2. "Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: This presentation contains forward-looking statements concerning
Synacor’s expected financial performance as well as Synacor’s strategic and
operational plans. The achievement or success of the matters covered by
such forward-looking statements involves risks, uncertainties and
assumptions. If any such risks or uncertainties materialize or if any of the
assumptions prove incorrect, the company's results could differ materially
from the results expressed or implied by the forward-looking statements the
SAFE
company makes.
The risks and uncertainties referred to herein include – but are not limited to -
HARBOR
risks associated with: execution of our plans and strategies; the loss of a
significant customer; expectations regarding consumer taste and user
adoption of applications and solutions; general economic conditions;
expectations regarding the company's ability to timely expand the breadth of
statement services and products or introduction of new services and products;
consolidation within the cable and telecommunications industries; changes in
the competitive dynamics in the market for online search and display
advertising; the risk that security measures could be breached and
unauthorized access to subscriber data could be obtained; potential third
party intellectual property infringement claims; and the price volatility of our
common stock.
Further information on these and other factors that could affect the
company's financial results is included in filings it makes with the Securities
and Exchange Commission from time to time, including the section entitled
"Risk Factors" in the company's most recent Form 10-Q filed with the SEC on
May 15, 2012. These documents are available on the SEC Filings section of
the Investor Information section of the company's website
at http://investor.synacor.com/.
SYNC
4. TAKING
DIGITAL RAPID LARGE
MEDIA & UNIQUE SCALABLE & ENGAGED EXCELLENT
PROFITABLE
CABLE BUSINESS ANNUAL CUSTOMER
MODEL PLATFORM CONSUMER
REVENUE RETENTION
"TO THE GROWTH BASE
CLOUD"
5. INDUSTRY STARTPAGES
CUSTOMERS CONSUMERS
CABLE SATELLITE TELECOM
CONTENT & SERVICE PARTNERS (SAMPLE)
CONSUMER
ELECTRONICS
20M
AVG MONTHLY UNIQUE VISITORS
INTEGRATE AUTHENTICATE ENGAGE
INTEGRATIONS COMPLETED FOR OUR
CUSTOMERS (SAMPLE)
(Q2 2012, as measured by comScore)
5
6. MONETIZING THE CONNECTED CONSUMER
SEARCH & DISPLAY ADVERTISING SUBSCRIBER-BASED
TVE EMAIL
ONE-TIME
DIRECT
AD SALES VAS OTHER
SEARCH DISPLAY
56% 27% 17%
NOTE: Q2 2012 % OF TOTAL REVENUE
7. DIGITAL SCALE
20M UNIQUE VISITORS
238MSEARCH QUERIES
10B
ADVERTISING IMPRESSIONS
(MONTHLY AVERAGE FOR QUARTER) (QUARTERLY ) (QUARTERLY )
(as measured by comScore) (as measured by Google AdSense) (as measured by DoubleClick
& Other Partners)
NOTE: Q2 2012 RESULTS
7
8. Market Opportunity
HIGH SPEED INTERNET
HOUSEHOLDS
91M US
122M EUROPE
WESTERN
~25%
46M LATIN
AMERICA
SOURCE: US AND WESTERN EUROPE - GARTNER “FORECAST: CONSUMER FIXED VOICE, INTERNET AND BROADBAND SERVICES, WORLDWIDE,
2009-2016, 1Q12 UPDATE” AND LATIN AMERICA - SNL KAGAN “GLOBAL MULTICHANNEL BROADBAND HOUSEHOLDS, 2011” 8
9. Market Opportunity
CONSUMER ELECTRONICS MANUFACTURED
DEVICES
210M 69M
PCs
TABLETS
SOURCE: 2011 WORLDWIDE SALES; PC’S - GARTNER “SWOT: TOSHIBA, CONSUMER PC BUSINESS, WORLDWIDE” APRIL 2012” AND TABLETS - GARTNER “QUARTERLY
STATISTICS: PERSONAL COMPUTERS BY MAJOR MARKET, WORLDWIDE, 2007-2011, FEBRUARY 2012” 9
