Slide 1: Local Corporation Corporate Overview: 4Q2012
1 1 …………………………..……………………………………. Local Corporation We connect local businesses with online consumers Corporate Overview: 4Q2012 Exhibit 99.1
Slide 2: Forward looking statements
2 2 ………………..……………………………………. 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
Slide 3: Local Corporation Overview
3 We connect consumers searching for goods & services locally with advertisers who want to sell them those items. We generate revenue from advertising. ……………………………………………….. Local Corporation Overview Founded IPO Date Ticker Reach Flagship Site Network Direct Customers Patents Headquarters Employees
Slide 4: Our Model: Proprietary network of 1,000+ sites
PROPRIETARY NETWORK OF 1,000+ SITES 4 Traffic x Monetization = Revenue Our Model LOCAL BUSINESS DATA (may include deals, coupons, product info, business content, events, activities, ratings & reviews and more) WE AGGREGATE & PUBLISH LOCAL CONTENT THAT CONTENT IS INDEXED BY SEARCH ENGINES WE MONETIZE
Slide 5: The Opportunity
5 …………………………...…………………………………………. The Opportunity Digital media is going local.... …& we have assets in all areas Source: BIA/Kelsey, November 2012
Slide 6: The Challenge for Small Businesses
SMBs spend thousands and need multiple vendors to solve for their most basic marketing and advertising needs 6 The Challenge for Small Businesses Only 33.4% Only 22% Just 6.7% Only 6% *Research by Vsplash and BIA/Kelsey: SMB Digital Scope and Audit Study ...……………..…………………….…. have a local phone numb
Slide 7: Our Solution – Launch by Local
SMBs could spend over $1,000/month with other providers to get everything that is already included in our one solution. 7 Our Solution – Launch by Local • Released August 2012 • A complete digital media package starting at $249 per month • Powered by our own proprietary technology ...………………………………………
Slide 8: Mobile
Within 5 years, 80% of local searches will be done on a mobile device* Mobile Apps and mobile-enabled available for consumer sites: Launch by Local solution offers a mobile-optimized website for SMBs 8 • Local.com • Spreebird.com Mobile Source: BIA/Kelsey *Source: Borrell Associates …………………………………………
Slide 9: Why Local Consumers Matter
Search Term Click Bids* Premium 9 Local customers are worth more! Plumber $9.55 282% Plumber Los Angeles $26.91 Credit Union $0.91 235% Seattle Credit Union $2.14 Restaurant $1.39 139% San Francisco Restaurant $1.93 Moving Company $10.82 114% Denver Moving Company $12.38 Wedding Florist $1.92 147% O
Slide 10: Simple Growth Strategy
10 Simple Growth Strategy • Number of sites • Volume of traffic per site • Mobile ..……………………………………………….…………. Grow Traffic Increase Monetization Direct customers
Slide 11: Strategy Momentum: Traffic
11 ..……………..……………………………………. Strategy Momentum: Traffic
Slide 12: Strategy Momentum: Monetization
12 ..…..……………………………………. Strategy Momentum: Monetization
Slide 13: Long Term Goals – Organic/direct
13 ……………...........………..……………………………. Organic/direct revenue includes revenue from organic traffic and direct advertiser relationships • More defensible • Higher margin • More predictable • Greater shareholder value Long Term Goals – 180M 160M 140M 120M 100M 80M 60M 40M 20M 2010 2011 2012E $35M $30M
Slide 14: Leverage Example with 50/50
14 ESTIMATED PROFORMA MARGIN IMPACT 70/30 MIX PROJECTED % OF REVENUE (in Thousands) (in Thousands) 50/50 MIX OF REVENUE PROJECTED % …………………………………….....…..………. Leverage Example with 50/50 • Expected to be high-margin revenue • Expected to improve gross margins significantly Note: Actual results could
Slide 15: Assets
15 Assets • 10 Patents issued/11 pending • Aggregate & publish local content • Proprietary platform • Local.com Top 100 Site • Over 20MM Uniques/Month • 1,000 Channel Partners • Over 8MM Uniques/Month • ~ 300K daily emails • Google • Yahoo! • SuperMedia • ATTi • ~ 900 Direct Subscribers TRAFFIC TECH
Slide 16: Experienced with Strategy Discipline
16 16 ……………………..……….………. Experienced with Strategy Discipline Heath Clarke Founder, Chairman & CEO 20+ yrs exp Founded Local in ’99 VP eCommerce LanguageForce CEO/Founder AFP (Australia) Ken Cragun CFO 20+ yrs exp CFO Modtech SVP MIVA CFO ImproveNet CFO NetCharge.com CPA; Big 4 Exp . Mike Sawtell Pr
Slide 17: Track Record of Growth
17 17 …………………………………..………….…….………. Track Record of Growth • ~37% CAGR 2006-2012 • 20% YoY revenue growth (Q3’12 over Q3’11) • FY12 Guidance: ~$100M revenues: ~27% YOY growth and ~$750K Adjusted Net Income • Forward-Looking : Increased organic revenue = higher margins and improved bottom line Note: Se
Slide 18: 3Q12 Balance Sheet & Cap. Table
18 Key Balance Sheet Items (in thousands) 18 Capitalization (in thousands) 3Q12 Balance Sheet & Cap. Table September 30, 2012 Cash $3,706* Accounts Receivable 13,954 Total Assets 58,784 Total Debt 7,627 Total Liabilities 23,234 Shareholders Equity $35,550 September 30, 2012 Common stock 22,095 Optio
Slide 19: Why Invest in Local Corporation?
19 …………………………..…….………. Why Invest in Local Corporation? • Track record of growth • Strong management team with proven skills in a rapidly changing market • Model has leverage with 50/50 strategy and momentum towards 50/50 goals • Proprietary platform and patents • Assets being deployed in emerging m
Slide 20: Thank You
20 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 @ @
Slide 21: Digital Media Landscape
21 ……………………………………………………… Digital Media Landscape
Slide 22: P&L Trend
22 Description FY-10 FY-11 FY-12 ……………………………………………………………….……….………. P&L Trend Actual Actual Forecast Revenue $ 84,137 $ 78,259 $99,000-100,000 Sequential revenue growth 49% -8% 27% Gross Margin 37,620 29,001 Gross Margin % 45% 37% Other Operating Expenses 33,908 43,629 Operating income (loss) 3,712 (
Slide 23: Reconciliation: Adjusted Net Income to GAAP Net Income
23 Description FY-10 FY-11 FY-12 ……..………. Reconciliation: Adjusted Net Income to GAAP Net Inc Actual Actual Forecast Adjusted Net Income (Loss) $ 13,775 $ (1,090) $ 750 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (178) (200) Less amortization
Slide 24: Local SMB Customer: Fabi's Hair Studio
Facebook and Twitter pages engage customers and increase awareness Mobile-optimized site features directions and click-to-call Beautiful site design and web hosting with geo-targeted URL and custom content A consistent brand and user experience across multiple channels add to business credibility 24
Slide 25: Local SMB Customer: Fabi's Hair Studio
25 Display ad and enhanced listing on Local.com raise awareness in local markets Search engine optimization ensures page 1 placement by business category and keyword on a major search engine .…..…….………. • More direct customers = » Better monetization » Greater margins » Greater defensibility » More