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Leading independent digital content in the high-value finance vertical Company Overview

Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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Page 1: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

Leading independent digital content in the high-value finance vertical

Company Overview

Page 2: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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Page 3: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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Page 4: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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Page 5: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

Highly-curated,

professional

content

In-house

editorial

Video and data

Contributing

investment

professionals

Select specialty

partner sites

Independent Leader in Actionable

Financial News & Analysis

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Key Distribution Partners

Page 6: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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Data

Non-display

Advertising

Display

Advertising

Entry

Subscriptions

Premium

Subscriptions

Seat

Licenses

Professional

Databases

Lists

Page 7: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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.

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Page 8: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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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

Page 9: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

TheStreet Mobile

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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

Page 10: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

Valuable Audience with Scale

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▲ 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.

Page 11: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

Premium Services

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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

Page 12: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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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)

Page 13: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

TheStreet Ratings

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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

Page 14: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

$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

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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

Page 15: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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.

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Page 16: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

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

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Page 17: Leading independent digital content in the high-value ... · Securities and Exchange Commission (“SEC”), which are on file with ... wealth management and ... Per Visit 1 41,615

©2012 TheStreet, Inc. All rights reserved.

NASDAQ: TST

Tom Etergino – CFO

212.321.5234

[email protected]

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Thank You