TiVo — Q2 FY2007 Earnings Presentation
17 slides from TiVo's earnings presentation, Aug 30, 2006
Slide 1: Second Quarter Earnings Conference Call
Second Quarter Earnings Conference Call August 30, 2006
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo’s business development strategies, current and future partnersh
Slide 3: Agenda
Agenda Tom Rogers, President & Chief Executive Officer - Highlights - Sales & Marketing Efforts - Distribution Update and MSO Plans - Product Differentiation - Litigation Steve Sordello, Senior Vice President & Chief Financial Officer Stuart West, Vice President Finance - Financial and Operational H
Slide 4: Highlights
Highlights 30% Service & Technology Revenue Growth Over 4.4 million subscriptions Advertising revenues doubles in Q2 3,000 RadioShack stores to distribute TiVo Cox Distribution Deal BellSouth Distribution Deal EchoStar Litigation
Slide 5: Sales & Marketing
Sales & Marketing TiVo.com on-line sales climb to 33% of total sales - Improves margins Special offer for three-year bundled pricing - Substantially adds subs - Increases cash balance - Positively impacts churn Dual Tuner - 54% of new subs Churn at 0.9%
Slide 6: Distribution
Distribution RadioShack - Rollout to 3,000 stores Nationwide Cox Distribution Agreement - DVR – Software Upgrade to Cable Box - TiVo Interactive Advertising Service - 4th Largest MSO Comcast - Plan to have the product available in trials before the end of 2006 - Broad distribution in early 2007 - Ov
Slide 7: Differentiation
Differentiation Dual Tuner - Solid product reviews - Retail Channel Rolled-out – May 2006 - 54% of new subs Roll-out of - Parental Control — Provides parents with freedom and flexibility to choose quality programming for children – while giving kids choice Partners — >4 million members - Growing num
Slide 8: Differentiation
Differentiation TiVoCast - Broadband video directly to television set - Early content providers include: National Basketball Association, The New York Times, Heavy, iVillage and CNET TiVo® Guru Guide Recommendations - Delivering weekly programming recommended by editorial experts at: - Sports Illust
Slide 9: Advertising
Advertising Advertising revenue doubles in Q2 Omnicom Media Group - Now have comprehensive deals with two of the three top advertising holding companies - Relationship includes purchasing of key research TiVo Audience Research & Measurement - Second by second analysis of commercial viewing - Demogra
Slide 10: EchoStar Lawsuit
EchoStar Lawsuit Victory Jury Verdict - Found willful infringement of patent - Awarded almost $74 million - Prejudgment interest of approximately $5.6 million - Supplemental damages for infringement of approximately $10.3 million - TOTAL: Over $89.6 million Motion granted for permanent injunction Mo
Slide 11: Agenda
Agenda Tom Rogers, President & Chief Executive Officer Highlights Sales & Marketing Efforts Distribution Update and MSO Plans Product Differentiation Litigation Steve Sordello, Senior Vice President & Chief Financial Officer Stuart West, Vice President Finance Financial and Operational Highlights Fi
Slide 12: Q2 Financial Metrics
Q2 Financial Metrics ($ ‘s in MMs except per share data) Service and technology revenues Costs of service and tech revs Service & tech margin Total acquisition costs 1(S&M, rebates, HW) Research and development General, administrative & legal Interest & taxes Total spending Net income/(loss) EPS Cas
Slide 13: Operational Highlights
Operational Highlights TiVo-Owned Subscription Gross Additions TiVo-Owned Monthly Churn TiVo-Owned Subscription Net Additions TiVo-Owned ARPU 74,000 0.9% 30,000 $8.88 Churn – % of Subscriptions cancelled ARPU – Average Revenue Per Subscription 1 For definitions and reconciliations, please see TiVo’s
Slide 14: Subscription Acquisition Costs
Subscription Acquisition Costs SAC (current quarter) SAC (trailing 12 months) $300 $250 $200 $150 $100 $50 $0 $139 $174 $182 $180 $180 $180 $196 $213 $229 $320 Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06 1 For definitions and reconciliations, please see TiVo’s Second Quar
Slide 15: Average Revenue Per TiVo-Owned Subscription
Average Revenue Per TiVo-Owned Subscription ARPU $9 $8 Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06 $8.88 1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
Slide 16: Guidance - Q3'07
Guidance - Q3’07 Q3 Service and Tech Revenues $54 - $56 Q3 Net Loss $(12) - $(17) mm 1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
Slide 17: Agenda
Agenda Tom Rogers, President & Chief Executive Officer Highlights Sales & Marketing Efforts Distribution Update and MSO Plans Product Differentiation Litigation Steve Sordello, Senior Vice President & Chief Financial Officer Stuart West, Vice President Finance Financial and Operational Highlights Fi