Slide 1: Local.com Corporate Presentation June 2010
Local.com Corporate Presentation June 2010
Slide 2: Forward Looking Statements; Non-GAAP Financial Measures
Forward Looking Statements; Non-GAAP Financial Measures Forward-Looking Statements: All statements other than statements of historical fact included in this document regarding our anticipated financial position, business strategy and plans and objectives of our management for future operations, are
Slide 3: Timeline 1999 - 2004, 2005 - 2010
Timeline 1999 - 2004 2005 - 2010 1
Slide 4: Corporation: A local search business with large search market share
Corporation NASDAQ: LOCM A local search business with large search market share ~20 MM MUVs Top 10 US search engine* Largest private label local search network in US** Top 3 fastest-growing in local online advertising*** 2009 revenue: $56MM. 2010 revenue projection: $87-$90 MM ~47% 2009 YOY revenue
Slide 5: Three Business Units
Three Business Units Product and Technology Consumers Proprietary search traffic About 15MM MUVs 58% of revenue Regional Media Partner traffic About 5MM MUVs 28% of revenue Over 800 network sites Advertisers From ad partners and... >70k direct subscribers 15% of (direct) revenue All numbers as of Q4
Slide 6: A Diverse Local Ecosystem
A Diverse Local Ecosystem Product and Technology 4
Slide 7: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline Heath Clarke Chairman & CEO 11 years Bruce Crair Pres. & COO 4 years Brenda Agius CFO 1 year Peter Hutto SVP Corp. Dev. 20+ yrs exp VP eCommerce LanguageForce CEO/Founder AFP (Australia) 20+ yrs exp Co-founder/COO ZeroDegrees President Cox/Sprint PCS Preside
Slide 8: Why Local Search?
Why Local Search? * Jupiter Research, Paid Search Through 2009. ** The Kelsey Group The future of search advertising is: Commercial search is inherently local About 80% of our incomes are spent within 25 miles of our homes 38% of searches on the internet today are commercial* 24% of searches are LOC
Slide 9: Patented Technologies
Patented Technologies 4 patents issued, 9 pending in local and mobile search Keyword DNA(tm) + web indexing algorithms Multiple databases with millions of SMB listings 'Presence' at credible online nodes Actively marketing Business content 11 7
Slide 10: O&O - www.local.com
O&O - www.local.com Flagship property About 15MM MUVs Ads provided by ad partners plus direct Subscription, display, performance Virtually all US, local + commercial search traffic Very high monetization ($260+ RKV) Local business content Coupons, pictures, video, social ratings & reviews, bookings,
Slide 11: O&O - Target Market
O&O - Target Market 70% of our O&O traffic is the 'Soccer Mom' demographic Aged between 25-45 with one child or more at home Controls significant portion of the household purse strings Typically spends 80% of that money within 20 miles of home 89% of in-store purchasers in key categories have conduc
Slide 12: O&O - Growth Strategy
O&O - Growth Strategy Greater defensibility Higher margins Greater leverage across Network More ad inventory Higher value proposition to advertisers 10
Slide 13: Network - Local Syndication Network
Network - 'Local Syndication Network' Content developed for O&O site(s) can be syndicated across Network Network represents 'partner traffic' LSN is a private label local search directory targeted towards regional media publishers (newspaper/TV/radio web sites 11
Slide 14: Network - LSN: Washington Post
Network - LSN: Washington Post 12
Slide 15: Network - Local Distribution Network
Network - 'Local Distribution Network' 13 Same content as for LSN, but distributed via XML feed instead of hosted (private label) solution
Slide 16: Network - Growth Strategy
Network - Growth Strategy Creates more ad inventory Increased value proposition to advertisers Leverage O&O content more fully 14
Slide 17: Sales & Ad Services
Sales & Ad Services 95%+ ad coverage from additional ad partners More advertisers coming online, bidding for more keywords at higher RPC O&O monetization $260+ RKV Network RKV not disclosed for competitive reasons and many more 15
Slide 18: Sales & Ad Services: Direct SMB Customers
Sales & Ad Services >70k direct SMB web listing & hosting customers Web listing fulfilled on www.local.com site Web hosting fulfilled by third- parties Pay average of ~$40+ per month subscription Sold via telesales Billed via LEC (phone bill), credit card 16
Slide 19: Sales & Ad Services - Growth Strategy
Sales & Ad Services - Growth Strategy Higher monetization allows us to compete for increased distribution Increased distribution attracts more advertisers 'Virtuous cycle' 17
Slide 20: CaL.com M&A Strategy
CaL.com M&A Strategy
Slide 21: Revenues & Adjusted EPS
Revenues & Adjusted EPS Mid-range of Guidance Revenues $mil Adjusted Net Income/share Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items 19
Slide 22: P&L Trend and Forward-looking Guidance
P&L Trend and Forward-looking Guidance 20 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items
Slide 23: Reconciliation: Adjusted Net Income to GAAP Net Income
Reconciliation: Adjusted Net Income to GAAP Net Income 21
Slide 24: Revenue by Business Unit
Revenue by Business Unit 22 Of the 47% in revenue growth from 2008 to 2009, 36% was organic and 11% via acquisitions
Slide 25: Q1 Balance Sheet & Capitalization
Q1 Balance Sheet & Capitalization Mar. 31, 2010 Cash $10,934 $10,934 Accounts Receivable 10,706 10,706 Total Assets 44,064 44,064 Total Debt 3,000 3,000 Total Liabilities 19,645 19,645 Shareholders Equity $24,419 $24,419 Mar. 31, 2010 Common 14,762 Options 1 3,727 Warrants 1 2,810 Fully Diluted 21,2
Slide 26: Thank You
Thank You Heath Clarke - CEO hclarke@local.com Brenda Agius - CFO bagius@local.com 949 784 0800 http://corporate.local.com Local search for business, products & services
Slide 27: Appendix: Key Investment Considerations
Appendix: Key Investment Considerations Attractive Position in Growing Market Attractive Financial Characteristics Strong Operating Model Seasoned Executives & Board Rapidly growing company in a rapidly growing market Beneficiary of secular trend towards online ad spend by SMBs Multiple revenue stre