e commerce panel new generation e commerce

34
Jefferies & Company, Inc. Jefferies 4 th Annual Internet Conference February 27, 2008 CONFIDENTIAL DRAFT Member, SIPC eCommerce Panel: New Generation eCommerce

Upload: dave-liu

Post on 21-Jan-2015

737 views

Category:

Technology


2 download

DESCRIPTION

 

TRANSCRIPT

Page 1: E Commerce Panel New Generation E Commerce

Jefferies & Company, Inc.

Jefferies 4th Annual Internet Conference

February 27, 2008

CONFIDENTIAL DRAFT

Member, SIPC

eCommerce Panel: New Generation eCommerce

Page 2: E Commerce Panel New Generation E Commerce

Panelists

Will Harvey

Founder & Chairman

David Liu

Managing Director Internet & Digital Media Group

Roger Butterwick

CEO

John Delbridge

COO

Champ Mitchell

Chairman

1

Panelists arerepresentative of thenew frontiers ineCommerce

B-to-B

User Generated Commerce

Digital vs. Atoms

Page 3: E Commerce Panel New Generation E Commerce

Sector Snapshot

2

Page 4: E Commerce Panel New Generation E Commerce

133

139

144

149

152

156

120

125

130

135

140

145

150

155

160

2006 2007 2008 2009 2010 2011

What is the E-Commerce Opportunity?

100

116

131

145

158171

0

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011

US Online Retail Revenue, 2006-2011E1 US Online Shoppers, 2006-2011E2

(1) Source: JupiterResearch, January 2007.(2) Source: eMarketer, May 2007. Note: ages 14+.

($ billions) (millions)

11% CAGR

3% CAGR

3

Page 5: E Commerce Panel New Generation E Commerce

(1) Source: comScore Media Metrix, February 2008.

Who are the Leading E-Commerce Retailers?

(millions)

Total Unique Visitors – January 20081

78.8

59.0

48.4

30.7

27.9

26.9

24.2

17.8

17.4

16.8

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

AmericanGreetings Property

Moviefone

Best Buy

Shopzilla.com

Yahoo! Shopping

Target Corporation

Wal-Mart

Apple Inc.

Amazon Sites

eBay

4

Page 6: E Commerce Panel New Generation E Commerce

What is the Market Opportunity for Digital Goods?

(terabyte; average per day)

Digital Downloads

179.3 229.4313.0

427.2562.9

729.2

907.0

10.515.8

20.6

25.5

28.9

31.8

34.4

162.3202.9

239.5

270.6

297.6

318.5

334.4

352.1

448.1

573.0

723.3

889.4

1,079.5

1,275.7

0

250

500

750

1,000

1,250

1,500

2006 2007 2008 2009 2010 2011 2012

Video Audio Other

Source: IDC, June 2007. 1

24% CAGR

Page 7: E Commerce Panel New Generation E Commerce

Meet the Panelists

5

Page 8: E Commerce Panel New Generation E Commerce

Roger ButterwickCEO

5

Page 9: E Commerce Panel New Generation E Commerce
Page 10: E Commerce Panel New Generation E Commerce

ATC-Onlane Business Overview

Makes the Purchase and Sale of Used Vehicles Easier, Faster, and More Cost Efficient

B2B model Connects Buyers and Sellers of Wholesale Used Vehicles

Sellers of Used Vehicles (OEMs, Independent Finance Companies, fleets, daily rental, repossessions, dealers, etc.)

