Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Inuvo, Inc. | inuv_8k.htm |
| EX-99.1 - PRESS RELEASE - Inuvo, Inc. | inuv_ex991.htm |
Exhibit 99.2
INUVO, INC.
(NYSE MKT: INUV) June 2012
1
FORWARD-LOOKING STATEMENT
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 and most recent Form 10-Q.
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 and most recent Form 10-Q.
2
ABOUT US
Inuvo®, Inc. (NYSE MKT: 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
• Partner Programs
• Publisher Network
3
SOFTWARE SEARCH
APPROXIMATELY 50% OF ANNUAL REVENUE AND 35% GROSS MARGINS
APPROXIMATELY 50% OF ANNUAL REVENUE AND 35% GROSS MARGINS
4
• Websites - assist users in search, navigation, and information management
• alOt Appbar and Home Page search
• Over 7.6 million worldwide users
• Growing at 9% over 2 months
• Expected to reach 10 million users by end of 2012
• Recent market entries: Italy, Turkey, Russia, Argentina, Puerto Rico, Peru
• Expected to generate quarter-on-quarter live user and revenue growth
• Provides hundreds of free, simple-to-use applications including:
• Entertainment, Games, and Media
• Utilities such as Weather and Maps
• Retail such as eBay and BargainMatch®
• Monetizes search performed through its products
• Partnership with Google to distribute sponsored search advertisements
• In 3rd 2 year contract with Google
SEARCH MARKET
5
Monetizing alOt Users
Economics
•$77,000 on daily Ad Spend
•Projected break even on LTV
in 5 months
in 5 months
•Target 35% Annual Return
PARTNER PROGRAMS
APPROXIMATELY 25% OF ANNUAL REVENUE AND 75% GROSS MARGINS
APPROXIMATELY 25% OF ANNUAL REVENUE AND 75% GROSS MARGINS
6
Consists of:
• BargainMatch®
• Display revenues
• Affiliate programs
• Data sales
• BargainMatch®
• Nearly 2,500 participating website, e-commerce, and retail partners
• Cash-back incentives, comparison shopping, and coupon distribution
• Display Revenues
• Approximately $400,000 per month
• Approximately 90% gross margin
• Based on no incremental costs
• Growing at or above live user base growth
• Partner Programs expected to fastest growing business unit at Inuvo
AFFILIATE MARKET
7
Economics
•Receives a commission on all sales
• Includes sales through in-app
search
search
•Approximately 2,500 Affiliate Partners
•Affiliate partners featured on Appbar
RURAL MARKET - LOCAL DEALS
8
Kowabunga®
Economics
•Receive a percentage of
coupon sales
coupon sales
DISPLAY ADVERTISING
9
Economics
•Paid on an Effective CPM
•$400,000+ per month
•90% margin business based
on no incremental costs
on no incremental costs
PUBLISHER NETWORK
APPROXIMATELY 25% OF ANNUAL REVENUE AND 20% GROSS MARGINS
APPROXIMATELY 25% OF ANNUAL REVENUE AND 20% GROSS MARGINS
10
• Liaison between advertisers and Third Party Publishers
• Facilitate performance-based advertising
• Thousands of websites in the Publisher Network, from well known portals to
independent blogs
independent blogs
• Inuvo receives pay-per-click/sale/lead revenue from advertisers
PUBLISHER NETWORK
11
COMPETITIVE ADVANTAGE
12
• Strong strategic relationships with market leaders Google and Yahoo!
