Attached files
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| 8-K - NEULION, INC. | a651418k.htm |
Exhibit 99.1
Leading Enabler and Provider of Live and On-
Demand Content to Internet-Connected Devices
Demand Content to Internet-Connected Devices
Annual Meeting of Stockholders
June 5, 2014
TSX: NLN
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CHARLES B. WANG
CHAIRMAN
CHAIRMAN
TSX: NLN
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ROY E. REICHBACH
GENERAL COUNSEL & CORPORATE SECRETARY
GENERAL COUNSEL & CORPORATE SECRETARY
TSX: NLN
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FORWARD-LOOKING STATEMENTS
Certain statements herein are forward-looking statements and represent NeuLion’s current
intentions in respect of future activities. Forward-looking statements can be identified by the use
of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and
“intend” and statements that an event or result “may,” “will,” “can,”“should,” “could,” or
“might” occur or be achieved and other similar expressions. These statements, in addressing
future events and conditions, involve inherent risks and uncertainties. Although the forward-
looking statements contained in this release are based upon what management believes to be
reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent
with these forward-looking statements. These forward-looking statements are made as of the
date of this release and NeuLion assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by law. Many factors could cause NeuLion’s actual
results, performance or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking
statements, including: our ability to realize some or all of the anticipated benefits of our
partnerships; general economic and market segment conditions; our customers’ subscriber levels
and financial health; our ability to pursue and consummate acquisitions in a timely manner; our
continued relationships with our customers; our ability to negotiate favorable terms for contract
renewals; competitor activity; product capability and acceptance rates; technology changes;
regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should
be considered carefully and readers should not place undue reliance on the forward-looking
statements. A more detailed assessment of the risks that could cause actual results to materially
differ from current expectations is contained in the “Risk Factors” section of NeuLion’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, which is available on
www.sec.gov and filed on www.sedar.com.
intentions in respect of future activities. Forward-looking statements can be identified by the use
of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and
“intend” and statements that an event or result “may,” “will,” “can,”“should,” “could,” or
“might” occur or be achieved and other similar expressions. These statements, in addressing
future events and conditions, involve inherent risks and uncertainties. Although the forward-
looking statements contained in this release are based upon what management believes to be
reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent
with these forward-looking statements. These forward-looking statements are made as of the
date of this release and NeuLion assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by law. Many factors could cause NeuLion’s actual
results, performance or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking
statements, including: our ability to realize some or all of the anticipated benefits of our
partnerships; general economic and market segment conditions; our customers’ subscriber levels
and financial health; our ability to pursue and consummate acquisitions in a timely manner; our
continued relationships with our customers; our ability to negotiate favorable terms for contract
renewals; competitor activity; product capability and acceptance rates; technology changes;
regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should
be considered carefully and readers should not place undue reliance on the forward-looking
statements. A more detailed assessment of the risks that could cause actual results to materially
differ from current expectations is contained in the “Risk Factors” section of NeuLion’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, which is available on
www.sec.gov and filed on www.sedar.com.
TSX: NLN
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CHARLES B. WANG
CHAIRMAN
CHAIRMAN
TSX: NLN
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INDUSTRY PARADIGM SHIFT
(1) Cisco Visual Networking Index: Global Consumer Data Traffic Forecast Update, 2012-2017
(2) Cisco Visual Networking Index: Global Consumer Mobile Data Forecast Update, 2012-2017
Accelerating Adoption of Digital Video Driving NeuLion’s Growth
* OTT - Over-the-Top content
§ Fundamental shift in the way media is consumed
§ Production and delivery of content becoming
easier and cheaper
easier and cheaper
§ Shifting dynamics:
– Content rights owners want to expand
addressable audience
addressable audience
– Broadcast networks want to increase
revenue
revenue
– Cable operators/MVPDs want to reduce churn
§ Telecom service providers exploring
partnerships/acquisitions
partnerships/acquisitions
§ Consumer trends continue to show broad adoption
of OTT* video, mobile use and personalized
interactive experiences
of OTT* video, mobile use and personalized
interactive experiences
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GLOBAL MARKETPLACE LEADER
§ Scalable, cloud-based
technology platform
technology platform
§ Established customer
base of rights holders of
live and on-demand
content
base of rights holders of
live and on-demand
content
§ At the forefront of
creating the interactive
experience
creating the interactive
experience
NeuLion specializes in digital content management, distribution
and monetization
and monetization
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GROWTH STRATEGY
Create
Platform
Platform
Enhance
products &
technology
products &
technology
Extend
franchise
through
partnerships
franchise
through
partnerships
Increase
share of
budget with
existing
customers
share of
budget with
existing
customers
Add new
customers
customers
Acquire
Integrate
Partner
Develop
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RECENT WINS AND LAUNCHES
Tennis Channel Launches
Hybrid TV Everywhere Strategy
With NeuLion
Hybrid TV Everywhere Strategy
With NeuLion
Teamed up with Univision to
deliver the 2014 World Cup in
an all new fully interactive app!
