Quepasa Corporation (NYSE Amex: QPSA) Investor Presentation July 2011


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Quepasa Corporation (NYSE Amex: QPSA) Investor Presentation July 2011

  1. 1. Investor Update<br />July 6, 2011<br />
  2. 2. Important Cautions Regarding Forward Looking Statements<br /> Certain statements in this presentation and responses to various questions may contain forward-looking statements including our cross-platform marketing push, planned Latin American localization for Wonderful City, opportunities from our unique positioning, planned launch of original title, and smartphone application opportunity. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include unanticipated technical problems which delay or impede other localized versions of Wonderful City, internal decisions made by social media platforms hosting our games, acceptance of the games by users, and failure to develop an effective mobile technology platform adaptable in different countries, changes in the public’s approach to social networking needs, and competition..<br /> Further information on the Company’s risk factors is contained in its filings with the SEC, including the Form 10-K for the year ended December 31, 2010. Any forward-looking statement made by the Company in this presentation 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. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.<br /> The contents of this presentation are copyright Quepasa Corporation 2010 & 2011. All rights reserved.<br />
  3. 3. Agenda<br /><ul><li>CidadeMaravilhosa: Early Results & Next Steps
  4. 4. Quepasa Games: 2011 Timeline
  5. 5. Quepasa.com User Acquisition:Strategy & Opportunities</li></li></ul><li>CidadeMaravilhosaSummary Results<br />CidadeMaravilhosa - Rio is now live on Facebook, Orkut & Quepasa.com<br /><ul><li>2 MM+ Installs, 73% growth MOM
  6. 6. Over 780,000 DAUs, or Daily Active Users
  7. 7. Over 2.9MM MAUs, or Monthly Active Users
  8. 8. DAU/MAU ratio of 27% (DAU/MAU) exceeds 15-20% target for “sticky” game with good monetization potential1</li></ul>1Source: http://www.insidesocialgames.com/2009/10/27/the-sticky-factor-creating-a-benchmark-for-social-gaming-success/) <br />
  9. 9. CidadeMaravilhosaResults By Platform, Growth & Engagement<br />Facebook<br /><ul><li>Over 230K installs in just over 2 weeks
  10. 10. 700% WOW growth in DAUs, and 800% WOW growth in MAUsas of June 30</li></ul>Orkut<br /><ul><li>Over 1.7MM installs in just over 6 weeks
  11. 11. Strong engagement metrics including 670,000+ DAUs, 2.4MM+ MAUs, DAU/MAU of 27.45%.</li></ul>Quepasa.com<br /><ul><li>Highest ARPU
  12. 12. Longest average session length, with average session of over 22 minutes</li></ul>CidadeMaravilhosa has consistently ranked among the top 40 “Gainers” applications on Facebook according to appdata.com<br />
  13. 13. CidadeMaravilhosaMonetization Trends<br />Facebook<br /><ul><li>ARPPU in excess of US $22 following FB Credits integration on July 1st
  14. 14. Compare to: Global payments leader, Playspan, reports US ARPPU of $22.76, surpassed only by Australia, $24.381</li></ul>Orkut<br /><ul><li>ARPPU of R$15.85 (US$9.90) from 6/4-7/4, increasing to R$18.7 (U$ 11.30) for 6/25-7/4
  15. 15. Compare to: Average ARPPU of R$16 for Orkut games during 20102</li></ul>Quepasa.com<br /><ul><li>ARPPU of US$27 during month of June</li></ul>1Source:Virtual Goods News 6 May 2010<br />2 Source: PagSeguro<br />
  16. 16. CidadeMaravilhosaNext Steps<br />Cross-Platform Marketing Push<br /><ul><li>Content updates
  17. 17. In-game promotions
  18. 18. DSM
  19. 19. Advertising Investment (per install)</li></ul>Latin American Expansion<br />New versions of game planned for:<br /><ul><li>Mexico City, Mexico (end Q3)
