discotech investor presentation 6 1-15

32
Discotech OpenTable for Nightlife 1 For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]

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Page 1: Discotech investor presentation 6 1-15

Discotech OpenTable for Nightlife

1

For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]

Page 2: Discotech investor presentation 6 1-15

Nightlife Market is Ripe for Disruption

1

1%

99%

Traditional Promoters Other

Nightlife reservation market is comprised of 100,000+ individual promoters and is

highly fragmented

Discotech will disrupt the nightlife industry the same way that Priceline and Kayak

disrupted the travel industry

Then Now

$20B Global Market

Page 3: Discotech investor presentation 6 1-15

Why Discotech?

Texting and calling club promoters to get into nightlife venues is outdated and inefficient

Typical nightlife experience

2

Page 4: Discotech investor presentation 6 1-15

The nightlife app for millennials

Discotech allows users to find nightlife events in their area. The app uses location services to deliver what is happening near the user.

Users can make table reservations in just a few taps on their phone. Discotech’s booking system brings transparency and convenience to the table reservation process.

Discotech allows users to sign up and add their friends to guestlists. Discotech will also be integrated with Wantickets to sell tickets to venues directly on the app.

DISCOVERY BOTTLE SERVICE GUESTLIST & TICKETING

Discotech changes that experience

3

Page 5: Discotech investor presentation 6 1-15

Venue Partners

Discotech is currently working with over 80 venues in Los Angeles, Las Vegas, and San Francisco. Our partners include 7 of the top 10 largest clubs in the country.

4

Page 6: Discotech investor presentation 6 1-15

Mobile App % % % %

Event Discovery % % % % %

Table Booking % % % % %

Guest List %

Ticket Sales %

Loyalty Program % %

Competition

Discotech is the only “One-Stop Shop” for Nightlife Booking

5

Page 7: Discotech investor presentation 6 1-15

Discotech & Wantickets Partnership

In January of 2015, Discotech entered into a partnership with Wantickets to roll out the app on a world wide basis. Wantickets will provide Discotech with access to all of its ticketing inventory, including to venues where it has exclusive partnerships.

Wantickets is the largest ticketing provider in the nightlife/EDM space, working with over 1,000 venues in the U.S and 1,300 world wide.

Partnership with Wantickets gives us instant national distribution

6

Page 8: Discotech investor presentation 6 1-15

Exclusive Ticketing Partnerships

Wantickets is the exclusive ticketing provider for the country’s largest venues

7

Page 9: Discotech investor presentation 6 1-15

10-20+% commissions on revenue booked

$3-7 commission per guestlist attendee

15-20% service fee commission on ticket sales (charged to the end customer)

$1-10 per guest “bounty” for some tickets

TABLE BOOKINGSGUESTLIST TICKETING

K

Primary Revenue Model

*a

8

Page 10: Discotech investor presentation 6 1-15

User Base & Table Bookings Gaining Traction

Cumulative # of Downloads Cumulative Table Bookings ($)

9

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

DEC'13

JAN'14

FEB'14

MAR'14

APR'14

MAY'14

JUN'14

JUL'14

AUG'14

SEP'14

OCT'14

NOV'14

DEC'14

JAN'15

FEB'15

MAR'15

APR'15

MAY'15

NUMBER OF DOWNLOADS TABLE BOOKINGS ($)

Page 11: Discotech investor presentation 6 1-15

Revenue has grown significantly in 2015

$0

$30,000

$60,000

$90,000

$120,000

Jan'1

5Fe

b'15

March'1

5

April'15

May'15

$119,732$107,513

$61,861

$34,465$37,610

Dollars ($)

10

Page 12: Discotech investor presentation 6 1-15

Guestlist Signups

0

2,000

4,000

6,000

8,000

Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 April + May

7,4126,742

4,7544,271

2,730

1,075262

# of Guest List Sign Ups

11

Page 13: Discotech investor presentation 6 1-15

Gross Margin vs. Marketing Spend (Monthly)

$0

$3,000

$6,000

$9,000

$12,000

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Marketing Spend (monthly) Gross Margin (monthly)

Dollars ($)

Monthly contribution has surpassed monthly marketing spend since July of 2014

12

Page 14: Discotech investor presentation 6 1-15

Cohort analysis - Table Booking Dollars

$0.00

$2.00

$4.00

$6.00

$8.00

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months

Table Booking Dollars per download ($’s)

Time Joined

13

Table booking dollars per download has grown significantly across cohorts

Page 15: Discotech investor presentation 6 1-15

Monthly cost per download

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Nov'13

Dec'13

Jan'1

4Fe

b'14Mar'

14Apr'1

4

May'14

Jun'1

4Ju

l'14

Aug'14

Sep'14

Oct'14

Nov'14

Dec'14

Jan'1

5Fe

b'15Mar'

15Apr'1

5

May'15

Cost per download (monthly)

Dollars ($)

avg - $2.01

14

Monthly cost per download has declined significantly across last 5 months

Page 16: Discotech investor presentation 6 1-15

0

1,000

2,000

3,000

4,000

Dec'14 Jan'15 Feb'15 Mar'15 Apr'15 May'15

730

9221,136

9691,2621,187

2,443

1,3821,282

792516375

Organic DownloadsPaid Downloads

Paid vs. Organic Downloads

# of downloads

15

Average cost per download has decreased due to growth of organic downloads

1,5621,778 1,761

2,418 2,304

3,173

% Organic 24% 29% 45% 53% 60% 77%

Page 17: Discotech investor presentation 6 1-15

The Team

Ian Chen (Co-Founder) CEO Private Equity @ Gores Group, Management Consulting @ Bain

