Attached files
| file | filename |
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| 8-K - CURRENT REPORT - Inuvo, Inc. | inuv_8k.htm |
| EX-99.1 - PRESS RELEASE - Inuvo, Inc. | inuv_ex991.htm |
(NYSE Amex: INUV)
April 2012
1
Certain statements in this presentation relating to Inuvo®, Inc. (“Inuvo”) contain
forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934. All forward-looking
statements included in this presentation are based on information available to Inuvo
as of the date hereof and Inuvo assume no obligation to update any forward-looking
statements. These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties, and other factors, some of which
are beyond our control and difficult to predict and could cause actual results to differ
materially from those expressed or forecasted in the forward-looking statements,
including, without limitation, statements made with respect to expectations with
respect to the strategy, markets, synergies, costs, efficiencies, and other anticipated
financial impacts of the Vertro transaction; and the company’s plans, objectives,
expectations, and intentions with respect to future operations. All forward-looking
statements involve significant risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements, many of which are
generally outside the control of Inuvo and are difficult to predict. Additional key risks
are described in the filings made by Inuvo filed with the U.S. Securities and Exchange
Commission, including its Form 10-K for the year ended December 31, 2011.
forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934. All forward-looking
statements included in this presentation are based on information available to Inuvo
as of the date hereof and Inuvo assume no obligation to update any forward-looking
statements. These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties, and other factors, some of which
are beyond our control and difficult to predict and could cause actual results to differ
materially from those expressed or forecasted in the forward-looking statements,
including, without limitation, statements made with respect to expectations with
respect to the strategy, markets, synergies, costs, efficiencies, and other anticipated
financial impacts of the Vertro transaction; and the company’s plans, objectives,
expectations, and intentions with respect to future operations. All forward-looking
statements involve significant risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements, many of which are
generally outside the control of Inuvo and are difficult to predict. Additional key risks
are described in the filings made by Inuvo filed with the U.S. Securities and Exchange
Commission, including its Form 10-K for the year ended December 31, 2011.
2
Inuvo®, Inc. (NYSE Amex: INUV), an Internet marketing and technology
company specializing in browser-based consumer applications, managing
networks of website publishers and operating specialty websites.
company specializing in browser-based consumer applications, managing
networks of website publishers and operating specialty websites.
The Company operates amongst three distinctive business lines:
• Software Search
• Publisher Network
• Partner Programs
3
Software Search (Approximately 45% of Annual Revenue)
• Consists of websites that assist users in the search, navigation, or management
of everyday information
of everyday information
• ALOT Appbar and Home Page search business, which currently has
approximately 7 million worldwide users and is expected to generate
quarter-on-quarter live user and revenue growth throughout 2012
approximately 7 million worldwide users and is expected to generate
quarter-on-quarter live user and revenue growth throughout 2012
• The ALOT Appbar attracts users by providing hundreds of free, simple-to-use
applications for Internet users and monetizes search performed through its
products
applications for Internet users and monetizes search performed through its
products
• Anchored by a partnership with Google to distribute sponsored search
advertisements
advertisements
• ALOT’s apps run the gamut from entertainment and utilities such as Weather,
Maps, and retail apps such as eBay Deal of the Day and BargainMatch®
Maps, and retail apps such as eBay Deal of the Day and BargainMatch®
4
Publisher Network (Approximately 40% of Annual Revenue)
• Liaison between advertisers and publishers to facilitate performance-
based advertising
based advertising
• Anchored by a long-term partnership with Yahoo! and Bing to
distribute sponsored search advertisements across the web
distribute sponsored search advertisements across the web
• Advertisers pay once a user completes a click, sale or a lead and the
company pays a portion of what it receives to its publishers
company pays a portion of what it receives to its publishers
• Publisher network is made up of thousands of different websites, from
large, well-known portals to independent tech bloggers
large, well-known portals to independent tech bloggers
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Partner Programs (Approximately 15% of Annual Revenue)
• Management expects partner programs to be its fastest growing business
unit
unit
• Consists of display revenues, affiliate programs, data sales, Kowabunga®
and BargainMatch®
and BargainMatch®
• Inuvo expects to launch its Kowabunga® initiative, which will aggregate
local daily deals from rural and suburban businesses and provide those
deals to the rural consumer
local daily deals from rural and suburban businesses and provide those
deals to the rural consumer
• BargainMatch® product that provides cash-back incentives to
consumers who shop at its nearly 2,000 participating websites
consumers who shop at its nearly 2,000 participating websites
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• Strong strategic relationships with market leaders Google and Yahoo!
