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theScore Inc. Q2 F2018 Conference Call Presentation


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Conference call presentation delivered on April 12 2018 recapping the Company's Q2 F2018 results.

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theScore Inc. Q2 F2018 Conference Call Presentation

  1. 1. APRIL 12, 2018! Q2 F2018!
  2. 2. Forward looking statements All statements other than statements of historical facts included in this presentation may constitute forward-looking information and are based on the best estimates of Management of the current operating environment. These forward-looking statements are related to, but not limited to, theScore’s operations, anticipated financial performance, business prospects and strategies. Forward looking information typically contains statements with words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘expect’’, ‘‘plan’’, ‘‘estimate’’, ‘intend’’, ‘‘will’’, ‘‘may’’, ‘‘should’’ or similar words suggesting future outcomes. These statements reflect current assumptions and expectations regarding future events and operating performance as of the date of February 28, 2018. ! 2
  3. 3. Q2 F2018 OVERVIEW 3
  4. 4. 4 Q2 F2018 Overview •  Strongest ever revenue in company history for Q2. ! •  Revenue grew to $7.1M from $6.7M for the same period in the previous year. Revenue for the first six months of F2018 was $15.5M versus $15.2M for the same period in the previous year. ! o  Q2 F2018 revenue growth driven by strong performances from Canadian direct and US programmatic sales. ! •  EBITDA loss improved to $0.5M versus a loss of $1.4M for the same period the previous year. ! 0 1 2 3 4 5 6 7 8 Q2 F2014 Q2 F2015 Q2 F2016 Q2 F2017 Q2 F2018 CAD Millions $7.1M
  5. 5. 5 Q2 F2018 Overview ! •  Users of theScore’s flagship app on iOS were up 9% year-over-year. ! •  Continued industry-wide challenges with free sports apps on the Android platform meant we finished Q2 with a total average monthly active user total of 4.1M – the same as Q2 F2017.!
  6. 6. 6 Q2 F2018 Overview ! Other highlights from Q2 include:! •  Support for Winter Games and NCAA Men’s Basketball Tournament added to flagship app.! •  Content team added more rivers to popular Discover section, increased on-the-ground presence at major events. ! •  Completed total redesign of, with the goal of increasing web-app conversion.! •  Emerging platforms team continued to iterate on newly-launched fantasy sports game for Facebook’s Instant Games platform. ! •  Continued to monitor the legal landscape surrounding the legalization and regulation of sports betting in the United States.!•  Users accessing theScore 70 times each a month on average during our traditionally q!
  7. 7. Product 7
  8. 8. 8 Product Development •  Added deeper stats for NHL and NBA.! •  Launched redesigned article view, offering users both light and dark themes for the first time. ! •  Recorded new one-day record of 3.5M article reads during the NBA Trade Deadline. ! •  Increased our on-the-ground coverage at major events, including the NBA All Star Weekend in Los Angeles. ! •  Content included interviews with NBA stars LeBron James, Giannis Antetokounmpo, Joel Embid, Kevin Durrant, and James Harden. ! ! •  Continued to build on the popularity of our Discover section, adding news rivers and topics, including event coverage of NFL Combine. !
  9. 9. 9 Product Development •  Re-launched with a brand new look. ! •  Goal is to increase our web-app conversion rate. ! •  Early results have yielded an almost 3X improvement in installs from web visitors. ! •  Product and content team worked together to deliver coverage of the Winter Games from South Korea, as well as prepare us for the NCAA Men’s Basketball Tournament. ! •  Focus is now on preparing for the FIFA World Cup in June, ensuring theScore is the #1 independent mobile app to follow all the action from Russia. ! !
  10. 10. ! ! •  Renewed focus on producing original esports content continues to yield positive results.! •  In Q2, total video views were more than 20M, up 215% year-over-year. ! •  YouTube subscribers now in excess of 240,000. ! ! 10 Product Development
  11. 11. ! ! •  theScore’s social platforms reached in excess of 30M people a month during Q2. ! •  Instagram the primary driver of growth and engagement.! •  Powerful year-over-year growth, averaging 116% increase in interaction rates growth for Q2 YoY – all rates higher than our main competitors. ! •  Increased our live event coverage, sending a two-man team to the NBA All Star Weekend in Los Angeles. ! •  Over the three-day period, our Instagram interaction rate comfortably led the industry, beating the likes of ESPN and Bleacher Report.! •  We also achieved 5M more video views on this platform than ESPN, despite their much larger audience size. ! 11 Product Development
  12. 12. 12 Product Development ! •  Primary focus for emerging platforms team was the ongoing iteration of theScore Fantasy for Facebook’s Instant Messenger platform, which launched in Q1. ! •  Integrated ad units into game.! •  Added new ‘leaderboards’ feature.! •  Doubled the number of new users submitting a line-up with new onboarding. ! ! •  Now adding support for both cricket and World Cup, which will resonate with our large international audience.! •  Adding localization (Spanish, Portuguese and French).! •  Adding feature where users can see progress of line-ups in real time, promoting greater engagement. ! •  theScore Bot for Facebook Messenger also hit 500K average monthly active user milestone for first time in Q2.! ! !
  13. 13. Financials 13
  14. 14. ! •  Q2 revenue of $7.1 million versus $6.7 million in prior year.! •  Growth driven by strong performances in Canadian direct sales and US programmatic.! •  Expenses in Q2 F2018 improved to $8.6 million from $8.7 million for the previous year. ! •  Reduction driven by lower personnel and marketing costs, partially offset by content technology costs and amortization. ! ! •  EBITDA loss improved to $518K versus a loss of $1.4M in Q2 F2017. ! •  Continue to make strong YoY improvements to our EBITDA results. ! Revenue Operating Expenses EBITDA $ 8,643 $ (518) $ (1,418) $ 8,748 $ 6,691 Q2 F2018 Q2 F2017 $ 7,099 Fiscal Year: September 1 – August 31 Financials – Q2 F2018 14
  15. 15. •  Finished Q2 F2018 with $7.9 million in the bank. ! •  Cash generated for the quarter was $0.4 million versus cash use of $2.6 million for the same period last year. ! •  Cash-flow positive for Q2 largely as a result of continued improvements in operating performance and positive changes to working capital. ! Cash Current Assets Working Capital $ 16,930 $ 14,129 $ 14,223 $ 17,238 Nov 30, 2017 Feb 28, 2018 $ 10,144 Fiscal Year: September 1 – August 31 $ 7,414 Financials – Q2 F2018 15
  16. 16. Q&A