Investor presentation usell.com

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Investor presentation usell.com

  1. 1. www.uSell.com  
  2. 2.   Cautionary  Note  Regarding  Forward  Looking  Statements     Certain   statements   in   this   presentation   and   responses   to   various   questions   include   forward-­‐looking   statements,   including   statements   regarding   growth,   opportunities   for   our   business   model,   potential   revenue   stream  from  data,  and  platform  expansion.    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   we   believe   may   affect   our   financial   condition,   results   of   operations,   business   strategy   and   financial   needs.   Important  factors  that  could  cause  actual  results  to  differ  from  those  in  the  forward-­‐looking  statements  include   effective   marketing   campaigns,   maintaining   and   establishing   relationships   with   partners,   our   ability   to   successfully   replicate   our   platform   for   items   other   than   phones   and   small   consumer   electronics   and   our   partners   providing   sufficient   customer   service   to   our   customers.     Further   information   on   our   risk   factors   is   contained   in   our   filings   with   the   SEC,   including   the   Form   10-­‐K   for   the   year   ended   December   31,   2012.     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.    We  undertake  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.    
  3. 3. WHO  WE  ARE   Entrepreneurial   Passion   Direct  Marketing   Expertise     Nik  Raman   Daniel  Brauser     COO   CEO       Founder  of  Health  Benefits  Direct   Disrupted  traditional  health  insurance  marketing/sales   Founder  of  EcoSquid  (Finalist  in  HBS  business  plan  competition)   Sold  to  eHealth   IBM  client  sales  executive  prior  to  Harvard  Business  School       Developed  innovative  marketplace  model  to  reCommerce    
  4. 4. ROOTS  OF  RECOMMERCE   “  Your  Personal     Trading  Community  ”   “  Shop  Victoriously  ”   „  eBay  was  the  original   “reCommerce”  marketplace   Individual     Sellers   „  Due  to  fraud  and  customer   experience  concerns,  eBay   has  become  a  shopping   platform  where  less  than  10%   of  sellers  are  individuals   Individual     Sellers   Power  Sellers   Power  sellers  must  locate   individuals  sellers  or  find   inventory  elsewhere   „  Power  sellers  must  now  find   eCommerce     Market   inventory  elsewhere;  in  other   words,  they  must  become   “Power  Buyers”   eCommerce     Market   „  There  is  a  need  for  a  “Power   Individual     Buyers   Buyers”  platform  that  enables   power  sellers  to  efficiently   acquire  inventory   Individual     Buyers  
  5. 5. A  GOLD  MINE  OF  DORMANT  INVENTORY   Consumers  have  billions  of  dollars  of   used  inventory  that  has  a  second  life   “  At  least  $75  Billion  of   in  home  inventory  has   not  been  activated.”   Current  consumer  behavior  is  to  buy,   use,  and  hoard   Gift  Cards   Electronics   $30B   $25B   Clothing   Textbooks  +     Video  Games   $15B   $6B  
  6. 6. MOBILE  IS  THE  CLEAR  OPPORTUNITY   The  mobile  market  is  rapidly   expanding  on  the  high-­‐end   Over  50  million  iPhone  5  devices   were  sold  in  2012   Samsung  Galaxy  S3  sales  surpassed   30  million  devices  in  2012   RAPID     MARKET     EXPANSION   *Derived  using  annual  churn  data  given   current  &  projected  sales  volume  and  re-­‐ sale  market   An  estimated  137.5MM   smartphones  will  be  shipped  in   2013;  growing  to  185MM  by  2017   Historically  less  than  10%  of   phones  are  recycled-­‐  consumers   need  financial  motivation       $9.2*  Billion   $5.2  Billion   $1.6  Billion   2011   2012   2013  
  7. 7. OUR  SOLUTION:  THE  REVERSE  AMAZON   The  world’s  first   reCommerce   marketplace  where   customers  can  sell  high   demand  second  hand   goods  for  cash  in  sixty   seconds  or  less   A  simple  back  end   platform  that  enables   power  buyers  to  bid  on   goods  and  access   inventory  in  a  just  in   time  fashion.   A  logistics  and  shipping   system  that  is  optimized   to  efficiently  move   devices  from  consumers’   homes  to  buyers’   warehouses.    