Automotive Dealers (Franchised, Independent, and Wholesale dealers)

Streamlines the Used Vehicle Remarketing Process Traditional Vehicle Remarketing Process (25-45 days) ATC-Onlane Process (1-10 days)

Large Market Opportunity 23 million wholesale used vehicle transactions annually $190 billion in gross merchandise value 70,000 Franchise and Independent Automotive Dealers 60% gross margins

Page 11: E Commerce Panel New Generation E Commerce

ATC-Onlane Business Overview

Sellers Preferred partner for 23 automotive brands Significant cost savings ($300-$900 per vehicle) Significant time savings (10-30 days) Greater control of asset portfolio

Dealers 30,000+ dealers nationwide registered (90% of all franchise

dealers) Approx. 6,000 unique dealer purchase a car from ATC-Onlane each

month Less time away from the dealership

Growth/Market Share Expected 50% compounded YOY growth through 2010 Currently less than 2% market share

Operating in Canada and the United States Headquartered in Menlo Park, CA; Offices in Mesa, AZ and Toronto,

ON Over 400 employees

Page 12: E Commerce Panel New Generation E Commerce

Institutional consignors on the ATC-Onlane platform

Captive Finance &

OEM

Non-Captive/ OEM &

Commercial Fleet/Lease

Daily Rental

Page 13: E Commerce Panel New Generation E Commerce

John DelbridgeCOO

5

Page 14: E Commerce Panel New Generation E Commerce

New Generation eCommerce

Jefferies 4th Annual Internet Conference

February 27, 2007

John DelbridgeChief Operating Officer

Page 15: E Commerce Panel New Generation E Commerce

Vision: Printing . . . Without a Printer

Mission: To Delight our Customers with the easiest, fastest and most reliable way to print, manage and distribute documents

» Investors: Goldman Sachs, HP, DFJ (Hotmail, Skype), Harbourvest

» Laser Focus on Online, On-Demand Document Printing and Distribution

» 490 People: HQ NYC, Production in Memphis

» Profitable and growing 40+% per year last 6 years

» 3 million pages a night and 4 million bound documents in 2007

Mimeo at a Glance:Founded 1998

Page 16: E Commerce Panel New Generation E Commerce

Perspective on 4 Million Documents

4 million documents = 210,000 Feet

Airplanes = 50,000 feet

Empire State Building = 1,453 feet

150x the Height of the Empire State Building

“In Outer Space”

Page 17: E Commerce Panel New Generation E Commerce

Simple Strategy Leveraged by Technology

» Premise: Internet greatly displaces need for copy shops and print centers

» Web based UI and technologies feeding centralized production enable . . . - Capacity to scale growth and handle large volumes

- Workflow to offer extremely quick turnaround

- Economies of scale low cost producer AND high value provider

- Highest quality

» On-Site and Kinkos/local copy shops can’t compete on any measure

Page 18: E Commerce Panel New Generation E Commerce

4,000+ Corporate Accounts:Revenue Split: 35% Global 2000, 65% SMB

Sweet spot: bound documents to many locations, overnight

» HR• Training manuals (internal)

• Orientation guides, handbooks

» Sales & Marketing• Sales collateral, brochures

• RFP responses, Presentations

• Training materials (external)

» Operations• Reference guides

• User manuals

Page 19: E Commerce Panel New Generation E Commerce

Memphis Production and Distribution Facility

» World’s largest (140,000 sq. ft.) and most automated facility dedicated to digital production and distribution

» Strategically located next to the FedEx hub in Memphis, TN

Page 20: E Commerce Panel New Generation E Commerce

Thank You

Page 21: E Commerce Panel New Generation E Commerce

Will HarveyFounder & Chairman

5

Page 22: E Commerce Panel New Generation E Commerce

New Generation eCommerceWill Harvey, Founder and Chairman Jefferies Internet Conference 2008

Page 24: E Commerce Panel New Generation E Commerce

User

Developer IMVU

Catalog

$ for credits

Credits for item

~50% credits from item sale

~50% credits from item sale

Credits for $1

2

3

Developer EconomyDEVELOPER ECONOMICS

Retail price of 1000 credits $1.00

Retail price of virtual shirt 500 credits

Split to developer 250 credits

Market price of 1000 credits $0.50

Profit to developer 12.5 cents

Page 25: E Commerce Panel New Generation E Commerce

Two Axes of Growth

0

3

6

9

$12

0 200 400 600 800M

$2BAnnual Revenue

ActiveCustomers

Yahoo

WoW

MySpace $2BAnnual Revenue

Mon

thly

Rev

enue

per

Use

r

Google

Facebook

Habbo

ClubPenguin

GaiaSlide

IMVU

MMOGs have high ARPU but smallavailable market. Grows upward.

