Local,inc. · TSE:470A
Local,inc — Investor Presentation (November 2014)
25 slides from Local,inc's investor presentation, Nov 25, 2014
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: Our strategy: reach, audience, intent, technology
Reach 3B impressions per month Audience 226M consumers Intent Locally-focused consumer search Technology Patented content & localization engine Our strategy To aggregate and curate the most relevant local content for consumers and present it wherever and however the consumer searches for information
Slide 4: Market opportunity, diversified revenue, innovation, improving financial outlook
Market opportunity is growing Diversified revenue streams Innovation yields competitive advantages Improving financial outlook • Local Audience Network • Hosted Mobile Search • O&O Properties • Network • Mobile is the fastest growing segment of search & mobile local ad revenues are projected to grow
Slide 5: Given nPression Score
Given nPression Score Visibility • Authenticity • Validity 226M high intent, local consumers annually • Desktop • Mobile • Apps • Carriers • WiFi TM • Display • Video • Mobile • Search • Local.com • nQuery • nPress • Publisher Partner network
Slide 6: Paid Search feed served to qualified audience
Paid Search feed served to qualified audience An advanced technology that filters and scores traffic based on a multitude of data, and in the future will detect, analyze and decide the most successful delivery of content and ads Quality traffic based on: nTegrity
Slide 7: Convert traffic to audience & monetize
Convert traffic to audience & monetize TRAFFIC ————————>_ AUDIENCE —————-> MONETIZATION INCREASED VALUE nTegrity” Performance [ | mee ‘Gtr tor car inarance TT ere |, Advertisers Honda for offer near home nN Demand side platforms Global programmatic digital dilay vcuicndod waranty” a spending fs expe
Slide 8: Putting advertisers in front of a premium, high-intent local audience
1 2 3 Putting advertisers in front of a premium, high-intent local audience Reaching valuable mobile consumers through search in North and South America. Quickly connect with the most receptive consumers though our programmatic solution Single platform to reach consumers across Local.com, n Press, n
Slide 9: Stabilize, Execute, Grow
Stabilize Execute GROW *Estimate Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end Focusing on key initiatives Expect expanding EBITDA margin* Scaling business *Based on forecast from 2014 to 2017 Monetizing local audience and growing mobile search Realigned organiza
Slide 10: Local Labs
Local Labs serves as a digital technology lab and incubator focused on innovating the digital ecosystem that converges around the digital consumer. Local Labs Business Model Target
Slide 11: Continuing efforts to enforce intellectual property rights
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 12: Leadership team
Slide 13: Board of Directors
• • • Fred Thiel Chairman of the Board & Chief Executive Officer John M. Payne Director David M. Hughes Director Norman K. Farra, Jr. Lead Director Director since January 2013, chairman since May 2014 25+ years leading technology, data communications, Internet, Big Data, digital media and software c
Slide 14: Q3 Highlights
Q3 Highlights Financials Innovation Total revenue of $18.1M, O&O revenue up 31% y-o-y Adjusted EBITDA $407K Cash from operating activities of $3.0M Reduced debt by $4.5M RKV of $201, up from $180 in Q313 $4.3M in total cash and $4.3M in debt as of Sept. 30 th Announced annual cost savings actions of
Slide 15: Fred Thiel, Chairman & CEO contact
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
Slide 16: Consumer properties
Consumer properties
Slide 17: Rich, relevant local content
• Rich, relevant local content • 500M annual searches • Growing mobile segments in local jobs, coupons and apartment rentals • Most popular segments > Home services > Medical > Legal > Restaurant • Advertiser partner CTR >40%
Slide 18: Mobile carrier search partnerships
> Chinese > Portuguese > Spanish > English Several languages: Biz Dev conversations open with several global carriers & MVNOs Launching top 5 mobile carrier in South America ~200M+ searches per month 10M US smartphone searches per month 26M mobile subscribers activated
Slide 19: Featured partners and organic audience
• • • • • + hundreds more Rich, relevant local content 100% organic audience Traffic across all 50 states 50% mobile traffic and growing Categories & performance similar to Local.com Featured partners include:
Slide 20: Hundreds of publisher partner sites
• Hundreds of publisher partner sites • 25M search queries per day* • Traffic scored through nTegrity TM to ensure it is a valid impression *As of November 2014
Slide 21: Appendix
Appendix
Slide 22: Peer market cap to sales comparison
Company Symbol Price Market Cap (in millions) 2014E Sales (in millions) Market Cap/Sales *Estimate Blucora, Inc. BCOR $ 14.23 $ 570.7 $ 575.0 1.0 The Rubicon Project, Inc. RUBI $ 13.04 $ 451.4 $ 123.0 3.7 Angie's List, Inc. ANGI $ 5.96 $ 338.8 $ 314.0 1.1 Marchex, Inc. MCHX $ 3.58 $ 151.8 $ 177.0 0.
Slide 23: 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 24: Adjusted EBITDA to GAAP net income reconciliation
Description FY-09 FY-10 FY-11 FY-12 FY-13 FY-14* Adjusted EBITDA $3,041 $13,775 $3,247 $777 $4,533 $2,200 Less interest and other income (expense), net (27) (275) (413) (425) (2,321) (2,100) Less provision for income taxes (158) (102) (178) (111) (139) (100) Less amortization of intangibles (2,524)
Slide 25: Quarterly revenues by business unit
$ in Millions Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Network $ 5.0 $ 7.6 $ 8.3 $ 11.6 $ 14.5 $ 16.1 $ 14.8 $ 9.9 $ 6.4 O&O $ 19.4 $ 12.9 $ 13.2 $ 11.1 $ 8.9 $ 10.7 $ 11.4 $ 12.6 $ 11.7 Consolidated Revenue $ 24.4 $ 20.6 $ 21.5 $ 22.7 $ 23.5 $ 26.8 $ 26.2 $ 22.5 $ 18.1 % of Total Reven