Slide 1: Local.com Corporate Overview August 2011
Local.com Corporate Overview August 2011 We Connect Local Merchants with Online Consumers
Slide 2: Safe Harbor Statement; Non-GAAP Financial Measures
Safe Harbor Statement; Non-GAAP Financial Measures 2 Certain matters being discussed by Local.com'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 statement
Slide 3: Local.com Corporation Overview
Local.com Corporation Overview Founded in '99 Public (NASDAQ: LOCM) since 2004 Developed local search tech. in 2002 and began transition into local in 2005 Significant revenue and product diversification in past year ~200 employees with HQ Irvine, CA Our Customers Over 25MM consumers across over 100
Slide 4: Experienced Team with Strategy Discipline
Experienced Team with Strategy Discipline 4 Heath Clarke Chairman & CEO 20+ yrs exp VP eCommerce LanguageForce CEO/Founder AFP (Australia) Michael Plonski CTO 15+ yrs exp SVP/CIO & COO Digital Martha Stewart Living Omnimedia VP, CTO Tribune Information Systems, Tribune Interactive Ken Cragun CFO 20+
Slide 5: 4Qs Change, Challenge, Transformation / Return to Growth
4Qs Change, Challenge, Transformation Return to Growth 5 Revenue 3Q09 introduced ad feed product Acquired Octane360 - SEO & web hosting platform 4Q>2Q Yahoo/Bing impact Acquired Rovion rich media ad platform Acquired Krillion shopping data platform Launched Spreebird (daily deals) Acquired Screamin'
Slide 6: Better Differentiation with a Greatly Enhanced Product Suite
Better Differentiation with a Greatly Enhanced Product Suite 6 Regional Media Publishers Local Merchants Consumers Local Premium Subscription ads on Local.com Web Hosting Basic product for ~$15/month LocalConnect Directory Solution Local search tab for newspaper/ tv/radio station websites Exact Matc
Slide 7: Consumer Properties
Consumer Properties 7 A record 83MM MUVs in 2Q11 Almost 40% of traffic was organic (record level) Balance of traffic via SEM (Google/Yahoo/Bing) All users doing local+commercial searches 100,000 Sites Either owned or hosted on our platform Business search and more on Local.com Daily deals and travel
Slide 8: Expanding Small Business Product Suite
Custom rich media display units Premium placement on Local.com Unique call to action Targeted business-specific images Top leader board placement Interactive user experience $199/month Expanding Small Business Product Suite Our Products Connect Local Merchants with Online Consumers Targeted lead gen
Slide 9: Expanding Regional Media Product Suite
9 Rich media ad management platform RAMP enables regional media publishers/retailers/ agencies & web publishers to provide: Agency quality creative with web-based drag-and- drop interface Digital assets and content libraries Ad creation console for expandable, floating, pre- page interstitial banner
Slide 10: Spreebird Daily Deals - It's Different
Spreebird Daily Deals - It's Different 10 Top Ten deal-of-the-day business (by markets) Acquired Screamin' Daily Deals July 2011 Fourteen markets with plans for 20+ by EOY11 Deals is an exciting new local performance ad product Closes the online-offline advertising gap: "Did my online ad drive traff
Slide 11: Our Target Demographic
Our Target Demographic Over half of our traffic is the 'Soccer Mom' demographic Aged between 25-45 with one child or more at home Controls significant portion of the household purse strings Typically spends 80% of that money within 20 miles of home 89% of in-store purchasers in key categories have c
Slide 12: Unique Local Technology Portfolio
Unique Local Technology Portfolio 12 Multiple databases with millions of SMB listings to validate business information We crawl the web and use our proprietary Keyword DNA(tm) + web indexing algorithms to generate all our search results Ingest real-time ad and data feeds from multiple partners Syndi
Slide 13: Financial Performance
Financial Performance 13 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 Attractive Position in Fast Growing Markets Growing revenue streams with strong growth potentia
Slide 14: Return to Growth Revenue
Return to Growth 14 Revenue Projecting 35% revenue growth from 2Q11 to 3Q11 Lower loss - tbd based on performance of new ad feed configuration and recent acquisitions
Slide 15: 2Q11 Balance Sheet & Capitalization
2Q11 Balance Sheet & Capitalization 15 Key Balance Sheet Items (in thousands) Capitalization (in thousands) June 30, 2011 Cash $13,482 Accounts Receivable 10,981 Total Assets 65,546 Total Debt - Total Liabilities 12,731 Shareholders Equity $52,815 June 30, 2011 Common stock 21,274 Options 1 (Avg. Ex
Slide 16: Why Invest in Local.com?
Why Invest in Local.com? 16 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 An Attractive Position in Fast Growing Markets Growing revenue streams with considerable fut
Slide 17: Thank You
17 Thank You Heath Clarke Chairman & Chief Executive Officer hclarke@local.com Ken Cragun Chief Financial Officer kcragun@local.com 949.784.0800 http://corporate.local.com
Slide 18: We Operate in the High Growth Online Advertising Market
We Operate in the High Growth Online Advertising Market 18 JiWire; Q1 2011 We compete in several high-growth local ad segments... Local search - 14.2% 2011-2012 Display/rich media - 15.5% 2011-2012 Deal-of-the-day - extreme growth Borrell Associates; 2010 Kelsey Group; March 2011 Deal of the Day/Gro
Slide 19: Reconciliation: Adjusted Net Income to GAAP Net Income
Reconciliation: Adjusted Net Income to GAAP Net Income 19
Slide 20: Reconciliation: Adjusted Net Income to GAAP Net Income - Quarterly
Reconciliation: Adjusted Net Income to GAAP Net Inc - Qtrly 20
Slide 21: P&L Trend - Annual
P&L Trend - Annual 21 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items
Slide 22: P&L Trend - Quarterly
P&L Trend - Quarterly 22 Adjusted Net Income (Loss) = Net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, warrant revaluation charges, and non-recurring Items