  8. 8. WHERE  WE  FIT   Original  eCommerce  Model   Individual     Sellers   Evolved  eCommerce  Model   Individual     Sellers   Power  Sellers   Power  sellers  must  locate   individuals  sellers  or  find   inventory  elsewhere   eCommerce     Market        eCommerce  +  reCommerce   Individual     Sellers   Re-­‐Commerce   Market   Power  Sellers   eCommerce     Market   eCommerce  &   Wholesale  Markets   Individual     Buyers   Individual     Buyers   Individual     Buyers  
  9. 9. HOW  IT  WORKS   Front  End  (uSell.com)   Search  for  Product   and  Find  Offers   Data  and  Metrics     Reporting   Catalog  and     Pricing  Mgmt.   Order  Lifecycle     Management   Back  End   (uSell  Buyer’s     Platform)   Order  Lifecycle     Management   ONLINE  FLOW   OFFLINE  FLOW   Consumer   uSell  Fulfillment   uSell  Buyers   Retail  and  wholesale   Liquidation  
  10. 10. HOW  WE  ACTIVATE  INVENTORY   DIGITAL/ONLINE  MARKETING   Effective  at  Reaching   Active  Customers   Wealth  of  User  Data   Highly  Measurable   TRADITIONAL  (TV)  ADVERTISING   Reach  Inactive  Customers   Creates  Competitive   Barrier  to  Entry   Highly  Scalable   Website  Clickstream  Data   Online  Marketing  Campaign  Data   TV  Spot  attribution  Data   3rd  Party  Data   •  Codifying  and  commercializing  a  proprietary  Inventory  Activation  model   •  Combining  the  data-­‐centric,  ROI-­‐driven  discipline  of  online  marketing  with  the  reach  and   scale  of  traditional  marketing  to  effectively  activate  new  customers  
  11. 11. HOW  WE  DISTRIBUTE  OUR  TECHNOLOGY  
  12. 12. STAPLES:  POWERING  RETAIL  TRADE-­‐IN   uSell  has  leveraged  its  technology,   marketplace  and  logistics  platform  to   power  online  trade-­‐in  for  Staples     Staples  is  the  second  largest  e-­‐tailer  in   the  U.S.  with  27M+  monthly  visitors           The  combination  of  uSell’s  marketplace   and  technology  leveraged  by  Staples   brand  and  reach  represents  a   tremendous  opportunity     This  model  is  highly  scalable  to  roll-­‐out   across  other  major  retailers  
  13. 13. UNIQUE  VISITOR  GROWTH   MONTHLY   UNIQUE   VISITORS   1,200,000 1,100,000 1,000,000 Sep  2012  –  Sep  2013   900,000 800,000 700,000 600,000 500,000 400,000 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Seven  straight  quarters  of  unique  visitor  growth  driven  by  rollout  of   online  and  offline  media  campaign   Sep-13
  14. 14. REVENUE  GROWTH   $600,000 $500,000 $400,000 MONTHLY   REVENUE   Partner  Lead  Revenue   Fulfillment  Revenue   Ad  Revenue   Jan  2012  –  Jun  2013   $300,000 $200,000 $100,000 $0 Seven  straight  quarters  of  revenue  expansion  fueled  by  visitor  growth   and  increased  monetization  of  both  partner  and  user  base  
  15. 15. REPEAT  CUSTOMER  GROWTH   14.00% 12.00% 10.00% REVENUE  FROM   REPEAT   CUSTOMERS   Jan  2012  –  Sep  2013   8.00% 6.00% 4.00% 2.00% 0.00% Consistent  growth  in  repeat  users  driven  by  improvements  in  customer   experience;  will  continue  to  compound  over  time  
