32 slides from Intelligent Protection Management's investor presentation, Jan 6, 2015
Slide 1: Snap Interactive Investor Presentation
INTERACTIVE Snap Interactive, Inc. (OTCQB: STVI) Investor Presentation January 2014
Slide 2: Disclaimer
Disclaimer ‘This presentation is for discussion purposes only. The materials based upon information that we consider reliable, but we do not represent thatitis accurate or complete, and it should nat be relied upon as such. Certain statements in this presentation constitute “forward-looking statemen
Slide 3: Table of Contents
se Table of Contents 1. Company Overview 2. Investment Thesis 1: Competitive Advantages 3. Investment Thesis 2: Compelling Business Economics 4. Investment Thesis 3: Attractive Industry and Peer Comparisons 5. Financial and Investor Considerations 6. Contact Information
Slide 4: Company Overview
Company Overview
Slide 5: SNAP Company Snapshot
SNAP Company Snapshot + Stock Price at 1/2/15: $0.25 * High/Low (52 Weeks): $0.51 - $0.18 * Average Daily Volume: 19,770 shares * Shares Outstanding: 39.2 million * Insider Ownership: 63.2%" Market Cap (at 1/2/15) : $9.8 million Cash (as of 9/30/14): $0.9 million Revenue (Q3 2014 and 2013): $3.5 mil
Slide 6: Management Bios
se Management Bios Cliff Lerner has served as our President, Chief Executive Officer and Cliff Lerner Chairman of our Board of Directors since founding the Company in CEO fA 2005. Mr. Lerner has a strong knowledge and understanding of the interactive dating industry and has managed the development a
Slide 7: SNAP is at the Vanguard of Dating 2.0
SNAP is at the Vanguard of Dating 2.0 * Snap is a pioneer and leader in the next generation of dating services, which position dating as social entertainment rather than self-help * The success of services like Tinder have demonstrated the broad appeal of a game- like approach to dating services, wi
Slide 8: SNAP's Core Product Is AYI
te SNAP’s Core Product Is AYI Not atuao Allraderansare proper of theirrespecive owners
Slide 9: "The Grade" Is SNAP's Newest Application
“The Grade” Is SNAP’s Newest Application * The Grade is an innovative iOS dating app launched on November 10, 2014 — Covered by Fox, ABC & NBC affiliates, Time, MSN, NPR, NY Post, Daily News, VH1, and Business Insider * The Grade aims to create a community high-quality daters who are desirable, arti
Slide 10: SNAP Timeline
ie. SNAP Timeline * SNAP has a history as an innovator in social dating, as one of the first online dating applications to leverage the Facebook platform for user acquisition * The Company’s active subscriber count increased approximately 30% during calendar year 2014 growth to $19.2 MM pany in NA.
Slide 11: SNAP Revenue Growth
te SNAP Revenue Growth * Investment in product and technology infrastructure in 2013 has fueled recent sequential quarterly revenue growth * 30% of new subscriptions are from repeat subscribers Snap Quarterly Revenue {$ in Millions) $35 $3.4 — a —_— 03 2013 a4 2013 a1 2014 a2 2014 03 2014 rt
Slide 12: Q3 2014: Positive Adjusted EBITDA & Positive Cash Flow
se Q3 2014: Positive Adjusted EBITDA & Positive Cash Flow * SNAP has shown strong progress in profitability and cash flow metrics Adjusted EBITDA $200 s (200) (400) (600) (800) (3,000) $2,200) 32013 as 2013 22014 32014 Net Cash Provided by (Used In) Operating Activities $(200) (400) $(600) (800) $(2
Slide 13: SNAP Recent History
Pras SNAP Recent History * STVI stock price has not correlated with subscriber gains over the last twelve months SNAP Stock Price vs. Subscriber Count $060 105,000 109,000 seas | 95,000 sr cosine rice 20,000 atv Subscribers $030 | 85,000 50000 so3s + : ; 75000 re ee eee ee ae: reer er er oe ov vo ww
Slide 14: Growth is Fueled By Mobile Activity
se Growth is Fueled By Mobile Activity 7 Mobile contribution to user AYlis consistently a top ranked activity nearly tripled since iPhone App January 2013 Mobile Logins as % of Total Daily Logins 2 o PP Pe oo PS es PPP Ps PPL S
Slide 15: Investment Highlights
se Investment Highlights 1. Competitive Advantages * Constant Experimentation Drives Innovation + World-Class Analytics 2. Compelling Business Economics + Superior Marketing Efficiency * Achieved Q3 2014 Positive Cash Flow 3. Attractive Industry & Peer Comparisons + Favorable Industry Dynamics + Val
Slide 16: Investment Thesis: Competitive Advantages
ae Investment Thesis 1 AYl.com Has Several Competitive Advantages 1. Constant Experimentation Drives Innovation 2. World-Class Analytics
Slide 17: SNAP's Data-Driven Product Optimization
