investor overview – may 2016home.snipp.com/.../2014/07/investor-deck_may2016.pdf · presentation...
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INVESTOR OVERVIEW – May 2016 SNIPP INTERACTIVE INC. TSX:V SPN OTCQX:SNIPF
Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Snipp Interactive Inc.’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s securities in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a representation of the Company’s potential cash generation performance in any way. Some of the financial information included in this presentation is preliminary, forward-looking, unaudited and subject to revision.
All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document. All forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labor relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by law. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material. The reader is cautioned not to put undue reliance on such forward-looking statements.
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Snipp Today
130 EMPLOYEES: 60+ OFFSHORE ENGINEERS
234% REVENUE GROWTH IN 2015
8M+ CASH & EQUIVALENTS
$26M+ PIPELINE
+ CASHFLOW POSITIVE IN Q2, Q3 ‘2015
$0 DEBT
$4M+ Q1 (E) 2016 BOOKINGS
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Snipp - What We Do Snipp provides brands with a complete technology suite to manage
their promotions and implement cross channel loyalty programs.
$ $
$
4
Receipt / Purchase Validation
Rebate Programs
Rewards Platform Contests & Promotions
SnippInsights Coming soon…
Image Recognition
SnippMedia Coming soon…
👀
Technology Engines Industry Solutions
Loyalty Engine
Future Solutions
The Snipp Way – Purchase Based The Old Way – Spray & Pray
A New Paradigm In Promotion & Loyalty
A majority of loyalty and promotion programs still rely primarily on multiple vendors and traditional tools such as physical coupons, rebates, and code on packs
Creating Big Brand Problems: Retailer Integration +Missing Data
Brands know after a promotion, but not …
Where? Who? What?
Snipp gives brands a single source to manage these programs, collect previously unknown data, analyze the effectiveness of each promotion and do true loyalty programs
Multiple Program Types
Extensive Rewards Options
Any Platform
Brands Get New Tools and Data
With Snipp, brands now know …
Place of Purchase
The Customer Jane Smith, 310-434-…
True Results of the Promotion
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Snipp Gives Brands A Virtual Point of Sale
For the first time, brands can see the who, what, and where behind the marketing and sale of their products; data that is captured by the retailer and not shared with brands.
For Fortune 500 brands, Snipp’s technology represents a welcome solution to a long-standing problem: “who have we effectively targeted with this promotion?”
SnippCheck has quickly become the industry standard for receipt capture.
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Connecting brands directly to the consumer with effective advertising and incentives
Consumers
Retailers
Brands
Why Is our Platform Important?
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half”
- John Wannamaker
“The problem for many advertisers is that the vast majority of consumer purchases take place offline. So the question becomes: if I buy advertising on Facebook, how do I know that someone bought a can of beans in the supermarket because of it?”
Retailers have the power of purchase data, Brands have none
1 Advertising has a measurement problem
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$
$
7
80%
Revenue Model Diversified Revenue Across Segments
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Promotions / Rewards
- +90% repeatability - Campaign sizes have nearly
doubled year-over-year
Loyalty API (Application Program Interface)
- Long-term recurring revenue - Sticky
% of 2015 Revenue
- We license our technology and partner with leading couponing and promotions platforms
14% 6%
With Snipp, customers get their rewards faster and brands get better data.
Goal: Drive more registered users and purchases for Clorox.
Promotion: Mighty Messes 6-month contest with monthly $1000 winners
Process: Register on the Clorox site, buy two Clorox bleach products, upload receipt.
Verify: Check registration. Prompt: Capture unregistered users.
Results: A triple win for brands – higher sales, more registered users, and data they previously could not collect.
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Thank you for submitting your receipt! It has been received and you can expect a confirmation text within 48 hours!
Please make sure to register here http://snipp.us/!q68 to be entered in to the Clorox Mighty Messes Monthly Sweepstakes!
Congratulations! Your receipt has been validated, and you have been entered for a chance to win $1000!
