2. Safe Harbor
This presentation contains forward-looking statements that involve significant risks and
uncertainties, including those discussed in the “Risk Factors” section of Monotype Imaging
Holdings Inc.’s Form 10-K and subsequent filings with the SEC. We are providing this
information as of today’s date and do not undertake any obligation to update any forward-
looking statements contained in this document as a result of new information, future events
or otherwise. No forward-looking statement can be guaranteed and actual results may
differ materially from those that are projected.
Unless otherwise noted herein, all numeric references made in this presentation, including
but not limited to Total Addressable Market (TAM), Compounded Annual Growth Rates
(CAGR); addressed or addressable markets, market segments, brands, corporations, firms,
users or professionals; transaction sizes; the Global 2000; are Monotype Imaging Holdings
Inc. internal estimates or market descriptions, as applicable.
2
3. Investment Thesis
— Large and Growing Markets
— Leadership Position with G2K Brands and Ready to Expand
— Monotype Solutions Solve Industry Pain Points
— Highly Recurring and Leverageable Business Model
— Strong Balance Sheet and Shareholder Returns
3
7. Monotype Internal Estimate7
Brand20,000
World-class typefaces
100
Year design legacy
300+
Experts in Type, Design & Technology
3.25
Billion photos shared daily
1.5
Billion active message users
One
Platform for engagement
8. 2.5
Billion
# of Consumer
Devices Running
Monotype Software
3.5
Million
Relationships
with Creative
Professionals
45
Percent
Of Global 2000
Brands Using
Monotype IP
8
9. 2015-Future
What’s Happening in Our Markets?
9
2007-2010
1986-2007
2010-2015
Print Consumption Device Consumption Digital Content Brand Engagement
10. Market Sizing and TYPE Revenue
TAM = Monotype Imaging Inc. Internal Estimate10
TAM
—2005 $73.8M
—TAM $200M
—2015 $192.4M
—TAM $700M
—10-20% CAGR
—TAM $3-$4B
—2009 $94M
—TAM $400M
2007-2010
2015-Future
1986-2007
2010-2015
TAM
TAM
TAM
Print Consumption Device Consumption Digital Content Brand Engagement
11. Type
— 20K of some of
the world’s most
popular fonts
— Distribution of
130K fonts
Technology
— Creative tools
— Screen imaging tech
— Printer imaging tech
— 21 patents issued,
26 patents pending
Expertise
— Custom Design
(Monotype Studio)
— Development of
tech standards
— Research (MIT Partnership)
— Engineering
11
Our Foundational Font Value
Aa
15. Type
— 20K of some of
the world’s most
popular fonts
— Distribution of
130K fonts
Technology
— Creative tools
— Screen imaging tech
— Printer imaging tech
— 21 patents issued,
26 patents pending
Expertise
— Custom Design
(Monotype Studio)
— Development of
tech standards
— Research (MIT Partnership)
— Engineering
15
Extending Our Value
Aa
Assets
— Branded fonts, emoji,
GIFs, themes, frames,
filters, UGC
Technology
— Brand engagement platform
— Mobile engagement platform
— Analytics
— SaaS model
Expertise
— Custom Design
— Development of tech standards
— Research
— Engineering
23. Strength of Our Model
Data represents universe of publically traded companies in North America with revenue greater than $200 million and market capitalization of less than
$2 billion and with respective characteristics. Source: S&P Global Market Intelligence, as of 5/1/2017.
23
Revenue growth > 10%
Gross Margin > 75%
EBITDA > 20%
30
342
11
$0
$50,000
$100,000
$150,000
$200,000
$250,000
2014 2015 2016 PF
Non-Recurring Predictable SaaS Recurring
Cash flow:
Organic
Investment
✓
Dividend ✓
Buyback ✓
M&A ✓
24. Sources of Revenue Growth
Bars represent estimated market penetration; arrows represents growth vectors.24
Today: Desktop, web fonts, early days of HTML5
Today: Significant penetration across many device categories
Today: 5% of 11,000 global brands
CP
Core
OEM
CP
Olapic /
Swyft
25. Sources of Revenue Growth
Bars represent estimated market penetration; arrows represents growth vectors.25
Future: Acceleration of HTML5 Adoption, expanded usage and
recurring revenue with simplified licensing models
Future: Stabilization of printers, maturation of auto, and evolving use cases
Future: 20-25% of 11,000 global brands
CP
Core
OEM
CP
Olapic /
Swyft
15 to
20+%
0-3%
26. Operating Results and 2017 Guidance ($mil)
FY17G = GAAP guidance given on July 28, 2017; reconciliations of all non-GAAP measures are available at www.monotype.com.26
FY17G FY16 FY15
Revenue $229.0-$237.0 $203.4 $192.4
Gross Margin 80-82% 81.5% 82.0%
naEBITDA $47.5-$54.1 $59.8 $71.0
27. Quarterly Financial Results
27
Financial Highlights
— 19% Year over Year growth
(11% on a Pro Forma basis)
• Creative Professional grew 31%
• 60% of printer revenue now fixed
— Inflection point for net adjusted EBITDA
— Key metrics at higher end of guidance range
$48.7
$52.2 $52.6 $52.5
$57.8
REVENUE
Q216 Q316 Q416 Q117 Q217
$30.0
$36.6
$41.8 $42.7 $44.8
OPERATING EXPENSES
Q216 Q316 Q416 Q117 Q217
$17.1
$15.5
$10.6
$9.4
$11.7
NET ADJUSTED EBITDA
Q216 Q316 Q416 Q117 Q217
28. Balance Sheet and Cash Flow Metrics ($mil)
28
FY16 FY15
Cash $91.4 $87.5
Debt $105.0 $0
Operating Cash Flow 40.7 $53.4
% of naEBITDA 68% 75%
Returned to Shareholders $23.1 $33.7
% of naEBITDA 39% 48%
Returned to shareholders represents dividend payments and share repurchases.
29. Target Model — Long-Term Drivers
Pro Forma excludes impact of deferred revenue impairment; 2017 Pro Forma revenue guidance range of $232.3 to $240.3.29
Consolidated
Long-Term
Target Model
Traditional
TYPE
Expanded
Addressable
Markets
% of Revenue 10-20% 75-90% 10-25%
Gross Margin 78-82% 81% 75%
naEBITDA 28-32% 34-40% 10-30%
28-32%