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| 8-K - 8-K - Function(x) Inc. | form8-ka4x3x2017presentati.htm |
Confidential ©2017 Function(x), Inc. All Rights Reserved
Forward-Looking Financial Information
This presentation contains forward-looking statements of the Company that relate to the current expectations, business plans and
views of future events. Forward-looking statements often, but not always, are identified by the use of words such as “seek”,
“anticipate”, “believe”, “plan”, “estimate”, “expect”, “target” and “intend” and statements that an event or result “may”, “will”,
“should”, “could” or “might” occur or be achieved or other similar expressions and include statements in respect of the Company’s
business plans and its ability to grow revenues and attract new customers and B2B partners, as examples only. Forward-looking
statements are based on assumptions and analysis made by the Company in light of its experience and perception of historical
trends, current conditions and expected future developments and other factors the Company believes are appropriate, and involve
a number of risks and uncertainties. Should one or more of the risks materialize or should assumptions underlying the forward-looking
statements prove incorrect, actual events or results might differ materially from events or results projected or suggested in these
forward-looking statements. Given these risks, uncertainties and assumptions, prospective purchasers of securities should not place
undue reliance on these forward-looking statements. These risks, uncertainties, assumptions and other factors could cause the
Company’s actual results, performance, achievements and experience to differ materially from the expectations, future results,
performance or achievements expressed or implied by the forward-looking statements. The forward-looking statements made in this
Presentation relate only to events or information as of the date of this Presentation and the Company does not intend, nor assume
any obligation, to update these forward-looking statements. Investors should read this Presentation with the understanding that the
Company’s actual future results and achievements may be materially different from expectations.
Risk Factors
Investors should read our risk factors set forth in our quarterly report on Form 10-Q for the quarter ended December 31, 2016 and the
annual report on Form 10-K for the fiscal year ended June 30, 2016.
Disclosures
2
INTRODUCTION
3
4
Led by Experienced Management
Management Team is comprised of experienced professionals with
complementary skill sets
Robert F.X. Sillerman, Chairman & CEO
• Media Entrepreneur known for identifying market trends and scalable
opportunities with multiple billion dollar exits
• American Idol, Elvis Presley Enterprises, Muhammad Ali Enterprises, SFX
Broadcasting, SFX Entertainment I, Marquee Sports, Action Media
Group and more
Brian Rosin
CHIEF OPERATING OFFICER
Sean Beckner*
16+ years as a media and technology
entrepreneur with a proven track record
of increasing revenue and driving
profitability. Has led successful media
properties such as ViralNova
6+ years in digital media with a focus
on monetization and analytical
reporting, and a proven track record
of driving revenue growth
Michelle Lanken
CHIEF FINANCIAL OFFICER
15+ years experience in the
preparation of SEC filings,
accounting and financial controls
with top accounting firms and
Fortune 500 companies
* Should Potential BumpClick Acquisition Close
About
▪ Function(x), a social publishing and interactive media platform, is building on a
distribution network of over 90 million social followers by delivering engaging
content and leveraging relationships with social influencers and celebrities:
▪Wetpaint is a leading online destination for entertainment news for millennial
women, covering the latest in television, music and pop culture.
▪Rant is a leading digital publisher with original content spanning multiple verticals,
most notably sports, entertainment and pets.
▪ViralNova* publishes content with a blend of personalization and informative
story-telling, providing a unique voice that entertains, intrigues, and uplifts.
▪Goodfullness* is an emerging brand that aspires to help people live a
healthier, happier life.
A 21st Century Interactive Media Platform
5
* Includes Potential BumpClick Acquisition - On March 7, 2017, the Company entered into a binding term sheet to acquire
BumpClick LLC. The transaction is subject to a number of conditions precedent that must be satisfied prior to the closing of
the transaction. There can be no assurance that the transaction will close or that the terms of the transaction will be the
same as those in the binding term sheet.
Social Media Landscape
MAUs
500M
150M
Facebook
YouTube
Instagram
Snapchat
1.71B
1B
Average Person
Spends
1 Hour 40
Minutes
On Social Media
Each Day
6
Ad Opportunity
Digital Advertising Surpasses Television in 2016
Interest in influencer
marketing has risen
more than
90X
since 2013
US Digital ad spend is
expected to reach
$100 BILLION
by the year 2020
7
The Numbers
8
Reach and Usage
WEB TRAFFIC SOCIAL SCALE
27.0
million
20.2
million
39.8
million
30.6
million
9
Global Monthly UVs
US Monthly UVs
Global Monthly Sessions
US Monthly Sessions
93
million
118
million
339
million
Social Following
Monthly Engagements
Monthly Reach
75
million
Monthly Video Views
(Shown on combined basis assuming
closing of BumpClick acquisition)
The Technology
10
Nova CMS
▪ Multi-Publisher Platform
▪ Asset Management System
▪ Layout Testing
▪ Campaign Management
▪ Financial Reporting
Home Grown Enterprise Class CMS
11
(Technology currently utilized and owned by BumpClick)
Social Distribution System (SDS)
Technology that systematically captures, reengages, and activates
audience from social networks
12
SOCIAL
ENGINE
ActivateEngage
Capture
Fans
Content
Website
The Distribution
13
Fans Engagement
Reach
93
million
118
million
339
million
Facebook Pages
Using premium Facebook pages to drive distribution and revenue
14
*Rolling 28 Days as of March 31, 2017
(Shown on combined basis assuming
closing of BumpClick acquisition)
The Results
(Does Not Include BumpClick)
15
▪ Optimized ad stack and
monetization model has taken
effect, resulting in significant
revenue growth.