deliver the 2014 World Cup in
an all new fully interactive app!
Rolled out a brand new,
subscription-based digital
network for the UFC
subscription-based digital
network for the UFC
Formed a strategic partnership
with USA TODAY Sports for
college sports content
with USA TODAY Sports for
college sports content
Expanded partnership with
Rogers Sportsnet to deliver
seven 24/7 linear channels
Rogers Sportsnet to deliver
seven 24/7 linear channels
Signed a multi-year agreement
with Microsoft to provide live
sports content on Xbox One
with Microsoft to provide live
sports content on Xbox One
Powered live streaming of the
2014 Winter Olympics for CNTV
and Portugal's Sport TV
2014 Winter Olympics for CNTV
and Portugal's Sport TV
New Total Ticketing partners
include Brown University and
William and Mary
include Brown University and
William and Mary
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NEULION IN THE NEWS
NeuLion sees only more growth ahead as
interactive TV takes off
interactive TV takes off
Limelight partners With NeuLion
Univision Deportes Network To Televise
World Cup 24/7
World Cup 24/7
The NCAA and the Interactive Digital
Experience
Experience
This small-cap could be the next Netflix
- for live sports
- for live sports
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NANCY LI
CHIEF EXECUTIVE OFFICER
CHIEF EXECUTIVE OFFICER
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ABOUT NEULION
NeuLion is the leading enabler and provider of live and on-demand content
specializing in digital content management, distribution and monetization
specializing in digital content management, distribution and monetization
FAST TO MARKET
Our leading cloud-based technology provides a scalable suite of digital services;
lowering the barrier of entry and time needed to get content into consumers’ hands
lowering the barrier of entry and time needed to get content into consumers’ hands
CONNECTING ON ANY DEVICE
NeuLion’s architecture supports content delivery to any device, empowering unique
device-specific applications
device-specific applications
HIGHEST QUALITY DIGITAL PRODUCTS
Our digital products are constantly on the edge of innovation and deliver content in
the highest quality to all market leading consumer devices
the highest quality to all market leading consumer devices
DRIVE NEW AND EXPANDED REVENUES
We create digital destinations delivering interactive, personal, live and on-demand
video proven to build meaningful experiences that engage, retain and grow your
digital media business
video proven to build meaningful experiences that engage, retain and grow your
digital media business
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SCALABLE SUITE OF DIGITAL SERVICES
ü Combines software,
technology and operational
technology and operational
services
ü Reduces complexities for
content rights holders
content rights holders
ü Speeds time to market
ü Multi-dimensional
monetization
monetization
ü Drives new revenue
ü Creates meaningful
experiences that engage,
retain and grow customers
experiences that engage,
retain and grow customers
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PROPRIETARY END-TO-END SOFTWARE PLATFORM
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PLATFORM ARCHITECTURE SUPPORTS DELIVERY TO ALL DEVICES
SMART TVS
GAMING DEVICES &
3RD PARTY STB
SMARTPHONES &
TABLETS
NeuLion is Platform Agnostic
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MARQUE CUSTOMER BASE
Leagues & Clubs
US Colleges & Conferences
Programmers, Operators &
Other Content Rights Holders
Other Content Rights Holders
PRO SPORTS
COLLEGE SPORTS
TV EVERYWHERE
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We are the leader in delivering live sports events for the top
professional sports leagues, teams and rights holders
professional sports leagues, teams and rights holders
PROFESSIONAL SPORTS LEADER
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We are the leader in delivering live events for the top players in
College Athletics across colleges, universities and conferences
College Athletics across colleges, universities and conferences
COLLEGE SPORTS LEADER
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We are the leader in delivering live TV experiences for the top
broadcasters, networks, operators and content rights holders
broadcasters, networks, operators and content rights holders
TV EVERYWHERE LEADER
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NEULION VIDEOS
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BENEFITS OF NEULION
ü SUCCESSFUL COMPANY TRACK RECORD
We develop digital media strategies that grow exponentially each year for the biggest names in sports,
entertainment and universities and operate as a profitable business
entertainment and universities and operate as a profitable business
ü STATE-OF-THE-ART TECHNOLOGY
Our digital products are constantly on the edge of innovation and deliver content in the highest quality
to all market leading consumer devices
to all market leading consumer devices
ü SPEED TO MARKET
NeuLion customers can launch their digital products quickly on multiple consumer devices, with
multiple monetization options including pay-per-view, subscription and affiliate authentication
multiple monetization options including pay-per-view, subscription and affiliate authentication
ü STRONG CUSTOMER LOYALTY
We have established well-built relationships that meet the needs of every customer and drive revenue
successes for their businesses
successes for their businesses
TSX: NLN
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ARTHUR J. MCCARTHY
CHIEF FINANCIAL OFFICER
CHIEF FINANCIAL OFFICER
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REVENUE MODEL
$ Millions
$ Millions
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§
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~ 35%: fixed payments over the term of a customer’s service agreement for the NeuLion Software Platform
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§
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~ 60%: variable revenue generated from the joint success with customers
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–
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Usage based fees per gigabyte for videos delivered
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–
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Subscriptions
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–
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Advertising
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–
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Ecommerce
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–
