.5 $16.1 $14.8 over 3.5x Continued strong Network revenue growth Addition of new ad technology and partners Serving more than
Slide 21: Owned & Operated trends
CAGR Mobile Traffic over the past five years of total overall traffic Owned & Operated trends O&O MUV – RKV (including mobile) 209% Annual mobile traffic (UVs) 82M 129M 21M 3M 1M
Slide 22: 2014 financial targets by business segment
2014 Revenue % of 2014 Revenue Margin % Network Owned & Operated 2014 financial targets by business segment *All 2014 figures are estimates 55,000,000 51% 37% 52,000,000 49% 15% $107,000,000 100% 26%
Slide 23: 1Q14 Balance Sheet & Cap. Table
Key Balance Sheet Items (In Thousands) Capitalization (In Thousands) 1Q14 Balance Sheet & Cap. Table 3/31/2014 Cash $3,711 Accounts Receivable 18,219 Total Assets 50,722 Total Debt 14,002 Total Liabilities 32,341 Stockholders Equity 17,669 3/31/2014 Common Stock 23,227 Convertible Debentures 2,488 O
Slide 24: Leadership & Structure
Scott Reinke Chief Legal Officer Ken Cragun Chief Financial Officer Fred Thiel Chairman & CEO Leadership & Structure Carlos Caponera Sr. VP O&O Eileen Kim VP Krillion Brian Singleton VP Innovation Eric Orrantia VP Network Owned & Operated Network Krillion Innovation Rob Luskey VP Business Developmen
Slide 25: Board of directors
Board of directors Fred Thiel Chairman of the Board & Chief Executive Officer Frederick G. Thiel has more than 25 years of experience leading companies in the technology, data communications, Internet, Big Data, digital media and software industries. He was named chairman in January 2014, after join
Slide 26: Market Cap/Sales Valuation
Company Symbol Price Market Cap (in millions) 2014E Sales (in millions) Market Cap/Sales Market Cap/Sales Valuation Blucora, Inc. BCOR $ 18.85 $ 780.7 $ 656.0 1.2 The Rubicon Project, Inc. RUBI $ 13.37 $ 485.1 $ 112.6 4.3 Angie’s List, Inc. ANGI $ 12.02 $ 695.1 $ 328.0 2.1 Marchex, Inc. MCHX $ 11.30
Slide 27: Reconciliation: Adjusted EBITDA to GAAP Net Income
Description FY-09 FY-10 FY-11 FY-12 FY-13 FY-14* Reconciliation: Adjusted EBITDA to GAAP Net Income Note: Since we cannot predict the valuation of the warrant liability and the conversion option liability, we cannot reasonably project our GAAP net income (loss). We, therefore, cannot provide GAAP gu
Slide 28: Use of non-GAAP measures
Use of non-GAAP measures 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 deri
Slide 29: Thank You
Thank You Thank you Fred Thiel Chairman & CEO fred@local.com Local Corporation Irvine Center Drive Irvine CA 949.784.0800 www.localcorporation.com Ken Cragun CFO kcragun@local.com