Slide 1: Local Corporation Overview
Exhibit 99.1 Local Corporation Overview Connecting Local Merchants with Online Consumers 2Q2012
Slide 2: Safe Harbor Statement; Non-GAAP Financial Measures
Safe Harbor Statement; Non-GAAP Financial Measures Certain matters being discussed by Local Corporation’s management today charges and non-recurring items. Adjusted Net Income/Loss, as defined include forward looking statements which are made pursuant to the Safe above, is not a measurement under GA
Slide 3: Shifting Ad Spend
Shifting Ad Spend We all know digital is growing, but did you know digital media is going local? Local Corporation Presentation | 2Q2012 3
Slide 4: Local Corporation
Local Corporation Founded 1999, IPO 2004: NASDAQ: LOCM 1. We specialize in connecting online consumers with local businesses 2. Advertising revenue model 3. A network that reaches one million consumers a day across search, display, email & mobile 4. A unique, proprietary technology platform covered
Slide 5: What We Do
What We Do We connect consumers with the We enable local businesses to target those We enable publishers & agencies to participate local businesses, products consumers with digital media products in the local media revolution via our platform and services they seek Consumer Business Media Properties
Slide 6: Consumer Properties
Consumer Properties • Owned & Operated plus 1,000+ regional media sites » 94MM monthly unique visitors in 1Q12 – Up 21% Y/Y – Over 30% of traffic was organic – High buying intent – Balance of traffic via marketing across major engines • Local businesses, products and services » Business name/categor
Slide 7: How We Make Money
How We Make Money Users searching for local product/services on Google, Yahoo, Bing often land on our network We provide relevant local search results and we also display a variety of ads on the page We generate revenue based on the ad type Local Corporation Presentation | 2Q2012 7
Slide 8: Advertisers Pay More For Local Consumers
AdvertisersPay More For Local Consumers Pay-per-click rates for local versus national keyword terms… Click Premium Search Term Bids* Restaurant $0.22 577% San Francisco Restaurant $1.27 Credit Union $0.45 116% Seattle Credit Union $0.52 Plumber $2.60 275% Plumber Los Angeles $7.14 Moving Company $2.
Slide 9: Business Solutions
Business Solutions Exact Match Digital Media Suite Presence. Reach. Engagement. • A ‘do it for me’digital media solution for SMBs » Presence: website/social/mobile » Reach: a variety of digital ad solutions » Engagement: beta testing rewards, email • Priced at a phenomenal $200 per month » Because i
Slide 10: Media Services
Media Services Our technology platform powers a range of sophisticated media services, enabling our clients to participate in the local online advertising revolution Private label local search » 100 publishers representing 1,000+ sites » Revenue share from a variety of ad types Private label SMB sol
Slide 11: Spreebird
Spreebird • Spreebird Deals to attract new customers • Spreebird Rewards & email to engage those customers • Merchant Dashboard to provide valuable data » Our Spreebird Merchant Dashboard begins to round out our SMB engagement solution – Track deals and rewards – Build customer database – Connect vi
Slide 12: Proprietary Technologies Power Our Platform
Proprietary Technologies Power Our Platform Our powerful platform incorporates a unique combination of technologies that provide an increasingly differentiatedsuiteof digitalmediasolutions fora widerangeof customers 8 patents issued, 11 pending in local, mobile, search engine data & display web host
Slide 13: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline Heath Clarke Mike Sawtell Ken Cragun Founder, Chairman & CEO President & COO CFO 20+ yrs exp 20+ yrs exp 20+ yrs exp Founded Local in ’99 Chairman & CEO, DigitalPost Interactive CFO Modtech VP eCommerce LanguageForce Pres. & COO , Interchange Corp. (now SVP
Slide 14: Financial Performance
Financial Performance • 50% YoY revenue growth (Q1’12 over Q1’11) • ~40% CAGR 2006-2012 • 2Q12 Revenue guidance: $27MM and $150K Adjusted Net Income • FY12Revenueguidance:$110MM– 40%higher than2011 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, sto
Slide 15: Percent of Total Revenue from Direct Sales Efforts
Percent of Total Revenue from Direct Sales Efforts Local Corporation Presentation | 2Q2012 15
Slide 16: Revenue/Thousand Visits & Total Monthly Unique Visitors
Revenue/Thousand Visits & Total Monthly Unique Visitors Local Corporation Presentation | 2Q2012 16
Slide 17: 1Q12 Balance Sheet & Capitalization
1Q12 Balance Sheet & Capitalization Key Balance Sheet Items (in thousands) March 31, 2012 March 31, 2012 Cash $6,787 Common stock 22,083 Accounts Receivable 14,370 Options 1 (Avg. Strike $4.29) 4,775 1 Total Assets 72,155 Warrants (Avg. Strike $7.48) 1,239 Total Debt 8,000 RSUs 109 Total Liabilities
Slide 18: Why Invest in Local Corporation?
Why Invest in Local Corporation? • Rapidly growing company in a rapidly growing market An Attractive Position • Beneficiary of secular trend towards online ad spend by SMBs in Fast Growing Markets • Extensive technology platform and differentiated product portfolio • Growing revenue streams with con
Slide 19: Thank You
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 Local Corporation Presentation | 2Q2012 19
Slide 20: P&L Trend
P&L Trend Actual Actual Forecast Description FY-10 FY-11 FY-12 Revenue $ 84,137 $ 78,763 $ 110,000 Sequential revenue growth 49% -6% 40% Gross Margin 37,620 29,444 Gross Margin % 45% 37% Other Operating Expenses 33,908 46,042 Operating income (loss) 3,712 (16,598) Interest and other income (expense)
Slide 21: Reconciliation: Adjusted Net Income to GAAP Net Inc
Reconciliation: Adjusted Net Income to GAAP Net Inc Actual Actual Forecast Description FY-10 FY-11 FY-12 Adjusted Net income (loss) $ 13,775 $ (2,576) $ 1,300 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (181) (150) Less amortization of intang