3. The Offering
Issuer: Exactis.com
Shares: 3.8 million
Offering Range: $13.00 to $15.00
Ticker/Exchange: XACT / NASDAQ
Underwriters: Thomas Weisel Partners LLC, Perry Boyle
Dain Rauscher Wessels, Mitch Bartlett
Wit Capital Corporation, Jordan Rohan
Expected Pricing: Week of November 15, 1999
6. Investment Highlights
• Tremendous email market opportunity
• Superior proprietary technology
• Comprehensive suite of solutions
• Market share leader in email delivery
• Attractive long-term business model
• Experienced management team
7. Combining Internet and Email Growth…
Source: Jupiter Communications Source: Forrester ResearchSource: Electronic Mail &
Messaging Systems
28.8% CAGR
1998 2002
543mm
197mm
142.2% CAGR
1997 2002
250B
3B
14.2% CAGR
1998 2002
131mm
77mm
U.S. Web Users Worldwide Email Boxes
U.S. Solicited
Commercial Emails
12. How We Make Money
• Revenue streams based on:
– Fees per email message
– Hourly engineering fees ($150+)
• Recurring revenue from annual contracts
• Value-added services in development
13. Targetcast
One-to-one
marketing message
to many people
Offers and
promotions
Encourage
purchasing
behavior
$15 - $30
Our Services
Broadcast
Same message to
many people
News and
information
Customer
retention and
loyalty
$3 - $10
Microcast
Personalized
message to one
person
Event-driven
communications
Fast, low-cost
communication
$5 - $20
Service Objective PurposeContent
Price/
thousand
14. Challenge:
Needed same day delivery of
electronic newsletter
Solution:
Custom Broadcast using
graphically designed and
delivered rich HTML format
Email Volume:
3.7 million/month
Newsletter Case Study
15. Challenge:
Needed fast electronic transaction
notifications
Solution:
Designed Microcast using text
mail format and custom template
Email Volume:
2.5 million/month
Confirmation Case
Study
16. Promotion Case Study
Challenge:
Needed fast execution of
targeted direct response
campaigns
Solution:
Designed Broadcast with custom
formatting and targeted lists
Email Volume:
2.3 million/month
17. The Exactis.com Value Proposition
Scalable
Comprehensive suite of solutions
Custom tailored solutions
Superior account management
20. Strategic Client Relationship
• InfoBeat online newsletter
• Editorial services and targeted ads
• New product development
• 3-year agreement through 2001
• Send 5.0 million messages per weekday
21. Ad Servers/
Networks
Email
Marketing &
Delivery
Email Box
Hosting
Inbound
Email
Opt-in
Email Lists
Loyalty
eMarketers
Emarketing Landscape
Critical
Path
Mail.com
USA.Net
Brightware
eGain
Kana
Flycast
LifeMinders
NetCreation
s
YesMail
Cybergold
MyPoints
Netcentives
Webstakes
Adforce
DoubleClick
Engage
Flycast
24/7 Media
Exactis.com
Digital Impact
Media Synergy
MessageMedia
Tumbleweed
22. Competitive Landscape - Scalability
10.0
7.4
3.6
1.6
1.2
Experian
Exactis.com
MessageMedia
Digital I mpact
Media Synergy
Offline World
Online World
Based on company estimates
Average Daily Message Volume
(Millions)
23. Exactis.com MessageMedia Digital Impact Media Synergy Tumbleweed
News &
information
Email ad serving
Primary service
Event-driven
communications
Competitive Landscape - Services
Targeted
marketing
Secure delivery Web
In developmentSecondary service
24. Growth Strategies
• Broaden suite of email services:
Targetcast
• Extend industry-leading technologies
• Increase direct and indirect sales efforts
• Develop and leverage strategic
relationships
• Acquire new businesses and technologies
26. Planned Services and Features
Secure
Email
• Encrypted email
messages
• Send confidential information
• Lower costs than postal mail
*Service currently provided to InfoBeat
Features BenefitService
Ad Serving*
• Banner ads within
email messages
• Generate revenue for
client
Customcast*
• Customized by
consumer
• Relevant content
likely to be read
Targetcast
• Targeted
one-to-one
marketing
• Cheaper, faster,
better than traditional
