Function X — IPO Roadshow (February 2017)
24 slides from Function X's IPO roadshow presentation, Feb 22, 2017
Slide 1: Free Writing Prospectus
STRICTLY CONFIDENTIAL ©2017 Function(x), Inc. All Rights Reserved Filed Pursuant to Rule 433 Registration No. 333 - 215188 February __, 2017 Free Writing Prospectus (to Preliminary Prospectus dated February __, 2017)
Slide 2: Forward-Looking Financial Information
Forward - Looking Financial Information This presentation contains forward - looking statements of the Company that relate to the current expectations, business plans and views of future events. Forward - looking statements often, but not always, are identified by the use of words such as “seek”, “a
Slide 3: Free Writing Prospectus Statement
3 Free Writing Prospectus Statement This presentations highlights basic information about us and the offering to which this communication relates. Because it is a summary, it does not contain all of the information that you should consider before investing in our common stock. We have filed a regist
Slide 4: Offering Summary
4 Offering Summary Issuer: Function (x), Inc. Exchange / Ticker: NASDAQ:FNCX Offering Size: Approximately $6,000,000 (15% over - allotment) Securities Offered: Common Shares Use of Proceeds: We will use the proceeds to repay indebtedness and for general working capital Joint Bookrunning Managers: Ae
Slide 5: Introduction
Introduction 5
Slide 6: About Function(x)
About Function(x) 6 ▪ Function(x), a social publishing and interactive media platform, is building on a native audience of 18MM monthly visits by delivering exclusive and engaging content based on key relationships with social influencers and celebrities: ▪ Wetpaint is a leading online destination f
Slide 7: Led by an experienced team
Robert F.X. Sillerman, C hairman & CEO • Media Entrepreneur known for identifying market trends and scalable opportunities with multiple billion dollar exits • American Idol, Elvis Presley Enterprises, Muhammad Ali Enterprises, SFX Broadcasting, SFX Entertainment I, Marquee Sports, Action Media Grou
Slide 8: The Opportunity
The Opportunity f ti (»)
Slide 9: The accelerating rise of Social Media
The accelerating rise of Social Media 9 Source: MediaKix Facebook YouTube Instagram Snapchat (Monthly Average Users)
Slide 10: Average Person's Daily Time On Social Media
10 Source: MediaKix The Average Person Spends 1 Hour 40 Minutes On Social Media Each Day
Slide 11: Interest in influencer marketing
function” Interest in influencer marketing has risen more than (from 2013 to present based on analy f Google Keywords and Google Trends)
Slide 12: US Digital ad spending expected to rise
12 US Digital ad spending expected to each Digital advertising takes the lead Source: MediaKix
Slide 13: Industry comparable valuations
Industry comparable valuations 13 UNIQUE VISITORS 27 Million 44.5 Million 59.8 Million 80.4 Million 7.2 Million LATEST ROUND VALUATION $ 500 Million $ 442 Million $850 Million $1 .5 Billion ???
Slide 14: Function(x) Today
Celebrity News, Reality TV & Entertainment site 14 Function(x) Today Sports, Pets and Lifestyle sites
Slide 15: Function(x) by the numbers
Function(x) by the numbers 15 Reach Gender Breakdown On Social Device Traffic User Engagement Data Driven 18MM Wetpaint Monthly Visits 15% Male 85% Female 10MM+ Followers 80% Mobile 4.5 pageviews per visit and 1:35 spent on site per visit Reaching the right customer, with the right content, at the r
Slide 16: Strong Foundation & Competitive Advantage
Strong Foundation & Competitive Advantage 16 CONTENT AUDIENCE ADVERTISERS TECHNOLOGY SOCIAL PUBLISHING PLATFORM 18+ million monthly visits* (70% of traffic from millennial women) LARGE AUDIENCE Patented innovative technology including a Social Distribution Platform PATENTED TECHNOLOGY Access to excl
Slide 17: Results
Results 17
Slide 18: Strong Growth since July: Revenue
Strong Growth since July: Revenue 18 ▪ Optimized ad stack and monetization model has taken effect, resulting in significant revenue growth. ▪ Anticipating continued growth as we continue to develop new and exciting content. • Represents Publishing Segment $20,000 $70,000 $120,000 $170,000 $220,000 $
Slide 19: Strong Growth since July: RPMv
Strong Growth since July: RPMv (Revenue per 1,000 visits) 19 ▪ Increase in pageviews has helped increase monetization per 1,000 visit. ▪ Continue to target increase in RPMv through user engagement. ▪ RPMv has not grown at the same rate as revenue, indicating there is future opportunity for growth. $
Slide 20: Strong Growth since July: Pageviews
Strong Growth since July: Pageviews 20 ▪ Growth in pageviews signals increased user engagement. ▪ Increase directly correlates to an increase in revenue. ▪ Continue to target increased pageviews . 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Jul Aug Sep Oct Nov Dec Pageviews (in 000's) •
Slide 21: Recent Highlights and Developments
Recent Highlights and Developments 21 ▪ Established Foundation for Future Growth : Established streamlined headcount plan, disciplined financial controls, a refined operating expense model, revamped technology platform and acquisition team, all in an effort to seamlessly grow the business in the fut
Slide 22: Future Strategy
Future Strategy ▪ Leverage and build on existing platform and current user base. ▪ Use access to A list celebrities to expand original video content to increase user base. ▪ Capitalize on demonstrated ability to substantially increase margin on externally acquired traffic. ▪ Use same strategy that R
Slide 23: Pro-Forma Cap Table
Pro - Forma Cap Table 23 (1) Accrued Interest and Accrued Dividends assumes a 2/17/17 Conversion. (2) Represents the capitalization of the Company as of 2/17/17. (3) Represents the capitalization of the Company as of 2/17/17, adjusted for a $6MM equity offering priced at $2.25 and issua nce of Repre
Slide 24: Thank You
Thank You An Interactive Media Platform ______ Contact : Michelle Lanken , Chief Financial Officer Phone : 212 . 231 . 0092 Email : info@functionxinc . com Web : functionxinc . com Confidential ©2017 Function(x), Inc. All Rights Reserved 24