Slide 1: Local.com Corporate Presentation May 2011
Local.com Corporate Presentation May 2011
Slide 2: Forward Looking Statements; Non-GAAP Financial Measures
Forward Looking Statements; Non-GAAP Financial Measures 2 Forward-Looking Statements: This document contains forward looking statements that involve risks and uncertainties concerning Local.com Corporation's expected financial performance, as well as Local.com's strategic and operational plans. Actu
Slide 3: Corporate Profile
Corporate Profile NASDAQ: LOCM is a diversified local media business Focused on the $5BB of ad spend transitioning away from yellow pages print Reach over 20MM MUVs each month 'Top 10' search engine* plus syndication network of over 100,000 sites Top 3 fastest-growing in local online advertising**;
Slide 4: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline 4 Heath Clarke Chairman & CEO 20+ yrs exp VP eCommerce LanguageForce CEO/Founder AFP (Australia) Michael Plonski CTO 15+ yrs exp SVP/CIO & COO Digital Martha Stewart Living Omnimedia VP, CTO Tribune Information Systems, Tribune Interactive Ken Cragun CFO 20+
Slide 5: Focused on Building the Value Creators
Focused on Building the Value Creators 5 Advertisers Technology Traffic 17 Million Local Business Listings Local Ad Exchange & Feed Management Regional Media Flagship Site Ad Feeds Direct Customers 3rd Party Domains Owned Domains Custom Content Development Geo-Cat Website Creation & Hosting Social/G
Slide 6: Core Businesses
Core Businesses 6 ~50% of revenue 'Our traffic' Flagship 'Local.com' 20,000+ sites About 15MM MUVs ~30% of revenue 'Partner traffic' 80,000+ sites About 5MM MUVs ~20% of revenue Ad feeds 35k+ direct advertisers Sales & Advertiser Services Network Owned & Operated 7 patents issued, 11 pending in loca
Slide 7: O&O: Flagship Local.com + 20k Geo/Category Sites
O&O: Flagship Local.com + 20k Geo/Category Sites 7 Transitioning into a 'local lifestyle' destination Crisper user experience New design & navigation Enhanced business info About 15MM MUVs Local Coupons Combines local merchants, online coupons, weekly circulars, grocery & national Connect to loyalty
Slide 8: Target Market
Target Market Over half of our 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 conducted
Slide 9: Network: Two Segments
Network: Two Segments 9 We distribute our search results and content to other sites and monetize their local search queries with our ads We share in revenue generated from those ads with the sites All traffic is organic and reaches about 6 million consumers each month 1,000+ regional media sites/100
Slide 10: Investing for Future Growth
: Investing for Future Growth 10 SEO/Hosting & Content Development Social/Group Buying Display/ Rich Media Four acquisitions in past twelve months 'Startups' that require some near-term investment in order to drive future organic growth Significantly broaden product and technology portfolio in order
Slide 11: Spreebird: Pay-per-customer
Spreebird: Pay-per-customer 11 Revenue and traffic diversification Revenue diversification away from existing partners Traffic diversification away from search ecosystem Launched May 2011 Differentiated by a personalization engine (more to come!) An exciting new local performance advertising product
Slide 12: OCTANE360: SEO/web hosting
OCTANE360: SEO/web hosting 12 Website Solutions Product Online marketing product for generating new business leads. Value proposition: new customers, 6-8 leads per month Guarantee: 60-Day Ranking (on one of the engines) or it's free Prices from $135-$179 per month Site Attributes Complete business i
Slide 13: Rovion: Display RAMP
13 Rovion: Display RAMP Creates and serves rich media advertising One of 6 rich media providers certified on Yahoo, AOL, & others Sells through agencies, local media companies and directly to major brands Provides access to major distribution partners SMB Banner Small business rich media ad units Ge
Slide 14: Krillion: Rich, Highly Relevant Shopping Content
"Data as a service" provider that aggregates, normalizes enriches and distributes real-time local shopping content Product normalization across multiple retailers, is key differentiators versus Milo, WishPond, etc. Multiple revenue streams from Product locators for manufacturers (e.g. Toshiba, Elect
Slide 15: Financial Section
Financial Section 15
Slide 16: Revenue & Adjusted EPS
Revenue & Adjusted EPS 16 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items Adjusted Net Income/share Revenues $mil
Slide 17: P&L Trend
P&L Trend 17 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items Actual Actual Actual Actual Actual Description 2006 2007 2008 2009 2010 Revenue 14,213 $ 21,525 $ 38,257 $ 56
Slide 18: Q1 2011 Balance Sheet & Capitalization
Q1 2011 Balance Sheet & Capitalization 18 Key Balance Sheet Items (in thousands) Capitalization (in thousands) Mar 31, 2011 Cash $20,213 Accounts Receivable 13,094 Total Assets 68,595 Total Debt - Total Liabilities 11,423 Shareholders Equity $57,172 Mar 31, 2011 Common stock 21,224 Options 1 4,104 W
Slide 19: Key Investment Considerations
Key Investment Considerations 19 Rapidly growing company in a rapidly growing market Beneficiary of secular trend towards online ad spend by SMBs Proprietary technology platform and differentiated product suite Attractive Position in Growing Market Growing revenue streams with strong growth potentia
Slide 20: Thank You
20 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
Slide 21: Reconciliation: Adjusted Net Income to GAAP Net Income
Reconciliation: Adjusted Net Income to GAAP Net Income 21