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Leading independent digital content in the high-value finance vertical
Company Overview
All statements in this presentation other than statements of historical
fact are 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. Forward-looking statements are inherently
subject to risks and uncertainties, and actual results could differ
materially from those reflected in the forward-looking statements due
to a number of factors, which include, but are not limited to, the
factors described in the Company's regulatory filings with the
Securities and Exchange Commission (“SEC”), which are on file with
the SEC and available at its website at www.sec.gov. All statements
relating to the Company‟s plans, strategies and objectives are
deemed forward-looking statements. Although the Company believes
that the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievements. The Company disclaims any
obligation to update these forward-looking statements, whether as a
result of new information, future developments or otherwise.
Safe Harbor Statement
2
Original, high-quality financial content, focused on actionable investing ideas for a passionate, affluent audience
Successful, large-scale digital-only business with scaling revenue growth rates, dual monetization streams and high operating leverage
Top 10 network in financial news category, driven by strong brands, broad distribution and modern web publishing skills
Solid balance sheet with $75.3 million in cash and equivalents, no debt and operating cash-flow positive
Multiple opportunities to expand
Today’s TheStreet
3
The Virtuous Cycle of Vertical Publishing
80 in-house editorial staff and 100 vetted
contributing investment practitioners
3,000 original articles and 500 original
videos monthly, plus suites of data tools
Strong journalistic standards coupled with
modern web publishing skills
Deeply engaged users with valuable demographic characteristics
Trust and rely on content and advertising for important decisions
Pay for content and respond to ads
Top 10 network by audience size
Loyal endemic advertisers, a „must-buy‟
Growing number of non-endemic advertisers attracted to strength of user demographics
Premium pricing, direct sold, marketing packages
Business model
which leverages
content across
multiple channels
15-year history of
success with paid
content
Emerging
licensing and
partnership
operations
High operating
leverage
Deep
Domain
Expertise
Quality
content
attracts…
Quality
users, who
attract…
Quality
advertisers,
and
enhanced…
Monetization
4
Highly-curated,
professional
content
In-house
editorial
Video and data
Contributing
investment
professionals
Select specialty
partner sites
Independent Leader in Actionable
Financial News & Analysis
5
Key Distribution Partners
Unique Model
Driving users along engagement spectrum
within our content category
Social
Media
Partner
Placements
Unregistered
Users /
Free Sites
Registered
Users
Entry
Paid
Products
Paid
Products Bundles Licensing
Value per User
6
Data
Non-display
Advertising
Display
Advertising
Entry
Subscriptions
Premium
Subscriptions
Seat
Licenses
Professional
Databases
Lists
Unique Revenue Mix
Subscription:
Stable, recurring
revenue
High margins
and operating leverage
Strong cash flow
Advertising:
Benefits from economic
recovery and secular shift
to online media
Strong base of core
endemic advertisers
Growing non-endemic
roster
Premium pricing
Premium
Services
68%
Advertising
32%
Revenue mix is for 12 months ended December 31, 2011.
7
Advertising-Supported Network
Flagship brand, covering actionable
investment information
Professional, original content with deep
expertise
Increasing coverage of business news,
small business, wealth management and
technology content
8
Supporting brands with complementary
content offerings
Crowd-sourced investing ideas
Bank rate information
Populist personal finance
Extends reach for advertisers and
improves competitiveness of offerings
TheStreet Mobile
9
Apps on all major mobile
and tablet platforms:
iPhone, iPad, Blackberry,
Android, Kindle
Platform-independent
TheStreet.mobi service
Flagship content and
video in all formats
Select premium services
content
Sponsorship-oriented
monetization
Valuable Audience with Scale
10
▲ Audience is educated, wealthy, and
highly engaged
▲ Superior demographics among
competitive set (1, 3)
• #1 in Portfolio Value of $1m+
• #1 in Heavy Stock Trading
• Overweight in Holds EVP/SVP/VP Position
• Overweight in HHI $150k+
• Overweight in Financial Services DM/Influencer
• Overweight in Performed Online Investment Shopping in last 30 days
• Overweight in Searched for Online Stocks in last 30 days
▲ Meaningful audience engagement (3)
• Average Minutes per Visit: 2nd in peer group and 44% higher than peer average
• Pages per Visit: 3rd amongst peer group
Rank Content Site (2)
Total
Uniques
(000s)
LTM Avg
Min
Per Visit
1 41,615 2.8
2 19,462 2.1
3 18,424 4.0
4 16,456 2.0
5 14,089 3.1
6 13,993 3.5
7 12,533 2.5
8 11,925 2.6
9 6,520 5.1
10 6,129 1.5
11 5,813 3.7
12 5,675 14.8
13 3,353 2.3
14 3,247 2.1
15 2,891 2.3
TheStreet has improved from #12 to #9 in comScore rankings since June 2010 (2,3)
Notes:
(1) Source: Nielsen @Plan 4 2011 (2) Rankings exclude Manta. (3) Source: comScore, December 2011.
