RLOC: Investor Update June ReachLocal, I nc.

Transcription

1 RLOC: Investor Update June 2015

2 Safe Harbor These slides and the accompanying oral presentation contain forward-looking statements and information. All statements other than statements of historical facts in these slides and the accompanying oral presentation, including statements regarding our future financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believe, may, might, objective, estimate, continue, anticipate, project, intend, will, should, could, plan, future, expect, predict, potential, target or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual events or results could differ materially from those expressed or implied by these forward-looking statements as a result of various factors, including: (i) our ability to rectify the challenges associated with our North American sales operations; (ii) our ability to obtain cost savings contemplated by our cost reduction initiatives; (iii) our ability to purchase media and receive rebates from Google, Yahoo! and Microsoft under commercially reasonable terms; (iv) our ability to recruit, train and retain our salespeople; (v) our ability to attract and retain customers and compete with a wide range of competitors on both price and product offering; (vi) our ability to satisfy the covenants under our term loan; (vii) our ability to successfully enter new markets and manage our international expansion; (viii) our ability to successfully develop and offer new products and services in the highly competitive online advertising industry; (ix) the impact of worldwide economic conditions, including the resulting effect on advertising budgets; and (x) our ability to comply with government regulation affecting our business, including regulations or policies governing consumer privacy. These risks and uncertainties may also include those discussed under the section titled Risk Factors and elsewhere in ReachLocal s periodic filings on file with the Securities and Exchange Commission, and other factors that may not be known to us. These forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risk and uncertainties. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. We cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assume responsibility for the accuracy and completeness of the forward-looking statements. Any forwardlooking statement speaks only as of its date. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. 2

3 ReachLocal at a Glance 1,800 Founded 2004 Our mission is to deliver more customers to local businesses around the world AWARDS & RECOGNITION ,700 20,200 Best Quality Accounts Google Premier SMB Partner Awards million LEADS DELIVERED ACTIVE CLIENTS 3

4 Large Market Opportunity Robust demand for online marketing services $50 billion North American local digital advertising market Small and medium businesses need a strategic partner to evaluate marketing opportunities to reach the most consumers and achieve the best ROI No clear market leader Digital advertising at the local level will grow 42% in 2015* *Borrell Associates 2015 research 4

5 Go-to-Market Strategy: Three Channels Direct Local National Brands Agencies & Resellers SMBs are directly connected through outside and inside sales Franchisors and multi-location local businesses benefit from our full product suite Media agencies, integrators and traditional media offer our digital marketing solutions 5

6 Direct Local: A New Go-to-Market Model Current Model SE New client acquisition AE Relationship management to cross-sell & up-sell Campaign management New Model Digital Marketing Consultant (DMC) New client acquisition and relationship management to cross-sell, up-sell and generate referrals Marketing Expert Campaign management & client reviews An end-to-end sales relationship role with a more senior, services role to manage campaigns 6

7 A Total Digital Marketing System A full-suite software solution supported by dedicated digital marketing experts Technology and optimization based on a decade of data and millions of campaigns 7

8 Digital Advertising Products 8

9 Optimization Algorithms Publishers ReachSearch - Best in Class Search Technology 98% of Searches + Programmatic conversion based optimization One technology platform, paired with seamless service to meet your business goals. In an average month the platform drives: 1.0+ billion search impressions and millions of optimizations generating 3+ million leads ReachLocal Platform 9

10 Web Presence Products 10

11 Software 11

12 Automated Marketing Simply tap the button and the system Creates prioritized list of your hot leads Reminds staff follow-up with each lead so you close more Sends marketing s to keep you top of mind and help you close more Closes the loop on revenue & ROI 12

13 2015 Priorities Software penetrate through retail and wholesale opportunities Client experience improve client retention rates by providing superior customer service throughout all verticals Sales productivity reduce our cost of sale and promote efficiency within our sales force Efficient resource allocation identify and implement efficiency opportunities throughout our business 13

14 Financial Performance FY12 FY13 FY14 14Q1 14Q2 14Q3 14Q4 15Q1 Revenue (Millions) AEBITDA (Millions) (9.4) 2.3 (1.9) (3.8) (5.9) (3.8) A sales force transition in 2013 resulted in both high client and sales force attrition with no improvement in productivity. The transition resulted in declining performance. Sharon Rowlands joined in April 2014 to lead a companywide turnaround. The turnaround is driven by salesforce restructuring, cost and process reviews and product improvements. As of May 5, 2015, Q Guidance: Rev enue: $97 - $101 million Adjusted EBITDA: Loss not to exceed $1 million 14

15 15 ReachLocal, Inc.