28 slides from Intelligent Protection Management's investor presentation, Jun 1, 2015
Slide 1: Snap Interactive Investor Presentation
INTERACTIVE Snap Interactive, Inc. (OTCQB Investor Presentation June 2!
Slide 2: Disclaimer
ae Disclaimer ‘This presentation is for discussion purposes only. The material is based upon information that we consider reliable, but we do not represent that itis accurate or complete, and it should not be relied upon as such, Certain statements in this presentation constitute “forward-looking st
Slide 3: Table of Contents
te Table of Contents 1. Company Overview 2. Investment Thesis 1: Attractive Industry Dynamics 3. Investment Thesis 2: Proven Portfolio Strategy 4. Investment Thesis 3: Compelling Economics 5. Financial and Investor Considerations 6. Contact Information
Slide 4: Company Overview
Company Overview
Slide 5: SNAP Company Snapshot
SNAP Company Snapshot * Stock Price at 5/27/15: $0.18 * High/Low (52 Weeks): $0.15 - $0.40 * ADTV: 12,582 shares * Shares Outstanding: 39.7 million * Insider Ownership: 60%? Market Cap (at 5/27/15): $7.35 million Cash and cash equivalents (3/31/2015): $2.3 million Revenue (2014): $13.6 million Activ
Slide 6: Management Bios
Cliff Lerner CEO Alexander Harrington coo CFO Management Bios Cliff Lerner has served as our President, Chief Executive Officer and Chairman of our Board of Directors since founding the Company in 2005. Mr. Lerner has a deep knowledge and understanding of the online dating industry and has managed t
Slide 7: SNAP Timeline
SNAP Timeline * SNAP has a history as an innovator in online dating, as one of the first online dating applications to leverage the Facebook platform for user acquisition Four consecutive quarte 5 3, 2 005- ) application is launched on Facebook Platform growth
Slide 8: SNAP is at the Vanguard of Dating 2.0
SNAP is at the Vanguard of Dating 2.0 * The online dating industry is a $4 billion global market undergoing a radical reinvention, and SNAP is well positioned for that transition * Services like Tinder have demonstrated the broad appeal of a mobile, game-like approach to dating services, expanding t
Slide 9: SNAP's Core Product Is AYI
SNAP’s Core Product Is AYI
Slide 10: AYI Performance is Fueled By Mobile Activity
te AYI Performance is Fueled By Mobile Activity Mobile contribution to user AYl is consistently a top ranked logins more than tripled since iPhone App January 2013 Mobile Logins as % of Total Daily Logins 60% 55% esi ae (updated 45% 40% 35% ] 30% Top Grosding iPhone Apps = J =[c bed 15% ’) | WA 10%
Slide 11: AYI is a mature, steady business with a large database
* AYlis amature, steady business with a large database of approximately 30 million users* AYI Performance * AYI’s active subscriber count has grown by over 31% since January 2014 * Asa large general interest dating site at scale, AYI makes an ideal template for spin-off niche dating sites which can
Slide 12: "The Grade" Is SNAP's Newest Application
“The Grade” Is SNAP’s Newest Application Get iPhone App ‘Oresarch "The Grade Dating” onthe App Store Media Coverage: What Makes The Grade Different? +The Grade is the first known dating app to grade users from A+ to F and expel those who fail. * A proprietary algorithm grades users in 3 categories:
Slide 13: The Grade Has Grown Rapidly
The Grade Has Grown Rapidly 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 41,500,000 1,000,000 500,000 0,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Total Swipe Count (30 Days) Highlights November December January February March April = May Matches Creat
Slide 14: Investment Highlights
te Investment Highlights 1. Attractive Industry Dynamics 2. Proven Portfolio Strategy 3. Compelling Economics
