town meeting: feb 16, 2012

10

20

30

40

50

60

70

80

Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011

Total Headcount

welcome to quirky

Rosalind Carnes - Graphic Designer

Katherine Druback - Invention Ambassador

Charles Lovaglio - Office Hygiene / Admin 

Alex Lyon - Graphic Designer

Baron Nagy - Community Ambassador

Nathaniel Padgett - Community Ambassador

Allie Rodriguez - Receptionist / Admin

Scott Shephard - Head of Packaging

Courtney Theese - Invention Ambassador 

Jaime Yandolino - PR

Tammy Loh - Brand Manager 

Suzannah Kerr - People & Culture

Bret Kovacs - Head of Marketing

239Ideas Chosen

36Products On Sale

29Products In Production

74Products In Development

104Products Upcoming

2011By The Numbers

10

15

20

25

30

35

40

Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011

# of Products Shipping

Product Revenue

$6,525,999 Product ShippedUp 681% over 2010

-

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1,600,000.00

Jan 2

010

Feb 2

010

Mar 20

10

Apr 20

10

May 20

10

Jun 2

010

Jul 2

010

Aug 20

10

Sep 20

10

Oct 20

10

Nov 20

10

Dec 20

10

Jan 2

011

Feb 2

011

Mar 20

11

Apr 20

11

May 20

11

Jun 2

011

Jul 2

011

Aug 20

11

Sep 20

11

Oct 20

11

Nov 20

11

Dec 20

11

Product Revenue

Name Quantity RevenueWrapsterPivot PowerCordiesContortCordletsPowerCurlMantisTetherBanditsScratch-n-ScrollVerseurConvergeDigitsCloakBroom GroomerPlug HubBobble BrushSOLOCordies ClassicSpace BarClick n CookThorMugStirSwitchKosokuBeamerPetal DropsMetal CordiesTravelstacksSplit StickPortionShower StationGrip GraterContourSplit Stick ClassicScribe

206981 434173.76165784 2635501.14146989 695301.9548808 600433.6845493 213929.8645018 309870.4038180 468803.3019295 132935.0518191 74157.8017027 112625.9916743 172517.9615237 322722.8513994 108942.4413354 442692.9113346 65906.8812274 153888.3410257 66801.628090 38414.518071 50430.257226 264117.606528 111870.414949 70485.504601 25907.803997 174160.912599 39934.492597 46930.422345 5432.402246 21819.582166 25331.302061 36751.232019 11835.461722 65344.621195 17323.95941 4787.79552 12799.82546 9960.42

by

pro

duc

t

Name Quantity RevenuePivot PowerCordiesContortMantisCloakWrapsterConvergePowerCurlSpace BarCordletsSwitchVerseurPlug HubTetherScratch-n-ScrollClick n CookDigitsBanditsThorBobble BrushBroom GroomerShower StationCordies ClassicBeamerKosokuSOLOSplit StickMugStirTravelstacksMetal CordiesGrip GraterSplit Stick ClassicPortionScribePetal DropsContour

165784 2635501.14146989 695301.9548808 600433.6838180 468803.3013354 442692.91

206981 434173.7615237 322722.8545018 309870.407226 264117.60

45493 213929.863997 174160.91

16743 172517.9612274 153888.3419295 132935.0517027 112625.99

6528 111870.4113994 108942.4418191 74157.804949 70485.50

10257 66801.6213346 65906.88

1722 65344.62

8071 50430.25

2597 46930.422599 39934.498090 38414.512061 36751.234601 25907.802166 25331.302246 21819.581195 17323.95552 12799.82

2019 11835.46546 9960.42

2345 5432.40941 4787.79

by

do

llars

$505,249 Markdowns & Returns

Reasons:

- End Of Relationship (The Shack) (40%)- Swap out for more productive product (55%)- Defects (5%)

Site Upgrades

2011 Payments

2011 Payments

$722,288

1. Jake Zien2. Stephen Stewart3. Jeff Scholen4. Kevin Joyce5. Clinton Fleenor6. Matthew Fleming7. Joshua Wright8. Michael Cavada9. Emad Yahia10. James Robinson

63.26% went to the top 100

Top Earners

63.26%of rewards went to the top 100 influencers

Things are heating up.

$125,000 due to be rewarded just in the next 30 days.

Why the upswing?

0

50000

100000

150000

200000

January February March April May June July August September October November December

2011 Direct

Direct Revenue

new shop

• 314,713.03 (Jan-Oct)

• 313,425.94 (Nov- Dec)

more direct $ = more community $

Driving Growth @ Quirky

PRESS (since last town meeting)• ABC News Now• Bloomberg Business Week• Chicago Sun Times• Family Circle• Good Housekeeping• InStyle Magazine• New York Post• San Francisco Chronicle• Time Out New York• Vanity Fair• Washington Post• Woman’s Day• Yahoo!

