Slide 1: Local Corporation Overview
Exhibit 99.1 Local Corporation Overview Connecting Local Merchants with Online Consumers January 2012
Slide 2: Safe Harbor Statement; Non-GAAP Financial Measures
Safe Harbor Statement; Non-GAAP Financial Measures Certain matters being discussed by Local Corporation’s management as defined above, is not a measurement under GAAP. Adjusted Net today include forward looking statements which are made pursuant to Income/Loss is reconciled to net loss and loss per
Slide 3: Why invest in this industry [local online advertising]?
Why invest in this industry [local online advertising]? sec·u·lartrends[sek-yuh-ler]adjective.noun 1. a seculartrend away from traditional to digital media causedby increasedconsumptionof digital content 2. consumersarespendingmore time online andad dollars are following them Traditional Online/Digi
Slide 4: Why invest in this industry [local online advertising]?
Why invest in this industry [local online advertising]? sec·u·lar trends [sek-yuh-ler] adjective.noun 1. online advertising continues to eat into traditional media market share 100% 14.6% 17.2% 90% 18.9% 21.1% 23.1% 25.4% 80% 70% 60% 50% 85.4% 82.8% 81.1% 40% 78.9% 76.9% 74.6% 30% 20% 10% 0% 2010 20
Slide 5: Within local online advertising is [local search]
Within local online advertising is [local search] growth[grohth] noun 1. local search volumes are growing faster than non-local searches 2. consumers are searching for local goods and services more frequently Source: BIA/Kelsey, November 2011. Numbers are rounded. Local Corporation Presentation | Ja
Slide 6: Within local online advertising is [local search]
Within local online advertising is [local search] growth[grohth] noun 1. search ad spend is shifting from non-local into local search 2. local search revenue is growing faster than volume because advertisers pay higher prices to reach local consumers Source: BIA/Kelsey, November 2011. Numbers are ro
Slide 7: Within local online advertising is [local display]
Within local online advertising is [local display] growth[grohth] noun 1. display is growing, but local display is growing faster 2. localrich media is projected to grow50%CAGRthrough2015 US Local Display as % of Top Line Market Source: BIA/Kelsey, November 2011. Numbers are rounded. Local Corporati
Slide 8: Within local online advertising is [daily deals]
Within local online advertising is [daily deals] growth[grohth] noun 1. a disruptive ad model that is accelerating the shift in spend from old media 2. a highly attractive performance ad product for lagging online advertisers such as restaurants 4,500 $4,171 4,000 $3,564 3,500 $2,987 3,000 $2,455 2,
Slide 9: Local Corporation
Local Corporation lo·cal cor·po·ra·tion[loh-kuhl] [kawr-puh-rey-shuhn] adjective.noun Founded 1999, IPO 2004: NASDAQ: [LOCM] 1. a diversified local online media businessfocusedon high growth markets 2. specializes in connecting local merchants with online consumers 3. reaches one million consumers e
Slide 10: Our Large & Growing Ecosystem
Our Large & Growing Ecosystem We Connect a Million Consumers with Local Merchants Every Day We generate revenue from ads, including pay-per-click, pay-per-call, subscription, daily deals & display Ad Partners - Google - Yahoo Search - SuperMedia Consumer Properties - ATTi - Local.com - Krillion.com
Slide 11: Our Target Demographic
Our Target Demographic We reach household managers with high buying intent when they are looking for local solutions Gender Household Income Female 57% $25K - $39,999 17.8% Male 43% $40K - $59,999 23.7% Age $60K - $74,999 9.6% 18 to 24 10% $75K - $99,999 11.7% 25 to 34 17% $100,000 + 17.1% 35 to 44
Slide 12: Advertisers Pay More For Local Consumers
Advertisers Pay More For Local Consumers Advertisers often pay more to reach local consumers… Click Premium Bids* Search Term Restaurant $0.22 577% San Francisco Restaurant $1.27 Credit Union $0.45 116% Seattle Credit Union $0.52 Plumber $2.60 275% Plumber Los Angeles $7.14 Moving Company $2.35 252%
Slide 13: More Proprietary Products for Our Customers
More Proprietary Products for Our Customers Consumers Local Merchants Channel • Local.com • Local Premium • LocalConnect Business Directory » Local business search » Subscription ads on Local.com » ‘Local businesses’ tab for newspaper, • Web Hosting tv, radio station websites » Basic product for ~$1
Slide 14: Consumers: Our Network of Properties & Services
Consumers: Our Network of Properties & Services • A network of over 1,000 Owned or Private Label sites » Flagship Local.com; Spreebird.com; Krillion.com » Business name/category search » Product search (80k products in over 70k locations) » Coupons, specials, daily & travel deals » Events, activitie
Slide 15: Local Merchants & Channel: Display Ad Platform
