IPO Presentation November 1999
The Offering <ul><li>Shares Offered: </li></ul><ul><li>Price Range: </li></ul><ul><li>Ticker (NASDAQ): </li></ul><ul><li>U...
What is LifeMinders.com? <ul><li>Highly relevant e-mail with expert content that users  want  to receive </li></ul><ul><li...
Investment Highlights <ul><li>Pioneer in Online Direct Marketing Opportunity </li></ul><ul><li>Compelling Consumer Proposi...
Where the Internet is Headed  Online Advertising Online Direct Marketing CAGR = 67.8% CAGR = 72.2% ( in billions) ( in bil...
LifeMinders.com Is at the Intersection of Two Powerful Trends Offline Direct Marketing Methods Internet Advertising and Co...
Internet Version 1.0  1994 - 1998 NBC - 14.3 million TV households ABC - 13.9 million TV households CBS - 13.5 million TV ...
Internet Version 2.0  1998 - 1999  McDonald's
Internet Version 3.0  1999 -  Depth Breadth MasterCard AOL - 20 million subscribers Yahoo! - 80 million unique users Lycos...
LifeMinders.com Offers the BEST of Both - Targeted, vibrant community - Expert, top quality content - Narrow brand identit...
Creating A Virtuous Circle <ul><li>Advertising </li></ul><ul><li>Relevance </li></ul>Consumer Engagement Achieves Higher C...
Addressing the Direct  Marketing Opportunity Member Level Database Low Cost Continuing Relationship Automate Advertising a...
Learning Drives Performance Investing for Retirement What’s the Best Mutual Fund for You Sophisticated College Saving for ...
Benefits to All Audiences <ul><li>Advertisers </li></ul><ul><li>Large, broad member base </li></ul><ul><li>Precise targeti...
Rapid Member Expansion 5 4 3 2 1 0 ( in millions) CQGR = 270%
Category and Profile Expansion Entertainment Home Family Events Auto Finance Pet Entertainment Home Entertainment Home Fam...
Compelling Member Feedback
Advertisers Benefit from  Engaged Members <ul><li>E-mails Opened 25.0% </li></ul><ul><li>Click-through Rate 24.0% </li></u...
Direct Marketing Yields Premium Rates $30-60 $200 $100 $30-60 Advertising Rates (Cost per Thousand)
Cumulative Growth in Advertising Partners
Highly Automated and Scalable Member Data Tagged Content Proprietary Automatic Infrastructure Behavior
Productive Channels of Acquisition <ul><li>Portals </li></ul><ul><li>Permission E-mail Services </li></ul><ul><li>Vertical...
Strategic Partners: Lycos Case Study
Next Steps: Extend Our Lead <ul><li>Expand Member Base </li></ul><ul><li>Continually Enrich Member Experience </li></ul><u...
Management Team Name and Title Years Experience Steve Chapin Founder, President & CEO 7 McKinsey, First USA DB Marketing J...
Financial Highlights <ul><li>Large Revenue and Gross Profit Growth </li></ul><ul><li>Advertising Inventory Upside Opportun...
Impressive Revenue and Gross Profit Growth in (millions) NM $ 0.5 $ 1.4 Opt-in Revenue
E-mails Delivered in (millions)
LifeMinders.com’s Economic Advantage and Upside <ul><li>  Q3 ‘99 October ‘99 </li></ul><ul><li>E-mails Delivered 59 millio...
A Model With Momentum <ul><li>  March ‘99 June ‘99   October ‘99 </li></ul><ul><li>Members   300,000 1,300,000   5,000,000...
Attractive Member Economics Revenue Net Cash Flow Expenses Acquisition Cost $3.65/Member Breakeven
The Advantages of Delivering Depth and Breadth Average CPM LifeMinders.com $42 Source:  H&Q Estimates  Yahoo! 24 Forrester...
Multiple Revenue Stream Opportunities <ul><li>Advertising Revenue </li></ul><ul><li>Opt-in Revenue </li></ul><ul><li>E-Com...
Target Model Q3  1999 225 11 30 (172 %) 100 Operating Expenses: Gross Revenue Marketing & Sales Research & Development Gen...
Investment Highlights <ul><li>Pioneer in Online Direct Marketing Opportunity </li></ul><ul><li>Compelling Consumer Proposi...