Mark Wu (Co-Founder) COO Marketing & User Acquisition @ Zoosk

Ian Bushong (Co-Founder) CTO Engineer @ Ambarella

16

Page 18: Discotech investor presentation 6 1-15

Advisors

Jim Yang CEO @ Gather

Founder and CEO @ Identyx (Identyx acquired by Red Hat)

Advisor @ Mobicents and TeleStax Early Investor @ Refinery29

Diego Carlin CEO @ Wantickets

Co-Founder @ Hot Air LLC President @ Sound in Color

Director @ Abound

17

Page 19: Discotech investor presentation 6 1-15

We are targeting a $1.5M round of financing

Use of Funds (18 months): • $180K Management Salaries (3 Founders) • $450K Product Development (Hire Three Developers) • $150K Sales and Operations (Hire 2 Sales / Ops Associates) • $400K Customer Acquisition / Marketing • $320K G&A + Cushion • Total: $1.5M

18

Page 20: Discotech investor presentation 6 1-15

Thank You

For Additional Information, please contact Ian Chen

Cell: 301-793-0186

Email: [email protected]

19

Page 21: Discotech investor presentation 6 1-15

Back Up Slides

20

Page 22: Discotech investor presentation 6 1-15

Cohort analysis - Table Bookings

0%

0.175%

0.35%

0.525%

0.7%

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months

Table Bookings per download

Time Joined

Number of table bookings has also grown across cohorts

21

Page 23: Discotech investor presentation 6 1-15

Cohort analysis - Guest List

0

0.1

0.2

0.3

0.4

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months

Guest list sign ups per download

Time Joined

Guest list usage and retention has grown significantly over time

22

Page 24: Discotech investor presentation 6 1-15

Discotech is Sticky

0%

25%

50%

75%

100%

% of Boo

kings

34%

66%

One-time Users Repeat Users

0%

25%

50%

75%

100%

% of Boo

kings

87%

13%

Bottle Service Guest List

Since inception, we have had significant repeat usage in bottle service and guest list

23

Page 25: Discotech investor presentation 6 1-15

Discotech Burn Rate

Expenses SG&A Total Aug-13 $919 $8,500 $9,419 Sep-13 $3,265 $10,000 $13,265 Oct-13 $5,177 $11,500 $16,677 Nov-13 $4,482 $0 $4,482 Dec-13 $2,223 $11,000 $13,223 Jan-14 $5,125 $5,000 $10,125 Feb-14 $5,058 $5,600 $10,658 Mar-14 $12,835 $8,500 $21,335 Apr-14 $9,209 $9,600 $18,809

May-14 $10,879 $6,925 $17,804 Jun-14 $7,512 $4,358 $11,870 Jul-14 $7,591 $3,000 $10,591

Aug-14 $8,134 $7,319 $15,453 Sep-14 $7,494 $7,331 $14,825 Oct-14 $6,985 $9,437 $16,421 Nov-14 $4,649 $9,339 $13,987 Dec-14 $2,261 $13,488 $15,749 Jan-15 $8,493 $20,114 $28,607 Feb-15 $5,620 $15,691 $21,312

Total $117,910 $166,702 $284,612

Discotech has been extremely lean since our inception

24

Page 26: Discotech investor presentation 6 1-15

Discotech Geographical Expansion Plan

Cities where we have most club venues

Cities where we have some presence Next 5 Cities Next 10 Cities

Los Angeles Washington D.C San Diego Austin

Las Vegas Miami New York City Atlanta

San Francisco Chicago Boston

Seattle Dallas

Toronto Philadelphia

Montreal

Orlando

Phoenix

Vancouver 25

Page 27: Discotech investor presentation 6 1-15

Financial Projection

($’s in 000’s) 2013 2014 2015 2016 2017 2018

Total Bookings $8 $414 $2,282 $16,543 $60,522 $151,100

Gross Margin $1 $45 $267 $2,225 $9,575 $24,204

OPEX $67 $178 $972 $2,963 $5,987 $10,332

EBIT ($66) ($133) ($705) ($738) $3,588 $13,872

Investment $425 0 $1,500 0 0 0

Cash Balance $359 $226 $1,021 $283 $3,871 $17,743

26

Page 28: Discotech investor presentation 6 1-15

Recent Acquisitions in Space

$280M

$1.6B

$2.6B

$1.8B

Acquired Amount Date

June 2014

$658M

Buyer

June 2013

Jan 2015

July 2014

Feb 2015

0.7x

1.9x

13.7x

6.1x

4.5x

Sales Mult. EBIT Mult.

-9.8x

25.8x

56.0x

45.2x

8.9x27

Page 29: Discotech investor presentation 6 1-15

Recent Acquisitions in Space Continued

28

Page 30: Discotech investor presentation 6 1-15

Potential Acquirers

Market Cap $55.5B $9.9B $4.9B $1.1B $320M

P/E 24.65 29.82 4240.5 390.5 N/A

29

Page 31: Discotech investor presentation 6 1-15

Ticket Sales

*Ticketing Platform launched in June 2014

0

400

800

1,200

1,600

Q2'14 Q3'14 Q4'14 Q1'15

1599

770

1033

128

# of Tickets Sold

30

Page 32: Discotech investor presentation 6 1-15

Contribution per download (Cohort 1)

GM Dollars per download ($)

31

$0.00

$0.75

$1.50

$2.25

$3.00

Avg. Cohort 1 Download

Bottle Service Guest List Tickets

$2.71 ——$0.03 ——————$0.17

——————$2.51

Average cohort 1 download has generated $2.71 in contribution to date (through March)