Investor Presentation

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1 Investor Presentation May 2018 Copyright 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Coupons.com logo and the Quotient logo are trademarks of Quotient Technology Inc. All other trademarks, service marks, logos, and company or product names are the property of Quotient Technology

2 Forward Looking Statements This presentation and the accompanying oral presentation contain forward-looking statements that are based on our management s beliefs and assumptions and on information currently available to management, including our projections regarding future financial performance, our expectations regarding the effects of our strategy which is focused on both growth and operational efficiency, our current expectations with respect to revenues and Adjusted EBITDA, projections for our second quarter and fiscal year 2018, including our expectations regarding our operating expenses, our plans for our future investments and expansion, our expectations with respect to consumers, retailers and consumer packaged goods companies (CPGs ) future demand and behavior, the continued scaling of the Retailer iq platform and its ability to grow and perform and meet the expectations of consumers, retailers and CPGs, as well as the anticipated financial benefits therefrom, the growth potential of Quotient Analytics and the expected benefits, our expectations regarding the success of the Quotient Media Exchange, our expectations regarding the success of expanding our shopper marketing and media business, our expectations regarding use of shopper data for our solutions, our expectations regarding our mobile app, our digital print and digital paperless initiatives, our expectations regarding our personalized and targeted promotions and media offerings, our expectations regarding our pricing strategies, and our efforts with respect to attracting additional retailers and the anticipated benefits from our partner program. The Company operates in a very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for the Company s management to predict all risks, nor can it assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available to the Company s management at the date of this presentation and its management s good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, the Company s financial performance, including its revenues, margins, costs, expenditures, growth rates and operating expenses, and its ability to generate positive cash flow and become profitable; the amount and timing of digital promotions by CPGs, which are affected by budget cycles, economic conditions and other factors; the company s ability to negotiate fee arrangements with CPGs and retailers; the Company s ability to maintain and expand the use by consumers of digital promotions on its platforms; the Company s ability to effectively manage its growth and to adapt to changing market conditions; the Company s ability to successfully integrate acquired companies into its business; and the Company s ability to develop and launch new services and features. These factors, together with those described in greater detail in the Company s annual report on Form 10-K filed with the SEC on February 16, 2018 and in the Company s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings made with the SEC, may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. The Company disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. In addition to the U.S. GAAP financials, this presentation includes certain non-gaap financial measures. The non-gaap measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under U.S. GAAP. There are a number of limitations related to the use of these non-gaap financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-gaap financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-gaap financial measures as tools for comparison. The Company considers these non-gaap financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the Company's management for that purpose. The use of non-gaap measures is further discussed in the accompanying press release, which has been furnished to the SEC on Form 8-K and posted on the Company s website. The press release also defines our non-gaap financial measure of Adjusted EBITDA. A reconciliation between GAAP and non-gaap measures can also be found in the accompanying press release and in the Appendix hereto. A reconciliation of Adjusted EBITDA, a non-gaap guidance measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain (income) expense items that are excluded in calculating Adjusted EBITDA. 2

3 CPGs and Retailers Shift to Digital Strategies CPGs spend ~$225 Billion annually in marketing PROMOTIONS OMNI CHANNEL DIGITAL DATA Integrated, data-driven solutions are key Competitive pressures serve as catalyst for convergence MEASUREMENT MEDIA E-COMMERCE 3

4 Market Drivers Consumer shift from offline to online, particularly to mobile Increased need for personalized and targeted marketing messages Retailers driving digital marketing activities due to increased competitive landscape CPGs need to drive sales through greater efficiency and higher ROI 4

5 Large & Growing Market CPGs spend $225B+ in Marketing Shifting dollars to digital channels brings efficiency and closed-loop measurement Promotions ~300B national offers distributed annually 1 ~$200B in Trade Promotions spent annually 2 Media Advertising ~$7B+ estimated spend in 2018 on digital advertising, and growing 3 Shopper Marketing Retailer specific media + promotions ~$19B 4 (1) Number of CPG coupons distributed based on NCH CPG Coupon Trends Year-End 2016 Report; (2) Trade Budget: Goldman Sachs November 2015 report: Trade Budgets at a Tipping Point; (3) Mobile Media: emarketer May 31,2016: CPG Advertisers estimated to Spend ~$7+ Billion on Digital Advertising This Year; (4) Shopper Marketing: U.S. Brand Activation Marketing Forecast ( ): Key Findings Report. Association of National Advertisers and PQ Media, April 2016 Inc. (or its subsidiaries) or their respective owners. Please Do Not Copy or Distribute. 5

