Loop Media Inc. · OTC:LPTVQ
Loop Media — Investor Presentation (November 2022)
37 slides from Loop Media's investor presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation November 2022 A media company that focuses on digital out-of-home (“DOOH”) video streaming by curating, optimizing and monetizing content across a network of screens in venues of all sizes
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the future of th
Slide 3: Experienced & Passionate Team
Experienced & Passionate Team Jon Niermann Neil Watanabe Bob Gruters Co-Founder, Chief Executive Officer Chief Financial Officer Chief Revenue Officer ▪ Joined Loop Media in May 2016 ▪ Joined Loop Media in September 2021 ▪ Joined Loop Media in May 2021 ▪ 30+ years of media technology leadership ▪ 30
Slide 4: Why Loop?
Why Loop? Proprietary Loop Player allows businesses to stream and control content (i.e., signage or videos streamed) for free, increasing customer engagement and length of stay Technology-based business model: Loop Player measures the number of potential viewers present in an OOH venue using Bluetoo
Slide 5: Loop in Forbes
Loop in Forbes “Roku for business” Loop Media, Inc., dubbed the “Roku for business” by Roth Capital for its multi- channel streaming platform that provides curated music video and branded entertainment channels for businesses, recently uplisted to the New York Stock Exchange (NYSE), positioning itse
Slide 6: National Distribution & Reach
National 3 Distribution & Reach 12,500+ QAUs1 across North America & 17,500+ Partner Network Screens2 1 As of 6/30/2022. For the quarter ended 3/31/2022, QAU was 10,530. 6 2 As of September 2022.
Slide 7: Significant Momentum in Unit Metrics
Significant Momentum in Unit Metrics Quarterly Active Units1 Average Advertising Revenue Per Unit2 12,584 $526 10,530 $435 8,156 5,791 $236 FQ4 2021 FQ1 2022 FQ2 2022 FQ3 2022 FQ1 2022 FQ2 2022 FQ3 2022 (9/30/2021) (12/31/2021) (3/31/2022) (6/30/2022) (12/31/2021) (3/31/2022) (6/30/2022) 1 Represent
Slide 8: Our Media Distribution Platform
Our Media Distribution Platform Connecting the Content Ecosystem Out-of-Home and In-Home Preferred Customer Delivery Method Revenue Model Content Loop Network / Player Ad-Supported Varied Businesses (DOOH) Service Content Offerings Partner Network / POS Mobile Loop App Businesses and Subscription Mu
Slide 9: Loop Player
Loop Player 32GB Storage Bluetooth Network Scanner Local asset encryption of Customer estimation for advertising-based uninterrupted playback video on demand multiplication Geopath technology measures: ▪ Number of people in venues ▪ Geographics ▪ Venue Types In-House Bluetooth Technology ▪ Calculate
Slide 10: Partner Network
Partner Network Curated content for consumers and programmatic advertising technology for advertisers right at the point-of-sale Launched Partner Network business in May 2022 with one partner on ~17,500 of the partner’s screens Distribution to convenience, grocery and other specialty retailers Adver
Slide 11: Value Proposition to Owned & Operated Customers
Value Proposition to Owned & Operated Customers Owned and Operated Network 11
Slide 12: Customizable & Controllable Ad Products
Customizable & Controllable Ad Products Our proprietary technology allows advertisers to target their Our creative product team helps advertisers bring their ads to desired: life with: ▪ Daypart ▪ Squeeze back, two box ads within content ▪ Content type ▪ Animated ads ▪ Venue category ▪ Custom skins
Slide 13: Blue Chip Partners
Blue Chip Partners Programmatic Partners Brand Partners 13
