REINVENTING MARKETING ALL ABOUT VELTI FOR THE MOBILE ERA. The Velti Investor Presentation MARCH 2013

Transcription

1 ALL ABOUT VELTI REINVENTING MARKETING FOR THE MOBILE ERA The Velti Investor Presentation MARCH 2013

2 SAFE HARBOR STATEMENT MARCH 2013 This presentation contains forward-looking information about the Company s business and financial outlook, including statements regarding financial guidance for the first quarter and fiscal year 2013; our expectations for revenue growth through 2016; and our expectations relating to free cash flow generation and growth rates through The achievement or success of the matters covered by such forward-looking statements involve risks and uncertainties that could cause our results to differ materially from these forward looking statements, including - but not limited to risks concerning the timing of contingent payments to our acquired companies and achieve the benefits of our acquisitions, our ability to manage our cash, obtain a waiver of our covenant violation on our credit facility, reduce DSOs and operating expenses, add new and expand existing customer relationships, and expand into new markets and verticals. 2

3 INVESTOR HIGHLIGHTS What makes Velti special World s Leading Mobile Marketing Platform Differentiation Barriers To Entry Broadest portfolio of integrated mobile marketing and advertising solutions 4.3 billion consumers potential reach / 7,000 devices / 68 countries Uniquely differentiated by combining advertising and marketing in new mobile era to deliver outcomes to the brand s CMO Single platform which aggregates a number of otherwise fragmented products Proprietary data, processing more than 3 billion data facts / day 3

4 INVESTOR HIGHLIGHTS What makes Velti special, cont. Solid Growth Improving Geographic Footprint Large Customer Base Significant revenue and gross profit growth Revenue CAGR : 50%+ Vast majority of revenue, gross profit organic 51% of revenue in the Americas and U.K. in 2012 and rapidly increasing as a percentage of total revenue Compares to 21% in ,900+ customers / 5,000+ campaigns in

5 MOBILE EXPLOSION Velti s growth fueled by 3 structural trends Trend 1 Explosive Mobile Internet Adoption Trend 2 Time Spent vs. Ad Spend Disparity Trend 3 Explosive Ad Spend Projected 2500 Mobile Internet Users Desktop Internet Users 50% Time spent on mobile devices & media spend not balanced but brands are catching on 43% 42% Time Spent Marketing Spend Significant increase in Mobile Marketing & Advertising Spend Projected % 30% 26% 22% 10x 3x $ E 2013E 2014E 2015E 20% 10% 0% 15% 15% 11% 10% 10% 4% 3% 1% TV Internet Radio Mobile Newspapers Magazines $ Source: Morgan Stanley Equity Research Source: emarketer Source: ABI Research 5

6 MOBILE ADVERTISING & MARKETING Marketing Solutions across the Purchase Funnel AWARENESS ENGAGEMENT MONETIZATION RETENTION Advertising Generates Clicks Marketing Manages the Relationship 6

7 OUR CORE STRENGTH LIES IN Leveraging marketing insights into advertising MEDIA MOBILE SITES & APPS SOCIAL MEDIA MESSAGING EXISTING CRM DATABASES VELTI S mgage PLATFORM MARKETERS GOALS CRM DB OUTCOMES Increase awareness Drive installs Stimulate usage Increase spend MEDIA CONSUMER APP 25% Growth in installs 180% Increase in sales 35% Participation rate 18% Churn Reduction Reduce attrition SOCIAL MEDIA to drive outcomes that matter to marketers! 7

8 DATA DOMINANCE Velti ties data collected from our platform, customers and other sources to provide brands a universal view of their consumer Data Gathered Impressions Clicks Click-through rate Installs Opt-ins Data Gathered Page views Site visits Time spent on site Response rate Purchases Data Gathered Participation Usage Interactions Data profile per vertical Data Gathered Payments Revenue from ads Redemption rate Amount spent Top-ups 8

9 Success Stories MAJOR AUTO MANUFACTURER Immersive mobile experience combining social media and gamification to engage consumers deeply in the brand Novel ad formats using Exchange SDK and mgage 5ml MAJOR WIRELESS CARRIER Drives loyalty and responsiveness 25-35% participation rate 9.8% increase in ARPU 21% reduction in churn MAJOR CATALOG RETAILER Average of 4.5 million customer interactions per month 6 million opt-in profiled customers 54M consumer interactions for interactive services 5.8M interactions for mobile marketing 9

