Local,inc. · TSE:470A
Local,inc — Investor Presentation (August 2013)
19 slides from Local,inc's investor presentation, Aug 14, 2013
Slide 1: Local Corporation Corporate Overview: 3Q2013
1 1 …………………………..……………………………………. Local Corporation We connect local businesses with online consumers Corporate Overview: 3Q2013 Exhibit 99.2
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 Overview
3 ……………………………………………….. Local Corporation Overview REVENUE IN MILLIONS Founded/IPO Ticker Reach Flagship Site Network Patents Headquarters Employees 1999/2004 LOCM (NASDAQ) ~1 million consumers/day Local.com – Top 100 US Site Approximately 1,600 sites 12 issued + 7 pending Irvine, CA ~90 KEY FACTS *M
Slide 4: Local searchers are worth more!
4 Local searchers are worth more! ………………………………........………………..…. Local searchers are often further along in the buying process, so they tend to convert to buyers at a higher rate. Higher conversion rates means businesses will often pay a premium to advertise to local searchers. Pay-per-click rates f
Slide 5: The Opportunity
5 …………………………...…………………………………………. The Opportunity Offline is going digital, and digital is going local We have assets in all areas Source: BIA/Kelsey, April 2013
Slide 6: Traffic x Monetization = Revenue
6 Traffic x Monetization = Revenue ……………………………………………………………….....…….………. Our Model We aggregate local business, product and service content and publish it across approximately 1,600 sites. Search engines index this content and show those sites in their search results, driving local search traffic to
Slide 7: Network Local.com
7 Network Local.com ……………………………………………………………. Consumer Properties Business directories powered by Local Corporation include… A private label local business directory provided to regional media sites nationwide – typically local newspapers Our flagship property + Arizona Daily Star Boston Herald Canto
Slide 8: Local Search is Going Mobile
8 ………………………...……………………….. Local Search is Going Mobile And we’re ready! • Monetization is a big challenge in mobile, and we believe pay per call is a natural solution. We have five pay per call patents. First one filed in 2002 * Source: Borrell Associates 2013 • Within 5 years, 80% of local searches
Slide 9: Great Momentum
9 • Multi-year traffic growth • Organic traffic is low cost/high margin – at record levels • Mobile traffic at record levels – monetization improving, and we think we have key IP ………….................................………………………………. Great Momentum
Slide 10: IP & Technology
10 …………………………………………...……………………….. IP & Technology • Proprietary platform and know-how Real time business, product and services data integration Large scale local/commercial content production and syndication Very large scale CPC ad-serving and distribution Web indexing and local search relevance Ver
Slide 11: Experience with Strategy Discipline
11 ……………………..…………...………. Experience with Strategy Discipline Heath Clarke Founder, Chairman & CEO 20+ yrs exp Founded Local in ’99 VP eCommerce LanguageForce CEO/Founder AFP (Australia) Ken Cragun CFO 20+ yrs exp CFO Modtech SVP MIVA CFO ImproveNet CPA; Big 4 Exp. Carlos Caponera VP, Consumer Proper
Slide 12: Growth Strategy
12 ..…………………………………………………..……….…………. Growth Strategy • Grow margins in O&O business (largest revenue stream) Margin optimization via new SEM tools Gradually ramping in the UK • Grow revenues in Network (highest gross margin revenues) Expand number of sites via business development team (more traffic)
Slide 13: We Believe the Inflection Point is Now
13 Material challenges over past 2 years …………………………………….. We Believe the Inflection Point is Now Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end. • Five material challenges in 24 months withstood Significant cost to the company in revenue and earnings • Highest rev
Slide 14: 2Q13 Balance Sheet & Cap. Table
14 ………………………………...………. 2Q13 Balance Sheet & Cap. Table Additional Data: I. $12 million credit facility. Interest rate approximately 5% II. Total authorized shares 65,000,000 common and 10,000,000 preferred III. In April 2013, the company closed $5 million in convertible notes. Interest rate of 7%. C
Slide 15: Why Invest in Local Corporation?
15 …………………………..…….………. Why Invest in Local Corporation? • Multi-year track record of 31% CAGR • Management are buyers! Senior execs have exchanged bonuses for 235,000 shares in the last 18 months! • Proprietary platform and great IP • Many growth opportunities in a rapidly changing space • Returning
Slide 16: Thank You
16 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 17: Digital Media Landscape
17 ……………………………………………………… Digital Media Landscape * Partners
Slide 18: Reconciliation: Adjusted EBITDA to GAAP Net Income
18 ………….…. Reconciliation: Adjusted EBITDA to GAAP Net Income
Slide 19: Watch our video to learn more about what we do
19 Watch our video to learn more about what we do ………………………………………………………………………………….….…. Video