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LifeMinders.com Final roadshow Sept1999

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Transcript of "LifeMinders.com Final roadshow Sept1999"

  1. 1. IPO Presentation November 1999
  2. 2. The Offering <ul><li>Shares Offered: </li></ul><ul><li>Price Range: </li></ul><ul><li>Ticker (NASDAQ): </li></ul><ul><li>Underwriters: </li></ul><ul><li>Expected Pricing: </li></ul>4.2 Million LFMN Hambrecht & Quist Thomas Weisel Partners PaineWebber Incorporated Wit Capital Week of Nov. 15 $12 - $14
  3. 3. What is LifeMinders.com? <ul><li>Highly relevant e-mail with expert content that users want to receive </li></ul><ul><li>Precisely targeted advertisements and e-commerce opportunities across 10 categories </li></ul><ul><li>4.9 million members </li></ul><ul><li>Robust, self-enriching database </li></ul>Family Entertainment Home Personal Events Pet Auto Health Finance Travel Shopping
  4. 4. Investment Highlights <ul><li>Pioneer in Online Direct Marketing Opportunity </li></ul><ul><li>Compelling Consumer Proposition </li></ul><ul><li>Unique and Effective Advertising Platform </li></ul><ul><li>Rapid Revenue Growth Rate at High Margins </li></ul><ul><li>Attractive Member Economics and Long-term Financial Model </li></ul>
  5. 5. Where the Internet is Headed Online Advertising Online Direct Marketing CAGR = 67.8% CAGR = 72.2% ( in billions) ( in billions) Source: Forrester Research Source: Direct Marketing Association
  6. 6. LifeMinders.com Is at the Intersection of Two Powerful Trends Offline Direct Marketing Methods Internet Advertising and Content Delivery
  7. 7. Internet Version 1.0 1994 - 1998 NBC - 14.3 million TV households ABC - 13.9 million TV households CBS - 13.5 million TV households Source: Nielsen Media Research, CBS Research, Company Reports McDonald's MasterCard AOL - 20 million subscribers Yahoo! - 80 million unique users Lycos - 32 million unique users
  8. 8. Internet Version 2.0 1998 - 1999 McDonald's
  9. 9. Internet Version 3.0 1999 - Depth Breadth MasterCard AOL - 20 million subscribers Yahoo! - 80 million unique users Lycos - 32 million unique users
  10. 10. LifeMinders.com Offers the BEST of Both - Targeted, vibrant community - Expert, top quality content - Narrow brand identity - Broad brand identity - Wealth of disparate information, multiple verticals - Wide, shallow community Depth Breadth
  11. 11. Creating A Virtuous Circle <ul><li>Advertising </li></ul><ul><li>Relevance </li></ul>Consumer Engagement Achieves Higher Click-throughs and Higher Advertising Rates
  12. 12. Addressing the Direct Marketing Opportunity Member Level Database Low Cost Continuing Relationship Automate Advertising and Content Delivery Extensive and Granular Data About a Lot of People Learn
  13. 13. Learning Drives Performance Investing for Retirement What’s the Best Mutual Fund for You Sophisticated College Saving for Your Kids 2% 3% 5% 8% Initial Profile Behavioral Data IterativeTesting Purchased Data High Net Worth Investing Click- through Rates Member Aging
  14. 14. Benefits to All Audiences <ul><li>Advertisers </li></ul><ul><li>Large, broad member base </li></ul><ul><li>Precise targeting capability </li></ul><ul><li>Increased ROI </li></ul><ul><li>Detailed real-time reporting </li></ul><ul><li>Consumers </li></ul><ul><li>User-controlled, actionable content </li></ul><ul><li>No sifting, no searching </li></ul><ul><li>Desirable advertising and e-commerce opportunities </li></ul><ul><li>Privacy </li></ul>
  15. 15. Rapid Member Expansion 5 4 3 2 1 0 ( in millions) CQGR = 270%
  16. 16. Category and Profile Expansion Entertainment Home Family Events Auto Finance Pet Entertainment Home Entertainment Home Family Events Auto Finance Pet Health Travel Shopping Family Events Q1 ’99 Q2 ’99 Q3 ’99 Sports Crafts Career Computing Cooking Fashion # of Categories 2 4 6 8 10 12 14 16
  17. 17. Compelling Member Feedback