se SNAP’s Data-Driven Product Optimization ¢ SNAP has industry-leading application testing infrastructure — In Q4 2014, the Company initiated approximately 100 product tests — More than 3MM permutations of AYI are operated and measured simultaneously * Continuous product improvement based on live us
Slide 18: Case Study: Optimization of Message Replies
se Case Study: Optimization of Message Replies vw The Goal Background: message reply rates correlate strongly with revenue Q1 2014 SNAP internal goal: 400% increase in message replies Average revenue per user (ARPU) expected to correspondingly increase Replissfortop9vi countries. T-dayavg.ARPU gener
Slide 19: Investment Thesis: Compelling Business Economics
ae Investment Thesis 2 Compelling Business Economics ¢ Superior Marketing Efficiency * Cash Flow Positive Results in Q3 2014
Slide 20: Superior Marketing ROI
5a Superior Marketing ROI * Recent advertising and marketing expense of $1 has generated nearly $3 of revenue * SNAP’s overall revenue yield from advertising and marketing expense exceeds that of public competitors Spark ( 3 annual data) jetworks Revenue $3.5 $12.6 $178.2 $69.4 User Acquisition Cost
Slide 21: Cash Flow Positive in Q3 2014
ee Cash Flow Positive in Q3 2014 * SNAP produced $377 thousand net cash flow from operating activities in Q3 2014, versus -$1.1 million in Q3 2013 ¢ Apart from marketing and payment processing expenses, the majority of SNAP’s expenses can be constrained while revenue grows Reconciliation of Increase
Slide 22: Investment Thesis: Attractive Industry and Peer Comparisons
ae Investment Thesis 3 Attractive Industry and Peer Comparisons ¢ Favorable Industry Dynamics * Valuation Discount to Peers
Slide 23: The Interactive Dating Market Opportunity
The Interactive Dating Market Opportunity A Large Addressable Market... US-based online dating was a $1.3BIn market in 2012, with estimates of $4Bln for the global market? US Market: $1.3 Bin? ..Going Increasingly Mainstream... In 2013, 59% of Americans agreed that “online dating is a good way to me
Slide 24: Snap in the Competitive Landscape
se Snap in the Competitive Landscape AYI’s Position in the Online Dating Market Seniors Ourlime > ron > > match.com Free Freemium —» Premium Only Communication reemium* communication * Our publicly traded competitors include: IAC (IACI) MeetMe (MEET) Spark Networks (LOV) Jiayuan.com International Lt
Slide 25: Attractive Valuation
te Attractive Valuation COMPARABLE COMPANY ANALYSIS Morket Anobsi ev J mevenoe 2) ev /eem (3) stockice High Lowe ‘i ee) Mensa ee ee * There are few true dating comparables with a subscription model; Spark Networks is the closest * Peer companies trade at more than 2.5x Snap’s revenue multiple
Slide 26: Financial and Investor Considerations
ae Financial and Investor Considerations
Slide 27: SNAP Growth Initiatives for 2015 & Beyond
se SNAP Growth Initiatives for 2015 & Beyond * Snap Interactive is buildinga portfolio of social entertainment applications, adopting the proven business strategy of industry leaders like Match.com * Aportfolio approach in the dating industry has a host of benefits: — Cross-selling millions of users
Slide 28: SNAP Growth Initiatives for 2015 & Beyond
se SNAP Growth Initiatives for 2015 & Beyond SNAP is developingor in exploration of several high prospect growth opportunities at present: * Add-on (non-subscription) transactions on AYI powered by a virtual currency * Scaling The Grade, focusing on PR and word-of-mouth * Anew product addition to th
Slide 29: Recent Financial Performance
Pras Recent Financial Performance INCOME STATEMENT (In 1,000s) 2014 2018 i ae =m =| ‘Subscription revenue 319934513240 3420-3180 29982994 ‘Advertsing revenue 153, 299 244 42 2 2 4 49| Total revenue 3292 «34503485 [ce —«SA7O~—««t52—=«2900=—=—« 2909 | Programming, hosting and technology 942 670 6e7 ME
Slide 30: Adjusted EBITDA GAAP Reconciliation
Adjusted EBITDA GAAP Reconciliation Three Months Ended September30, June 30, ‘March3i, -December31, __ September30, 2014 2014 2014 2014 2013, Reconciliation of Net Income (Loss) to Adjusted EBITDA: Net loss S (217/588) $ (259,673) $ (933,088) $ (659,782) $ (1,718,747) Interest expense (income), net
Slide 31: Cap Table & Ownership
Pras Cap Table & Ownership Outstanding % posted Shares Outtanaing ites 2.005.000 | sex 9.250000 2.275000] 63% srsr06| 44% 4,075,000 0.200.006] 37% TEES 100% EAT ERTS 100% Warrants Outstanding 2,367,500 Options Outstanding Aor o2a ETRE *consists of directors and executive officers as of 9/30/14. #4
Slide 32: Contact Information
se Contact Information Email: Cliff Lerner: Cliff@snap-interactive.com Alex Harrington: Alex@snap-interactive.com Investor Relations: |R@snap-interactive.com Company Address: 462 7th Avenue, 4°" Floor New York, NY 10018 Phone: (212) 967-5120