Slide 14: Favorable Industry Dynamics
Favorable Industry Dynamics Business owners today commonly use outdated cable, satellite or an antenna AVOD Viewers in the US (millions) technology for free-to-air TV Digital out-of-home (“DOOH”) streaming is expected to revolutionize out-of- 165.4 171.5 150.6 158.5 home (“OOH”) media consumption in
Slide 15: Growth Strategy
Growth Strategy 1 Increase Marketing & Distribution of Loop Player 2 Diversify Content & Customer Base 3 Optimize Advertising Sales & Sponsorships 4 International Expansion 15
Slide 16: Financial Overview
loop = watch live ty Financial Overview
Slide 17: Historical Results and Guidance
Historical Results and Guidance1 Revenue Quarterly Annual (Sequential) Guidance Guidance ~$32.6 ~$30.6 ~$13.9 $10.8 $4.9 ~$11.9 $5.1 $3.0 $3.0 FQ1 2022 FQ2 2022 FQ3 2022 FQ4 2022 2020 2021 2022 (12/31/2021) (3/31/2022) (6/30/2022) (9/30/2022) (9/30/2020) (9/30/2021) (9/30/2022) Gross Margin Quarterl
Slide 18: Annual Financial Snapshot
Annual Financial Snapshot Revenue1 Gross Margin1 Adjusted EBITDA2 Guidance Guidance ~$32.6 ~$30.6 Significant guarantees and advance payments under (9/30/2020) (9/30/2021) consumer music licensing ~35% 2020 2021 agreements 18% $(7.5) $(7.8) $5.1 $3.0 2020 2021 2022 2021 2022E (9/30/2020) (9/30/2021)
Slide 19: Takeaways
Takeaways Seasoned management team with blue chip experience Strong financial and operational momentum Disrupter in traditional cable and satellite serviced OOH venues Differentiated by proprietary technology Strong DOOH industry tailwinds No major competition 19
Slide 20: Appendix
loop Appendix
Slide 21: Company Snapshot
Company Snapshot Market Statistics Share Price $4.41 Shares Outstanding1 58.1 Million 52 Week High $14.50 Public Float (as of 10/24/22) 9.6 Million 52 Week Low $3.89 Pro Forma Debt (as of 6/30/2022)2 $3.5 Million Average Daily Trading Value (3 Months) 27,561 Pro Forma Cash (as of 6/30/2022) $10.9 Mi
Slide 22: Quarterly Financial Snapshot
Quarterly Financial Snapshot Revenue1 Gross Margin1 Adjusted EBITDA2 Sequential Quarters Sequential Quarters Sequential Quarters Guidance Guidance ~$13.9 Significant guarantees and advance payments $10.8 ~$11.9 under consumer music 52% licensing agreements (12/31/2021) (3/31/2022) (6/30/2022) FQ1 20
Slide 23: Growth Strategy: Increase Marketing & Distribution of Loop Player
Growth Strategy Increase Marketing & Distribution of Loop Player Direct correlation between digital marketing spend and Loop Player demand Leading role in the highly fragmented and low penetration DOOH market Leverage strong internal sales team and external consultants to promote and distribute prod
Slide 24: Growth Strategy: Diversify Content & Customer Base
Growth Strategy Diversify Content & Customer Base Expanding customizable thematic content attracts new DOOH operators, further diversifies our customer base and attracts advertisers seeking targeted viewership Launch of Loop Player, Partner Network, and ad-supported revenue model has rapidly increas
Slide 25: Growth Strategy: Optimize Advertising Sales & Sponsorships
Growth Strategy Optimize Advertising Sales & Sponsorships Directly market to companies interested in sponsorship of content Improve programmatic ad revenue revenue through through “MarTech” Loop “MarTech” data anddata/analytics analytics Expand advertising Directly advertise tosales companies team a
Slide 26: Growth Strategy: International Expansion