10 GROWTH POTENTIAL A prime beneficiary as marketing spend shifts to mobile The Industries with the Highest Growth in Mobile Ad Spend (% change vs. 2010) Velti Customers Finance 314% Health 229% CPG 199% Retail & Restaurants 193% Automotive 185% Pharmaceuticals 159% Entertainment 133% Source: emarketer March % 50% 100% 150% 200% 250% 300% 350% 10

11 COMPETITORS ACROSS THE ECOSYSTEM ADVERTISING MARKETING Point solutions on each of advertising and marketing Emphasis has always been on leveraging multichannel, media and combining with post click knowhow Other niche mobile marketing players are still too regional focused, too services-based, too point-solution-focused Agencies are complementary: we never compete or get mistaken for one 11

12 OPPORTUNITY THESIS UNTAPPED MOBILE POTENTIAL Mobile is going to drive the future of marketing and loyalty Brands are still in the early stages of mobilizing their business and are still thinking in terms of apps, sites and messaging VELTI S PLATFORM PROMISE Integrated marketing platform for every goal and every industry Marketing funnel approach to augment digital marketing efforts and optimize the overall marketing spend LEVERAGING THE POWER OF DATA Data is key for understanding and impacting user behavior Velti s strength lies in tracking and understanding the entire conversion funnel, and using empirical data to close the path to purchase 12

13 ALL ABOUT VELTI FINANCIAL OVERVIEW The Velti Investor Presentation MARCH 2013

14 1Drive Drive Balanced Growth BUSINESS MODEL EVOLUTION 2 3 Significant Cash Generation Leverage Technology & Data 14

15 Annual Growth Summary FY 2012 $300.0 Key Annual Metrics ($ millions) $270.3 $250.0 $200.0 $150.0 $100.0 $50.0 $- $49.5 $16.7 $ CAGR: Adj. Revenue: 53% Adj. EBITDA: 65% $90.0 $62.3 $116.3 $79.6 $24.7 $27.2 $189.2 $135.3 $53.1 $178.9 $ Revenue Revenue Less 3rd Party Costs Adj EBITDA Note: Adjusted EBITDA defined as net income (loss) plus (i) income tax expense (benefit), (ii) interest expense, (iii) loss from equity method investments, (iv) foreign exchange (gains) losses, (v) depreciation and amortization, (vi) non-cash share based compensation, (vii) non-recurring expenses and (viii) other income or expense. 15

16 FY 2012 Revenue & Revenue Less 3 rd Party Costs Mix FY 2012 Revenue Mix FY 2011 vs. FY 2012 ($ millions) Revenue Less 3rd Party Costs Mix FY 2011 vs. FY 2012 ($ millions) $300.0 $250.0 $200.0 $150.0 $100.0 $189.2 $29.8 $ % 84% $270.3 $54.3 $ % 80% $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $135.3 $4.8 $ % 96% $178.9 $13.3 $ % 93% $50.0 $40.0 $20.0 $0.0 FY2011 FY2012 $0.0 FY2011 FY2012 Marketing Advertising Marketing Advertising Note: Totals may not add due to rounding 16

17 FY 2012 Geographic Breakdown of Revenue FY 2012 $300.0 Revenue by Region FY 2011 vs. FY 2012 ($ millions) $270.3 % Contribution to Revenue by Region FY 2012 $250.0 $200.0 $150.0 $100.0 $189.2 $24.0 $41.1 $ % + 55% + 98% + 13% $34.2 $63.6 $ % 13% 28% 36% $50.0 $86.3 $97.8 $0.0 FY 2011 FY 2012 Europe w/o UK UK Americas Asia/Africa Europe w/o UK UK Americas Asia/Africa 17

18 1 st Quarter and Fiscal Year 2013 Guidance FY 2012 Qtr. End. March 31 st FYE Dec. 31 st ($ in millions) Low High Low High Revenue Guidance $ 40.0 $ 44.0 $ $ Adjusted EBITDA Guidance $ (17.0) $ (15.0) $ 5.0 $ 15.0 Free Cash Flow Guidance, Exclusive of Acquisition-related Payments N/A N/A $ 5.0 $

19 Forward Growth Model FY 2012 $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 Revenue Growth Forecast ($ millions) $267.5 $178.3 $89.2 $347.8 $231.8 $115.9 $452.1 $301.4 $150.7 $587.7 $391.8 $ $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 -$20.0 -$40.0 ($48.9) FCF Growth $10.0 $40.0 $56.0 $ Advertising Marketing -$60.0 Average revenue growth rate of 25 35% per year through 2016 Average revenue mix of 1/3 Advertising and 2/3 Marketing, with approximate margins of 30% and 62%, respectively Adjusted EBITDA margin expansion of bps per year FCF generation of approximately $40M in 2014 with an approximate growth rate of 40% per year through