Local,inc. · TSE:470A
Local,inc — Investor Presentation (January 2013)
20 slides from Local,inc's investor presentation, Jan 25, 2013
Slide 1: Local Corporation Corporate Overview: 1Q2013
1 …………………………..……………………………………. Local Corporation We connect local businesses with online consumers Corporate Overview: 1Q2013 Exhibit 99.1
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 Over 1,000 local sites 11 issued + 9 pending Irvine, CA ~100 KEY FACTS *201
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 for local versus national keywor
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, January 2013
Slide 6: Traffic x Monetization = Revenue
6 Traffic x Monetization = Revenue Our Model We aggregate local business, product and service content and syndicate it across over 1,000 sites. Search engines index this content and show those sites in their search results, driving local search traffic to us. We monetize that traffic with various ad
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 over 1,000 regional media sites nationwide – typically local newspapers Our flagship property Arizona Daily Star Arkansas News Boston Herald Columbi
Slide 8: Mobile
8 Mobile Apps and mobile-enabled available for consumer sites: • Local.com • Spreebird.com Launch by Local solution offers a mobile-optimized website for SMBs Mobile Source: BIA/Kelsey
Slide 9: Multi-year traffic growth
9 • Multi-year traffic growth • Organic traffic is low cost/high margin – at record levels • Mobile traffic at record levels – still figuring out monetization, but 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 relev
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 CFO NetCharge.com CPA; Big 4 Exp . Mike Sawtell Presid
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 (most profitable revenue stream) » Expand number of sites via business development team (more traffic) » New products planned… p
Slide 13: We Believe the Inflection Point is Now
13 …………………………………….. We Believe the Inflection Point is Now Note: See reconciliation of Adjusted Net Income to GAAP net income at presentation end; 2012 Preliminary, 2013 Estimated; *Losses not to scale • Five material challenges in 24 months withstood » Significant cost to the company in revenue and
Slide 14: 3Q12 Balance Sheet & Cap. Table
14 ………………………………...………. 3Q12 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 * Received $3.5 million proceeds from Rovion sale on October 19, 2012
Slide 15: Why Invest in Local Corporation Today?
15 ……………………….……. Why Invest in Local Corporation Today? • Multi-year track record of 31% CAGR • Execs are buyers – exchanged bonuses for 182,000 shares in past months • Proprietary platform plus IP • Well positioned for growth opportunities in a rapidly changing space • Expected ANI in 1Q13 • We bel
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: The Challenge Our Platform Solves for SMBs
18 ……………………. *Research by Vsplash and BIA/Kelsey: SMB Digital Scope and Audit Study The Challenge Our Platform Solves for SMBs Only 33.4% of SMBs have a local phone number on their home page Only 22% have an email address on their website Just 6.7% of SMB websites are mobile-compatible Only 6% have
Slide 19: Local SMB Customer: Fabi's Hair Studio
19 Facebook and Twitter pages engage customers and increase awareness Beautiful site design and web hosting with geo-targeted URL and custom content Mobile-optimized site features directions and click-to-call Local SMB Customer: Fabi’s Hair Studio A consistent brand and user experience across multip
Slide 20: Reconciliation of Adjusted Net Income to GAAP Net Income
20 DESCRIPTION FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 ……. Reconciliation of Adjusted Net Income to GAAP Net Income Actual Actual Actual Actual Actual Actual Prelim Forecast Adjusted Net income (loss) (8,882) $ (7,217) $ (4,658) $ 3,041 $ 13,775 $ (1,734) $ (600) $ 5,000 $ Plus interest and