  20. 20. Cartagena, Colombia (Q4)</li></li></ul><li>Quepasa Games2011 Timeline<br />2011 Timeline<br />March 2011, Acquired XtFt Games S/S XtFt Games, owner of TechFront Studios, based in Curitiba, Brazil. Subsequently renamed Quepasa Games.<br />April 2011, Quepasa Games launches Wonderful City in Beta Version on Quepasa.com<br />May 2011, Launched Wonderful City – Rio on Orkut.<br />May 31, 2011, Quepasa Games Announces 1.3mm Installs of Wonderful City – Rio across all platforms, with 600,000 Daily Active Users averaging over 40 minutes of game play per day.<br />June 2011, Launched Wonderful City – Rio on Facebook.<br />2011, Wonderful City Franchise Expansion to include Mexican and Colombian versions.<br />2011, Quepasa Games to launch an original title based on Amazonian Sustainability across various social network platforms.<br />2011, Quepasa Games to launch a third title across various social network platforms, depending on success of first two titles.<br />
  21. 21. Quepasa.com User AcquisitionUpdated Strategy<br />Goal: Align Quepasa.com user acquisition with high-growth social gaming <br />opportunity evidenced by success of CidadeMaravilhosa<br /><ul><li>Develop profitable new acquisition channels tailored to acquisition of quality users
  22. 22. Leverage Quepasa’s cross-platform social media products for low-cost acquisition
  23. 23. Put Quepasa at the fore of the convergence between social and mobile </li></li></ul><li>Quepasa.com User AcquisitionUpdated Strategy <br />Virtual Currency Promotions<br /><ul><li>Leverage currency to drive acquisition of new users (e.g. incentivized referrals)
  24. 24. Drive quality users while simultaneously seeding virtual economy</li></ul>Games & Contests<br /><ul><li>Leverage cross-platform social media products (Games, Contests) to cross-promote Quepasa.com
  25. 25. Drive new users with prequalified interest in offerings</li></ul>Mobile<br /><ul><li>Draw on huge growth in Latin American mobile market
  26. 26. Deploy mobile applications tailored to most relevant, high-growth mobile platforms</li></li></ul><li>Quepasa.com User AcquisitionMobile Opportunity<br />Mobile Trends<br /><ul><li>Gaming and social networking dominate mobile usage1
  27. 27. Mobile social gaming market expected to reach $3B by 2012
  28. 28. Smartphones, becoming more powerful than ever, are expected to comprise 70% of all phones sold in 2015. 2</li></ul>LatAm Growth<br /><ul><li>Overall growth of 28% in 2010, compared to a global average of 17.9%
  29. 29. 145% growth in 2010 smartphone market alone3</li></ul>1 Source: Flurry Analytics<br />2 Source: “The Handful of Key Stats you Need to know about Social Mobile Games, Socialtimes.com<br />3 Source: Latin Daily Financial News 24 April 2011<br />
  30. 30. Quepasa.com User AcquisitionCase Study & Next Steps<br />Mobile Case Study: Mocospace<br />Largest mobile social network in U.S. with 20 million members+ as of June 2011 (nearly 1/3 of smartphoneuserbase as defined by Comscore)1<br />Social discovery as main draw, including games, chat, photo sharing and finding new friends2<br />Members collectively play games for 1 MM+ hours per day1, ARPU of over $12<br />Quepasa Mobile: Next Steps<br />Platform-agnostic mobile-friendly (or “m.”) site to boost retention of feature phone-dominant existing userbase<br />Smartphone apps around flirting, gaming content to drive acquisition, build on existing Papacito APIs<br />1 Source: http://www.bizreport.com/2011/06/20m-mobile-gamers-and-climbing-says-mocospace.html<br />2 Source: http://www.pocketgamer.biz/r/PG.Biz/MocoSpace/feature.asp?c=30989<br />
  31. 31. Summary<br /><ul><li>Very positive early results for CidadeMaravilhosa
  32. 32. Clear gaming opportunity in Latin America that Quepasa is well-positioned to take advantage of
  33. 33. Gaming success has driven revised user acquisition strategy for Quepasa.com, with emphasis on quality, positive ROI users </li>