Mobile Monetinization MeetMe


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Mobile Monetinization MeetMe

  1. 1. Social Gaming & Gambling Summit December 13-14, 2012 Confidential – Not For Distribution
  2. 2. Cautionary Note Regarding Forward Looking StatementsCertain statements in this presentation and responses to various questions includes forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained herein,including statements regarding the continued growth in our core platform, are forward-looking statements. The words “believe,”“may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” andsimilar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-lookingstatements largely on our current expectations and projections about future events and financial trends that we believe may affectour financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual resultsto differ from those in the forward-looking statements include: issues that affect the functionality of our mobile application withpopular mobile operating systems, any changes in such operating systems that degrade our mobile application’s functionality andother unexpected issues which could adversely affect usage on mobile devices, the willingness of our users to purchase virtual creditson their mobile devices, changes in consumer preference that adversely affect the smart phone penetration of the market, andacceptance of our new brand in Latin America and globally. Further information on our risk factors is contained in our filings with theSEC, including the Form 10-Q for the quarter’s ended March 31, 2012, June 30 and September 30, 2012 and the Form 10-K for the yearended December 31, 2011. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factorsor 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 ofthem. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, futuredevelopments or otherwise, except as may be required by law.Regulation G – Non-GAAP Financial MeasuresThis presentation includes a discussion of Quepasa and myYearbook combined company revenues, EBITDA and adjusted EBITDAwhich are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided onthe Investor Relations section of the MeetMe corporate website at© 2012, MeetMe, Inc. 2
  3. 3. Our mission is to build the leading social network for meeting new people.We are the digital coffeehouse, a re-imagination of the bar, a social gathering place. We intend to transform the way people meet in a mobile-first world. © 2012 MEET 3
  4. 4. Pioneering the Next Category of Social Networking: Social Discovery © 2012 MEET 4
  5. 5. Mobile Is the Natural Platform for Social DiscoveryAverage hours spent calculated using total hours spent divided by MeetMe Platform MAU (September 2012).Source: Google Analytics for Web. Flurry for Android, iPhone and iPad. 5
  6. 6. Dramatic Mobile GrowthNote: MAU and DAU charts refer to total MAU and DAU of MeetMe, previously myYearbook. MeetMe results presented above include data from prior to the merger withmyYearbook on November 10, 2011, and is presented on a combined pro-forma basis. © 2012 MEET 6
  7. 7. Smartphone Penetration to IncreaseSource: MeetMe Survey. June 2012. 6,754 responses. Confidential – Not For Distribution 7
  8. 8. Mobile Monetization is the Low-Hanging Fruit  A 1 cent increase in mobile ARPDAU drives $2+ million in annualized revenue  Mobile App Revenue – New Subscription Product – Two new freemium products – Mobile users 3-6x more likely to pay  Mobile Ad Revenue – Roll out feed advertising in Q1’13 and Q2’13 – Testing new ad units as mobile ad market continues to matureAvg. Revenue per Daily Active User (ARPDAU) represents MeetMe Platform web and mobile revenue divided by average daily active users (DAUs) for web and mobile.Results presented above include data from prior to the merger of Quepasa with myYearbook on November 10, 2011. 8
  9. 9. Mobile is More Than a Screen: A Payment PlatformRevenue charts refer to total Revenue of MeetMe, previously myYearbook. Mobile Revenue refers to mobile advertising and mobile virtual currency revenue onMeetMe’s mobile apps and mobile web site. MeetMe results presented above include data from prior to the merger of Quepasa with myYearbook on November 10, 2011. 9
