42 slides from Intelligent Protection Management's investor presentation, Jan 22, 2013
Slide 1: Snap Interactive Investor Presentation 2013
INTERACTIVE SNAP (OTCBB: STVI) Investor Presentation 2013
Slide 2: Disclaimer
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 statem
Slide 3: Today We'll Touch Upon...
Today We'll Touch Upon... 1. Our background & industry trends 2. The problem & opportunity in online dating 3. Our proposed solution 4. Financials 5. SNAP’s 2013 objectives
Slide 4: About SNAP & Industry Trends
About SNAP & Industry Trends
Slide 5: About SNAP
About SNAP Ticker: STVI — Trades on OTC Founded in 2005 $750,000 raised through 2007 and $8.5 Million in 2011 Headquartered in New York City, with ~50 full-time employees Ranked the 36th Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500: 4,412% Revenue Growth from 2007-
Slide 6: About SNAP
A About SNAP * Weare engineers, product managers, designers, marketers... * About 50% of SNAPpers are engineers * Weare e good looking...
Slide 7: AYI (AreYouInterested?) Vital Stats
te AYI (AreYoulnterested?) Vital Stats * Core brand AreYoulnterested? — Largest publicly-traded dating app on Facebook!) — Over 20MM profiles and 97K active subscribers!2) — 4,.7MM Morthly Active Users (MAUs) and over 310K Daily Active Users (DAUs) on Facebook") — 288K average daily sessions or visi
Slide 8: AYI
AYI « AYlisa fully integrated social dating application with a stand- alone website, iPhone, Android, Mobile web, and Facebook application SmasAe *CONFIDENTIAL* DO NOT DISTRIBUTE PR OF SNAP INTERACTIVE
Slide 9: Industry Trends
Industry Trends
Slide 10: Internet Users are Social
Internet Users are Social * Social media users have grown to represent 44% of all Internet users and continue to grow") - Facebook has grown to over 1 Billion users in less than 8 years ') $15,000 $10,000 $5,000 - $0 2010 2011 2012 2013 2014 2015 Global revenue from social media—composed of advertis
Slide 11: Mobile Dating on the Rise
Mobile Applications & ae. Mobile Dating on the Rise Total Number of Downloads (Bn) Total Revenue from Downloads ($8n) 2o10 2015 2010 2015, Source: Gartner Forecast: Mobile Applications, Worldwide, 2010-2015. + Total number of mobile applications downloads are expected to grow at a 68% CAGR from 2010
Slide 12: The Problem: Only 16% of US singles use online dating
The Problem: ae Only 16% of US singles are using online dating sites each month Dating Online A The Opportunity
Slide 13: The Problem: Inauthentic Profiles
The Problem Inauthentic Profiles Petite 100 Ibs? Gourmet cook? Hal Ha! Ha! Since when? SNAP INTERACTIVE
Slide 14: The Problem: Tedious & Time-Consuming
The Problem Tedious & Time-Consuming
Slide 15: The Problem: Frustrating User Experience
The Problem Frustrating User Experience
Slide 16: The Problem
The Problem Online dating has changed very little in 15 years Large players have little motivation to innovate Scale is everything - high barriers to entry make it very expensive for new entrants
Slide 17: The Problem
The Problem There is a disconnect between how people meet offline compared to online The online dating experience does not complement the offline experience Amanda Hess — blogger for XXfactor @ Slate.com: “No, online dating is not a joy. It is a horrific den of humanity that sometimes seems even les
Slide 18: As A Result...
As A Result... The Online Dating Industry is Ripe for Disruption & Innovation
Slide 19: It's Happening Everywhere Else...
It’s Happening Everywhere Else... Disruption is occurring in most verticals already “Li loves pretty fast. If don't stop and look around once ina ae you could miss it.”
Slide 20: Interest & Social Graph Has Disrupted Several Verticals
Interest & Social Graph Has Disrupted Several Verticals * Professional Networking Linked ffi} Sanne * Commerce amazoncom —7 Movies NETFLIN * Blogging / News * Dating (SNAP?)
Slide 21: The Future
The Future | wonder what the future holds for online dating?
Slide 22: Social Dating
Social Dating te. We believe that social dating sites will integrate your interest and social graph to complement how people meet in the real-world *CONFIDENTIAL* DO NOT DISTRIBUTE PROPERTY OF SNAP INTERACTIVE
Slide 23: More "Social Proof"
More “Social Proof” “Watching content because my friend did it, really trumped...the algorithm” -Netflix CEO Reed Hastings during Facebook’s F8 Conference — 9/2011
Slide 24: How are We Solving the Problem?
