Slide 1: Corporate Overview
Exhibit 99.1 Corporate Overview June 2012
Slide 2: Forward looking statements
Forward looking statements ………………..……………………………………. Certain matters being discussed by Local Corporation’s management today and non-recurring items. Adjusted Net Income/Loss, as defined above, is not a include forward looking statements which are made pursuant to the Safe measurement under GAAP. Adju
Slide 3: Agenda
Local Corporation ..……………………………..……………………………………. Agenda 1. Business Overview 2. Growth & Momentum 3. Growth Opportunities 4. Financial Update 3 CORPORATE OVERVIEW | JUNE 2012
Slide 4: Business Overview: Executive Summary
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 million
Slide 5: Business Overview: Beneficiary of Secular Trends
Business Overview: Beneficiary of Secular Trends ..…………………. Digital media is going local.... …& we have assets in all areas 5 CORPORATE OVERVIEW | JUNE 2012
Slide 6: Business Overview – Why Local Consumers Matter
Business Overview – Why Local Consumers Matter ………….………. Pay-per-click rates for local versus national keyword terms… Click Premium Bids* Search Term Plumber $9.55 282% Plumber Los Angeles $26.91 Credit Union $0.91 235% Seattle Credit Union $2.14 Restaurant $1.39 139% San Francisco Restaurant $1.93
Slide 7: Business Overview: Our Model
Business Overview: Our Model WE AGGREGATE & PUBLISH LOCAL CONTENT THAT CONTENT IS INDEXED BY SEARCH ENGINES LOCAL BUSINESS DATA (deals, coupons, product info, business content, events, MAJOR activities, ratings & reviews SEARCH and more) ENGINES WE MONETIZE THAT TRAFFIC OVER 30MM PROPRIETARY NETWORK
Slide 8: Growth & Momentum: Traffic
Growth & Momentum: Traffic 8 CORPORATE OVERVIEW | JUNE 2012
Slide 9: Growth & Momentum: Monetization
Growth & Momentum: Monetization 9 CORPORATE OVERVIEW | JUNE 2012
Slide 10: Growth Opportunities: Traffic & Monetization
Growth Opportunities: Traffic & Monetization • Grow traffic » Expand network from 1,200 sites via business development » Increase volume of traffic per site – New channel products e.g. real-time product directory from Krillion acquisition 1. Grow organic traffic to at least – Refine SEO to increase
Slide 11: Growth Opportunities: A Complete Digital Media Solution
Growth Opportunities: A Complete Digital Media Solution • ExactMatch, sold to small and medium sized business for a groundbreaking $199 per month » Sold via our own salespeople today – Ramping each month » An incredibly flexible channel solution – Channel sales of certain modules starting 3Q12 11 CO
Slide 12: Growth Opportunities: Case Study: Fabi's Hair Studio
Growth Opportunities: Case Study: Fabi’s Hair Studio Facebook and Twitter pages engage customers and increase awareness Beautiful site design and web hosting with geo-targeted URL and custom content Mobile-optimized site A consistent brand features directions and and user experience click-to-call ac
Slide 13: Growth Opportunities: Case Study: Fabi's Hair Studio
Growth Opportunities: Case Study: Fabi’s Hair Studio …..….………. Display ad and enhanced listing on Local.com raise awareness in local markets Search engine optimization ensures top placement on major search engines More direct customers = Better monetization Greater margins Greater defensibility More
Slide 14: Proprietary Technologies Power Our Platform
Proprietary Technologies Power Our Platform …………………..………. Our powerful platform incorporates a unique combination of technologies that provide an increasingly differentiatedsuiteof digitalmediasolutions fora widerangeof customers 9 patents issued, 11 pending in local, mobile, search engine data & di
Slide 15: An Experienced Team with Strategy Discipline
An Experienced Team with Strategy Discipline ………………….………. Heath Clarke Mike Sawtell Ken Cragun Founder, Chairman & CEO President & COO CFO 20+ yrs exp 20+ yrs exp 20+ yrs exp Founded Local in ’99 Chairman & CEO, DigitalPost Interactive CFO Modtech VP eCommerce LanguageForce Pres. & COO , Interchange
Slide 16: Financial Update: Long Term Growth
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 16 CORPORATE OVERVIEW | JUNE 2012 Note: See reconciliation of Ad
Slide 17: Financial Update: Organic/Direct Revenue %
Financial Update: Organic/Direct Revenue % ………………..….………. 17 CORPORATE OVERVIEW | JUNE 2012
Slide 18: Financial Update: 1Q12 Balance Sheet & Cap. Table
Financial Update: 1Q12 Balance Sheet & Cap. Table ………...………. Key Balance Sheet Items Capitalization (in thousands) (in thousands) March 31, 2012 March 31, 2012 Cash $6,787 Common stock 22,083 1 Accounts Receivable 14,370 Options (Avg. Strike $4.29) 4,775 1 Total Assets 72,155 Warrants (Avg. Strike $
Slide 19: Why Invest in Local Corporation?
Why Invest in Local Corporation?…………………………..…….………. • Rapidly growing company in a rapidly growing market An Attractive Position • Beneficiary of secular trend towards online ad spend by SMBs in Fast Growing Markets • Extensive technology platform and differentiated product portfolio • Growing reven
Slide 20: Thank You
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 20 CORPORATE OVERVIEW | JUNE 2012
Slide 21: P&L Trend
P&L Trend ……………………………………………………………….……….………. Actual Actual Forecast Description FY-10 FY-11 FY-12 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) I
Slide 22: Reconciliation: Adjusted Net Income to GAAP Net Income
Reconciliation: Adjusted Net Income to GAAP Net Inc ……..………. Actual Actual Forecast Description FY-10 FY-11 FY-12 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 amortization