  18. 18. Advertisers Benefit from Engaged Members <ul><li>E-mails Opened 25.0% </li></ul><ul><li>Click-through Rate 24.0% </li></ul><ul><li>Effective Click-through Rate 6.0% </li></ul><ul><li>Average Top Ten Websites (1) 0.6% </li></ul><ul><li>LifeMinders.com Advantage 10.0x </li></ul>(1) Reach as measured by Nielsen//NetRating as of September 1999
  19. 19. Direct Marketing Yields Premium Rates $30-60 $200 $100 $30-60 Advertising Rates (Cost per Thousand)
  20. 20. Cumulative Growth in Advertising Partners
  21. 21. Highly Automated and Scalable Member Data Tagged Content Proprietary Automatic Infrastructure Behavior
  22. 22. Productive Channels of Acquisition <ul><li>Portals </li></ul><ul><li>Permission E-mail Services </li></ul><ul><li>Verticals </li></ul><ul><li>Viral Marketing </li></ul><ul><li>Affiliates </li></ul><ul><li>Other </li></ul>
  23. 23. Strategic Partners: Lycos Case Study
  24. 24. Next Steps: Extend Our Lead <ul><li>Expand Member Base </li></ul><ul><li>Continually Enrich Member Experience </li></ul><ul><li>Build LifeMinders.com Brand </li></ul><ul><li>Diversify Revenue Streams </li></ul><ul><li>Enhance Advertiser Effectiveness </li></ul>
  25. 25. Management Team Name and Title Years Experience Steve Chapin Founder, President & CEO 7 McKinsey, First USA DB Marketing John Chapin SVP Member Experience 5 EDS Joe Grabias VP Finance & CFO 28 Comm Site International, KMR Power Corporation Harry Layman VP Engineering 17 Virginia Software, The College Board Mark Bryant VP Sales 11 COO System Dynamics Tim Hanlon VP Marketing & Communications 16 Bozell Worldwide, Nike, America’s Promise Mike Brown VP Marketing Analysis 8 First USA, Chase
  26. 26. Financial Highlights <ul><li>Large Revenue and Gross Profit Growth </li></ul><ul><li>Advertising Inventory Upside Opportunity </li></ul><ul><li>Compelling Member Economics </li></ul><ul><li>Multiple Revenue Stream Opportunities </li></ul><ul><li>Attractive Long-Term Business Model </li></ul>
  27. 27. Impressive Revenue and Gross Profit Growth in (millions) NM $ 0.5 $ 1.4 Opt-in Revenue
  28. 28. E-mails Delivered in (millions)
  29. 29. LifeMinders.com’s Economic Advantage and Upside <ul><li> Q3 ‘99 October ‘99 </li></ul><ul><li>E-mails Delivered 59 million 47 million </li></ul><ul><li># Ads Available/E-mail 4 4 </li></ul><ul><li>Advertising Inventory 236 million 180 million </li></ul><ul><li>Inventory Sellout 6% 7% </li></ul>
  30. 30. A Model With Momentum <ul><li> March ‘99 June ‘99 October ‘99 </li></ul><ul><li>Members 300,000 1,300,000 5,000,000 </li></ul><ul><li>Profiles per Member 4.1 4.2 4.0 </li></ul><ul><li>E-mails per Member 6.5 7.6 9.4 </li></ul><ul><li>E-mails Delivered 2,000,000 10,000,000 47,000,000 </li></ul><ul><li>Average Member $2.78 $3.98 $3.65 </li></ul><ul><li>Acquisition Cost </li></ul>
  31. 31. Attractive Member Economics Revenue Net Cash Flow Expenses Acquisition Cost $3.65/Member Breakeven
  32. 32. The Advantages of Delivering Depth and Breadth Average CPM LifeMinders.com $42 Source: H&Q Estimates Yahoo! 24 Forrester Average 7 Lycos 24 Looksmart 8 iVillage 26 Sportsline 18 CNET 30
  33. 33. Multiple Revenue Stream Opportunities <ul><li>Advertising Revenue </li></ul><ul><li>Opt-in Revenue </li></ul><ul><li>E-Commerce </li></ul><ul><li>Content Distribution </li></ul><ul><li>International </li></ul>
  34. 34. Target Model Q3 1999 225 11 30 (172 %) 100 Operating Expenses: Gross Revenue Marketing & Sales Research & Development General & Administrative Operating Margin 3-5 year Target 48-50 9-10 10-12 20-25 100 COGS 5 8 Gross Margin 95 92 1 Stock Based Compensation 0 % % %
  35. 35. Investment Highlights <ul><li>Pioneer in Online Direct Marketing Opportunity </li></ul><ul><li>Compelling Consumer Proposition </li></ul><ul><li>Unique and Effective Advertising Platform </li></ul><ul><li>Rapid Revenue Growth Rate at High Margins </li></ul><ul><li>Attractive Member Economics and Long-term Financial Model </li></ul>

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