26 slides from Intelligent Protection Management's earnings presentation, Nov 17, 2015
Slide 1: 3Q15 Earnings Call & Business Update
SNA INTERACTIVE Snap Interactive, Inc. (OTCQB: STVI) 3Q15 Earnings Call & Business Update November 17, 2015
Slide 2: Safe Harbor
Safe Harbor This presentation is for discussion purposes only. ‘The material is based upon information that we consider reliable, but we do not represent that iti accurate ‘or complete, ad it should not be relied upon as such, Certain statements in this presentation constitute “forwant-looking state
Slide 3: Agenda
Agenda ¥ Opening Remarks Y Q3 2015 Highlights vy Business Plan & Strategy ¥ Q&A Session ie
Slide 4: Introduction
Introduction Alex Harrington CEO + Served as CEO of mobile dating pioneer MeetMoi, which was sold to Match.com + Also served as SVP of Strategy and Operations for Zagat Survey, where he oversaw a transformation of digital business + Former investment banker. Holds an MBA from Wharton
Slide 5: Q3 2015 Highlights
Q3 2015 Highlights + Management & Strategic Reset * Record Profitability + Return to Positive Cash Flow * Managed Revenue Decline * Product Milestones ie
Slide 6: Q3 2015 Highlights: Management & Strategic Reset
Q3 2015 Highlights: Management & Strategic Reset * Alex Harrington appointed CEO — Founder and Chairman Clifford Lerner appointed President of The Grade * Strategic review results in new corporate strategy - 30 million user database forms the nucleus of a portfolio of dating properties — Proactive i
Slide 7: Q3 2015 Highlights: Record Profitability
Q3 2015 Highlights: Record Profitability * Posted SNAP’s highest ever recorded net income of $539 thousand * Income from operations improved $285 thousand over Q3 2014 « Adjusted EBITDA improved $227 thousand over Q3 2014 Net Income (loss) {in 10005) Adjusted EBITDA (in 10003) $539 $600 $400 $200 &
Slide 8: Q3 2015 Highlights: Return to Positive Cash Flow
Q3 2015 Highlights: Return to Positive Cash Flow * Cash flow from operating activities of $260 thousand * Cash and cash equivalents increased to $2.2 million Net Cash Provided by (Used In) Operating Activities jn 10008) $377 $400 ea $260 {$200} ($400) ($600) ($800) ($1,000) (61,200) ($1,053) Cash an
Slide 9: Q3 2015 Highlights: Managed Revenue Decline
Q3 2015 Highlights: Managed Revenue Decline * In anticipation of rebranding, reductions in AYI advertising and marketing expense contributed to lower subscription bookings + Anticipate that revenue in the next two quarters will be affected by lower bookings in the present quarter * Growth initiative
Slide 10: Q3 2015 Highlights: Product Milestones
Q3 2015 Highlights: Product Milestones are you QD wena GRADE + Execution of AYI relaunch underway + Exceeded 30 million swipes as of 9/30/15 + Launched Spanish-language on mobile web + Formed advisory board to drive PR + Scaled back marketing investment + Tier 1 media placements (10/1/15 WSJ cover)
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Slide 12: The Interactive Dating Industry Is Large and Growing
The Interactive Dating Industry Is Large and Growing A Large Addressable Market... With Headroom for Growth... + US-based online dating was a As of 2013, only U.S. Adult Population $2.0 billion market in 2014' 11% of American + Global market estimated to be $4 adults have used ae billion? online or
Slide 13: Company SNAPshot
Company SNAPshot SNAP’s 30 million user database forms the nucleus of an emerging portfolio of dating apps 30 Million User Database — are you New Product interested?” ® Opportunities ee 13
Slide 14: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database AY Rebrand New Product Intro International Mobile Emphasis Opportunistic Acquisitions The Grade: Grow on a lean budget principally through PR and word of mouth Aiming to achieve ubiquity in the media based on a pr
Slide 15: SNAP Growth Strategy: AYI Rebrand
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database The Grade AY1| Rebrand New Product Intro International Mobile Emphasis Opportunistic Acquisitions Proposed AYI Rebrand: * Relaunch AYI with a new, refreshed brand identity * Accompany relaunch with user interface
Slide 16: SNAP Growth Strategy: New Product Introduction
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database The Grade Proposed New Product Introduction: * Replicate AYI application with new brand, target audience and feature set AY! Rebrand * Deploy new product on all five mobile and New Pri t Intre Suniel 2 desktop pla
Slide 17: SNAP Growth Strategy: International
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database The Grade AY! Rebrand New Product Intro . International Mobile Emphasis Opportunistic Acquisitions International: Presently adapting AYT platform to accommodate foreign languages Expecting to launch all AYI mobile
Slide 18: SNAP Growth Strategy: Mobile Emphasis
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database The Grade Mobile Emphasis: AY| Rebrand * Presently retooling AYI mobile apps with the goal of cutting nearly 50% of required development resource requirements New Product Intro ‘ ‘ * New streamlined codebase inten
Slide 19: SNAP Growth Strategy: Acquisitions
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database The Grade MMMM AYI Rebrand Acquisitions: * As SNAP realizes additional enterprise value, equity currency may become New Product Intro compelling to roll-up smaller competitors * SNAP infrastructure could support a
Slide 20: Future Product Portfolio Composition
Future Product Portfolio Composition Industry leaders’ portfolios are typically composed of a large, general interest property, with additional niche-focused properties General Mobile / Ethnic / Long-term 2 Interest Millennials Religious Commitment ternational. ors 7 . Meetie, match ‘Match.com Tinde
Slide 21: SNAP Corporate Evolution
SNAP Corporate Evolution Priorities to achieve Company goals: building executive team and board, increasing liquidity by listing on a national securities exchange and pursuing M&A targets. Short Term: 1-6 Months Long Term: 6—24 Months + CEO change COO/CFO hire + National securities exchange listing
Slide 22: Conclusion
Conclusion v Expansive opportunity in a high growth industry vY Foundational asset in the 30MM user database v Highly scalable infrastructure with strong platform for organic growth and M&A v Proven track record in launching and scaling new products to build portfolio
Slide 23: Questions & Answers
Slide 24: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: ADJUSTED EBITDA Non-GAAP Financial Measures ‘The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, plus non-cash stock-based compensation andl the nox cash change in fair value of derivative liabilities. The Company has provid
Slide 25: Non-GAAP Reconciliation: Bookings
Non-GAAP Reconciliation: BOOKINGS Non-GAAP Financial Measures ‘Bookings is a financial measure representing the aggregate dollar value of subscription fees and micro-transactions received during the period Dut isnot a financial measure that is calculated and presented in accordance with generally ac
Slide 26: 3Q15 Earnings Call & Business Update
SNA INTERACTIVE Snap Interactive, Inc. (OTCQB: STVI) 3Q15 Earnings Call & Business Update November 17, 2015