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Quepasa Corporation (NYSE Amex: QPSA) January 2012 Investor Deck
 

Quepasa Corporation (NYSE Amex: QPSA) January 2012 Investor Deck

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    Quepasa Corporation (NYSE Amex: QPSA) January 2012 Investor Deck Quepasa Corporation (NYSE Amex: QPSA) January 2012 Investor Deck Presentation Transcript

    • Quepasa Corporation NYSE Amex: QPSA Investor PresentationNoble Financial Capital Markets’ Eighth Annual Equity Conference January 18, 2012
    • Cautionary Note Regarding Forward Looking StatementsCertain statements in this presentation and responses to various questions include forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. All statements other than statements of historical facts contained herein are forward-looking statements,including statements regarding the benefits of the merger, integration, moving to one platform, creating the public market leader in social discovery,future growth including expanding internationally, mobile growth including our tablet launch, launch of our second Wonderful City game, launch of paidcurrency on myYearbook, virtual currency monetization, our future financial performance, our liquidity, increased revenue, our business strategy and theplans and objectives of management for future operations. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”“could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements.We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that webelieve may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results todiffer from those in the forward-looking statements include: Quepasa Games’ ability to develop other social games which users are attracted to, the riskthat myYearbook and Quepasa.com users will be willing to purchase virtual currency for the various offerings, the effectiveness of the mobile software onsmartphones and tablets, international risks including currency fluctuations and political instability, technology development risk including unanticipatedtechnical problems which impede the development of our tablet platform, paid currency and second Wonderful City game, the risk that the Quepasa andmyYearbook businesses will not be integrated successfully, and disruption from the merger making it more difficult to maintain business and operationalrelationships. Further information on our risk factors is contained in our filings with the SEC, including the Form S-4/A filed on October 4, 2011 and ourForm 10-K for the year ended December 31, 2010. Any forward-looking statement made by us herein speaks only as of the date on which it is made.Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Weundertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise,except as may be required by law. QPSA 2
    •  Public market leader for social discovery Significant global scale – 8+ million monthly active users (MAU), 2+ million new users, and 2.5 billion page views each month1 Fast-growing mobile applications – now 54% of daily logins. Top 15 Free Social App in Android Marketplace Robust product pipeline focused on continued growth in mobile, virtual currency, and international TTM (4Q10 – 3Q11) Combined Revenue = $36.3 million; Up 47% vs. prior period1 – Quepasa.com, myYearbook.com and Wonderful City combined numbers for average month during Q3 2011 QPSA 3
    • Our mission is to be the best place to meet new people. Wemake meeting people fun through social games and apps. Oursocial graph is not the people you know but the people youwant to know. QPSA 4
    • Two Strong Brands Spanning the Americas  Social discovery platform: Quepasa.com,  Social discovery platform: myYearbook.com, 40MM members top 40 U.S. site1  Successful social gaming title: Wonderful  Fast-growing mobile apps: Android and City, with strong followings on Facebook, iPhone Orkut, and Quepasa  Proprietary brand advertising platform: Social  Low-cost software development: Brazil- Theater delivers branded actions cross- based social gaming studio, Mexico-based platform through virtual-currency incentive development team  U.S. Presence: Locations in Pennsylvania, NYC1 – By Page Views, Time Spent, and Minutes per Visitor per month (US comScore) QPSA 5
    • Brand Combination Created Significant Scale Monthly Active Users Weekly Pageviews 8.0 250 7.0 PVs in millions 200 MAU in millions 6.0 150 5.0 4.0 100 3.0 50 2.0 1.0 - - Pre-merger: Oct 2011 Post-merger: Nov 2011Source: quancast.com combined global “People” and “Pageviews” for quepasa.com and myyearbook.com. MAU assumes merger closed on November 1. Quantcast data isindependently tracked and available at quantcast.com. QPSA 6
    •  Enables meeting new people in an inviting, fun environment  More pageviews than Twitter, LinkedIn and Match.com- Source: December 2011 comScore US. Bubbles represent relative size of each property in terms of US page views. Facebook is approximately 1/11 of actual scale. Allothers are true to scale. QPSA 7
    •  Mobile: Majority mobile in 2012 1 1 – Mobile statistics related to myYearbook only. QPSA 8
