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INVESTOR OVERVIEW June 2016 SNIPP INTERACTIVE INC. TSX:V SPN OTCQX:SNIPF

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Page 1: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

INVESTOR OVERVIEW – June 2016SNIPP INTERACTIVE INC.TSX:V SPN OTCQX:SNIPF

Page 2: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Disclaimer

This presentation is not, and nothing in it should be construed as, an offer,

invitation or recommendation in respect of Snipp Interactive Inc.’s securities, or

an offer, invitation or recommendation to sell, or a solicitation of an offer to buy,

the facilities or any of the Company’s securities in any jurisdiction. Neither this

presentation nor anything in it shall form the basis of any contract or

commitment. This presentation is not intended to be relied upon as advice to

investors or potential investors and does not take into account the investment

objectives, financial situation or needs of any investor. All investors should

consider such factors in consultation with a professional advisor of their

choosing when deciding if an investment is appropriate.

The Company has prepared this presentation based on information available to

it, including information derived from public sources that have not been

independently verified. No representation or warranty, express or implied, is

provided in relation to the fairness, accuracy, correctness, completeness or

reliability of the information, opinions or conclusions expressed herein. These

projections should not be considered a representation of the Company’s

potential cash generation performance in any way.

Some of the financial information included in this presentation is preliminary,

forward-looking, unaudited and subject to revision.

All forward–looking statements attributable to the Company or persons acting on

its behalf apply only as of the date of this document, and are expressly qualified in

their entirety by the cautionary statements included elsewhere in this document. All

forward-looking statements involve risks and uncertainties, which may cause actual

results to differ materially from the statements made. Such statements reflect our

current views with respect to future events and are subject to such risks and

uncertainties. Many factors could cause our actual results to differ materially from

the statements made, including those factors discussed in filings made by us with

the Canadian securities regulatory authorities. Should one or more of these risks

and uncertainties, such as changes in demand for and prices for the products of the

company or the materials required to produce those products, labor relations

problems, currency and interest rate fluctuations, increased competition and

general economic and market factors, occur or should assumptions underlying the

forward-looking statements prove incorrect, actual results may vary materially from

those described herein as intended, planned, anticipated, or expected.

The financial projections are preliminary and subject to change; the Company

undertakes no obligation to update or revise these forward–looking statements to

reflect events or circumstances that arise after the date made or to reflect the

occurrence of unanticipated events, except as required by law. Inevitably, some

assumptions will not materialize, and unanticipated events and circumstances may

affect the ultimate financial results. Projections are inherently subject to substantial

and numerous uncertainties and to a wide variety of significant business, economic

and competitive risks, and the assumptions underlying the projections may be

inaccurate in any material respect. Therefore, the actual results achieved may vary

significantly from the forecasts, and the variations may be material. The reader is

cautioned not to put undue reliance on such forward-looking statements.

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Page 3: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Snipp Today

130EMPLOYEES: 60+ OFFSHORE ENGINEERS

234%REVENUE GROWTH IN 2015

8M+ CASH & EQUIVALENTS

$24M+PIPELINE

$4.5MMRECORD Q1 2016 BOOKINGS

$0DEBT

$7MMYTD REVENUE BOOKED FOR 2016

3

110%REVENUE CAGR SINCE LISTING IN 2012

Page 4: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Snipp - What We Do

Snipp provides brands with a complete technology suite to manage

their promotions and implement cross channel loyalty programs.

$

$$

4

Receipt / Purchase Validation

Rebate Programs

Rewards Platform Contests & Promotions

SnippInsightsComing soon…

Image Recognition

SnippMediaComing soon…

👀

Technology Engines Industry Solutions

Loyalty Engine

Future Solutions

Page 5: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

The Snipp Way – Purchase BasedThe Old Way – Spray & Pray

A New Paradigm In Promotion & Loyalty

A majority of loyalty and promotion programs still rely

primarily on multiple vendors and traditional tools such as

physical coupons, rebates, and code on packs

Creating Big Brand Problems:

Retailer Integration +Missing Data

Brands know after a promotion, but not …

Where? Who? What?

Snipp gives brands a single source to manage these

programs, collect previously unknown data, analyze the

effectiveness of each promotion and do true loyalty programs

Multiple Program

Types

Extensive Rewards

Options

Any Platform

Brands Get New Tools and Data

With Snipp, brands now know …

Place of

Purchase

The CustomerJane Smith, 310-434-…

True Results of

the Promotion

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Page 6: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Snipp Gives Brands A Virtual Point of Sale

For the first time, brands can see the who,

what, and where behind the marketing and

sale of their products. Data that is captured

by the retailer and not shared with brands

For Fortune 500 brands, Snipp’s

technology represents a welcome

solution to a long-standing

problem: “who have we

effectively targeted

with this promotion?”

SnippCheck has quickly become the

industry standard for receipt capture.

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Page 7: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Connecting brands directly to the consumer with

effective advertising and incentives

Consumers

Retailers

Brands

Why Is our Platform Important?

“Half the money I spend on advertising is wasted; the

trouble is I don’t know which half”

- John Wannamaker

“The problem for many advertisers is that the vast

majority of consumer purchases take place offline. So

the question becomes: if I buy advertising on

Facebook, how do I know that someone bought a can

of beans in the supermarket because of it?”

