Slide 1: Local Corporation Overview
Exhibit 99.1 Local Corporation Overview Connecting Local Merchants with Online Consumers March 2012
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 Income/Loss, as defined above, is not a measurement under GAAP. today include forward looking statements which are made pursuant to Adjusted Net Income/Loss is reconciled to net loss
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 | March 2012 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 » A record 94MM monthly unique visitors in 4Q11 – Up 18% Y/Y with record monetization of traffic – Over 30% of traffic was organic – High buying intent – Balance of traffic via SEM from major engines • Local businesses, products
Slide 7: 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% PlumberLos Angeles $7.14 Moving Company $2.3
Slide 8: Business Solutions
Business Solutions We help local businesses reach online consumers • A ‘do it for me’digital media package for SMBs » Exact Match suite priced at ~$200 per month » Guaranteed multi-channel access to consumers – SEO, social media, email, display and mobile • Adding new features all the time » Many ex
Slide 9: 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 • Regional media sites: Private label local search » 100 publishers representing 1,000+ sites » Revenue share from a variety of ad typ
Slide 10: Spreebird Daily Deals
Spreebird Daily Deals Our customer acquisition strategy is intended to keep our costs down while building a defensible market position • Deal side of the business mirrors Groupon » We partner with a business, craft a great deal, agree to a revenue share, then send it to our user base » We generate r
Slide 11: Proprietary Technologies Power Our Platform
Proprietary Technologies Power Our Platform Our platform incorporates a unique combination of technologies that power an increasingly differentiated suite of digital media solutions for a wider range of clients 8 patents issued, 11 pending in local, mobile, search engine data & display web hosting o
Slide 12: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline Heath Clarke *as drawn by Logan (age 8) 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 ,
Slide 13: Financial Performance
Financial Performance • 64% growth between 2Q and 4Q2011 • ~40% CAGR 2006-2012 • 1Q12 Revenue guidance: $25MM and $200K Adjusted Net Loss • FY12Revenueguidance:$110MM– 40%higherthan 2011 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based co
Slide 14: 4Q11 Balance Sheet & Capitalization
4Q11 Balance Sheet & Capitalization Key Balance Sheet Items Capitalization (in thousands) (in thousands) December 31, 2011 December 31, 2011 Cash $10,394 Common stock 22,082 O Accounts Receivable 13,456 Options 1 (Avg. Strike $4.30) 5,006 Total Assets 75,811 Warrants 1 (Avg. Strike $7.11) 1,478 Tota
Slide 15: 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 16: Thank You
HBC4 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 | March 2012 16
Slide 17: 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 18: Reconciliation: Adjusted Net Income to GAAP Net Income
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) $ 1,100 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (181) - Less amortization of intangible