40 slides from Intelligent Protection Management's earnings presentation, May 1, 2013
Slide 1: Snap Interactive, Inc. Investor Presentation
INTERACTIVE Snap Interactive, Inc. (OTCBB: STVI) Investor Presentation May 1, 2013
Slide 2: Disclaimer
Disclaimer “This presentation is fr discussion purposes only. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and It should not be relied upon as such, Certain statements inthis presentation constitute “forward-looking statem
Slide 3: AYI's Vision
AYI’s Vision h people's lives, by making it fun and easy to meet new people by integrating your friends and interests to connect people in a meaningful way. *CONFIDENTIAL* DO NOT DISTRIBUTE 7 PROPERTY OF SNAP INTERACTIVE
Slide 4: Today We'll Touch Upon...
Today We’Il Touch Upon... 1. SNAP’s background & industry trends 2. The problem in online dating 3. Our solution & what makes us unique 4. Financials 5. SNAP’s 2013 objectives & recent updates
Slide 5: About SNAP & Industry Trends
About SNAP & Industry Trends
Slide 6: About SNAP
About SNAP Ticker: STVI — Trades on OTCBB Founded in 2005 $750,000 raised through 2007 and $8.5 Million in 2011 Located in New York City, with ~50 full-time employees Ranked the 36th Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500: 4,412% Revenue Growth from 2007-2011
Slide 7: About SNAP
About SNAP Shares outstanding — March 31, 2013: — 38,932,826 Insider holdings — March 31, 2013: — 24,971,956 (64%) — Includes founders, family and current employees Institutional Holdings: — Manulife Asset Management (US) LLC — 2,000,000 shares) Market Cap @ April 30, 2013 ($0.615/share) — Approxima
Slide 8: AYI
AYI AYlis a fully integrated social dating site with a stand-alone wel iPhone, Android, Mobile web, and Facebook Application
Slide 9: AYI's Vital Stats
AYI’s Vital Stats * Scale of Social & Interest Graphs - Over 20 million Facebook connected profiles and 84K active subscribers'?) * 3.1MM( Monthly Active Users (MAUs) * 15th highest grossing app in the iTunes App Store under the U.S. Social Networking category®)
Slide 10: Favorable Industry Trends
Favorable Industry Trends
Slide 11: Social Media Growth
Social Media Growth + Social media users have grown to represent 44% of all Internet users and continue to grow!) Social Media Market Revenue, Worldwide, 2010-2015 (Millions of Dollars) $35,000 $30,000 $25,000 p20 ooo 2010-2015 $15,000 chan = 32%, $10,000 $5,000 so 2010 2011 2012 2013 2014 2015 Glob
Slide 12: Mobile Dating Growth
te Mobile Dating Growth ‘Total Revenue from Downloads ($8n) * From 2010 to 2015, revenue from mobile downloads expected to grow at a 67% CAGR. * The mobile dating market expected to increase from $1 Billion in 2012 to $2.3 Billion in 2016, according to Juniper Research. 200 2015 Source: Gartner Fore
Slide 13: The Problems With Online Dating Sites
The Problems With Online Dating Se
Slide 14: Little Innovation
Little Innovation Online dating has changed very little in 15 years Large players have little motivation to innovate Networks Effects: Scale is everything - high barriers to entry make it very expensive for new entrants
Slide 15: Interesting Online Dating Stats
ae Interesting Online Dating Stats "i ¥ 70% OF WOMEN PREFER TO HAVE A FRIEND IN COMMON WHEN DATING SOMEONE THEY MET ONLINE
Slide 16: As A Result...
As A Result... The Online Dating Industry is Ripe for Disruption & Innovation
Slide 17: It's Happening Everywhere Else...
It’s Happening Everywhere Else... Disruption is occurring in most verticals already ioves pretty fast. don't stop and If look around once ina ij while, you could:miss it.” *Li
Slide 18: The Interest & Social Graph Has Disrupted Several Verticals
The Interest & Social Graph Has Disrupted Several Verticals Professional Networking Linked {fi} Gaming Commerce amazoncom —7 * Movies & Video News * Dating (AYI?)
Slide 19: How Is AYI Solving the Problem?
How Is AYI Solving the Problem?
Slide 20: AYI's Vision
AYI’s Vision h people's lives, by making it fun and easy to meet new people by integrating your friends and interests to connect people in a meaningful way. *CONFIDENTIAL* DO NOT DISTRIBUTE 20 PROPERTY OF SNAP INTERACTIVE
Slide 21: Social Dating
Social Dating se. AY believes that integrating your interest and social graphs will provide a better online and mobile dating experience.
