25 slides from Intelligent Protection Management's investor presentation, Aug 14, 2013
Slide 1: Snap Interactive, Inc. Investor Presentation
SNAKs INTERACTIVE Snap Interactive, Inc. (OTCBB: STVI) Investor Presentation August 14, 2013
Slide 2: Disclaimer
<a Disclaimer ‘This presentation i for discussion purposes only. The materia is based upon information that we consider reliable, but we do not represent thatit is accurate or complete, and it should not be relied upon as such. Certainstatements in this presentation constitute “forward-ooking statem
Slide 3: Table of Contents
. Mission . Company profile . Why we will win Differentiated functionality Unit profitable direct marketing . The science of optimization . Use of proceeds . Competitive landscape . Conclusion Table of Contents
Slide 4: AYI's Mission
se = AYI’s Mission To be the biggest dating site in the world.
Slide 5: AYI
AYI ee 5 2 a
Slide 6: Company Profile
ye Company Profile * Ticker: STVI— Trades on OTCBB * Founded in 2005 * $750,000 raised through 2007 and $8.5 Million raised in 2011 * Located in New York City with ~50 full-time employees * Ranked the 36th Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500: 4,412% Revenu
Slide 7: Management Bios
ae Management Bios + Cliff Lerner has served as our President, Chief Executive Officer and Chairman of our Board of Directors since founding the Company in 2005. Mr. Lerner has a strong knowledge and understanding of the online dating industry and has managed the product development and growth foral
Slide 8: Large and Growing Market
se Large and Growing Market * U.S. Dating Market) * Approximate Market Size in 2012 - ~$2.1B * Dating Websites Captured 62% (or $1.3B) of the total * Estimated Market Size in 2015 - ~$2.5B * Worldwide Online Dating Market * Estimated at $4B in 2012")
Slide 9: Why We Will Win
aye Why We Will Win * Differentiated Functionality —Our scale on Facebook positions us to build THE “Social Dating” experience * Social Graph — 20 Million Facebook Connected Users with Friends of Friends Results — very costly to replicate * Interest Graph — 1 Billion+ Pieces of Structured Interest D
Slide 10: Differentiated Functionality — Friends of Friends
Differentiated Functionality — Friends of Friends Browse Friends of Friends Ask Your Friends
Slide 11: Differentiated Functionality — Interest Search
se Differentiated Functionality — Interest Search 1 BILLION+ PIECES OF STRUCTURED DATA ENABLES US TO PROVIDE A ROBUST RELATED INTEREST SEARCH EXPERIENCE.
Slide 12: Differentiated Functionality — Friends and Interests
5a Differentiated Functionality — Friends and Interests What Linked [J has done for professional networking AYI aims to do for meeting new people.
Slide 13: Unit Profitable Direct Marketing
se ~ Unit Profitable Direct Marketing ¢ AYI operates on a “Freemium” model — AYI acquires free users that interact with the site — Advertisers are paid when a user clicks on an ad and registers on the site * AYI converts free users to paying users by locking valuable content — Messages — Profile vie
Slide 14: Comparison — Free v. Premium Users
Be Comparison — Free v. Premium Users Member Benefits Free Premium Create a profile Browse and click 'Yes’ Send first message to any user 4466 Send IM's Unlimited messaging ‘Non-Premium users can respond to your messages {666666 ‘See who viewed your profile 4
Slide 15: Customer Acquisition
se Customer Acquisition ¢ AYl is a direct marketing business — Internal tools measure our projected ROI on hundreds of ad campaigns in real time — Native apps on Facebook, iOS, Android, along with website and mobile web provide opportunities to acquire users across all platforms * Customer acquisiti
Slide 16: Conversion is Increasing
5a Conversion is Increasing ¢ User acquisition metrics continue to improve * Conversion is increasing * New features are more engaging ‘Average Sub Rate After First 15 Days * ‘Average Sub Rate After First 15 Days * war WAT op outi
Slide 17: The Science of Optimization
se The Science of Optimization * Superior & Customized Real-Time Analytics * Real-time Proprietary AB Testing System * Can deploy any test to 10% of users within seconds * Splunk integration enables real-time granular cohort analysis
Slide 18: Optimization Machine Has Already Led To Significant Increases in KPI's
5a Optimization Machine Has Already Led To Significant Increases in KPI's + Implemented Q4 2012, still in the “first inning” * ~10 tests being run simultaneously at all times * Tests include: new features, new landing pages, algorithm changes, new designs, usability tests, etc. ‘Average Sub Rate Aft
Slide 19: Example Of A Recent Test Of Social Features
5a Example Of A Recent Test Of Social Features * Hypothesis: Displaying mutual friends and mutual interests will increase user messaging ne ( 20.2) (36 nero en: Are You Interested? B&B Dana, 30 ek
Slide 20: Results Of Test - Female Engagement Up Sharply
*Females are 71% more likely to click ‘Yes’ on a man when there is a friend in common. Robust analytics identified cohorts of users where tests outperform, such as women in this test. Results Of Test - Female Engagement Up Sharply ‘Mutual Friend or Interest and The Likelihood a US Woman Mutual Frien
Slide 21: Unit Economics Work
Unit Economics Work * Bookings is growing again after declining in the second half of 2012 as a result of our recent pivot Reconciliation of Revenue to Bookings Revenue Chgin Deferred Rev Total Bookings ‘Ad Spend oct-s2[s 1350764 [$ G35 907] $ 114847 [$ ESR Nov-12| § 1,234,304 |$ (273,362)| $ 1.020.
Slide 22: Unit Economics Work — Non-GAAP Financial Measures
eae Unit Economics Work Non-GAAP Financial Measures We have provided a non-GAAP financial measure in this presentation, bookings, to supplement certain financial information prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management uses this non-G
Slide 23: Unit Economics Work
se Unit Economics Work * The current fixed cost base can scale multiples of current revenue * The unit economics work — Based on June 2013 data * Each $1.00 invested in user acquisition is expected to return $1.67 in 12 months and $1.92 in 24 months * Each $1.00 invested in user acquisition is expec
Slide 24: Current Spend Projected to Return in Months
e. Current Spend Projected to Return in 6 Months User Acquisition - Actual or Projected Time to Breakeven (Months) 2s ‘mmm Months to Breskeven 3 Month Moving average
Slide 25: Competitive Landscape
se Competitive Landscape * SNAP is currently trading (as of 8/9) at ~2.0X 2012 revenues * Our publicly traded competitors include — IAC (IACI) — MeetMe (MEET) — Spark Networks (LOV) — Friend Finder Networks (FFN) — Jiayuan.com International Ltd. (DATE)