Social networking has low ARPU but large available market. Grows to the right.

Page 26: E Commerce Panel New Generation E Commerce

Avatar-Based Communication

0.00

0.50

1.00

1.50

$2.00

0 50 100 150 200M

$150MAnnual Revenue

ActiveCustomers

MySpace

Facebook

Slide

$150MAnnual Revenue

Mon

thly

Rev

enue

per

Use

r

Habbo

ClubPenguinGaia

IMVU

Avatar based communication has potential for ARPU of MMOGs and market size of social networking. Grows upward and to the right.

Page 27: E Commerce Panel New Generation E Commerce

0.00

1.00

$2.00

0 2 4 6 8 10M

$50MAnnual Revenue

ActiveCustomers

IMVU

$50MAnnual Revenue

Mon

thly

Rev

enue

per

Use

r

HabboClub

PenguinGaia

IMVU’s Next Step

Page 28: E Commerce Panel New Generation E Commerce

Champ MitchellChairman

5

Page 29: E Commerce Panel New Generation E Commerce

Network Solutions

Company OverviewChamp MitchellChairmanFebruary 27, 2008

Page 30: E Commerce Panel New Generation E Commerce

Network Solutions Confidential

Network Solutions Timeline

NS acquired by VeriSign

Domain name industry opened to

competition

NS awarded grant from National Sciences Foundation

to develop the Internet’s domain name registration

service, becoming monopoly domain name registrar

NS goes public

NS begins transition to Web solutions provider

from domain name provider

Post-monopoly, NS experiences

plummeting sales and market share

NS started charging fees for

domain name registration

NS acquired by

SAIC

NS stabilized and becomes

cash flow positive in 3Q

2002

19931993 19941994 20002000 20012001 20032003 20052005 20062006 20072007200420042002200219951995 19971997

NS carved out of VeriSign and Taken Private

NS Sold to General Atlantic

NS enters Hosting market

NS enters eCommerce

& Online Marketing

Page 31: E Commerce Panel New Generation E Commerce

Network Solutions Confidential

Network Solutions Today

• Leading Provider of Web Services to Small Businesses

• 4 MM Customers (3.5 MM Small Businesses) with Average Customer Life of 9 years

• Sales CAGR 30%; Revenue CAGR > 50% Since 2004 (Web Services Grows 88%)

• Added 119 Products in 20 months

• Number of Products per customer, ARPU and Ticket Grow Each Month

• While Generating 30% Operating Margin & 22%-24% Free Cash Flow Margin

• Top Two Box Customer Satisfaction 87%

RESULT: > 700% growth in value & >3,500% ROI in 39 months1

1 Source: Wall Street Journal, May 30,2007

Page 32: E Commerce Panel New Generation E Commerce

Dave’s Top Five

12

Page 33: E Commerce Panel New Generation E Commerce

Dave’s Top Five

1. Given its stage of development, is Internet Commerce (B2B, B2C, C2C) immune to a general U.S. recession?

2. Social lead generation (e.g., Facebook Beacon): future of ecommerce? Can this be applied in B2B?

3. Friend or foe? Neither? eBay Amazon Microsoft/Yahoo!, Google

4. Is User Generated Commerce the next BIG thing? Does this apply in B2B?

5. How are you or your customers addressing the growing customer reliance on search engines as part of the purchasing process?

2002

2003

2004

2005

2006

16

2007

Page 34: E Commerce Panel New Generation E Commerce

Dave’s Top Five Back-up

1. If you could LONG or SHORT any stock to exploit the next phase of e-commerce what would it be?

2. Do you believe that community and social shopping will have a meaningful impact on e-commerce?

3. What will limit the growth of B2C and B2B ecommerce?

4. How important is event-triggered marketing and customer lifecycles in developing your customer relationship?

5. How are you exploiting the growing customer desire for product customization?

15

2002

2003

2004

2005

2006

2007