Brand issue Snipp powered program Program results
Snipp’s Platform Drives Sales Arm & Hammer + Major League Baseball Promotion
77%
$200MM+
of shoppers buy only 1 Arm & Hammer
brand
The opportunity if shoppers buy 1
additional brand
“A home run!” Director of Marketing, Arm & Hammer
PRE POST
2% 3% 18%
77%
12%
13%
22%
53%
Bought1 Bought 2 Bought 3 Bought 4+
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Data the Brand Manager Receives
• What you bought? • Where you bought their
product? • What else you bought? • Basket size? • Demographic information? • What ad drove you to
participate?
“The platform value proposition for a brand increases as the amount of data grows”
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Targeting Massive Fragmented Markets
US PROMOTION INDUSTRY
$80 B
$500 B GLOBAL ADVERTISING
SPEND Ability to track overall purchase behavior
Ab
ility
to r
un p
rom
otio
ns
Snipp has the leading solution
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Our Clients are top Multinational Brands Less than 5% penetrated into our current customers
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Sales Multiplier Effect We are repeating this same cycle in many multi-brand companies.
Single Promotion Multiple Brand
Promotions Master Service
Agreement
Geographic Expansion
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Result: 110% Revenue CAGR
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2012 2013 2014 2015
$511,854 $870,420
$3,562,045
$11,890,231 Snipp USD Revenue
Full Time Employees Average Campaign
Size EBITDA Loss as %
of Revenue
8 10 48 130
$7,000 $7,796 $25,000 $40,000
-256% -84% -30% -28%
Current Trends: Positive For 2016
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$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Contract $135,000 $311,000 $500,000 $542,000
Largest Contract By Quarter
Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016E Recurring Revenue Trend
Recurring 0% 2% 8% 15% 26% 55%
0%
10%
20%
30%
40%
50%
60%
Rapid Acceleration In Recurring Revenue as % of New Business
Average long-term contract: now 18 months
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Q1/2015 Q2/2015 Q3/2015 Q4/2015
Average Campaign Size Campaign $7,000 $7,796 $25,000 $40,000
As Relationships Season, Campaign Size Expands
0%
10%
20%
30%
40%
50%
60%
70%
2014 2015 2016E Gross Margin 32% 55% 70%
Gross Margins are expected to reach 70% by Q4/2016
Shift to Recurring Revenue Increasing Campaign Size Improving Margins
High Value Deals – Growing Larger
Sales cycle confirmation: one-off promotions leading to long-term
relationships. Untapped International
Opportunity
Our 60+ Engineers continue to expand our technology platform 1
Focused on Profitable Growth Snipp is poised to continue its rapid growth
As we add Sales force, the multiplier effect kicks in 2
We expect a high % of long term licensing and service contracts 3
Scalability makes each incremental relationship more profitable 4
This is a fragmented industry, with many opportunities for growth 5
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APPENDIX
Strong Board with Focus on Governance
Michael Dillon EVP, Colangenlo Omnicom Group
Ram Ramkumar 25+ Years Public Market Experience on TSX & NASDAQ
Conrad Swanson Director of several publicly listed companies
Atul Sabharwal Founder, CEO
Ritesh Bhavnani Founder, President
All Committees run by independents
Michael Cannata Founder Patent Monetization Inc.
Susan Doniz On the board of several companies. Ex CIO of Aimia, P&G Canada
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We are Snipp
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Management Atul Sabharwal Founder, CEO
“Little bit of this & that”
Ritesh Bhavnani Founder, President “The Product Visionary”
2007
Wilson Bell Executive Vice President R&D “All things New”
2008
2012 2014
David Hargreaves Chief Client Officer
“Satisfies every customer need”
Frank Sweeny Chief Technology Officer
“The Builder”
Jaisun Garca Chief Financial Officer “Keeps us Compliant”
2015 Baris Karadogan
Chief Operating Officer “All things Process”
2015
Well capitalized company Management’s interest is aligned with shareholders
Capital Structure
Shares Outstanding 128 Million
Options & Warrants 46 Million
Average Daily Volume 170K Shares
52 Week High / Low $0.26 / $0.89
Insider Ownership 33%
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