Sito Mobile Ltd · OTC:STTO
Sito Mobile — Investor Presentation (September 2016)
29 slides from Sito Mobile's investor presentation, Sep 15, 2016
Slide 1: Investor Presentation | September 2016
I 1 INVESTOR PRESENTATION | SEPTEMBER 2016
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Matters discussed in this presentation contain forward - looking statements that involve risks and uncertainties and reflect SITO Mobile’s judgement as of the date of this presentation. Forward - looking statements generally relate to future events and include, without limitati
Slide 3: Company Overview
COMPANY OVERVIEW 3 • SITO Mobile is a mobile location - based platform that is focused on connecting advertisers with the “heads down consumer” at the optimal time and place, driving them to take action • Differentiated from the competition through its data - driven technology platform, including bo
Slide 4: SITO Mobile Investment Highlights
SITO MOBILE INVESTMENT HIGHLIGHTS 4 Massive market opportunity as digital ad spending shifts to mobile Owner of entire tech stack , including Data Management Platform (“DMP”) and Demand - Side Platform (“DSP”) Marquee client base of over 500 brands and 2,500+ predefined audience segments Tremendous
Slide 5: Mobile Is King
MOBILE IS KING 5 Desktop 32% Web 2% App 9% Web 7% App 50% Smartphone Desktop Tablet Share of Total Digital Time Spent: July 2016 Source: comScore Media Matrix Multi - Platform & Mobile Matrix, U.S., Total Audience. ~68% of total digital time spent is on mobile (smartphone & tablet) ~59% of total dig
Slide 6: Advertisers Remain Over-Indexed to Legacy Media
ADVERTISERS REMAIN OVER - INDEXED TO LEGACY MEDIA 6 4% 13% 36% 22% 25% 16% 10% 39% 23% 12% 0 10 20 30 40 50% Print Radio TV Internet Mobile % of Total Media Cosumption Time of Advertising Spending Time Spend Ad Spend Source: Advertising spend based on IAB data for full year 2015. Print includes news
Slide 7: Our Massive Opportunity in Local Advertising
OUR MASSIVE OPPORTUNITY IN LOCAL ADVERTISING 2014 - 2020 7 Search $20.5B Display $ 2 8.2B Social $10.9B $126 $123 $123 $124 $126 $127 $129 $50 $60 $69 $77 $87 $96 $105 0 20 40 60 80 100 120 $140 2014 2015 2016 2017 2018 2019 2020 Traditional Digital (US $ in Billions ) Digital vs. Traditional Ad Spe
Slide 8: We Solve
Tinie PROBILIE MI WE SOLVE SITO Mobile enables brands to more effectively engage the “heads-down consumer.”
Slide 9: Platform Drives Effective and Targeted Brand Awareness
PLATFORM DRIVES EFFECTIVE AND TARGETED BRAND AWARENESS 9 Demand Supply Location targeting Real - time decision & delivery optimization Serve the right ad to the right audience Real - time Verified Walk - In (VWI) proprietary technology Attribution and reporting
Slide 10: Follow the Digital Breadcrumbs
FOLLOW THE DIGITAL BREADCRUMBS 10 DEVICE ID: 786541 GEO : 42.546785 , - 83.320175 TIME: 7:52 AM Coffee Shop DEVICE ID: 786541 GEO : 42.543738, - 83.286753 TIME: 7:35 AM Home DEVICE ID: 786541 GEO : 42.542217 , - 83.358921 TIME: 8:11 AM School DEVICE ID: 786541 GEO: 42.525688, - 83.323282 TIME: 9:28
Slide 11: Build the Consumer Profile
BUILD THE CONSUMER PROFILE 11 Interests Shopping Cooking Travel Moviegoer Home renovating Gardening Music Demographic Profile Female Age: 35 - 44 Caucasian ZIP code: 10028 $220K HHI College Educated Home owner Length of residence 7+ years Married 2 Children: ages 2 - 9 Toys R Us Starbucks Macy’s Bed
Slide 12: How We Do It
HOW WE DO IT 12 In - Store Targeting Reach the consumer at the point of purchase c lient store Proximity Targeting Drive consumers in - store from any distance Geo - C onquesting Target consumers at competitor’s locations c lient store competitor Behavioral Targeting Target consumers based on previo
Slide 13: Differentiated Platform Delivers Superior Results
DIFFERENTIATED PLATFORM DELIVERS SUPERIOR RESULTS 13 1.28% 0.60% 0.63% 0.65% 0.88% 0.57% 0.65% 0.34% 0.31% 0.22% 0.13% 0.06% 0.52% 0.38% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Financial CPG Auto Travel Telecom Retail Total Avg SITO 70%+ better performance versus industry averages in key ver
Slide 14: SITO Benefitting from Network Effect
SITO BENEFITTING FROM NETWORK EFFECT 14 • Better performance leads to higher click through rates, dramatically increasing an advertiser’s ROI • Stronger platform performance increases the accuracy and effectiveness of ad campaigns, which increases business • More data improves customization and deci
Slide 15: Strong Growth While Driving Incremental Margin
