Local,inc. · TSE:470A
Local,inc — Local.Com — Investor Presentation (July 2012)
22 slides from Local,inc's investor presentation, Jul 24, 2012
Slide 1: Corporate Overview 3Q2012
Corporate Overview 3Q2012 Exhibit 99.1
Slide 2: Forward looking statements
2 ………………..……………………………………. Forward looking statements Certain matters being discussed by Local Corporation’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 s
Slide 3: Agenda
3 ..……………………………..……………………………………. Local Corporation Agenda 1. Business Overview 2. Growth & Momentum 3. Growth Opportunities 4. Financial Update
Slide 4: Business Overview: Executive Summary
4 .…………………………………. Business Overview: Executive Summary Founded 1999, IPO 2004: NASDAQ : LOCM 1. We connect local businesses with online consumers and generate revenue from ads 2. Ads mostly from third-parties like Google/Yahoo/ATTi etc, but increasingly from direct customers 3. We serve over a milli
Slide 5: Business Overview: Beneficiary of Secular Trends
5 Business Overview: Beneficiary of Secular Trends Digital media is going local.... …& we have assets in all areas
Slide 6: Search Term Click Bids Premium
6 Search Term Click Bids* Premium ………….………. • The ‘Soccer Mom’ demo » Aged between 25-45 with one or more child at home » Controls significant portion of the household spend » Typically spends 80% of that money within 20 miles of home • 89% of in-store purchasers in key categories have conducted onl
Slide 7: Business Overview: Our Model
PROPRIETARY NETWORK OF 1,200+ SITES 7 Business Overview: Our Model LOCAL BUSINESS DATA (deals, coupons, product info, business content, events, activities, ratings & reviews and more) WE AGGREGATE & PUBLISH LOCAL CONTENT THAT CONTENT IS INDEXED BY SEARCH ENGINES WE MONETIZE THAT TRAFFIC MAJOR SEARCH
Slide 8: Growth & Momentum: Traffic
8 ..……………..……………………………………. Growth & Momentum: Traffic
Slide 9: Growth & Momentum: Monetization
9 ..…..……………………………………. Growth & Momentum: Monetization
Slide 10: Growth Opportunities: Traffic & Monetization
10 PROPRIETARY NETWORK OF 1,200+ SITES …………..……….………. Growth Opportunities: Traffic & Monetization • Increase monetization of traffic » Optimize yield from ads via better analytics » Optimize marketing spend » Increase yield with more direct customers – Sell more products – Compete with better produ
Slide 11: Growth Opportunities: A Complete Digital Media Solution
11 Growth Opportunities: A Complete Digital Media Solution • ExactMatch, sold to small and medium sized business for $249 per month » Sold via our own salespeople today – Ramping each month » An incredibly flexible channel solution – Channel sales of certain modules starting 3Q12
Slide 12: Case Study: Fabi's Hair Studio
Facebook and Twitter pages engage customers and increase awareness Mobile-optimized site features directions and click-to-call Beautiful site design and web hosting with geo-targeted URL and custom content A consistent brand and user experience across multiple channels add to business credibility 12
Slide 13: Case Study: Fabi's Hair Studio
13 Display ad and enhanced listing on Local.com raise awareness in local markets Search engine optimization ensures top placement on major search engines …..….………. Growth Opportunities: Case Study: Fabi’s Hair Studio • More direct customers = » Better monetization » Greater margins » Greater defensi
Slide 14: Proprietary Technologies Power Our Platform
14 …………………..………. Proprietary Technologies Power Our Platform 12 million SMB listings across multiple databases to validate and enhance business information daily deals personalization engine highly scalable geo-category domain acquisition based on consumer usage analysis real-time product inventory
Slide 15: An Experienced Team with Strategy Discipline
15 ………………….………. An Experienced Team with Strategy Discipline Heath Clarke Founder, Chairman & CEO 20+ yrs exp Founded Local in ’99 VP eCommerce LanguageForce CEO/Founder AFP (Australia) Erick Herring SVP Technology Founder Townloop CTO Feedback.com CTO, VP Product Webvisible CTO Adapt Technologies K
Slide 16: Financial Update: Long Term Growth
16 ………………………….…….………. Financial Update: Long Term Growth • 50% YoY revenue growth (Q1’12 over Q1’11) • ~40% CAGR 2006-2012 • 2Q12 Revenue guidance: $27MM and $150K Adjusted Net Income • FY12 Revenue guidance: $110MM – 40% higher than 2011 Note: See reconciliation of Adjusted Net Income to GAAP net i
Slide 17: Financial Update: Organic/Direct Revenue %
17 ………………..….………. Financial Update: Organic/Direct Revenue %
Slide 18: Financial Update: 1Q12 Balance Sheet & Cap. Table
18 Capitalization (in thousands) Key Balance Sheet Items (in thousands) ………...………. Financial Update: 1Q12 Balance Sheet & Cap. Table 1. Options and warrants represent approximately $30MM in cash Additional Data: I. II. III. March 31, 2012 Cash $6,787 Accounts Receivable 14,370 Total Assets 72,155 To
Slide 19: Why Invest in Local Corporation?
19 …………………………..…….………. Why Invest in Local Corporation? • 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 • Growing revenue streams with considerable future growth
Slide 20: Thank You
20 Thank You Heath Clarke Founder, Chairman & Chief Executive Officer hclarke@local.com Ken Cragun Chief Financial Officer kcragun@local.com 949.784.0800 http://www.localcorporation.com
Slide 21: P&L Trend
21 Description FY-10 FY-11 FY-12 ……………………………………………………………….……….………. P&L Trend Actual Actual Forecast Revenue $ 84,137 $ 78,763 $ 110,000 Sequential revenue growth 49% -6% 40% Gross Margin 37,620 29,444 Gross Margin % 45% 37% Other Operating Expenses 33,908 46,042 Operating income (loss) 3,712 (16,598
Slide 22: Reconciliation: Adjusted Net Income to GAAP Net Income
22 Description FY-10 FY-11 FY-12 ……..………. Reconciliation: Adjusted Net Income to GAAP Net Inc Actual Actual Forecast Adjusted Net income (loss) $ 13,775 $ (2,576) $ 1,300 Plus interest and other income (expense), net (275) (413) (400) Less provision for income taxes (102) (181) (150) Less amortizati