▪ Anticipating continued growth
as we continue to develop new
and exciting content.
$20,000
$120,000
$220,000
$320,000
$420,000
$520,000
$620,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar
Revenue
Strong Growth Since July: Revenue
16
Figures Do Not Include BumpClick Performance
* Represents current Function(X) Publishing Segment, does not include pending BumpClick acquisition
** All figures shown are unaudited, March are preliminary and shown through 3/31/17
*** These are revenue numbers only and are not meant to represent the profit or loss position of the company
▪ Increase in pageviews has
helped increase monetization
per 1,000 visit.
▪ Continue to target increase in
RPMv through user engagement.
▪ RPMv has not grown at the same
rate as revenue, indicating there
is future opportunity for growth.
$2.00
$7.00
$12.00
$17.00
$22.00
$27.00
Jul Aug Sep Oct Nov Dec Jan Feb Mar
RPMv
Strong Growth Since July: RPMv Rev. per 1,000 Visits
17 * Represents current Function(X) Publishing Segment, does not include pending BumpClick acquisition
** All figures shown are unaudited, March are preliminary and shown through 3/31/17
Figures Do Not Include BumpClick Performance
▪ Growth in pageviews signals
increased user engagement.
▪ Increase directly correlates to an
increase in revenue.
▪ Continue to target increased
pageviews.
10,000
30,000
50,000
70,000
90,000
110,000
130,000
150,000
170,000
190,000
210,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar
Pageviews (in 000's)
Strong Growth Since July: Pageviews
18 * Represents current Function(X) Publishing Segment, does not include pending BumpClick acquisition
** All figures shown are unaudited, March are preliminary and shown through 3/31/17
Figures Do Not Include BumpClick Performance
The Results
(BumpClick Only)
19
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
$320,000
$370,000
$420,000
$470,000
Jan Feb Mar
Revenue
Strong Growth Since January: Revenue
20 *Represents BumpClick Performance as provided by BumpClick
** All figures shown are unaudited, March are preliminary and shown through 3/31/17
-
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar
Pageviews (in 000's)
Strong Growth Since January: Pageviews
21 * Represents BumpClick Performance as provided by BumpClick
** All figures shown are unaudited, March are preliminary and shown through 3/31/17
The Opportunity
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▪ Completed Equity Offering for $4.8MM in gross proceeds in February 2017.
▪ Robert F.X. Sillerman converted approximately $37MM of preferred equity into
common stock.
▪ All debentures bought except for two, who hold under 15% of the original issue.
Negotiations continue with these two holders.
▪ Non-core assets to be moved into a subsidiary to facilitate financing for working
capital needs.
▪ Announced intent to acquire all equity interests in BumpClick LLC.
Recent Developments
23
Industry Comparables by Uniques
Multiple by Unique Visits Indicates Disjointed Valuation
UNIQUE VISITORS 27
Million
44.5
Million
59.8
Million
80.4
Million
27.0*
Million
LATEST ROUND
VALUATION
$500
Million
$442
Million
$850
Million
$1.5
Billion
$15.3
Million**
IMPLIED MULTIPLE 19x 10x 14x 19x 0.57x
24
*Includes Pending BumpClick Acquisition
** Market Cap = 27.4MM shares x 3/31/17 close
*** Implied Multiple = Valuation / Unique Visitors
Strategy for the Future
▪ Acquire brands and assets with strong traffic & distribution.
▪ Build unparalleled distribution network and a diversified revenue stream.
▪ Improve and capitalize on demonstrated ability to substantially increase
monetization and margin on acquired properties.
▪ Unify all assets with proprietary technology.
▪ Use A-list celebrities and cross media partnerships with traditional and new
media to create exclusive original content and build brand equity.
Become the preeminent interactive digital platform
25
Thank You
An Interactive Media Platform
______
Contact: Michelle Lanken, Chief Financial Officer
Phone: 212.231.0092
Email: info@functionxinc.com
Web: functionxinc.com
Confidential©2017 Function(x), Inc. All Rights Reserved26