34 slides from Intelligent Protection Management's earnings presentation, Mar 14, 2016
Slide 1: FY 2015 Earnings Call & Business Update
SNAK INTERACTIVE Snap Interactive, Inc. (OTCQB: STVI) FY 2015 Earnings Call & Business Update March 14, 2016
Slide 2: Safe Harbor
Safe Harbor ‘This presentation is for discussion purposes only. The material is based upon information that we consider raliabl, but we donot represent tha iis accurate or complete, anit shoul nat be ried pon a sh, Certain statements this presentation constitute Yorard-ooking statements” relating to
Slide 3: Agenda
Agenda v SNAP Fiscal Year 2015 & Q4 Highlights v SNAP Growth Strategy v Industry Outlook y Industry Commentary by Mark Brooks of Courtland Brooks ¥ Q&A Session te.
Slide 4: FY 2015 & Q4 Highlights
FY 2015 & Q4 HIGHLIGHTS
Slide 5: 2015: Year of Reinvention
2015: Year of Reinvention * New CEO + New Board of Directors * New Strategy: Portfolio with User Database as Catalyst * New Brand for Core Product * New launch of Mobile Apps
Slide 6: Strategic Mandate: Commercialize The Database
Strategic Mandate: Commercialize The Database * New Strategy: Grow with the user database as the catalyst — Portfolio: address fragmented market with multiple strong brands — Capital efficiency + Immediate Priorities: — Rebranding of AYI to FirstMet — Reserve cash for rebranding — Cut expenses to im
Slide 7: Rebranding AYI to FirstMet
Rebranding AYI to FirstMet * Rebrand completed fayi now... March 3, 2016 y FirstMet * Why Rebrand? — Build a stronger brand foundation @ FirstMet — Reduce cost of acquisition for new users — Reactivate inactive users spe ;
Slide 8: Immediate Benefits of Rebranding: Reactivation
Immediate Benefits of Rebranding: Reactivation In the first week since the FirstMet rebrand, a larger spike in reactivated users Have not yet commenced win-back campaign Number of 30-Day-Inactive Users Reactivated via Unpaid Channels Date of Rebrand 10/10 10/17 10/24 10/31 1/7 n/a 11/21 11/28 12/5 1
Slide 9: Marketing Reductions and Managed Revenue Decline
Marketing Reductions and Managed Revenue Decline + In anticipation of rebranding, reduced AYI advertising spend in Q3 and Q4 + As anticipated, revenue declined into Q4 — 2015 Total Revenues were $12.0 million, down 11.3% from 2014 * Growth initiatives are expected to offset this effect in 2016 Reven
Slide 10: Recent Turnaround in Bookings
Recent Turnaround in Bookings + January represented the second consecutive month of growth in bookings ¢ Preliminary February figures indicate a potential third growth month Subscription Bookings (in 1000s) $900 $800 $700 $600 Nov-15 Dec-15, Jan-16 Feb-16
Slide 11: Q4 2015 Gains in Advertising Revenue
Q4 2015 Gains in Advertising Revenue * 61% improvement as compared to Q4 2014 * 10% improvement as compared to Q3 2015 * Gains came from additional ad placements and onboarding more advertisers Advertising Revenue (in 1000s) $160 $120 $80 $40 $0 42014 = Q12015 = 220153 20154 2015 11
Slide 12: Manage Expenses to Improve Profitability
Manage Expenses to Improve Profitability * 2015 Adjusted EBDITA nearly breakeven, up $456 thousand over 2014 * Total expenses down 12.5% for the full year, down 17.5% quarterly year over year Adjusted EBITDA (in 1000s) Total Expenses (in 1000s) ea — FY 2015 $(66) $15,000 us; $(200) S10 000-4 $15,303
Slide 13: Cash Flow and Balances for Q4 2015
Cash Flow and Balances for Q4 2015 * Cash flow from operating activities approximately breakeven * Cash and cash equivalents approximately level with Q3 at $2.1 million Cash and Cash Equivalents (in 1000s) ($400) _| ($394) (800) ($1,200) ($1,053) 242014 Q12015 92.2015 932015 aA 2015 42014 Q12015 Q22
Slide 14: Launch of New FirstMet Mobile Apps
Launch of New FirstMet Mobile Apps * New apps launched in March 2016 Top rete * Intensive focus on mobile going forward + All new technology makes improvements much easier te 7
Slide 15: SNAP's Mobile First Product, The Grade
SNAP’s Mobile First Product, The Grade * Q4 was strongest ever in user activity + Approximately 53 million cumulative swipes as of March 2016 * Resources shifted to FirstMet ®® Lauren Urasek
Slide 16: Growth Strategy