Slide 15: Investment Thesis: Attractive Industry Dynamics
Investment Thesis 1 Attractive Industry Dynamics
Slide 16: $4 Billion Industry With Favorable Trends
$4 Billion Industry With Favorable Trends A Large Addressable Market... US-based online dating was a $2.0 Bin market in ..With Headroom for Growth... As of 2013, only 11% of American U.S. Adult Population mi Have used adults have used Hehe i : Untapped interactive online or mobile aaeetany dating da
Slide 17: Dating Industry Disruption Creates Opportunity
te Dating Industry Disruption Creates Opportunity Within the last two years, mobile usage Investors have funded several mobile dating has outgrown desktop usage start-ups similar to The Grade USA % Dating Visitors By Access Method idobie Dating Corman TappResaate © Desksop © Mobile-Only =~ = Hinge 2
Slide 18: Investment Thesis: Proven Portfolio Strategy
Investment Thesis 2 Proven Portfolio Strategy
Slide 19: SNAP Growth Initiatives for 2015 & Beyond
SNAP Growth Initiatives for 2015 & Beyond Snap Interactive is building a portfolio of social entertainment applications, adopting the proven business strategy of industry leaders like Match.com A portfolio approach in the dating industry has a host of benefits: — Cross-selling millions of users in t
Slide 20: SNAP Growth Initiatives for 2015 & Beyond
te SNAP Growth Initiatives for 2015 & Beyond SNAP is developing or in exploration of several high prospect growth opportunities at present: * Scaling The Grade, focusing on PR and word-of-mouth * Anew product addition to the Snap portfolio * Internationalization of AYI to address key foreign markets
Slide 21: Investment Thesis: Compelling Economics
Investment Thesis 3 Compelling Economics 21
Slide 22: Superior Marketing ROI
te Superior Marketing ROI * Recent advertising and marketing expense of $1 has generated approximately $2.50 to $3.00 of revenue * SNAP believes its overall revenue yield from advertising and marketing expense exceeds that of public competitors im snap | Sparknetworks | zooe | P| ace [20m | moe | 20
Slide 23: Financial and Investor Considerations
Financial and Investor Considerations
Slide 24: Attractive Valuation
Attractive Valuation COMPARABLE COMPANY ANALYSIS TaarketAnabae ita ovine saa ene t¥/ Revers 2) compen Tow soe eh tow camo OE ern tr ern Tare acl araar [area | sm | iss] soa | Haw] sein | mae [Som aa, | aa serve inc wecr | sz [sm | sx | se | as |e | se | a7 | so aan | oes exncnerwones mc tov | an |sa
Slide 25: SNAP Key Metrics
Revenue: © Variability primarily due to advertising revenue) * * Subscription revenue in Q1 2015 was negatively impacted by = Higher refunds and chargebacks = Unfavorable foreign exchange rates Net Cash Provided by Operating Activities: + Achieved objective of positive cash flow from operating activ
Slide 26: Recent Financial Performance
Recent Financial Performance INCOME STATEMENT (In 1,000s) (aoe | 2014 ee ee Subscription revenue 3,129 3139 3,151 3,240 3,289 12,769 Advertising revenue 57 153 290 24d 4 790 Total revenue 3,186 3.282 3,450 «3,485 3,033 13,659 Programming, hosting and technology 627 942 670 687 598 -2.897 SGBA 3,642
Slide 27: Cap Table & Ownership as of 3/31/15
ae Cap Table & Ownership as of 3/31/15 ora) posite starea) I stanton Affliates 21,000,000 F 53% 9,250,000 30,250,000} 60% Non-affiates 19,882,826] 47% 4,075,000 19,757,826] 40% a G8ZE26 100% 10,325,000 50,007,828 100% ‘Warrants Outstanding 17,367,500 Options Outstanding 4,007,253 *Consists of direct
Slide 28: Contact Information
Contact Information Email: Cliff Lerner: Cliff@snap-interactive.com Alex Harrington: Alex@snap-interactive.com Investor Relations: IR@snap-interactive.com Company Address: 320 W 37th Street, 13** Floor New York, NY 10018 Phone: (212) 967-5120 28