  16. 16. BASELINE  REPEAT    VISITORS   150,000 145,000 140,000 135,000 BASELINE   REPEAT     VISITORS   Jun  2013  –  Dec  2013   130,000 125,000 120,000 115,000 110,000 105,000 100,000 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
  17. 17. CONTRIBUTION  GROWTH   $1,800,000 $1,600,000 $1,400,000 REVENUE  VS.   MEDIA  SPEND   $1,636,386 $1,224,340 $1,200,000 $1,270,998 $1,046,399 $1,000,000 $818,130 $1,042,392 $779,681 $800,000 $680,260 $813,945 $834,692 $729,298 $600,000 $591,432 $400,000 $200,000 $327,770 Revenue   $244,607 Media  Spend   $0 Q1 - 2012 Q2 - 2012 Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2 - 2013 Q3 - 2013 Since  Q01  2012,  CPV  has  decreased  from  $0.61  to  $0.51  while  RPV  has   increased  from  $0.42  to  $0.61  
  18. 18. USELL  GROWTH  VS  GAZELLE   $5MM INVESTED $50MM+ INVESTED Vs.  
  19. 19. ü  467  unique  reviews,  largely  since  August  2013   ü  9.86/10  Average  Rating  
  20. 20. USELL  MEDIA  COVERAGE  &  TESTIMONIALS   “My  favorite  of  the  selling  sites.”     -­‐    Jean  Chatzky  |  NBC  Today  Show   “Find  the  best  prices  for  your  used  tech.”     -­‐  Roy  Furchgott  |  The  NYT   “There  are  countless  other  services  out  there  for  reselling  used  electronics,   but  uSell's  new  approach  is  to  search  multiple  buyer  companies  and  find   the  one  that's  willing  to  pay  the  most  for  what  you  have.”     -­‐  Katherine  Noyes  |  Discovery   “Eco-­‐friendly  uSell  buys  back  your  old  devices  while  protecting  the  planet.”     -­‐    Clayton  Morris  |  FoxNews.com   “uSell  is  to  other  recycling  sites  what  Kayak  is  to  other  travel  reservation  sites.”     -­‐    Jacqueline  Emigh  |  Notebook  Review   “You  can  skip  the  cellphone  contracts  ...  bring  your  own  device  is  now  an  option.”   -­‐    Sean  Capitain  |  MSN  
  21. 21. INVESTMENT  HIGHLIGHTS   •  Management  has  a  combined  30+  years  in  Direct   to  Consumer  Marketing   •  Insiders  have  invested  over  $5M   •  Business  model  proven  in  cell  phone  vertical   •  Five  quarters  of  sequential  revenue  growth   •  Five  quarters  of  sequential  marketing  efficiency  improvements   •  Consistent  90%+  gross  margins   •  Targeted  expansion  into  new  categories   •  Comparable  company  business  models   •  Kayak.com-­‐  acquired  for  $1.8B,  8X  Revenue   •  Pricegrabber-­‐  acquired  for  $500M,  9x  Revenue   •  Shopping.com-­‐  acquired  for  $630M,  6.5x  Revenue  
  22. 22. SNAPSHOT  OF  COMPANY  AND  STOCK   Symbol:     OTC  Bulletin  Board:  USEL   Stock  Price:   $0.20   High/Low  (52-­‐Week):   $.07-­‐  $0.39   Average  Daily  Volume:   90,000  shares   Shares  Outstanding:   75.9  million   Inside  Ownership:   53%   Market  Cap:   $15  million   Q3  Revenue:   $1.64  million  vs.  $729K  year-­‐over-­‐   year;  +125%  growth      
  23. 23. www.uSell.com   hart@haydenir.com   uSell.com   @usell   CONTACT  US   Hayden  IR   (917)  658-­‐7878  

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