UPCOMING• New York Post: Product story - February 16 • CNBC: “In the Making” - February 27• MSN: “Business on Main” - February 27• Crain’s New York Business - March• Family Circle: Pivot Power story - March• International Business Times - March• Economist - April• Real Simple: Featuring Tether - May• Nate Berkus Show: Featuring Contour

Inventor Tracie Beer - May 8

SOCIAL PRESENCE•318% growth since last TM•109% increase post views•113% increase in comments

Retail

Quirky products can be found in over 7,000 retail doors worldwide.

What a Year!

And we’re proud to officially, publicly, loudlyannounce....

- # 3 retailer in the US

- Community & Design Centric

- Lover of Quirky

The Plan(these types of things change)

- Dedicated Space

- Slow roll out in 2011

400 Stores - March 25th

1000 Stores - May 1st

All Stores - July 1st

current top performing SKU...

RetailUnsung Heroes of Quirky

• Since Jan 1st• Cordies Gray (1334pcs)• Pivot Power White (461pcs)• Thor (419pcs)• Pivot Power Black (402pcs)• Cordies White (375pcs)• Plug Hub (304pcs)

• Sell Thru• YTD sell through- $60,000• Average daily sell thru- $1276.59 • Sell In YTD sell in- $74,244

(up 9x from this time in 2011)

• Contort – 187 (.76)• Cordies Charcoal – 580 (2.41)• Wrapster – 1283 (5.33)• Pivot Power – 274 (1.15)• Spacebar - 179 (.73)

4 weeks sell-through in just 60 stores

Retailis Quirky’s Business

But we’re taking a breather from furiously adding new accounts.

And focusing on executing really well on the ones we already have.

but there are other ways of bringing product to life....

Licensing

Chad HetheringtonBusiness Development

- Professional Salesman- University: None.

Direct Selling Exploration

• TV Selling

• Retail Stores

• Retail Kiosks

• Vending

• Catalog, Etc

More Channels Means

More Opportunity

More Opportunity Means

Invention Is More Accessible

G

A

Y

C

Q

B

H

Y

C

Q

B

G

C

Q

B

Q

Explore More = Choosing More

(not launching more, but launching better)

Toys & Tools

The New Quirky HQ

the ugly truth.

we’re getting bigger.

IDEA SUBMISSIONSPER WEEK

11 05 0

(AND RISING)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Jan 2

010

Feb 2

010

Mar 20

10

Apr 20

10

May 20

10

Jun 2

010

Jul 2

010

Aug 20

10

Sep 20

10

Oct 20

10

Nov 20

10

Dec 20

10

Jan 2

011

Feb 2

011

Mar 20

11

Apr 20

11

May 20

11

Jun 2

011

Jul 2

011

Aug 20

11

Sep 20

11

Oct 20

11

Nov 20

11

Dec 20

11

Cumulative Idea Submissions

we don’t see this as great news (yet)... and neither do you.

• More ideas to sort through

• Similar Ideas more common

• Harder to identify great ones / stand out

• Influence is harder to come by

• Collaboration has been impeded

• Lower probability of being chosen

• “it’s not fun”

we agree.

but: we see a clear path to more not being a problem..

to more being a strength...

to more being an opportunity...

to more being fun, but not overwhelming.

The Vision

• Make The Quirky Process More Valuable For Every Inventor

• Develop Ideas That Have Potential For True Innovation

• Pick Products That Are More Likely To Be Made

Encourage and reward users for helping refine their peers’ ideas. Involve Quirky staff in ideas before selection.

The Path

pre-evalcollaboration.

Eval Influence Breakdown

• Eval Project Becomes 60% of overall product influence by default (default is currently 50%)

• Inventor’s Share is 70% (42% Overall)

• Collaboration Share is 10% (6% Overall)

• Comp Shop Share is 5% (3% Overall)

• Winning Vote Share is 10% (6% Overall)

• Losing Vote Share is 5% (3% Overall)

• Collaboration Influence goes to the winning voters if there are no accepted collaborations.

Monday.

• Collaboration On Idea Description (Monday)

• Image Collaboration (30 Days)

• Invite Only Pre-submission Collaboration (60 Days)

• Naming/Tagline Collaboration (90 Days)

addressing similar ideas.

A Ton More Coming...

• Duplicate detection for Naming & Tagline now live

• Flagging for similar ideas now live. Refining methods to automatically detect similar ideas.

• New Profile and Welcome pages in the next two weeks

• Email Overhaul Nearing Completion

• Relentlessly working on site errors and slowdowns. 99.5% uptime in Jan, looking to significantly up that in Feb.

• Still working on new Social Sales system

• Working on Improving Ideator Feedback

emails...

profile...

Intellectual Property

New section on site (ipFAQ) & video series addressing ip questions..... coming soon

Email your questions to ipfaq@quirky.com

Private Submissions

Lets Talk...

OUR GOALS

The Year 2012

Goals for this year

• Deliver quality product through a fantastic Inventor / Influencer experience

• Retail Account Management

• Fill Key Positions

Product Quality

the testing program...

Account Management

Key

Hires

PRODUCTS

the time has come...

A funeral.

End Of Life

Redesigns

Line Extensions

Portion 2

Announcements

We’re Making This

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Target is Taking This

Almost Done.

This meeting is....

And finally....

ASK US ?’s