Slide 1: Local Corporation Overview
EXHIBIT 99.1 Local Corporation Overview Connecting Local Merchants with Online Consumers November 2011
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 today and non-recurring items. Adjusted Net Income/Loss, as defined above, is not a include forward looking statements which are made pursuant to the Safe measurement under GAAP. Adju
Slide 3: Local Corporation Overview
Local Corporation Overview Our mission is to be a leader at connecting local merchants with online consumers “Over the next five years… • History 39% ($5.1 billion) of the ad spending on print yellow pages » Founded in ’99; IPO’d in 2004 (NASDAQ: LOCM) will VANISH » Transitioned from search network
Slide 4: Our Ecosystem
Our Ecosystem We Connect Local Merchants with Online Consumers 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 - White label sites Channel Pa
Slide 5: Expanding Product Suite
Expanding Product Suite Consumers Local Merchants Channel • Local.com • Local Premium • LocalConnect Business Directory » Local business search » Subscription ads on Local.com » ‘Local businesses’ tab for • Web Hosting newspaper, tv, radio station » Basic product for ~$15/month websites • Krillion.c
Slide 6: 4Qs Change, Challenge, Transformation Return to Growth
4Qs Change, Challenge, Transformation Return to Growth 3Q09 introduced ad feed product 3Q10+ phase out feed product as non-core 4Q>2Q Yahoo/Bing impact $25.0M Revenue • Diversified between partners • Diversified outside search ecosystem $20.0M Products • Expanded range $15.0M • Diversified outside s
Slide 7: Consumer Properties
Consumer Properties • A record 92MM MUVs in 3Q11 » Almost one-third of traffic was organic » Balance of traffic via SEM (Google/Yahoo/Bing) » All users doing local+commercial searches • 100,000 Sites » Either owned or hosted on our platform » Business search and more on Local.com » Daily deals and t
Slide 8: Expanding 'Exact Match' Small Business Product Suite
Expanding ‘Exact Match’ Small Business Product Suite Our Products Connect Local Merchants with Online Consumers • Exact Match suite of SMB ad products » Four products released since May 2011 » More products coming soon • Subscription pricing from $129-$199/month • Monetizing our ecosystem with direc
Slide 9: More Channel Products to Expand Channel Partners
More Channel Products to Expand Channel Partners • LocalConnect » Business directory plus widgets » SEO-friendly increases publishers’ site traffic Google users see » Monetized by Local.com – we share revenues our search results • 100 Publishers, 1,600 Sites » Primarily newspaper websites, but also
Slide 10: More Channel Products to Expand Channel Partners
More Channel Products to Expand Channel Partners • RAMP+Krillion allows local rich media ads with real-time ‘in store’ product, inventory and pricing data • Designed for national brands with local presence » Potential clients include big box retailers, automotive brands, luxury goods retailers, regi
Slide 11: Our Target Demographic
Our Target Demographic Advertisers often pay more for local keywords… Click Bids* Premium 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 Las Angeles $7.14 Moving Company $2.35 252% Denver Moving Company $
Slide 12: Spreebird 'Community Daily Deals' – It's Different
Spreebird ‘Community Daily Deals’ – It’s Different School Rewards : Each time a soccer-mom saves money on great, hyperlocal Spreebird deals, we donate 10% of our revenue back to the kids’ school in the merchant’s name! • Daily deals closes the online-offline advertising gap: “Did my online ad drive
Slide 13: Unique Local Technology Portfolio
Unique Local Technology Portfolio • 9 patents issued, 8 pending in local/mobile/data/display • Multiple databases with • Highly scalable geo- • Pulls real-time product • Rich media ad • A fully featured group- millions of SMB listings to category domain inventory directly from management and serving
Slide 14: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline Heath Clarke Mike Sawtell Ken Cragun Michael Plonski Chairman & CEO COO CFO CTO 20+ yrs exp 20+ yrs exp 20+ yrs exp 15+ yrs exp VP eCommerce LanguageForce Chairman & CEO, DigitalPost Interactive CFO Modtech SVP/CIO & COO Digital Martha CEO/Founder AFP (Austr
Slide 15: Financial Performance
Financial Performance Q4-2011 annualized revenue = $96.0M $100.0M $1.40 $90.0M $84.1M $80.0M $77.3M $0.90 $70.0M $0.82 $60.0M $56.3M $0.40 $50.0M $38.3M $0.21 $40.0M $(0.10) $30.0M $21.5M $(0.33) $20.0M $14.2M $(0.60) $10.0M $(0.63) $0.0M $(0.96) $(1.10) 2006 2007 2008 2009 2010 2011 Fcst Adjusted N
Slide 16: 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 1 Accounts Receivable 13,018 Options (Avg. Exercise Price $4.65) 4,566 Total Assets 76,478 1 Warrants (Avg. Exercise Price 7
Slide 17: 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 18: 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 | 11-2011 18
Slide 19: We Operate in the High Growth Online Advertising Market
We Operate in the High Growth Online Advertising Market Deal of the Day/Group Buying • We compete in several high-growth local ad segments… » Local search – 14.2% 2011-2012 » Display/rich media –15.5% 2011-2012 » Deal-of-the-day– extreme growth Kelsey Group; March 2011 JiWire; Q1 2011 Borrell Associ
Slide 20: 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 21: 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