10. Market Opportunity
SEARCH & DISPLAY ADVERTISING
REVENUE
$114.6B
103.5
92.6
81.3
US$ (billions)
70.6
75.1 66.7 58.0
INTERNATIONAL 50.0
CAGR 2011-2015 13% $83.6B
20.6
23.3
US 25.9 2012
2011
CAGR 2011-2015 11%
28.4 2013
2014
$31.0B
2015
SOURCE: PRICEWATERHOUSECOOPERS, “INTERNET ADVERTISING: WIRED AND MOBILE” 2011. NOTE: INTERNATIONAL SEARCH AND DISPLAY ADVERTISING INCLUDES
CLASSIFIED, RICH MEDIA, VIDEO, MOBILE, AND OTHER INTERNET ADVERTISING. 10
12. RELATIONSHIP BEYOND THE SALE
CORD CUTTING DEVICE PROLIFERATION CHURN
OVER THE TOP (HULU, NETFLIX, AMAZON PRIME)
DISINTERMEDIATION DUMB PIPE
PARTNERS ARE COMPETITORS
CABLE SATELLITE TELECOM CONSUMER
ELECTRONICS
customers’
CHALLENGES
12
13. INCREASED VALUE & ENGAGEMENT
AUTHENTICATION BRAND OWNERSHIP
COMPETITORS NOW PARTNERS INNOVATIVE PRODUCT
INCREASED MONETIZATION TV EVERYWHERE
CONTENT MANAGEMENT
SOLUTIONS
13
14. PLATFORM – BEHIND THE SCENES
integrate authenticate engage
Good Target Data
Customer REST
Backend Synacor
Systems IMAP Consumer E-mail Platform
Subscription Data
Synacor Consumer
Customer SAML Profile Manager
Identify Management
System XML
Consumer Synacor Search &
Customer Customer
SOAP Profile Data Display Ad Platform
Email Database
Platform OAuth
Customer LDAP
Provisioning Synacor TVE and
System SOCKET Video Platform
Consumer
Account Data
Customer Billing POP HTML
System
REST Synacor
Entitlements Synacor VAS
XML Synacor Service & App Platform
Message Oriented
SOAP Middleware
3rd Party Value
Added Services LDAP Synacor Batch
Processing SAML
Service
Customer File of Consumer Data
Content Batch File
Providers
Query Consumer Entitlement Data
Programmer
Sites
Consumer Email Data Based on Authentication
14
15. PRODUCTS AND SERVICES
STARTPAGE
SEARCH ADVERTISING
TV EVERYWHERE COMMUNICATIONS
& SOCIAL MEDIA
DISPLAY ADVERTISING
ENTERTAINMENT
VALUE ADDED SERVICES
15
17. PRODUCTS AND SERVICES
TV EVERYWHERE
ENGAGEMENT
INTEGRATION
AUTHENTICATION
PRESENTATION
17
18. PRODUCTS AND SERVICES
CARBYN
INTEGRATED HTML5 apps
that work across all devices BRANDING, promotion, publishing,
integrated search, user settings
18
21. Industry Evolution
2007
2009
2010
SYNACOR LAUNCHES
FULL PRODUCT SUITE
WITH EMBARQ CENTURYTEL ACQUIRES
EMBARQ, BECOMES
PREVIOUS STARTPAGE PROVIDER CENTURYLINK, &
EARTHLINK ADOPTS SYNACOR
PREVIOUS STARTPAGE PROVIDER
ASK.COM SYNACOR LAUNCHES
FULL PRODUCT SUITE 2011
WITH QWEST
PREVIOUS STARTPAGE PROVIDER
MICROSOFT
Industry Consolidation…
Adding More Customers…
CENTURYLINK
Generating More Revenue ACQUIRES QWEST
STARTPAGE
21
22. Expanding Market
Opportunity
JUL 2010
2010 SEP 2010
AUG 2011
GOOGLE REFERRED
TOSHIBA TO
SYNACOR MASTER SERVICES
AGREEMENT SIGNED TOSHIBA INTERNET
STARTPAGE
LAUNCHED
OCT 2011
TOSHIBA’S TABLET
INTERNET STARTPAGE
LAUNCHED
Customer challenge
“Relationship Beyond the Sale”
VALUE-ADDED SERVICES
Solution
LAUNCHED (GAMES,
Synacor Startpage, VAS, SPORTS, VARIETY)
Multi-Device Experience
22
23. COMPETITIVE LANDSCAPE
PORTAL POINT SOLUTIONS
BRAND
FRIENDLY PORTAL (sample)
MONETIZATION
POINT SOLUTIONS (sample)
END-TO-END
N/A
SOLUTION
TIME TO
RAPID N/A LONG
MARKET
COMPLEXITY
LOW MEDIUM VERY HIGH
TO CUSTOMER
23
24. SELLING INTO
NEW & EXISTING
CUSTOMERS CLOUD/ APPS/
TV EVERYWHERE
MOBILE
CONSUMER
ELECTRONICS INTERNATIONAL
FUTURE GROWTH
OPPORTUNITIES
32. TAKING
DIGITAL RAPID LARGE
MEDIA & UNIQUE SCALABLE & ENGAGED EXCELLENT
PROFITABLE
CABLE BUSINESS ANNUAL CUSTOMER
MODEL PLATFORM CONSUMER
REVENUE RETENTION
"TO THE GROWTH BASE
CLOUD"