• Recent integration of the ALOT Appbars and home pages provides scale
and distribution for Inuvo’s properties and applications
and distribution for Inuvo’s properties and applications
• By owning various web properties, Inuvo has more flexibility to control
traffic and optimize advertising revenue across Pay-Per-Click (PPC) and
cost-per-action (CPA)
traffic and optimize advertising revenue across Pay-Per-Click (PPC) and
cost-per-action (CPA)
• Transitioning its applications to the rapidly growing mobile market.
• The ALOT app store has a number of apps that can migrate to the
mobile platform and can monetize search or capture display
advertising revenues
mobile platform and can monetize search or capture display
advertising revenues
• Inuvo Buy-side technology is designed to increase return-on-investment
for all constituents
for all constituents
• Diversified business model which allows the Company to generate
revenue from multiple sources
revenue from multiple sources
7
• Global Search Market is over $40 Billion
• Affiliate, Local Deals and Consumer Applications
Market of $2.4 Billion, Forecasted @ 20% CAGR
Market of $2.4 Billion, Forecasted @ 20% CAGR
• Mobile internet usages accounts for 8% of the
market, however it is rapidly expanding due to
improved smart phone and tablet capabilities
market, however it is rapidly expanding due to
improved smart phone and tablet capabilities
• Global online display advertising market is
expected to be $29.5 billion in 2012
expected to be $29.5 billion in 2012
*SOURCES - Zenith Optimedia (a Publicis Groupe company) and BIA/Kelsey and
Market Size in Excess of $70 Billion
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9
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EBAY
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Kowabunga
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Diversification
• The new Inuvo has a broader product portfolio allowing us to expand
the business and enabling us to exploit established strategic
partnerships across multiple products
the business and enabling us to exploit established strategic
partnerships across multiple products
New Market Development
• Many of our existing applications can be modified for delivery into the
rapidly growing mobile and tablet market place. We can also expand
geographically into countries not currently served
rapidly growing mobile and tablet market place. We can also expand
geographically into countries not currently served
New Product Development
• Bringing together technology, data and distribution already present
within Inuvo we can establish new products and services offer solutions
without heavy investment
within Inuvo we can establish new products and services offer solutions
without heavy investment
Penetration
• Increasing utilization of our current product lines through greater
emphasis on improving our products to deliver greater customer value
emphasis on improving our products to deliver greater customer value
14
|
Symbol:
|
(INUV)
|
|
Fiscal Year End:
|
December 31st
|
|
52-Week Trading Range:
|
$0.67 - $4.49
|
|
Stock Price:
|
$0.80
|
|
Shares Outstanding:
|
23.1 Million
|
|
Market Cap:
|
$18.5 Million
|
|
Pro Forma 2011
|
$64.1 Million
|
|
Gross Margin 2011
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41.8%
|
|
Analyst Coverage
|
Craig-Hallum
|
Select Financials
15
• In March 2012 the combined operations generated
approximately $4.3 million in revenue
approximately $4.3 million in revenue
• The combined post merger enterprise is expected to
have operational savings of $2.9 million annually
have operational savings of $2.9 million annually
• Anticipates cash flow positive by the close of fiscal
year 2012, after the one-time costs associated with
the merger
year 2012, after the one-time costs associated with
the merger
• New Credit facility agreement with Bridge Bank
(NASDAQ: BBNK) for up to $15 million
(NASDAQ: BBNK) for up to $15 million
o To be used to fund operations and growth
initiatives
initiatives
16
Financial Highlights
Peer Valuation
* Data as of April 4, 2012
17
|
Company Name
|
Symbol
|
Revenue (TTM)
12/31/2011 |
Market Cap
(4/04/2012) |
Market Cap/
Revenue |
|
LookSmart, Ltd.
|
LOOK
|
27.6 M
|
$ 19.37 M
|
0.7
|
|
Inuvo, Inc. (Post
Merger Pro Forma) |
INUV
|
$64.1M
|
$ 18.5 M
|
0.29
|
|
Perion Network,
LTD* |
PERI
|
$35.5 M
|
$ 51.05 M
|
1.4
|
|
Local.com Corp.