• 7.6 million alOt Appbar users and growing
• Inuvo buy-side technology for customer acquisition is designed for increased return-on-
investment
investment
• Currently spending $77,000 daily on customer acquisition targeting breakeven in 5
months and 35% annual return
months and 35% annual return
• Integration of alOt Appbar and Home Page provide scale and distribution for Inuvo properties
and applications
and applications
• Ownership of various web properties provides added business flexibility
• Extensive traffic control capabilities
• Enhance ad revenue optimization in pay-per-click (PPC) cost-per-action (CPA)
• Transitioning applications from alOt appstore to the mobile market
o Dual mobile monetization methods from search and display advertising
• Diversified business model allows the Company to generate revenue from multiple sources
• Operational in 26 countries and 7 languages
• Recent expansions into Russia, Turkey, Italy, Puerto Rico, Argentina, and Peru
INUVO’S WORLDWIDE PRESENCE
13
Marketed in 26 Countries in 7 Different Languages
INDUSTRY OVERVIEW
14
Market Size in Excess of $70 Billion
•Global Search Market is over $40 Billion
•Affiliate, Local Deals and Consumer Applications Market of $2.4 Billion,
Forecasted @ 20% CAGR
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
expanding due to improved smart phone and tablet capabilities
•Global online display advertising marketing is expected to be $29.5 billion in
2012
2012
Sources: Zenith Optimedia (a Publicis Groupe company) and BIA/Kelsey
GROWTH STRATEGY
15
Diversification
Broad product portfolio allowing us to expand and capitalize on strategic
partnerships across multiple products
partnerships across multiple products
New Product Development
Ability to establish new products and services without heavy investment, and
continually increase the number and diversity of app offerings in alOt app store
continually increase the number and diversity of app offerings in alOt app store
Penetration
Continually increase our alOt appbar user base, currently at 7.6 million users,
and garner new publisher and advertiser relationships
and garner new publisher and advertiser relationships
New Market Development
Existing applications can be modified for mobile and tablet marketplace, and
geographical expansion into new countries
geographical expansion into new countries
Quality search traffic and publisher partners
Quantity alOt users and small to mid-size publishers
SELECT MARKET AND FINANCIAL HIGHLIGHTS
16
|
Symbol:
|
(INUV)
|
|
Fiscal Year End
|
December 31st
|
|
52-Week Trading Range(1)
|
$0.48 - $4.49
|
|
Stock Price(1)
|
$0.71
|
|
Shares Outstanding
|
23.4 Million
|
|
Market Cap(1)
|
$16.6 Million
|
|
Analyst Coverage
|
Craig-Hallum
|
• Anticipates cash flow positive by the close of fiscal year 2012, after the one-time
costs associated with the merger
costs associated with the merger
• New Credit facility agreement with Bridge Bank (NASDAQ: BBNK) for up to $15
million
million
• Inuvo is expected to have operational savings of $2.9 million annually as a result of
the recent merger
the recent merger
(1) as of June 8 2012
PEER VALUATION
17
|
Company Name
|
Symbol
|
Revenue (TTM)
3/31/2012* |
Market Cap
(6/8/2012)* |
Market Cap/
Revenue |
|
Inuvo, Inc.
(Post Merger Pro Forma) |
INUV
|
$56.5
|
$16.6
|
0.29
|
|
ValueClick, Inc.
|
VCLK
|
596.5
|
1360
|
2.28
|
|
Perion Network, LTD
|
PERI
|
37.4
|
39.1
|
1.05
|
|
Local.com Corp.
|
LOCM
|
87.2
|
49.7
|
0.57
|
|
Marchex, Inc.
|
MCHX
|
153.1
|
107.2
|
0.70
|
|
Digital Generation, Inc.
|
DGIT
|
353.6
|
333.9
|
0.94
|
|
Blucora, Inc.
|
BCOR
|
292.9
|
494.4
|
1.69
|
|
Demand Media, Inc.
|
DMD
|
331.6
|
716.1
|
2.16
|
|
IAC/InterActive Corp
|
IACI
|
2240
|
3690
|
1.65
|
|
Average
|
---
|
511.53
|
848.80
|
1.38
|
*All numbers in thousands.
MANAGEMENT TEAM
18
Peter Corrao, Chief Executive Officer
• More than 25 years of executive level management experience
• Served as CEO of Bluestreak.com, a digital marketing products and services company
• Served as President and CEO for Cogit Corporation, an online target marketing company
• 17 years at Advo Inc. President of National Accounts Marketing Division
• Graduate of Kellogg School of Management, AEMP, Northwestern University
Wally Ruiz, Chief Financial Officer
• Former CFO of SRI Surgical Express, a nationwide provider of healthcare services
• Served as CFO of several public and private companies
• MBA from Columbia University and a BS from St. John's 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
• Original Product Manager of alOt’s core software products
• Attended Columbia Business School MBA program and Graduate of Carleton College
Trey Barrett, SVP Corporate Strategy and Business Development
• Former Director of Interactive Media Products at Acxiom Corp. overseeing innovation and
development of the Relevance-X product line
development of the Relevance-X product line
• 25 years of data driven direct marketing experience
INVESTMENT HIGHLIGHTS
19
• Reached Adjusted EBITDA positive in Q1 2012
• Expecting double digit quarter on quarter revenue growth throughout
2012
2012
• Trading at a valuation significantly lower than peers
• Software Search expected to grow to approximately 10 million users by
the end of 2012, up from 7.0 million at the end of Q1
the end of 2012, up from 7.0 million at the end of Q1
• International expansion fueling strong growth in user base
• 75% margin Partner Programs business expected to have high organic
growth
growth
• Expected to access over 132 million unique Internet users per month
• Strategic relationships with Yahoo! And Google
THANK YOU
20
Inuvo, Inc.
143 Varick Street
New York, NY 10013
www.inuvo.com
143 Varick Street
New York, NY 10013
www.inuvo.com
Peter Corrao, CEO & President
(212) 231-2000
peter.corrao@inuvo.com
Wally Ruiz, CFO
(646) 253-0617
wallace.ruiz@inuvo.com
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