How are We Solving the Problem?
Slide 25: SNAP's Mission
SNAP’S Mission To define the social dating space, as dating is inherently social. AYI’s mission to complement the offline experience of meeting new people online, by integrating your friends & interests to connect people in a meaningful way.
Slide 26: In Other Words...
In Other Words... What Linked [J has done for professional networking AYI aims to do for meeting new people.
Slide 27: 2012 Relaunch
2012 Relaunch * Relaunched AYI in 2012 * Q3 2012: Redesign and technical roll-out complete ¢ 2013: Testing and rapid optimization continues ¢ Already seeing meaningful increases in certain key metrics as a result of these optimizations
Slide 28: Why Relaunch? Bigger Opportunity
Why Relaunch? Bigger Opportunity To take advantage of our scale on Facebook ¢ SNAP has over a BILLION pieces of Facebook interest data Generate organic growth Re-engage existing users Disrupt the online dating market Create leadership position in social dating
Slide 29: What Makes Us Different
What Makes Us Different * Scale: social & interest graph data on Facebook * Talent & expertise on Facebook * Lean & nimble For these reasons, we are uniquely positioned to define the social dating space
Slide 30: Facebook's Launch of Graph Search
Facebook’s Launch of Graph Search Single wome 10 live nearby and who like Veronica San Francisco, California @ Lives in San Francisco, California @ Single - Female wh Likes 50 Shades of Gray, Cinquanta sfumature and 2 others ub Likes ice skating | 4 Add Friend Message | | Q mage Source: ps/techrune
Slide 31: Facebook's Launch of Graph Search
Facebook’s Launch of Graph Search * Dating going mainstream on Facebook * Social and dating continue to merge — reducing stigma * AYl’s vision for social dating is aligned with Facebook’s Graph Search — Social and interest graph discovery
Slide 32: Facebook's Launch of Graph Search
Facebook’s Launch of Graph Search ¢ Large Facebook dating apps likely to benefit — Greater awareness of large dating-focused apps — Search results (AYI has 3.1 million fans & 68 million installs) — APIs ¢ Apps will enhance the Facebook offering by delivering a targeted and robust dating experience (
Slide 33: Financials
FINANCIALS
Slide 34: Investment Highlights
Investment Highlights * SNAP’s business is at the core of several fast-growing, favorable industry trends: — Social, Mobile, Location-based & Online * Our business has significant network effects & high barriers to entry * We believe we are the largest publicly-traded dating application on the Faceb
Slide 35: Financial Highlights
Financial Highlights * SNAP's balance sheet position continues to be strong, with $6.5 million of cash and cash equivalents and no debt at September 30, 2012 * Cash and cash equivalents and investments declined $0.6 million from June 30, 2012 * Deferred revenue was $3.3 million at September 30, 2012
Slide 36: Financial Highlights
Financial Highlights * Revenue for the nine months ended September 30, 2012 increased 12% to $15.3 million compared to $13.7 million for the comparable period in 2011 * Revenue for the three months ended September 30, 2012 decreased 15% to $4.3 million compared to $5.1 million for the comparable per
Slide 37: Financial Highlights
Financial Highlights * Inthe second quarter of 2012, in advance of our relaunch, SNAP significantly reduced traffic acquisition to limit cash burn and focus on building the new product * Asaresult, SNAP experienced attrition in revenue and subscriber count from March 2012 through the end of the year
Slide 38: 2013 Objectives
2013 Objectives
Slide 39: Where Are We Now
Where Are We Now ¢ 2012 was a transition year * Deeply entrenched in pivot — rapid iteration to reflect our new vision * Significant feature launches in upcoming months
Slide 40: 2013 Objectives
ae 2013 Objectives . Build A Recognizable Brand . Focus on Organic Growth to reduce customer acquisition costs . Increase User Engagement . Increase # of Subscriptions . Increase Mobile Penetration
Slide 41: Thank You / Contact
Thank You / Contact Cliff Lerner Jon Pedersen \ CEO CFO clerner@snap-interactive.com ipedersen@snap-interactive.com (212) 967-5120 x113 conic PRO!
Slide 42: SNAP Advisory Board
SNAP Advisory Board Jerry King Recently Chief Operating Officer of WHERE, Inc.—sold for $120MM to eBay Director and operating executive for C- bridge Internet Solutions, Inc. Leadership positions at Progress Software Corporation and Sybase, Inc. Series of advanced technology roles on Wall Street. Mr