Growth Strategy International Expansion Supply of video content in non-U.S. DOOH markets is underserved ▪ We are exploring ways to further penetrate Asia, certain countries in South America, Canada and Europe ▪ In 2021, we acquired EON Media, a syndicated radio program broadcast across Asia 26
Slide 27: Annual Income Statement
Annual Income Statement Guidance Fiscal Year Ended September 30, LTM as of 2020 2021 2022E 6/ 30/ 2022 1 Net Revenue $2,966,454 $5,069,149 $30,600,000 - $32,600,000 $21,089,101 % Growth NA 70.9% 503.7% - 543.1% NA Cost of Revenue $1,086,053 $4,165,065 $19,900,000 - $21,200,000 $14,193,563 Gross Prof
Slide 28: Sequential Quarterly Income Statement (Unaudited)
Sequential Quarterly Income Statement (Unaudited) Guidance Fiscal Quarter Ended, 12/ 31/ 2021 3/ 31/ 2022 6/ 30/ 2022 9/ 30/ 2022E Net Revenue $ 2,996,034 $ 4,879,839 $ 10,804,083 $ 11,920,044 - $ 13,920,044 % Growth NA 62.9% 121.4% 10.3% - 28.8% Cost of Revenue $1,444,977 $3,515,217 $7,018,283 $7,9
Slide 29: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Annual Fiscal Year Ended September 30, 2020 2021 EBITDA Reconciliation Net Income (Loss) $(17,105,294) $(30,974,496) Interest Expense 1,002,799 1,690,552 Interest Income (4,688) (10,123) Depreciation and Amortization 439,418 2,557,959 Income Tax Expense / (B
Slide 30: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Three Month & Nine Month Periods Three Months Ended, Nine Months Ended, 12/ 31/ 2021 3/ 31/ 2022 6/ 30/ 2022 6/ 30/ 2021 6/ 30/ 2022 EBITDA Reconciliation Net Income (Loss) $(4,273,995) $(4,974,830) $(5,672,285) $(17,847,682) $(14,921,110) Interest Expense 5
Slide 31: Historical Balance Sheet
Historical Balance Sheet As of As of 9/ 30 / 20 21 6 / 30 / 20 22 1 9/ 30 / 20 21 6 / 30 / 20 22 1 Assets Liabilities & Stockholders' Equity Current Assets Current liabilities Cash $ 4,162,548 $ 709,725 Accounts Payable $ 1,147,585 $ 3,739,527 Accounts Receivable 1,571,226 11,601,025 Accrued Liabili
Slide 32: Capitalization
Capitalization As of June 30, 2022 (in thousands except share data) Pro Forma 1 1 Actual Pro Forma as Adjusted Cash and Cash Equivalents $710 $710 $10,900 2 Convertible Debt, Net (2022 Notes; All Current) 2,606 - - 3 Convertible Debt, Net (2023 Notes; Including Current Portion of $72) 215 - - 4 Non-
Slide 33: 6+ Years of Founder Leadership
6+ Years of Founder Leadership D2C Development Focus Evolution to B2B DOOH Focus 2016 2017 2019 2020 2021 2018 2022 2016 2017 2019 February 2020 June 2020 – June Loop is founded by Jon Continued fundraising Acquired remaining 80% stake Became a public reporting 2021 Niermann, Liam McCallum in Screen
Slide 34: Value Proposition to Partner Network
Value Proposition to Partner Network 34
Slide 35: Definitions
Definitions • QAU: Quarterly Active Units - We define an “active unit” as (i) an ad-supported Loop Player (or DOOH location using our ad-supported service through our “Loop for Business” application or using an DOOH venue-owned computer screening our content) that is online, playing content, and has
Slide 36: Cautionary Note Regarding Financial Guidance
Cautionary Note Regarding Financial Guidance • Preliminary financial information and projections should not be viewed as a substitute for full historical financial statements prepared in accordance with U.S. GAAP. Forecasts are subject to change. We have not completed our customary annual financial
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is not measured in accordance with, or an alternative to, measures prepared in accordance with U.S. GAAP. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. As a non-GAAP measure, EBITDA has limitations in th