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Support
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§
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Revenue drivers
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–
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More content, features, devices
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–
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Larger audience
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–
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Greater complexity of service
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–
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Added events
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–
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New customers
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MODEL SCALABILITY
Variable revenue model allows for margin expansion as data streaming grows
RECENT OPPORTUNITIES
TO DRIVE DATA USAGE
TO DRIVE DATA USAGE
(1) A petabyte is 1015 bytes of digital information. One petabyte is equivalent to 1000 terabytes.
(2) TDG Consumer Report (November 2013)
(3) Forecasted number of petabytes streamed based on existing customers
Increased Data Usage = Increased Revenue & Margins
Main direct cost is bandwidth,
which is declining rapidly
which is declining rapidly
|
Q1
|
Q2
|
Q3
|
Q4
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60%
|
60%
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57%
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58%
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154 PB
82 PB
35 PB
Video Streamed
NON-GAAP Gross Margin %
59%
65%
72%
|
Q1
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Q2
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Q3
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Q4
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56%
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65%
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69%
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69%
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Q1
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Q2
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Q3
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Q4
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71%
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71%
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74%
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72%
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200 PB
ESTIMATE
3
3
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Q1
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Q2
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Q3
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Q4
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74%
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2011
2012
2013
2014
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NEULION’S FINANCIAL EXPANSION
(1) Non-GAAP Adjusted Gross Margin is exclusive of depreciation and amortization.
(2)Non-GAAP Adjusted EBITDA represents net loss before interest, income taxes, depreciation and amortization, stock-based compensation,
discounts on convertible note, unrealized gain / loss on derivatives, non-controlling interests and foreign exchange gain / loss.
discounts on convertible note, unrealized gain / loss on derivatives, non-controlling interests and foreign exchange gain / loss.
(3)Last 12 months ending March 31, 2014
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INCOME STATEMENT HIGHLIGHTS
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Q1’ 14
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Q4’13
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Q3’13
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Q2’13
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Q1’13
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Total Revenue
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$13.5
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$14.1
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$10.0
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$11.0
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$11.9
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Non-GAAP Adjusted Gross
Margin |
74%
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72%
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74%
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71%
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71%
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SG&A*
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$6.4
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$6.3
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$6.1
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$6.0
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$5.9
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R&D
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$2.0
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$2.0
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$1.9
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$1.9
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$1.7
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Non-GAAP Adjusted EBITDA
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$2.0
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$2.2
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$0.2
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$0.2
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$1.0
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GAAP Net Income (Loss)
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$1.1
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$1.1
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$(1.7)
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$(1.3)
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$(0.3)
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Diluted EPS
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$0.00
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$0.00
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$(0.01)
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$(0.01)
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$0.00
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*Includes stock based compensation
Scalable Business Model with High Operating Leverage
TSX: NLN
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CHARLES B. WANG
Q&A
Q&A
Thank you!