6 CPGs Accelerate Budget Shift to Digital $6,000 $5,000 $4,000 Total Digital Savings On Our Network (in Billions) $3.6B $5.4B Delivered +50% more savings in 2017 $3,000 $2,000 $1,000 ~80% 1 of all CPG redemptions still come from paper coupons $ : NCH Mid-Year 2017 Coupon Facts 6

7 Digital Growth Drives Scale Deep CPG Relationships Broad Retailer Reach National Coverage Representing ~$400B of CPG retail sales Multi-channel: grocery, drug dollar, mass and club retailers Rich demographic, shopper data ~700 Customers ~2000 brands Shopper Data Drives Engine 60M+ shoppers registered on programs powered by Retailer iq ~20M monthly average visitors to Coupons.com mobile web + app Represents ~50% of U.S households 7

8 Our Partners CPGs Retailers 8

9 Powerful Network Effect Demand Driven From: RIQ implementations Retailer Marketing drives users to digital coupon programs Coupons.com app & mobile web Demand for digital coupon by consumers Supply Driven From: CPG budget shift from offline to digital Better ROI on marketing spend Supply of digital coupons/budgets from CPG s 9

10 Quotient Solutions Brands & Retailers Drive Sales Quotient Promotions Digital Coupons / Targeted Offers / Digital Circular / Specialty Retail Quotient Media QMX / Shopper Marketing / Programmatic / Brand Pages / Video Ads Quotient Insights, Analytics & Measurement Shoppers 10

11 Quotient Promotions - Retailer iq Real-time /SMS Engagement Digital Offers Digital Shopping List Digital Receipts Digital Circular Targeted Media Reporting & Analytics Personalization Personalization Data on Shoppers Transactions/Digital Use, Products, Promotions, Pricing 11

12 Retailer iq Drives Sales for Retailers and Brands +11% Average lift in sales from shoppers who join their digital programs 1 3X Average return on promotional spend on digital coupons 2 Retailers CPGs Source: 1 Quotient Internal Reporting; 2 Quotient Internal Reporting (study of 50+ offers across categories at RiQ retailers from December 2016 to February Study based on comparison between matched panel of Activators and Non-Activators) 12

13 Targeted Promotional Offers Driving Trial Frozen Foods Brand Strategy: New Brand Launch 40 % Incremental Buyers 40 % Incremental Sales Increasing Buy Rate Feminine Hygiene Brand Strategy: Trial & Loyalty 44 % Incremental Units 37 % Incremental Buyers Increase in Targeted Offers Over Q In Q x # of targeted campaigns from 3x # of brands Quotient Internal Reporting (2018), all measurement is test versus control; 2 Quotient Internal Reporting (2018), all measurement is test versus control

14 Quotient Media - QMX Purchase History Basket Data Powerful Data-Driven Media Solution Purchase Intent ~100M Verified Audience Reach Shopper Data Point of Sale (POS) Quotient purchase intent Audience National, retailer & targeted Geography Digital Footprint Behaviors Engagement High quality media & digital promotions Measurement Store sales & ROI 14

15 QMX: How It Works Audience Data Targeting Content/Creative Experiences 1 st Party Data 2 nd Party Data Retailer POS data 3 rd Party Data Behavioral Demo Geographic Brand Equity Value Content Event Promotion Store Finders/Maps ecommerce Brand pages Personalization In-stock availability Environmental triggers Retail branding Social Retailer Exclusive Tech: Media Execution Tech: Measurement Ad Delivery Ad Environment Brand Safety Viewability Verified Optimization 1 st Party Inventory Quotient Owned & Operated (Coupons.com) 2 nd Party Inventory Retailer Owned & Operated 3 rd Party Inventory Audience & non-o&o Contextual Ad Delivery Ad Engagement Foot Traffic Sales Lift ROAS Viewability 3 rd Party 1 st Party Media iq Promo iq 15

16 QMX Powers Albertsons Performance Media + The combined power of retail and technology drives precise & effective sales growth 16

17 Quotient Analytics

18 Why Quotient? Consumers Plan, shop and save on favorite brands at preferred stores Personalized, relevant experience CPGs Multi-channel, national shopper reach Drives efficient marketing spend and profitable sales Retailers Provides digital platform to reach and engage shoppers Drives increased sales in competitive retail environment 18