Slide 17: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database @ tsrow.. % FirstMet AY| Rebrand New Product Intro . * Aggressive win-back campaigns International Rebrand = Differentiation Mobile Emphasis * Cultivate 35+ market segment Potential for lower cost of acquisition 7
Slide 18: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database AY Rebrand Users New Product Intro International Mobile Emphasis B: New Pre Intr ion: * Built on existing product platform * Cross-sell from user database * Expected launch Q3 2016 18
Slide 19: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database AY Rebrand International: New Product Intro * All three FirstMet mobile platforms support translation International * Live in Spanish * Evaluating Portuguese language ; z translation in 2016 Mobile Emphasis 19
Slide 20: SNAP Growth Strategy
SNAP Growth Strategy Cultivate and expand the portfolio, building on the user database AYI Rebrand Mobile Emphasis: * All new FirstMet iPhone & Android apps New Product Intro * Focus of product innovation will be on mobile international Shifting marketing investment to mobile The Grade, our mobile f
Slide 21: Industry Outlook
Slide 22: Industry Outlook: Dating Enters the Mainstream
Industry Outlook: Dating Enters the Mainstream + Entered the mainstream — Match Group IPO / venture investment / exits — Pew Attitudes * Market penetration is up 36% since 2013' * Millennials up 170% * 55-64 up 100% * 15% US market penetration’ could grow by multiples 1, Source: Pew Research Center
Slide 23: Industry Outlook: Disruption + Fragmentation = Consolidation
Industry Outlook: Disruption + Fragmentation = Consolidation * Tinder’s popularity: — Introduced the Millennial generation to online dating — Has taken market share in the 25-35 segment * Threat to traditional pay models overblown — Free services progress to paid over time — Popular free services Po
Slide 24: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: ADJUSTED EBITDA Non-GAAP Financial Measures Adjusted EBITDA is defined as net loss adjusted to exclude interest income (expense), net, depreciation and amortization expense, gin (loss) on change in fair value of derivative liabilities, loss on disposal of fixed assets and st
Slide 25: Non-GAAP Reconciliation: Bookings
Non-GAAP Reconciliation: BOOKINGS Non-GAAP Financial Measures ‘Bookings i a financial measure representing the aggregate dollar value of subscription fees and micro-transactions received daring the period but is not a financial measure that is ealenlated and presented in accordance with GAAP. We cal
Slide 26: FY 2015 Earnings Call & Business Update
SNAK INTERACTIVE Snap Interactive, Inc. (OTCQB: STVI) FY 2015 Earnings Call & Business Update March 14, 2016
Slide 27: Mark Brooks: Commentary on the Interactive Dating Industry
Mark Brooks: Commentary on the Interactive Dating Industry 0% ? Courtland Brooks
Slide 28: Mobile vs Desktop Traffic
Mobile vs Desktop Traffic Worldwide =Desktop =Mobile 100% 80% 60% 40% 20% 0% 2009 2010 2011 2012 2013 2014 2015 2016 28 000 StatCounter, Jan 2016 Céurtland Brooks
Slide 29: Mobile vs Desktop Traffic
Mobile vs Desktop Traffic India =Desktop =Mobile 100% 80% 60% 40% 20% 0% 2009 2010 2011 2012 2013 2014 2015 2016 29 000 StatCounter, Jan 2016 Céurtland Brooks
Slide 30: Mobile vs Desktop Traffic
Mobile vs Desktop Traffic North America =Desktop =Mobile 100% 80% oo 60% 40% 20% se 0% 2009 2010 2011 2012 2013 2014 2015 2016 30 10, StatCounter, Jan 2016 8urtland Brooks
Slide 31: Dating Visitors By Access Method (US, %)
Dating Visitors By Access Method (US, %) ©Desktop ©@Mobile Jul 2013 Nov Feb Jul2014 Nov Jul2015 Nov 2013 2014 2014 2015 31 10, comScore, Nov 2015 Surtland Brooks
Slide 32: "We match people based on who they tell us they are"
“We match people based on who they tell us they are, and on what they say they want. But they often fib, and don’t really know what they want. We have to observe behavior to know who they really are, and what they really want.” Mark Brooks Courtland Brooks 32 20 Courtland Brooks
Slide 33: Mark Brooks: Commentary on the Interactive Dating Industry
Mark Brooks: Commentary on the Interactive Dating Industry 0% ? Courtland Brooks
Slide 34: Questions & Answers