methods
Price/thousand
$15 - $30
$15 - $30
$1 - $3
$5 - $20
27. Management Team
E. Thomas Detmer, Jr. 21 Experian, Metromail,
President and Chief Executive Officer NDL/Polk
Kenneth Edwards 17 Experian, Metromail,
Chief Financial Officer CT Publications
Cynthia Brown 18 Anova Partners, System One
VP Engineering Tandem, Data General
Michael Rosol 16 XVT Software, Datasonix
VP Sales
Gregory Schneider 14 Hewlett-Packard
VP Marketing & Business Development
Name & Title ExperienceYears
32. Pro Forma Balance Sheet
Cash $557 $9,381 $54,692
Working capital (453) 8,371 53,682
Total assets 6,793 15,617 60,928
Deferred revenue 5,890 5,890 5,890
Total debt 979 979 979
Stockholder’s equity (17,791) (17,791) 55,068
June 30, 1999
Actuals
After Series E
Offering
After
IPO
Pro-forma Balances
($ Thousands)
33. Long-term Business Model
Gross Margin 87.6% 88-90%
Operating Expenses:
Marketing & Sales 29.5% 25-28%
Research, Development
and Engineering 96.5% 16-18%
General & Administrative 36.0% 10-12%
Depreciation/Amortization 16.8% 10-12%
Operating Margin/(Loss) (91.2%) 20-25%
Q2 1999
Actuals
Long-term
Goals
34. Why Exactis.com?
• Tremendous email market opportunity
• Superior proprietary technology
• Comprehensive suite of solutions
• Market share leader in email delivery
• Attractive long-term business model
• Experienced management team
36. Marketing and Technology Process
• Strategy
• Addresses
• Content
• Email Production
and Delivery
• Subscription
Management
• Reporting — Open
Mail, Click
Through, Bounced
Mail
• Segmenting
• Cell Testing —
Offer/Audience
Editor's Notes
Good morning. Today we’re going to talk about a very exciting industry, e-mail marketing and a very exciting company - Exactis.
Let me tell you what we do.
You’ve heard plenty about it, but the e-mail market opportunity is tremendous. At Exactis we’ve got the industry leading e-mail engine harvesting the market opportunity by capitalizing on our superior technology and our extensive suite of solutions to marketers needs.
The result is Exactis is the market share leader with a very attractive business model, excellent long-term margins and we’ve got the management team in place to execute on our vision.
So, how big is this e-mail market opportunity.
Exactis makes money the same way fulfillment companies in direct mail do. We charge a fee per e-mail message. We also charge a flat $150 per hour for any custom development clients ask us to do. Virtually all of our clients sign an annual contract and the number of clients as well as the message volume per client has been steadily increasing. In a nutshell we grow and scale with our clients.
Now let’s look at services.
Our most important initiative is full scale Targetcast.
At the same time, our production technologists are building even greater capacity.
On the sales and marketing side, we’re in the process of increasing our sales and marketing forces in both number and quality because we understand ours is a very consultative sales process.
We’re also expanding our current relationships and developing new ones.
And we’ll evaluate acquisitions where we can advance our technological foundation or gain important growth clients.
But, let’s stay focused on Targetcast because we’ll be launching it in November.
Now I’d like to introduce Kenny Edwards. Kenny was our CFO at Atlantes and so he and I have worked together for the last 6 years and I’m delighted to have his skill and wisdom at Exactis.
Exactis has a history of exceptional revenue growth driven by our increasing email message volumes.
The majority of our clients sign annual contracts giving us predictable steams of revenue.
We have a strong, strategic relationship and three year contract with Sony Music.
Post offering we will have a strong, clean balance sheet, and
our long term business model will deliver 20 to 25% operating margins.
What drives our revenue?