19 Financial Highlights 19

20 REVENUE CPG $$$ Business PLATFORM SOLUTION PROMOTIONS MEDIA Model NETWORK DISTRIBUTION O&O PARTNER O&O RETAILER PUBLISHER CONSUMER ENGAGEMENT TRANSACTIONS DISPLAY & IMPRESSIONS PAID REVENUE SHARE & OTHER 3 RD PARTY FEES DIST FEE TAC / DIST FEE OTHER COSTS TOTAL TOTAL GROSS PROFIT GROSS MARGIN 20

21 Revenue Quarterly Trend ($M) $15.2 $16.1 $23.9 $29.7 $ % y/y $57.4 $58.4 $58.1 $63.4 $ % y/y Q Q Q Q Q Promotions Media Revenue $72.6 $74.5 $82.0 $93.1 $86.8 QoQ -4% 3% 10% 14% -7% YoY 10% 11% 23% 23% 20% 21

22 Revenue Split $M Q1'17 Q2'17 Q3'17 Q4'17 FY Y/Y % % of Total Q1'18 Y/Y % % of Total Digital Print % 21% % 18% Retailer iq % 41% % 47% Others % 2% % 2% Total Promo Revenue from CPGs % 64% % 67% Specialty Retail % 10% % 7% Total Promotion % 74% % 74% Media % 26% % 26% Total Revenues % 100% % 100% 73% of total revenue growing +36% Promotion revenue from CPGs, which excludes Specialty Retail, grew 19% over Q

23 Growth In Top 10 CPG Customers 29% Top 10 CPGs as a % of Total Promotions Revenue 27% 25% 23% 21% 19% 17% 15% Q Q Q Q Q Based on 2017 Top 10 CPGs (U.S. revenue only) 23

24 Transactions (M) , B Q1 YoY growth of 29%, driven by 40% growth in digital paperless, offset by 10% decline in digital print Volume of transactions drive scale and demand on platform Q Q Q Q Q Digital Print Digital Paperless Transactions Q Q Q Q Q QoQ 15% 0% 24% -2% 6% YoY 48% 48% 45% 40% 29% 24

25 Operating Expenses Q1 FY18 GAAP Op Ex: $55.2M compared to $44.5M in Q4 FY17 Q1 FY18 Non-GAAP Op Ex: $39.4M compared to $40.1M in Q4 FY17 Non-GAAP 56% QoQ slight improvement in Non- GAAP OpEx expense due to continued operating efficiencies and cost management, offset by FICA reset for 2018 and seasonally lower revenue in Q1. 10% 15% 31% 43% 45% 7% 8% 11% 12% 25% 25% Q Non-GAAP opex was $39.4M, a decrease over Q4 and Q Significant YoY margin improvement due to 20% revenue growth, coupled with continued cost management and efficiencies Q Q Q Sales & Marketing Research & Development Gen'l and Administrative Non-GAAP operating expenses exclude stock-based compensation, any net change in fair value of escrowed shares and contingent consideration, amortization of acquired intangible assets, enterprise resource planning ERP software implementation costs, acquisition related costs, and restructuring charges. A reconciliation table of the period presented can be found in the Appendix section of this presentation. 25

26 Adjusted EBITDA ($M) $7.7 $13.0 $12.5 $13.9 $11.9 Q1 FY18 increased 55% YoY primarily based on increased revenues and balanced expense approach Margin expansion expected to build throughout the year Q Q Q Q Q Margin 11% 17% 15% 15% 14% Adjusted EBITDA, a non-gaap financial measure, is net loss adjusted for stock-based compensation, change in fair value of escrowed shares and contingent consideration, net, other (income) expense net, provision for (benefit from) income taxes, depreciation, amortization and other, which includes: enterprise resource planning ("ERP") software implementation costs, certain acquisition related costs and restructuring charges. A reconciliation table of the periods presented can be found in the Appendix section of this presentation. 26

27 Guidance FY2018 Q2 Full Year Low High Low High Revenue ($M) $87.0 $90.0 $379.0 $394.0 YoY Growth 17% 21% 18% 22% Q2 Full Year Adjusted EBITDA ($M) $12.0 $14.0 $65.0 $73.0 Margin 14% 16% 17% 19% 27

28 Thank You

29 Appendix Screen Shots & Reconciliation Tables

30 Digital Drives Efficiency in Trade Spend Offline Non-Targeted Digital & Targeted Customer Type $ Spent # of Boxes Sold $ Spent # of Boxes Sold Always buys Flakes $1 1 $0 1 Sometimes buys Flakes $1 1 $ Sometimes buys Flakes $1 1 $ Never buys Flakes $0 0 $2 1 Total $3 3 $3 4

