investor overview june 2016 - snippkellogg’s rewards program to enable the consumer to take and...
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INVESTOR OVERVIEW – June 2016SNIPP INTERACTIVE INC.TSX:V SPN OTCQX:SNIPF
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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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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
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110%REVENUE CAGR SINCE LISTING IN 2012
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Snipp - What We Do
Snipp provides brands with a complete technology suite to manage
their promotions and implement cross channel loyalty programs.
$
$$
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Receipt / Purchase Validation
Rebate Programs
Rewards Platform Contests & Promotions
SnippInsightsComing soon…
Image Recognition
SnippMediaComing soon…
👀
Technology Engines Industry Solutions
Loyalty Engine
Future Solutions
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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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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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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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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%
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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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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!
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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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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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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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Our Clients are top Multinational BrandsLess than 5% penetrated into our current customers
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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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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%
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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
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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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APPENDIX
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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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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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