Premium Services
11
Unique, industry-leading operation, rooted in 15
years experience
Portfolio of 13 service offerings; 85,000 + paying
subscriptions
Evolution of product portfolio to align with
investment strategies supported by multiple
personalities
Growing off-domain distribution channels
In addition to recently overhauling Real Money
and Real Money Pro, TheStreet has launched
three new offerings in ETF Profits, Options Profits
and Chat on TheStreet
12
RateWatch
Leading B2B provider of
competitive pricing
intelligence for banking
institutions
High-quality, hand-verified
data covering 80,000
branches, nationwide
Broadest and deepest
coverage available –
savings and lending
Top flight client list,
including FDIC
Potential B2C opportunity
with RateScout (currently
in beta)
TheStreet Ratings
13
Comprehensive,
independent analysis of
5,000 equities, 20,000
mutual funds and 800
exchange-traded funds
Award winning proprietary
system rooted in
fundamental and technical
analysis
Advertising supported,
pay-per-view and
subscription offerings
Upcoming investment
research center
$3.8
$4.8
$4.7
$5.3
$4.5
$5.0
$4.3 $4.4
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
Q1 Q2 Q3 Q4
$0.6
$0.9
($0.3)
$0.0
($0.5)
$0.7
$0.5
$1.2
-$0.6
-$0.4
-$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
Data in millions. 2010 Revenue and Adjusted EBITDA figures exclude the Company's May 2010 divestiture of the Banking and Insurance Ratings
product line as well as TheStreet Ratings revenue from global research settlement.
Advertising Revenue Year on Year
Financial Results
14
Adjusted EBITDA Sequential
$9.4 $9.6 $9.6
$9.4 $9.6
$10.1 $10.0 $9.8
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
$11.0
Q1 Q2 Q3 Q4
2010 2011
Premium Services Revenue Year on Year
2010 2011
Financial Highlights and Metrics
LTM revenue: $57.8 million
Premium services revenue: $39.5 million
Advertising revenue: $18.2 million
LTM Adjusted EBITDA: $2.0 million
Cash and equivalents balance of $75.3
million = $2.34 per share
No debt
Net operating loss carryforward of $142
million
289 employees
Dividend – $0.10/share/year; approximately
5.5% yield
Shares outstanding: 32.1 million common
and 5,500 preferred
Preferred shares
Convert to 3.9 million common shares at
$14.26/share
Liquidation preference of $55.0 million
Average daily trading volume
(3-mo avg. to 12/31/11): 132,059 shares
Nasdaq Global Market – TST
Operating results are for 12 months ended December 2011. Balance sheet data as of December 31 2011. Cash and equivalents include cash, cash
equivalents, restricted cash and marketable securities.
15
Strategy for Growth
Growing returns on operational improvements:
Replacing legacy technologies
Overhauled premium services product strategy
Invested in audience and content quality
Expanded distribution channels
Cyclical recovery driven by improving economy and market volatility
Ongoing secular shift from offline to online – both advertising and content
consumption
Emerging freemium content models acclimates users to pay for content
Leveraging executive bench strength, scale and cash balance in support of accretive
acquisitions
16
©2012 TheStreet, Inc. All rights reserved.
NASDAQ: TST
Tom Etergino – CFO
212.321.5234
17
Thank You