31 Coupons.com 31

32 Digital Coupons in Retailers Marketing and Merchandising Programs 32

33 Personalized Marketing 33

34 Personalized Digital Circular 34

35 Shopper Marketing Use screen shots from Risa 35

36 Reconciliation of Non-GAAP Operating Expense QUOTIENT TECHNOLOGY INC. RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands) Q1 FY 17 Q4 FY 17 Q1 FY 18 Revenues $ 72,579 $ 93,093 $ 86,766 Sales and marketing expenses 23,837 25,377 23,830 (less) Stock-based compensation (1,332) (1,763) (1,600) (less) Amortization of acquired intangible assets (101) (99) (less) Restructuring charges (608) Non-GAAP Sales and marketing expenses $ 22,505 $ 23,513 $ 21,523 Non-GAAP Sales and marketing percentage 31% 25% 25% Research and development 13,120 11,860 12,626 (less) Stock-based compensation (2,011) (2,059) (1,827) (less) Restructuring charges (360) Non-GAAP Research and development expenses $ 11,109 $ 9,801 $ 10,439 Non-GAAP Research and development percentage 15% 11% 12% General and administrative expenses 11,893 12,726 11,392 (less) Stock-based compensation (3,962) (3,585) (3,829) (less) ERP software implementation costs (158) (199) (49) (less) Acquisiton related costs (714) (less) Restructuring charges (2,125) (115) Non-GAAP General and administrative expenses $ 7,059 $ 6,817 $ 7,399 Non-GAAP General and administrative percentage 10% 7% 8% Non-GAAP Operating expenses* $ 40,673 $ 40,131 $ 39,361 Non-GAAP Operating expense percentage 56% 43% 45% * Non-GAAP operating expenses excludes stock-based compensation, amortization of acquired intangible assets, restructuring charges, acquisition related costs, and enterprise resource planning ("ERP") software implementation costs. 36

37 Reconciliation of Net Loss to Adjusted EBITDA QUOTIENT TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND TRANSACTION DATA (Unaudited, in thousands) Q1 FY 17 Q2 FY 17 Q3 FY 17 Q4 FY 17 Q1 FY 18 Net income (loss) $ (2,674) $ (5,758) $ (10,827) $ 4,182 $ (11,357) Adjustments: Stock-based compensation 7,756 8,066 8,480 7,950 7,796 Depreciation, amortization and other (1) 5,404 6,608 5,496 6,883 5,619 Change in fair value of escrowed shares and contingent consideration, net (2,585) 3,900 9,700 (5,500) 7,350 Interest expense 1,589 3,308 Other (income) expense, net (127) (134) (276) (391) (938) Provision for (benefit from) income taxes (97) 270 (107) (768) 102 Total adjustments $ 10,351 $ 18,710 $ 23,293 $ 9,763 $ 23,237 Adjusted EBITDA (1) $ 7,677 $ 12,952 $ 12,466 $ 13,945 $ 11,880 Adjusted EBITDA Margin (2) 11% 17% 15% 15% 14% (1) Adjusted EBITDA, a non-gaap financial measure, is net income (loss) adjusted for stock-based compensation, change in fair value of escrowed shares and contingent consideration, net, interest expense, other (income) expense, net, provision for (benefit from) income taxes and depreciation, amortization and other, which includes: enterprise resource planning ("ERP") software implementation costs and certain acquisition related costs of $0.2 million and $0.7 million, respectively, during Q1 FY 17; ERP software implementation costs, certain acquisition related costs and restructuring charges of $0.4 million, $0.8 million and $1.3 million, respectively, during Q2 FY 17; ERP software implementation costs and certain acquisition related costs of $0.5 million and $0.4 million, respectively, during Q3 FY 17; ERP costs and restructuring charges of $0.2 million and $2.1 million, respectively, during Q4 FY 17; and ERP software implementation costs and restructuring charges of $0.05 million and $1.2 million, respectively, during Q1 FY 18. (2) Adjusted EBITDA margin is the ratio of Adjusted EBITDA and Revenues. 37

38 Making Sales Happen. Copyright 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Coupons.com logo and the Quotient logo are trademarks of Quotient Technology Inc. All other trademarks, service marks, logos, and company or product names are the property of Quotient Technology