  10. 10. Mobile Products Launched in March Drive 45% of Q3 RevenueVirtual Currency and Advertising Revenue refer to revenue generated from the MeetMe-Platform (MeetMe website and mobile app). 10
  11. 11. A Mobile Addiction Confidential – Not For Distribution 11
  12. 12. Be Mobile or Be Irrelevant Confidential – Not For Distribution 12
  13. 13. Imagine the Mobile Ad Market $20 Billion Bigger % of Time Spent in Media vs. % of Advertising Spending, USA 2011Source: Confidential – Not For Distribution 13
  14. 14. It’s Not As Crazy As It Sounds More Reach – Always on, always plugged in More Context – High quality – Targeted on interests, social graph, location – Point-of-sale tracking capabilities developing More Expectations – Users expect to carry their web experiences seamlessly in their pocket Confidential – Not For Distribution 14
  15. 15. Advertisers Are Spending Like It’s 1998!!Source: eMarketer Confidential – Not For Distribution 15
  16. 16. Plenty of Smart People Trying to Crack the NutFacebook reporting $3 million a day on mobile feed advertising in Q3 Earnings Call. Confidential – Not For Distribution 16
  17. 17. Ad Unit Innovation: No Longer Off to the Side In-Game Branding Confidential – Not For Distribution 17
  18. 18. Incentivized Mobile Video Ads Poised for Growth Watch to completion Guaranteed eyeballs Accepted value exchange Available on all mobile platforms Confidential – Not For Distribution 18
  19. 19. Mobile Offer Walls Help Drive Monetization Confidential – Not For Distribution 19
  20. 20. And Mobile Advertising isn’t Even the Most Exciting Part Apps projected by Forrester to be $50 billion a year business by 2015 11 and Chart Source: Confidential – Not For Distribution 20
  21. 21. In-App Purchases Increasingly Outperforming Paid Apps66% of iOS app revenue attributed to Freemium games, up from 39% in Jan. 2011 Confidential – Not For Distribution 21
  22. 22. The Formula: One-Tap PurchaseVirtually every iPhone user has a credit card on file with iTunes, enabling a frictionless one-tap purchase flow Confidential – Not For Distribution 22
  23. 23. Android In-App Billing Getting EasierExpect Google to encourage users to create a billing profile on activation of a new phone or download of the first app Confidential – Not For Distribution 23
  24. 24. Both Platforms Must Improve InternationallyBoth iOS and Android are overly reliant on a faulty expectation that everyone has a credit card – need to support popular local payment methods, especially in countries with much smaller advertising markets Konbini Confidential – Not For Distribution 24
  25. 25. New Players Emerge – But Will They Matter?• Flurry: Amazon Appstore monetizing 90% as well as iTunes per user• The original innovator in frictionless payments• Ability to strike large deals with handset makers and market their own tablets Confidential – Not For Distribution 25
  26. 26. The Nut Will Be Cracked Smart phone proliferation continues Mobile advertising growth explodes Mobile payments become frictionless on all leading platforms Confidential – Not For Distribution 26
  27. 27. Follow: @geoffcook and @meetme Blog: Confidential – Not For Distribution
  28. 28. Appendix © 2012 MEET 28
  29. 29. Internationalization Presents Enormous Opportunity Addressable Market of Over 1.5 Billion People Aged 18-30 WorldwideSource: United States census data for 2012 ( 29
  30. 30. Poised for International Expansion Increasing addressable market by more than 300% in the near-term through launches in additional languages.comScore Dec. 2011. “It’s a Social World.” Reflects social networking now reaches 1.2 billion users, 82% of the online population.1comScore Feb. 2012. Analysis of Unique Visitors.2 © 2012 MEET 30
  31. 31. Competitive LandscapeSource: comScore US November, 2012.Note: Bubbles denote US page views for the relevant property or media title, whichever is greater. Facebook at 1/11 scale. All others are true to scale. © 2012 MEET 31
  32. 32. Social Discovery: A New Category of Social Service Source: MeetMe Survey. June 2012. 6,754 responses. Survey looked at Zoosk, okCupid,, and eHarmony. Source: MeetMe Survey. June 2012. 6,754 responses.Source: MeetMe Survey. May 2012. 4,975 responses. © 2012 MEET 32