Retailers have the power of

purchase data, Brands have none

1 Advertising has a measurement

problem

2

$

$

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Page 8: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

80%

Revenue ModelDiversified Revenue Across Segments

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Promotions /

Rewards

- +90% repeatability

- Campaign sizes have nearly

doubled year-over-year

Loyalty API(Application Program Interface)

- Long-term recurring revenue

- Sticky

% of 2015

Revenue

- We license our technology

and partner with leading

couponing and promotions

platforms

14% 6%

Page 9: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Kellogg’s Loyalty Program

SOLUTION

• Snipp is integrating its image-

processing validation into the

Kellogg’s rewards program to

enable the consumer to take

and submit a photo of the on-

pack code OR submit a receipt

(double points incentive)

• The solution is part of bigger

evolution of the program to

eliminate on-pack codes

CHALLENGE

• Kellogg’s wanted to remove a

breakage point in its Family

Rewards Program by removing

the need to manually enter on-

pack codes

• Kellogg’s also wanted to

improve efficiencies of the

program

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Page 10: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

With Snipp, customers get their rewards

faster and brands get better data.

Goal: Drive more

registered users and

purchases for Clorox.

Promotion: Mighty Messes 6-month

contest with monthly $1000 winners

Process: Register on the Clorox site, buy two

Clorox bleach products, upload receipt.

Verify: Check registration. Prompt: Capture unregistered

users.

Results: A triple win for brands – higher sales,

more registered users, and data they previously

could not collect. 10

Thank you for submitting

your receipt! It has been

received and you can

expect a confirmation

text within 48 hours!

Please make sure to register

here http://snipp.us/!q68 to be

entered in to the Clorox

Mighty Messes Monthly

Sweepstakes!Congratulations! Your

receipt has been validated,

and you have been

entered for a chance to

win $1000!

Page 11: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Brand issueSnipp powered

programProgram results

Snipp’s Platform Drives Sales

Arm & Hammer + Major League Baseball Promotion

77%

$200MM+

of shoppers buy only

1 Arm & Hammer

brand

The opportunity if

shoppers buy 1

additional brand

“A home run!”Director of Marketing, Arm & Hammer

PRE POST

2%

3%

18%

77%

12%

13%

22%

53%

Bought1 Bought 2 Bought 3 Bought 4+

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Page 12: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Data the Brand Manager Receives

• What you bought?

• Where you bought their

product?

• What else you bought?

• Basket size?

• Demographic information?

• What ad drove you to

participate?

“The platform value proposition for a brand increases as the

amount of data grows”

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Page 13: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Targeting Massive Fragmented Markets

US PROMOTION

INDUSTRY

$80 B

$500 B

GLOBAL ADVERTISING

SPEND Ability to track overall purchase behavior

Ab

ilit

y t

o r

un

pro

mo

tio

ns

Snipp has the leading solution

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Page 14: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Our Clients are top Multinational BrandsLess than 5% penetrated into our current customers

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Page 15: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Sales Multiplier EffectWe are repeating this same cycle in many multi-brand companies.

Single Promotion Multiple Brand

PromotionsMaster

Service

Agreement

Geographic

Expansion

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Page 16: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Result: 110% Revenue CAGR

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2012 2013 2014 2015

$511,854 $870,420

$3,562,045

$11,890,231Snipp USD Revenue

Full Time

Employees

Average

Campaign Size

EBITDA Loss as %

of Revenue

8 10 48 130

$7,000 $7,796 $25,000 $40,000

-256% -84% -30% -28%

Page 17: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Current Trends: Positive For 2016

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$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Q1/201

5

Q2/201

5

Q3/201

5

Q4/201

5

Contract $135,000 $311,000 $500,000 $542,000

Largest Contract By Quarter

Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016E

Recurring Revenue Trend

Recurring 0% 2% 8% 15% 26% 55%

0%

10%

20%

30%

40%

50%

60%

Rapid Acceleration In Recurring

Revenue as % of New Business

Average long-term contract: now 18

months

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Q1/2015 Q2/2015 Q3/2015 Q4/2015

Average Campaign Size

Campaign $7,000 $7,796 $25,000 $40,000

As Relationships Season,

Campaign Size Expands

0%

10%

20%

30%

40%

50%

60%

70%

2014 2015 2016E

Gross Margin 32% 55% 70%

Gross Margins are expected to

reach 70% by Q4/2016

Shift to Recurring Revenue Increasing Campaign Size Improving Margins

High Value Deals – Growing Larger

Sales cycle confirmation: one-off promotions leading to long-term

relationships.

Untapped International Opportunity

Page 18: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Our 60+ Engineers continue to expand our technology platform1

Focused on Profitable Growth Snipp is poised to continue its rapid growth

As we add Sales force, the multiplier effect kicks in2

We expect a high % of long term licensing and service contracts3

Scalability makes each incremental relationship more profitable4

This is a fragmented industry, with many opportunities for growth5

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Page 19: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

APPENDIX

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Page 20: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Strong Board with Focus on Governance

Michael DillonEVP, Colangenlo

Omnicom Group

Ram Ramkumar25+ Years Public Market

Experience on TSX

& NASDAQ

Conrad SwansonDirector of several

publicly listed

companies

Atul SabharwalFounder, CEO

Ritesh BhavnaniFounder, President

All Committees run by independents

Michael CannataFounder Patent

Monetization Inc.

Susan DonizOn the board of several

companies. Ex CIO of

Aimia, P&G Canada

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Page 21: INVESTOR OVERVIEW June 2016 - SnippKellogg’s rewards program to enable the consumer to take and submit a photo of the on-pack code OR submit a receipt (double points incentive) •

Well capitalized companyManagement’s interest is aligned with shareholders

Capital Structure

Shares Outstanding 128 Million

Options & Warrants 46 Million

Average Daily Volume 170K Shares

52 Week High / Low $0.26 / $0.89

Insider Ownership 33%

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