|
LOCM
|
$ 78.8 M
|
$ 50.57 M
|
0.64
|
|
Marchex, Inc.
|
MCHX
|
$146.7 M
|
$ 141.09 M
|
0.96
|
|
Digital Generation,
Inc. |
DGIT
|
$ 324.3 M
|
$ 263.52 M
|
0.81
|
|
InfoSpace, Inc.
|
INSP
|
$228.8 M
|
$ 486.01 M
|
2.1
|
|
Demand Media,
Inc. |
DMD
|
$324.9 M
|
$ 556.39 M
|
1.7
|
|
IAC/InterActive
Corp |
IACI
|
$2,060 M
|
$ 3,910 M
|
1.9
|
Peter Corrao, Chief Executive Officer
• Former President and CEO of Vertro, Inc. before its merger with Inuvo in 2012
• More than 25 years of executive level management experience
• Served as CEO of Bluestreak.com, a digital marketing products and services for
both business-to business and consumer marketers
both business-to business and consumer marketers
• Served as President and CEO for Cogit Corporation, an online target marketing
company
company
• 17 years at Advo Inc. President of National Accounts Marketing Division
• Graduate of Kellogg School of Management Advanced Executive Program at
Northwestern University
Northwestern University
Richard Howe-Executive Chairman
• Previously served as Chief Executive Officer for Inuvo prior to merger with Vertro,
Inc. in 2012
Inc. in 2012
• Former Chief Marketing/Business Strategy and M &A Officer at the Acxiom
Corporation (NASDAQ: ACXM), a $1.4 billion annual revenue global interactive
marketing services company
Corporation (NASDAQ: ACXM), a $1.4 billion annual revenue global interactive
marketing services company
• Earned a Bachelor's degree with distinction in structural engineering from
Concordia University, Canada, and received a Master's degree in engineering from
McGill University
Concordia University, Canada, and received a Master's degree in engineering from
McGill University
Management Team
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Wally Ruiz, Chief Financial Officer
• Former CFO of SRI Surgical Express, a nationwide provider of healthcare services
• Served as CFO of several companies both public and privately owned companies
• Currently serves as a director on the board of the Florida Institute of CFOs
• MBA from Columbia University and a BS degree in Computer Science from St. John's
University
University
• Certified Public Accountant and a Certified Information Technology Professional
Rob Roe, General Manager
• Former General Manager of Vertro’s Alot.com business before its merger with
Inuvo in 2012
Inuvo in 2012
• Original Product Manager of Alot’s core software products
• Attended Columbia Business School MBA program and Graduate of Carleton
College
College
Trey Barrett -SVP Corporate Strategy and Business Development
• Responsible for the development and management of strategic partnerships and
integrated solutions
integrated solutions
• Former Director of Interactive Media Products at Acxiom Corporation overseeing
the innovation and development of the Relevance-X product line
the innovation and development of the Relevance-X product line
• 25 years of data driven direct marketing experience
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Management Team
Investment Highlights
• The Software Search and Partner Programs Lines of
Operations are expected to have high organic growth
Operations are expected to have high organic growth
• Inuvo is expected to access over 132 million unique
Internet users per month
Internet users per month
• Inuvo’s has established strong business relationships with
Yahoo!, Google and Bing
Yahoo!, Google and Bing
• By owning various web properties, Inuvo has more
flexibility to control traffic and optimize advertising
revenue across pay-per-click (PPC) and cost-per-action
(CPA)
flexibility to control traffic and optimize advertising
revenue across pay-per-click (PPC) and cost-per-action
(CPA)
• Current portfolio of ALOT apps is in the thousands with
new revenue producing products expected to fuel future
growth
new revenue producing products expected to fuel future
growth
• Inuvo expects to reach EBITDA positive in Q2 and is trading
at a valuation significantly lower then its peers
at a valuation significantly lower then its peers
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Contact Us
Investor Relations
Alliance Advisors, LLC
420 Lexington Ave
Suite 855
New York, NY 10010
www.allianceadvisors.net
Alan Sheinwald, President
(914) 669-0222
asheinwald@allianceadvisors.net
Inuvo, Inc.
143 Varick Street
New York, NY 10013
http://www.vertro.com
143 Varick Street
New York, NY 10013
http://www.vertro.com
Peter Corrao, CEO & President
(212) 231-2000
peter.corrao@vertro.com
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