Slide 22: In Other Words...
In Other Words... What Linked fj has done for professional networking AYI aims to do for meeting new people.
Slide 23: Using Our Interest Data To Build Compelling User Experiences
Using Our Interest Data To Build Compelling User Experiences 1 BILLION+ PIECES OF STRUCTURED DATA ENABLES US TO PROVIDE A ROBUST RELATED INTEREST SEARCH EXPERIENCE.
Slide 24: How Meeting Through Friends Works
How Meeting Through Friends Works
Slide 25: Is Social Dating Working?
te Is Social Dating Working? Yes - The early data is very encouraging and suggests that dating through friends online has its benefits!
Slide 26: Users are connecting through friends
ae Users are connecting through friends * 1.5 million connections* have already been made through friends ‘CONFIDENTIAL* DO NOT DISTRIBUTE PROPERTY OF SNAP INTERACTIVE =
Slide 27: Women prefer meeting through friends
te Women prefer meeting through friends * U.S Women are 41% more likely to message a man when there is a mutual friend
Slide 28: Viral Growth Opportunities Through Friends
Viral Growth Opportunities Through Friends Virality * 1,000+ users message their friends directly about a potential user on AY! daily
Slide 29: What Makes SNAP Different
What Makes SNAP Different
Slide 30: What Makes SNAP Different
sie What Makes SNAP Different We are uniquely positioned to build the ‘Social Dating’ experience * Scale Of Social Graph 20 Million Facebook Connected Users with Friend of Friend Results — very costly to replicate * Scale of Interest Graph 1 Billion+ Pieces of Structured Interest Data * Talent & Exp
Slide 31: Financials
FINANCIALS
Slide 32: Investment Highlights
Investment Highlights * SNAP’s business is at the core of several fast-growing, favorable industry trends: — Social, Mobile, Location-based & Online * Our business has significant network effects & high barriers to entry * Experienced management team — social media expertise * Subscription-based mod
Slide 33: Financial Highlights (1Q 2013)
Financial Highlights (1Q 2013) * SNAP's balance sheet position continues to be strong, with $4.5 million of overall liquidity (cash and cash equivalents plus restricted cash) and no debt * Subscription revenues for the first quarter of 2013 were $3,427,891 down 12% from $3,908,361 for the fourth qua
Slide 34: Financial Highlights (1Q 2013)
Financial Highlights (1Q 2013) * Bookings for the first quarter of 2013 were down only 5% from the fourth quarter of 2012 * Monthly bookings increased in both February and March 2013 from a low point in January 2013 * Monthly bookings for March 2013 increased 22% from January 2013 Monthly Bookings 3
Slide 35: Financial Highlights: Marketing & Conversion
te Financial Highlights Marketing & Conversion * In 1Q of 2013, we introduced several initiatives to improve our user acquisition capabilities New Initiatives include: — Identifying new user acquisition channels off of Facebook — Improve our user acquisition and conversion funnels — Integrate new pa
Slide 36: Operational Highlights (1Q 2013)
Operational Highlights (1Q 2013) * Launched Friend of Friends & Interest Search ¢ Re-branded from ‘AreYoulnterested’ to ‘AY!’ * Began building native Android App
Slide 37: 2013 Objectives
2013 Objectives te. ¢ Brand Build A Recognizable World Class Brand for AYI based on our unique social offerings around friends & interests ¢ Engagement Increase on-site & mobile user engagement * Conversion Increase the number of subscribers
Slide 38: Reconciliation of GAAP to Non-GAAP Results
ate RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) Reconciliations of Subscription Revenue to Bookings vce Months Ended ——_— % [EEE erie eee 4 2az7ael § 5586028 (as5376) 201672 — $ 2ensis$ se7710 a a i it it a oa 400,781 4131027 3192073 41263,308 4,204,308 4,350,754 (26) (271.380) (284,890)
Slide 39: Reconciliation of GAAP to Non-GAAP Results Cont'd
RECONCILIATION OF GAAP TO NON-GAAP RESULTS CONT’D (Unaudited) Non-GAAP Financial Measures ‘We have provided non-GAAP financial information in this presentation, including bookings, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accountin
Slide 40: Thank You / Contact
Thank You / Contact Cliff Lerner Jon Pedersen CEO ” CFO clerner@snap-interactive.com ipedersen@snap-interactive.com (212) 967-5120 x113