STRONG GROWTH WHILE DRIVING INCREMENTAL MARGIN 15 Quarterly and LTM Revenue $9.9M Total Revenue An increase of 168% year - over - year $8.3M Media Placement Revenue An increase of 285% year - over - year $5.4M Gross Profit An increase of 191% year - over - year $1.8M Adjusted EBITDA Q2 2016 FINANCIA
Slide 16: Half the money I spend on advertising is wasted
“Half the money I spend on advertising is wasted; the trouble is I don't know which half.” - John Wanamaker -
Slide 17: VWI Platform Improves Visibility and Drives ROI
VWI PLATFORM IMPROVES VISIBILITY AND DRIVES ROI 17 Device Level Attribution • Performed at device level using a 1:1 match Custom Attribution Windows • Tracks walk - ins post ad exposure from 1 hour to 30 - days Real - Time Optimization • Utilize data to optimize campaigns in real - time • Proprietar
Slide 18: Case Study: National Organic Food Retailer
CASE STUDY: DELIVERING RESULTS TO NATIONAL ORGANIC FOOD RETAILER 18 Initial Objective: Driving foot traffic and sales volumes for holiday timeframe Key Performance Indicators: Customer engagement measured through Click - Through Rate (CTR) and foot traffic via Verified Walk - In Measurement Results:
Slide 19: Happy Customers Stay and Spend More
2015 2016 (Jan - Aug) C ampaigns T otal S pend Avg. Size 7 $392,497 $56,071 Campaigns Total Spend Avg. Size 20 $1,237,585 $61,879 June 2015 T est Campaign $25,296 HAPPY CUSTOMERS STAY AND SPEND MORE 19 Back to school tech savings Get free Gear or a Headset Global Wireless Carrier
Slide 20: Ongoing Product Innovation
ONGOING PRODUCT INNOVATION 20 • Enables brands to measure campaign effectiveness in real - time and optimize them going forward • Real - time visibility on whether consumer made intended purchase • Reduces typical 6 - 8 week lag time in foot traffic attribution Real - Time Verified Walk In • Excitin
Slide 21: Legacy SMS Messaging Business
84% 15% 1% LEGACY SMS MESSAGING BUSINESS 21 SMS Licensing Media 1 Billion + messages sent 50 Million + unique users Q2 2016 Revenue by Segment • Legacy platform for building and controlling tailored programs including messaging, customer incentive programs • Enables one - on - one relationships betw
Slide 22: Proven Management Team
PROVEN MANAGEMENT TEAM 22 JERRY HUG CEO KURT STREAMS CFO ADAM MESHEKOW EVP, PRODUCT & NATIONAL SALES JON LOWEN EVP, OPERATIONS & PRODUCT DEVELOPMENT WIRELESS RETAIL INC. JULIANE HORTON EVP , PEOPLE & CULTURE KATE FARLEY EVP , STRATEGY & SALES MARKETING
Slide 23: Financial and Operational Highlights
FINANCIAL AND OPERATIONAL HIGHLIGHTS 23 Exceptionally strong, capital efficient, top line growth Diversified and growing customer base which is increasing campaign spend Significant operating leverage Scalable, technology driven business model 1 2 4 5 Superior technology driving growth in campaign v
Slide 24: Tremendous Momentum in Campaign Volume and Size
Double Vision acquisition Seasonality Monthly Impressions Unique Campaign Count TREMENDOUS MOMENTUM IN CAMPAIGN VOLUME AND SIZE 24 79% YOY Growth • Benefiting from larger clients, broader reach within campaigns and longer time frames associated with campaigns • 400+ campaigns in Q2 2016, representin
Slide 25: Delivering Accelerating Growth
$1.8 $2.1 $3.0 $3.8 $3.8 $3.7 $4.5 $7.2 $6.5 $9.9 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Media SMS Licensing Quarterly Revenue by Segment DELIVERING ACCELERATING GROWTH 25 • Accelerating revenue growth driven by impressive performance in Medi
Slide 26: Stable Margins with Significant Leverage
Q1 - Q2 Adjusted EBITDA (2016 versus 2015) Q1 - Q2 Gross Profit (2016 versus 2015) STABLE MARGINS WITH SIGNIFICANT LEVERAGE 26 • Increasing network effects and robust data flow helping to improve profitability through more effective campaigns and better buy ing decisions • Recent uplift in gross mar
Slide 27: Disruptive and Highly Differentiated Model
DISRUPTIVE AND HIGHLY DIFFERENTIATED MODEL 27 Real - time VWI 1:1 ad view to store walk - in attribution & reporting enabling brands to measure and optimize campaigns in real - time, improve campaign performance and maximizing ROI Device - level Attribution Attribution is location - specific based o
Slide 28: Appendix
28 APPENDIX
Slide 29: Balance Sheet Summary Data
Cash & Equivalents $1.7 Accounts Receivable, net $8.8 Other Prepaid Expenses $0.1 Total Current Assets $10.6 Property and Equipment, net $0.5 Other Assets $11.4 Total Assets $22.5 Current Liabilities $11.3 Long - term Liabilities/Other $5.3 Total Liabilities $16.6 Common Stock $0.02 Total Equity $5.