Intelligent Protection Management Corp. · NASDAQ:IPM
Intelligent Protection Management — Snap Interactive — Q1 2016 Earnings Presentation
23 slides from Intelligent Protection Management's earnings presentation, May 10, 2016
Slide 1: Q1 2016 Earnings Call & Business Update
Snap Interactive, Inc. (OTCQB: STVI) Q1 2016 Earnings Call & Business Update May 10, 2016
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 it is accurate or complete, and it should not be relied upon as such. Certain statements in this presentation constitute “forward-looking stat
Slide 3: Agenda
Agenda ü Opening Remarks ü SNAP Q1 2016 Highlights ü Growth Strategy ü Q&A 3
Slide 4: SNAP Q1 2016 Highlights
SNAP Q1 2016 Highlights 4
Slide 5: Strategic Mandate: Commercialize The Database
Strategic Mandate: Commercialize The Database • New Strategy: Grow with the user database as the catalyst – Portfolio: address fragmented market with multiple strong brands – Capital efficiency • Q1 Priorities: – Financial • Reverse downward trend in revenue and bookings • Manage down cash burn in t
Slide 6: Q1 2016 Leveled Off a Trend of Declining GAAP Revenue
Q1 2016 Leveled Off a Trend of Declining GAAP Revenue • Total Q1 2016 revenue of $2.7 nearly flat on the prior quarter • Year-over-year comparison driven by a decrease of FirstMet advertising investment of approximately 33.3% Revenues Compared to FirstMet Adver4sing Expense (in 1000s) $4,000 $3,000
Slide 7: Bookings Growth
Bookings Growth • Bookings growth of approximately 3.3% in Q1 reverses the decline in bookings through 2015 • We believe bookings are a leading indicator of GAAP Revenue Bookings (in 1000s) $3,500 $3,000 $3,158 $2,500 $2,914 $2,624 $2,501 $2,422 $2,000 $1,500 $1,000 $500 $-‐ Q1 2015 Q2 2015 Q3 2015
Slide 8: Q1 2016 Gains in Advertising Revenue
Q1 2016 Gains in Advertising Revenue • 199% improvement over Q1 2015 • 15% improvement over Q4 2015 • Gains came from additional ad placements and onboarding more advertisers Adver4sing Revenue (in 1000s) $200 $160 $120 $80 $170 $135 $148 $113 $40 $57 $0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 8
Slide 9: Managing Expenses to Improve Profitability
Managing Expenses to Improve Profitability • Q1 2016 total expenses down 28% year-over-year • Q1 2016 Adjusted EBDITA improved approximately $474 thousand over Q1 2015 Total Expenses (in 1000s) Adjusted EBITDA (in 1000s) $5,000 $-‐ $4,000 $4,169 $(200) $(138) $3,000 $3,006 $(400) $2,000 $(612) $1,0
Slide 10: Cash Flow and Balances for Q1 2016
Cash Flow and Balances for Q1 2016 • Net cash used in operating activities was $281 thousand – cut operating cash burn by $772 thousand versus Q1 2015 • Q1 2016 cash and cash equivalents approximately $1.8 million • Debt refinance or retirement is a significant focus presently Net Cash Provided by (
Slide 11: Rebranding AYI to FirstMet
Rebranding AYI to FirstMet • Rebrand Completed March 3, 2016 • Intended Results of Rebrand – Reactivate inactive users – Reduce cost of acquisition for new users – Stronger brand foundation 11
Slide 12: Immediate Benefits of Rebranding: Reactivation
Immediate Benefits of Rebranding: Reactivation • In the weeks since the FirstMet rebrand, a surge in reactivated users • Ongoing higher level of user activity 30-‐Day Inac7ve Users Reac7vated Via Unpaid Channels 20,000 Date of Rebrand 16,000 12,000 8,000 4,000 -‐ Reac7vated Daily 7-‐day moving me
Slide 13: Immediate Benefits of Rebranding: Cost of Acquisition
Immediate Benefits of Rebranding: Cost of Acquisition • Google Adwords campaigns realized a 27% improvement in click through rates (CTRs) • Higher CTRs generally correlate with lower user acquisition costs Google Adwords: Text Ad Click Through Rates Date of Rebrand CTR 7 per. Mov. Avg. (CTR) Note: A
Slide 14: Launch of New FirstMet Mobile Apps
Launch of New FirstMet Mobile Apps • New apps launched in March 2016 • Intensive focus on mobile going forward • New technology makes improvements much easier 14
Slide 15: Benefits of Relaunch of FirstMet Mobile Apps
Benefits of Relaunch of FirstMet Mobile Apps • iOS user conversion to purchase has increased approximately 32.5% since the relaunch of the new iPhone app 7 Day Average Conversion Rate to Purchase on IOS 6.00% 5.00% Date of Rebrand 4.00% 3.00% 2.00% 1.00% Conversion Rate 7 per. Mov. Avg. (Conversion
Slide 16: Growth Strategy
GROWTH STRATEGY 16
Slide 17: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database Rebrand = Reactivation • Aggressive win-back campaigns Rebrand = Differentiation • Cultivate 35+ market segment • Potential for lower cost of acquisition 17
Slide 18: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database Proposed New Product Introduction: • Built on existing product platform • Cross-sell from user database • Expected launch Q3 2016 We anticipate a significant contribution to revenue from the new product launch 18
Slide 19: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database International: • All three FirstMet mobile platforms support translation • Live in Spanish • Testing 4 additional languages presently 19
Slide 20: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database Mobile Emphasis: • All new FirstMet iPhone & Android apps • Focus of FirstMet product innovation will be on mobile • Greater than 50% of marketing investment is directed to mobile 20
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: ADJUSTED EBITDA Non-GAAP Financial Measures Adjusted EBITDA is defined as net loss adjusted to exclude interest income (expense), net, depreciation and amortization expense, gain (loss) on change in fair value of derivative liabilities, loss on disposal of fixed assets and s
Slide 22: 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 but is not a financial measure that is calculated and presented in accordance with GAAP. We cal
Slide 23: Questions & Answers
QUESTIONS & ANSWERS 23