Local Merchants & Channel: Display Ad Platform • Purpose-built for emerging local rich media segment » Launched 4Q11 » Designed for national brands with local presence, including movie studios, big box retailers, regional and national agencies/media brands, automotive brands and luxury goods retaile
Slide 16: Local Merchants & Channel: Display Ad Distribution
Local Merchants & Channel: Display Ad Distribution Local Corporation Display Business Our nationalsalesorganization sellsdisplayadvertisingacrossthreenetworks Local.com Local Syndication Local Display Ad Network Network The search results The pages within the The pages within pages within the sites
Slide 17: Local Merchants & Channel: Proprietary SMB Ad Products
Local Merchants & Channel: Proprietary SMB Ad Products Helping Local Merchants Reach Online Consumers • Exact Match suite of SMB ad products » Five products released since mid-2011 (two mobile) » More coming soon • Subscription pricing from $129-$199/month » ‘Do it for me’ » Multi-channel access to
Slide 18: Local Merchants: Spreebird Daily Deals
Local Merchants: Spreebird Daily Deals SchoolRewards:Eachtime a HouseholdManagersavesmoneyon great,hyperlocal Spreebird deals,we donate10%of our revenueback to the kids’ schoolin the merchant’sname! • Daily deals is a desirable performance ad product » SMBsonly paywhenwe drive a customerto their reg
Slide 19: Proprietary Technology Portfolio Powers Products/Network
Proprietary Technology Portfolio Powers Products/Network • 9 patents issued, 8 pending in local/mobile/data/display • Each acquisition has strategically increased our ability to serve this rapidly growing segment with a wider range of proprietary products & services • Multiple databases with • Highl
Slide 20: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline Heath Clarke Mike Sawtell Ken Cragun Founder, Chairman & CEO COO CFO 20+ yrs exp 20+ yrs exp 20+ yrs exp Founded Local in ’99 Chairman & CEO, DigitalPost Interactive CFO Modtech VP eCommerce LanguageForce Pres. & COO , Interchange Corp. (now SVP MIVA CEO/Fou
Slide 21: Financial Performance
Financial Performance • Financials (non-GAAP) » 40% CAGR 2006-2010; ~50% growth between 2Q and 4Q2011 » 4Q11 Revenue guidance: $24MM and break-even Adjusted Net Income » FY11 Revenue guidance: ~$78MM Q4-2011 annualized revenue = $96.0M $100.0M $1.40 $90.0M $84.1M $80.0M $77.3M $0.90 $70.0M $0.82 $60
Slide 22: 4Qs of Transformation Return to Strong Growth
4Qs of Transformation Return to Strong Growth 4Q>2Q Yahoo/Bing impact Situational Challenge $25.0M • Yahoo/Bing alliance caused monetization drop • Dealt with by switching partner at end of contract $20.0M We didn’t stop there… $15.0M Diversified Revenue & Products • Retained Yahoo partnership • Exp
Slide 23: Our Revenue Streams and Mid-Term Growth Expectations
Our Revenue Streams and Mid-Term Growth Expectations 53% 65% 10% 15% 30% $44M $48M 30% 21% 10% 30% 50% $25M $17M 17% 14% 20% 50% 80% $15M $12M 2% 2% 20% 50% 80+% 0% 1% 15% 60% 100% 0% 1% 70% 400% 80% 15% 10% -50% 100% 100% 100% 20% 40% Local Corporation Presentation | January 2012 23
Slide 24: 3Q11 Balance Sheet & Capitalization
3Q11 Balance Sheet & Capitalization Key Balance Sheet Items Capitalization (in thousands) (in thousands) September 30, 2011 September 30, 2011 Cash $10,119 Common stock 22,009 Accounts Receivable 13,018 Options 1 (Avg. Exercise Price $4.65) 4,566 Total Assets 76,478 Warrants1 (Avg. Exercise Price 7.
Slide 25: Why Invest in Local Corporation?
Why Invest in Local Corporation? • Rapidly growing company in a rapidly growing market An Attractive Position • Beneficiary of secular trend towards online ad spend by SMBs in Fast Growing Markets • Extensive technology platform and differentiated product portfolio • Growing revenue streams with con
Slide 26: Thank You
Thank You Heath Clarke Chairman & Chief Executive Officer hclarke@local.com Ken Cragun Chief Financial Officer kcragun@local.com 949.784.0800 http://corporate.local.com Local Corporation Presentation | January 2012 26
Slide 27: P&L Trend – Quarterly
P&L Trend – Quarterly Actual Actual Actual Actual Actual Actual Actual Actual Forecast Description Q1-10 Q2-10 Q3-10 Q4-10 FY-10 Q1-11 Q2-11 Q3-11 Q4-11 Revenue $ 18,631 $ 23,004 $ 22,457 $ 20,045 $ 84,137 $ 16,795 $ 15,584 $ 20,877 $ 24,000 Sequential revenue growth 14% 19% -2% -12% 49% -16% -7% 34
Slide 28: Reconciliation: Adjusted Net Income to GAAP Net Inc - Qtrly
Reconciliation: Adjusted Net Income to GAAP Net Inc - Qtrly Actual Actual Actual Actual Actual Actual Actual Actual Forecast Description Q1-10 Q2-10 Q3-10 Q4-10 FY-10 Q1-11 Q2-11 Q3-11 Q4-11 Adjusted Net income (loss) $ 2,575 $ 3,451 $ 4,595 $ 3,154 $ 13,775 $ 8 $ (1,903) $ (1,093) $ - Plus interest