    • Advertising Virtual CurrencyIndustry-leading engagement drives Wonderful City continues to grow. 2nd significant advertising inventory game scheduled to launch in Q2 201220 person advertising team direct to Currency-based actions drive brand leading agencies awareness Paid currency launched on myYearbook inRepresented approximately 83% of Q4 2011 and launching on mobile in Q1 9-month 2011 revenue 2012 QPSA 9
    • PageviewsQ3 2011 YTD Revenues 9.0 Up 32.5% versus same period of 2010 across both businesses 8.0 66% Combined 7.0 Annual Growth Consensus 2012 Revenues = $48.3 to $52.3 million Pageviews in Billions 6.0 Quepasa Corporation is providing the information as a service to interested parties. Quepasa Corporation did not prepare the accompanying research reports and takes no responsibility for their 5.0 content. 4.0 3.0Engagement metrics showing strong growth 2.0 Visits and page-view increases demonstrate industry-leading 1.0 - engagement and drive significant ad inventory 3Q10 3Q11 Year to Date 2011 Revenue Growth Visits 30.0 350.00 300.00 32% Combined 25.0 Annual Growth Revenue (Millions) MYB 250.00 20.0 Visits in Million up 32.6% 200.00 15.0 myYearbook 150.00 10.0 Quepasa QPSA 100.00 5.0 up 32.3% 50.00 - - YTD 3Q 10 YTD 3Q 11 3Q10 3Q11 QPSA 10
    •  A single platform brings operational and product efficiencies The myYearbook platform’s strong monetization, engagement, and mobile offerings make it the platform of choice Leverage Quepasa team to build more product faster for larger audience The first step, internationalization, is underway. Smartling chosen to expedite effort. The second step, migration, targeted for completion in Q4 2012  Q2 2012: Localize Mobile Apps  Q3 2012: Localize web experience  Q4 2012: Migrate Quepasa users to new platform QPSA 11
    •  Continued Mobile Growth  iPad launched Q4 2011  Expect continued growth in mobile share of visits Virtual Currency  ~15% of revenue today – share expected to increase in 2012  Growth from dual currency and frictionless mobile purchases Internationalization  90% of combined PV’s and visits currently from US  Like Facebook and Twitter, expect international to grow such that US is less than 50% of total QPSA 12
    • Market Trailing Twelve Month 2011 2012 Company Ticker Capitalization Revenues MC/Rev Revenues MC/Rev Revenues MC/RevRenren, Inc RENN $ 1,360 $ 83 16.4x $ 118 11.5x $ 177 7.7xYandex, N.V. YNDX $ 6,050 $ 554 10.9x $ 648 9.3x $ 911 6.6xLinkedIn, Corp. LNKD $ 6,420 $ 436 14.7x $ 514 12.5x $ 823 7.8xGroupon, Inc. GRPN $ 12,150 $ 1,290 9.4x $ 1,590 7.6x $ 2,270 5.4xAngies List ANGI $ 677 $ 79 8.6x $ 88 7.7x $ 141 4.8xZynga, Inc. ZNGA $ 5,770 $ 1,020 5.7x $ 1,160 5.0x $ 1,460 4.0x 10.9x 8.9x 6.0xQuepasa Corp. QPSA $ 109 $ 36 3.0x $ 38 2.9x $ 50 2.2xFootnotes:1) Source: RENN, YNDX, LNKD, GRPN, ANGI and ZNGA from Yahoo! Finance, January 10, 2012.2) Quepasa estimates reflect consensus, except 2011 Revenues which is from Rodman & Renshaws November 22, 2011 Initiation Report.3) Quepasa Market Capitalization and TTM Revenues reflect combined QPSA/MYYB post-merger. Current Equity Coverage Morgan Joseph TriArtisan Buy Rating $5.50 Target Initiated October 3, 2011 Rodman & Renshaw Market Outperform $7.00 Target Initiated November 22, 2011 From Rodman & Renshaw’s January 10, 2012 Note: “Maintain Market Outperform Rating. QPSA is currently trading at a revenue multiple of 1.26x and P/E multiple of 8.0x to our expectations for 2013. This compares to industry averages ranging from under 1x to over 17x on a revenue basis and 8x to 25x on P/E basis. We believe any multiple expansion for the company will be driven by 1) successful integration of myYearbook 2) new product / service introductions (especially in Mobile) 3) potential re-branding of the service 4) improved revenue visibility 5) a substantially larger US and international user base and 6) consistent improvements in traffic trends. We believe investor’s looking for exposure to growth opportunities in the social networking arena may find QPSA attractively positioned into the next phase of its expansion. We are comfortable maintaining our $7.00 price target that results in a P/E valuation multiple of ~18x to our 2013 estimates. We believe this is an inline multiple relative to the industry averages predicated on industry average growth expectations.” Quepasa Corporation is providing the information as a service to interested parties. Quepasa Corporation did not prepare the accompanying research reports and takes no responsibility for their content. QPSA 13
    •  Public market leader for social discovery Significant global scale – 8+ million monthly active users (MAU), 2+ million new users, and 2.5 billion page views each month1 Fast-growing mobile applications – now 54% of daily logins. Top 15 Free Social App in Android Marketplace Robust product pipeline focused on continued growth in mobile, virtual currency, and international TTM (4Q10 – 3Q11) Combined Revenue = $36.3 million; Up 47% vs. prior period1 – Quepasa.com, myYearbook.com and Wonderful City combined numbers for average month during Q3 2011 QPSA 14
    • QPSA 15