Slide 1: Local.com Corporate Overview
Local.com Corporate Overview 09-2011 We Connect Local Merchants with Online Consumers
Slide 2: Safe Harbor Statement; Non-GAAP Financial Measures
Safe Harbor Statement; Non-GAAP Financial Measures 2 Certain matters being discussed by Local.com'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 statement
Slide 3: Local.com Corporation Overview
Local.com Corporation Overview Founded in '99 Public (NASDAQ: LOCM) since 2004 Transitioned from search network to local search in 2005 Significant revenue and product diversification 1H11 ~200 employees with HQ Irvine, CA Our Customers Over 25MM consumers each month looking for products and service
Slide 4: Our Ecosystem
Our Ecosystem 4 Flagship Property Direct SMBs White Label Sites Organic Traffic Business Listings Daily Deals Markets Publisher Partners MUVs in 2Q11 Channel SMBs Daily Deal Members Consumers Local Merchants Non-search Deals Spreebird Social Media (for merchants) Facebook, Twitter Display (for merch
Slide 5: Expanding Product Suite
Expanding Product Suite 5 Channel Local Merchants Consumers Local Premium Subscription ads on Local.com Web Hosting Basic product for ~$15/month LocalConnect Business Directory 'Local businesses' tab for newspaper, tv, radio station websites Exact Match Suite of SMB Solutions Three new ad products:
Slide 6: 4Qs Change, Challenge, Transformation Return to Growth
4Qs Change, Challenge, Transformation Return to Growth 6 (CHART) 3Q09 introduced ad feed product Acquired Octane360 - SEO & web hosting platform 4Q>2Q Yahoo/Bing impact Acquired Rovion rich media ad platform Acquired Krillion shopping data platform Launched Spreebird (daily deals) Acquired Screamin'
Slide 7: Consumer Properties
Consumer Properties 7 A record 83MM MUVs in 2Q11 Almost 40% of traffic was organic (record level) 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 travel
Slide 8: Expanding 'Exact Match' Small Business Product Suite
Expanding 'Exact Match' Small Business Product Suite 8 Exact Match suite of SMB ad products Three products released since May 2011 More products coming soon Subscription pricing from $129-$199/month Monetizing our ecosystem with direct advertisers Expanded product suite + Expanded sales capabilities
Slide 9: More Channel Products to Expand Channel Partners
9 More Channel Products to Expand Channel Partners LocalConnect Business directory plus widgets SEO-friendly increases publishers' site traffic Monetized by Local.com - we share revenues 100 Publishers, 1,500 Sites Primarily newspaper websites, but also tv, radio stations and cityguides Krillion pro
Slide 10: More Channel Products: Localizes National Ad Campaigns
10 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, regional and national agencies/media brands RAMP enables
Slide 11: Our Target Demographic
Our Target Demographic Over half of our traffic is the 'Soccer Mom' demographic Aged between 25-45 with one child or more at home Controls significant portion of the household purse strings Typically spends 80% of that money within 20 miles of home 89% of in-store purchasers in key categories have c
Slide 12: Spreebird 'Community Daily Deals' - It's Different
Spreebird 'Community Daily Deals' - It's Different 12 Daily deals is an effective product that's here to stay Closes the online-offline advertising gap: "Did my online ad drive traffic to my store?" SMBs only pay when we drive a customer to their register Top Ten deal-of-the-day business (by markets
Slide 13: Unique Local Technology Portfolio
Unique Local Technology Portfolio 13 Multiple databases with millions of SMB listings to validate business information We crawl the web and use our proprietary Keyword DNA(tm) + web indexing algorithms to generate all our search results Ingest real-time ad and data feeds from multiple partners Syndi
Slide 14: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline 14 Heath Clarke Chairman & CEO 20+ yrs exp VP eCommerce LanguageForce CEO/Founder AFP (Australia) Michael Plonski CTO 15+ yrs exp SVP/CIO & COO Digital Martha Stewart Living Omnimedia VP, CTO Tribune Information Systems, Tribune Interactive Ken Cragun CFO 20
Slide 15: Financial Performance
Financial Performance 15 (CHART) Q4-2011 annualized revenue = $96.0M Revenue Adjusted Net Income per Share Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items
Slide 16: Updated Financial Guidance
Updated Financial Guidance 16 Increased financial guidance for third quarter 2011 Revenue is expected to be approximately $21.5 million or ~38% higher than the second quarter 2011 Adjusted Net Loss is expected to be ~$1.5 million versus $1.9 million in the second quarter 2011 Projecting positive cas
Slide 17: 2Q11 Balance Sheet & Capitalization
2Q11 Balance Sheet & Capitalization 17 Key Balance Sheet Items (in thousands) Capitalization (in thousands) June 30, 2011 Cash $13,482 Accounts Receivable 10,981 Total Assets 65,546 Total Debt - Total Liabilities 12,731 Shareholders Equity $52,815 June 30, 2011 Common stock 21,274 Options 1 (Avg. Ex
Slide 18: Why Invest in Local.com?
Why Invest in Local.com? 18 Rapidly growing company in a rapidly growing market Beneficiary of secular trend towards online ad spend by SMBs Extensive technology platform and differentiated product portfolio An Attractive Position in Fast Growing Markets Growing revenue streams with considerable fut
Slide 19: Thank You
19 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
Slide 20: We Operate in the High Growth Online Advertising Market
We Operate in the High Growth Online Advertising Market 20 JiWire; Q1 2011 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 Borrell Associates; 2010 Kelsey Group; March 2011 Deal of the Day/Gro
Slide 21: P&L Trend - Quarterly
P&L Trend - Quarterly 21 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items
Slide 22: Reconciliation: Adjusted Net Income to GAAP Net Income - Quarterly
Reconciliation: Adjusted Net Income to GAAP Net Inc - Qtrly 22