Slide 1: Local Corporation Corporate Overview
Local Corporation Corporate Overview
Slide 2: Forward-looking statements and Adjusted EBITDA definition
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 statements which are not strictly historical statement
Slide 3: Our mission
Our mission To give consumers the most relevant and personalized information at the right time and on the right platform — and continually refine it until it's perfect.
Slide 4: Our strategy
Current financial momentum To aggregate and curate the most relevant and rich personalized local content for consumers and present it wherever and however the consumer searches for information while providing significant reach and value to our advertisers and partners. Our strategy
Slide 5: Corporate Overview – Q3 2014
Corporate Overview – Q3 2014 $71.4 Billion total U.S. local search and display spend by 2017 80% of consumer purchases occur within a 3-mile radius of a consumer’s home Consumers spend $10.7 Trillion annually on goods and services $176.3 Billion total U.S. online ad spend in 2017 Borrell Associates,
Slide 6: Rich, relevant local content monetized with enterprise advertisers
Rich, relevant local content monetized with enterprise advertisers Krillion Data Ingestion Engine i gz = i i : : : d @- MVNOs 7 -O__@-
Slide 7: Significant leverage within business model for growth
Significant leverage within business model for growth Owned & Operated (Traffic) Local.com® flagship site and app offer consumers relevant, local content search experience. 24 million unique visitors Distribution Network (Reach) A diverse group of mobile, app and desktop publishers, allowing us to m
Slide 8: Complimentary local search businesses; market opportunity; innovation; financial position
Complimentary local search businesses Market opportunity is growing Innovation yields competitive advantages Financial position • O&O: Content and traffic acquisition improvements delivering growth • Network: Focus on quality and advertiser’s conversion are expected to yield long- term growth Mobile
Slide 9: Stabilize, Execute, GROW: multiple growth drivers
Stabilize Execute GROW Multiple growth drivers *Estimate Note: See reconciliation of Adjusted EBITDA to GAAP net income at presentation end • Driving organic traffic • • 100 GM bpt.s ~ $1M EBITDA at current rev. • Increasing new and existing partners without significant cost • Leveraging existing te
Slide 10: % of Total Revenue by Business Unit
% of Total Revenue by Business Unit 15% 85% 20% 80% 37% 63% 39% 61% 51% 49% Quarterly Revenues by Business Unit $4.1 $22.6 $5.0 $19.4 $7.6 $12.9 $8.3 $13.2 $11.6 $11.1 $14.5 $8.9 62% 38% 60% 40% $16.1 $10.7 $26.7 $24.4 $20.6 $21.5 $22.7 $23.5 $26.8 $14.8 $11.4 $26.2 56% 44% $22.5 $9.9 $12.6 44% 56%
Slide 11: Deep roots in local search
DEEP ROOTS IN LOCAL SEARCH LEVERAGE INNOVATIVE TECHNOLOGY PIVOT TO ENTERPRISE Richer consumer experience, expanding channels & innovative technology to fuel growth • Focus on local search • First search site live in 2004 • Deliver a relevant, personalized consumer experience across screens • Build o
Slide 12: Expanding into new channels and devices in markets around the globe
Expanding into new channels and devices in markets around the globe. Mobile carriers & operators ISPs Consumer Devices & Appliances Digital Signage Total Number of Devices with a Wireless Connection Reaches 40.9B by 2020* *eMarketer/ABI Research 2014 Go to market steps
Slide 13: Right product offer, right place and right time
Right product offer, right place and right time Brands Interactive Ad Agencies Media Conglomerates Go to market steps *Borrell Associates 2014 Total US Display Advertising Spend in Billions Reaches 109B by 2017*
Slide 14: Local Labs digital technology lab and start-up incubator
Local Labs serves as a digital technology lab and start-up incubator focused on innovating the digital ecosystem that converges around the digital consumer’s path from discovery to decision. * No. of employees based on estimates * *
Slide 15: Pay-Per-Call patent portfolio
The patent descriptions herein do not constitute the legal opinion or advice of the patent owner or their counsel. The reader is encouraged to seek the advice of their own counsel regarding the scope of any domestic or foreign patents. Reviewing options to maximize value Pay-Per-Call patent portfoli
Slide 16: Leadership team
Slide 17: Fred Thiel and board of directors
Fred Thiel Chairman of the Board & Chief Executive Officer • John M. Payne Director John E. Rehfeld Director David M. Hughes Director Norman K. Farra, Jr. Lead Director • Director since January 2013, chairman since January 2014, CEO since May 2014 25+ years leading technology, data communications, I
Slide 18: Fred Thiel, Chairman & CEO contact
Fred Thiel Chairman & CEO fred@local.com Local Corporation | 7555 Irvine Center Drive | Irvine CA 92618 | 949.784.0800 | www.localcorporation.com Ken Cragun CFO kcragun@local.com
Slide 19: Peer comparison: market cap to sales
Company Symbol Price Market Cap (in millions) 2014E Sales (in millions) Market Cap/Sales *Estimate Blucora, Inc. BCOR $ 15.54 $ 639.1 $ 598.0 1.1 The Rubicon Project, Inc. RUBI $ 10.01 $ 358.9 $ 119.0 3.0 Angie’s List, Inc. ANGI $ 7.61 $ 445.3 $ 318.0 1.4 Marchex, Inc. MCHX $ 8.63 $ 351.1 $ 187.0 1.
Slide 20: Adjusted EBITDA to GAAP net income reconciliation
Description FY-09 FY-10 FY-11 FY-12 FY-13 FY-14* *Estimate Adjusted EBITDA $3,041 $13,775 $3,247 $777 $4,533 $3,500 Less interest and other income (expense), net (27) (275) (413) (425) (2,321) (1,700) Less provision for income taxes (158) (102) (178) (111) (139) (200) Less amortization of intangible
Slide 21: Q2 2014 Highlights, balance sheet and 2014 guidance
Date as of August 12, 2014 Q2 2014 Highlights June 30, 2014 Balance Sheet 2014 Guidance $22.5M in revenue $1.0M in Adjusted EBITDA positive for the 6 consecutive quarter 14% increase of O&O revenue y-o-y $204 RKV, up 8% from Q1 2014 • • • • • • • $6.7M in total cash, up $3.0M from March 31, 2014 $8.