Local,inc. · TSE:470A
Local,inc — Roth Conference March 2015
25 slides from Local,inc's conference presentation, Mar 10, 2015
Slide 1: LOCM Company Overview
LOCM Company Overview MARCH 2015
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
Who we are A search and mobile ad technology company that reaches millions of high intent consumers across devices, and that provides leading monetization solutions for publishers Audience 200M consumers annually Reach 30B impressions annually Intent Mobile + local consumer search Technology Audienc
Slide 4: Transforming our business and entering growing digital ad markets
Transforming our business and entering growing digital ad markets
Slide 5: Four drivers for growth
Four drivers for growth 1 Focused on driving profitable growth and asset value 2 Building large captive mobile phone user base 3 Owner of large scale premium commercial intent audience 4 Moving into rapidly growing programmatic market FOCUS ON PROFITABILITY MOBILE INNOVATION HIGH INTENT AUDIENCE PRO
Slide 6: Base business provides foundation for programmatic and mobile growth accelerators
Base business provides foundation for programmatic and mobile growth accelerators Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end
Slide 7: Mobile Innovation
Mobile Innovation More search is being done on mobile devices than desktop – GLOBALLY
Slide 8: Positioned to control a global mobile ad marketplace
Positioned to control a global mobile ad marketplace Mobile internet ad spending >$158B worldwide by 2018 eMarketer Dec 2014 Mobile phone users > 4B worldwide eMarketer Mar 2015 LOCM—Roth Presentation– March 2015
Slide 9: White labeled hosted search
White labeled hosted search Drive subscriber and search volume in portal & default search Growing mobile search demand 20M unique visitors per month Market expansion 18 countries (LATAM + US) EMEA & APAC expected by 2H 2015 Platform expansion Enhancing paid content Enter into default search via brow
Slide 10: High-Intent Audience
High-Intent Audience The most valuable consumer for an advertiser is one actively searching for goods and services
Slide 11: We own a high-intent search audience
We own a high-intent search audience Publisher Partner Network
Slide 12: Destination search site
Destination search site New category pages accelerate top- and bottom-line growth SERP + Feed + Premium Listings Category Page $42M annual revenue Over 23M queries per month Select partners:
Slide 13: Proprietary technology ensures only real humans interact with our ads
Proprietary technology ensures only real humans interact with our ads Allows Network revenue to scale predictably An advanced traffic quality platform that leverages a multitude of signals and data to detect, analyze and decide the most successful delivery of content and ads Results: 100% of Network
Slide 14: We monetize our audience on site and via programmatic exchanges
We monetize our audience on site and via programmatic exchanges
Slide 15: Programmatic Growth Markets
Programmatic Growth Markets Programmatic and REAL-TIME BIDDING rapidly expanding and projected to become the digital media supply and demand equation
Slide 16: The advent of exchanges for online ad-buying has been fast and furious
The advent of exchanges for online ad-buying has been fast and furious 96%+ adults in the U.S. are active online “Prices for programmatic ads are increasing for almost all ad types as demand outpaces supply” -Business Insider In the next year programmatic digital display spending will Increase 37% e
Slide 17: Programmatic + advertisers' demand for audience provides us with advantages
Programmatic + advertisers’ demand for audience provides us with advantages Increasing CPMs due to more competition for search intent audiences* More media spend via audience extension and retargeting campaigns Expected new revenue stream to sell data via DMPs Opportunity to launch private exchanges
Slide 18: Infrastructure in place to begin executing programmatic campaigns
Infrastructure in place to begin executing programmatic campaigns Built a proprietary cross-platform data tracking tool and added third party media buying platforms to leverage and monetize first party search intent data Publishers First party search data Quality controls Smart segmentation Media bu
Slide 19: Why us
Why us 1 Focused on driving profitable growth and asset value 2 Building large captive mobile phone user base 3 Owner of large scale premium commercial intent audience 4 Moving into rapidly growing programmatic market FOCUS ON PROFITABILITY MOBILE INNOVATION HIGH INTENT AUDIENCE PROGRAMMATIC GROWTH
Slide 20: Thank you
Thank you Fred Thiel Chairman & CEO fred@local.com Ken Cragun CFO kcragun@local.com Local Corporation | 7555 Irvine Center Drive | Irvine CA 92618 | 949.784.0800 | www.localcorporation.com
Slide 21: Use of non-GAP measures
Use of non-GAP 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 deriv
Slide 22: Appendix
Appendix LOCM—Roth Presentation– March
Slide 23: Market Cap/Sales Valuation
Market Cap/Sales Valuation Company Blucora, Inc. The Rubicon Project, Inc. Angie’s List, Inc. Marchex, Inc. Autobytel Inc. Yelp, Inc. Travelzoo Inc. XOXO Group Inc. Demand Media Rocket Fuel Inc. Average Local Corporation Symbol BCOR RUBI ANGI MCHX ABTL YELP TZOO XOXO DMD FUEL LOCM Price $ 14.64 $ 19
Slide 24: Reconciliation of adjusted EBITDA to GAAP net income (loss)
Reconciliation of adjusted EBITDA to GAAP net income (loss) Description Adjusted EBITDA Less interest and other income (expense), net Less provision for income taxes Less amortization of intangibles Less depreciation Less stock-based compensation Less LEC receivable reserve Less net loss from discon
Slide 25: Consolidated quarterly revenues
Consolidated quarterly revenues Quarterly Revenues by Business Unit $26.8 $26.2 $23.5 $22.7 $22.5 $5.0 $21.5 $20.6 $16.1 $14.8 $18.1 $9.9 $11.6 $8.3 $14.5 $16.3 $7.6 $6.4 $7.8 $12.9 $13.2 $12.6 $11.1 $11.4 $11.7 $8.9$10.7 $8.5 $ in Millions Network O&O Consolidated Revenue Q4-12 $ 7.6 $ 12.9 $ 20.6