Slide 1: Corporate Overview 3Q2012
Corporate Overview 3Q2012 Exhibit 99.1
Slide 2: Forward looking statements
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 s
Slide 3: Local Corporation
3 …………………………..……………………………………. Local Corporation We connect local businesses with online consumers
Slide 4: Local Corporation Overview
4 ……………………………………………….. Local Corporation Overview Founded IPO Date Ticker Reach Network of Websites Direct SMB Subscribers Patents Headquarters 1999 2004 LOCM (NASDAQ) ~1 million consumers/day Over 1,000 ~1,000 9 issued + 11 pending Irvine, CA KEY FACTS REVENUE IN MILLIONS
Slide 5: Beneficiary of Secular Trends
5 …………………………...…………………. Beneficiary of Secular Trends Digital media is going local.... …& we have assets in all areas
Slide 6: The Challenge for SMBs
6 SMBs spend thousands and need multiple vendors to solve for their most basic marketing and advertising needs ……………………………………………………. The Challenge for SMBs *Research by Vsplash and BIA/Kelsey: SMB Digital Scope and Audit Study Only 33.4% have a local phone number on their home page Only 22% have an
Slide 7: Search: Why Local Consumers Matter
7 Search Term Click Bids* Premium ………….…………………..…. Local customers are worth more! Pay-per-click rates for local versus national keyword terms… Search: Why Local Consumers Matter * Bids as of June 25, 2012 282% 235% 139% 114% 147% 200% Plumber $9.55 Plumber Los Angeles Credit Union Seattle Credit Un
Slide 8: Search: Our Business Model
8 Traffic x Monetization = Revenue PROPRIETARY NETWORK OF 1,200+ SITES Search: Our Business 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 EN
Slide 9: Assets
9 …………………………………………………………...……………………….. Assets • 9 Patents issued/11 pending • Aggregate & publish local content • Proprietary platform for SMB Solution • Greater than 30M MUVs on our site and network • ~ 300K daily deal subscribers • Channel Partners • Regional media publishers • SMB Solution resell
Slide 10: Simple Growth Strategy
10 Simple Growth Strategy Number of sites Volume per site Mobile ..……………………………………………….…………. Grow Traffic Increase Monetization • Optimize yield Direct customers
Slide 11: Growth & Momentum: Traffic
11 ..……………..……………………………………. Growth & Momentum: Traffic * MUVs
Slide 12: Growth & Momentum: Monetization
12 ..…..……………………………………. Growth & Momentum: Monetization
Slide 13: Organic Traffic & Revenue
13 ……………………..….………………………………. Organic Traffic & Revenue • More balanced revenue • Higher margin • More predictable • Better visibility Organic/direct revenue includes revenue from organic traffic and direct advertiser relationships
Slide 14: A Complete, Unique Digital Media Solution for SMBs
14 SMBs could spend over $1,000/month with other providers to get everything that is already included in our one solution. ...………….…. A Complete, Unique Digital Media Solution for SMBs • Monthly subscription sold to SMBs starting at $249 per month • Powered by our own proprietary technology • Launch
Slide 15: 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 15
Slide 16: Local SMB Customer: Fabi's Hair Studio
16 Search engine optimization ensures page 1 placement by business category and keyword on a major search engine Display ad and enhanced listing on Local.com raise awareness in local markets …..…….………. • More direct customers = » Better monetization » Greater margins » Greater defensibility » More v
Slide 17: An Experienced Team with Strategy Discipline
17 ………………….………. An Experienced Team with Strategy Discipline Heath Clarke Founder, Chairman & CEO 20+ yrs exp Founded Local in ’99 VP eCommerce LanguageForce CEO/Founder AFP (Australia) Erick Herring SVP Technology Founder Townloop CTO Feedback.com CTO, VP Product Webvisible CTO Adapt Technologies K
Slide 18: Long Term Growth
18 …………………………………………..………….…….………. Long Term Growth • 75% YoY revenue growth (Q2’12 over Q2’11) • ~40% CAGR 2006-2012 • FY12 Guidance: $106MM revenues: ~35% YOY growth and $2.2MM Adjusted Net Income • Forward-Looking: Increased organic revenue = higher margins and improved bottom line Note: See recon
Slide 19: 2Q12 Balance Sheet & Cap. Table
19 Key Balance Sheet Items (in thousands) Capitalization (in thousands) ………………………………...………. 2Q12 Balance Sheet & Cap. Table Additional Data: I. In August 2011 the Company closed on a $12 million credit facility II. Total authorized shares 65,000,000 common and 10,000,000 preferred III. In January 20
Slide 20: Digital Media Landscape
20 ……………………………………………………… Digital Media Landscape
Slide 21: Why Invest in Local Corporation?
21 …………………………..…….………. Why Invest in Local Corporation? • Track record of growth • Strong management team with proven agility • Leverage via new and growing revenue streams • Proprietary platform
Slide 22: Thank You
22 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 23: P&L Trend
23 Description FY-10 FY-11 FY-12 ……………………………………………………………….……….………. P&L Trend Actual Actual Forecast Revenue $ 84,137 $ 78,259 $ 106,000 Sequential revenue growth 49% -8% 35% Gross Margin 37,620 29,001 Gross Margin % 45% 37% Other Operating Expenses 33,908 43,629 Operating income (loss) 3,712 (14,628
Slide 24: Reconciliation: Adjusted Net Income to GAAP Net Income
24 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) $ 2,200 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (178) (150) Less amortizati