thescore, inc. q4 f2016 conference call presentation

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October 20 2016 Q4 F2016

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Page 1: theScore, Inc. Q4 F2016 Conference Call Presentation

October 20 2016

Q4 F2016

Page 2: theScore, Inc. Q4 F2016 Conference Call Presentation

Forward looking statementsAll statements other than statements of historical facts included in this presentation may constitute forward-looking information and are based on the best estimates of Management of the current operating environment. These forward-looking statements are related to, but not limited to, theScore’s operations, anticipated financial performance, business prospects and strategies. Forward looking information typically contains statements with words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘expect’’, ‘‘plan’’, ‘‘estimate’’, ‘intend’’, ‘‘will’’, ‘‘may’’, ‘‘should’’ or similar words suggesting future outcomes. These statements reflect current assumptions and expectations regarding future events and operating performance as of the date of August 31, 2016.

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Page 3: theScore, Inc. Q4 F2016 Conference Call Presentation

Q4 F2016 OVERVIEW

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Page 4: theScore, Inc. Q4 F2016 Conference Call Presentation

•Quarterly revenue of $5.0M (up 70% year-over-year).•Total revenue for 12 months ended August 31 $23.9M versus $12.4 for F2015.

4F2013 F2014 F2015 F2016

Fiscal Year: September 1 – August 31

Up 94% YoY

F2016 Q4 & Year End Overview

Page 5: theScore, Inc. Q4 F2016 Conference Call Presentation

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•Average monthly active users of theScore’s mobile apps reached 4.0 million in Q4 F2016 (up 9% year-over-year).

•Average monthly user sessions of theScore’s mobile apps reached 278 million in Q4 F2016 (up 32% year-over-year).

• Sports fans opening theScore’s apps 80-90 times a month EACH on average. User engagement has more than doubled in three years

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F2016 Q4 & Year End Overview

Page 6: theScore, Inc. Q4 F2016 Conference Call Presentation

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•Advertising revenue driven by US programmatic business and Canadian direct sales.

•Major direct deals secured with brands including Shaw, Subway and Boston Pizza.

•Introduced new native ad units to drive engagement.

F2016 Q4 & Year End Overview

Page 7: theScore, Inc. Q4 F2016 Conference Call Presentation

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•Doubling down on making theScore the very best sports app on the market while exploring new and emerging platforms to amplify theScore brand.

F2016 Q4 & Year End Overview

Page 8: theScore, Inc. Q4 F2016 Conference Call Presentation

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Product Updates• Added support for Tweets within our MLB and NFL box scores, enabling us to bring

video and other rich media into our in-game offering.

• Enhanced our NFL content offering with new columns from former pro-quarterback Sage Rosenfels and former scout Matt Williamson.

Page 9: theScore, Inc. Q4 F2016 Conference Call Presentation

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Product Updates• Updated our Facebook Messenger chatbot to provide news and updates from Rio

2016.

• Product team continues to iterate on our bot experience, adding in Quick Replies, Top News, Live Score and College Football support.

Page 10: theScore, Inc. Q4 F2016 Conference Call Presentation

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Product Updates

• Deepened coverage on theScore esports app on iOS and Android to feature scores and stats from Call of Duty, Hearthstone, StarCraft II, Street Fighter V and Super Smash Bros.

• Launched a redesign of theScore esports desktop website, adding features like infinite scroll to increase session time and engagement while also better surfacing our original video content.

Page 11: theScore, Inc. Q4 F2016 Conference Call Presentation

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Product Updates• Beta launch of Squad Up, our new free-to-play mobile fantasy sports game.

• Support currently offered for MLB, NHL and MLB, with NBA launching next week.

• Product team working to optimize key metrics based on real-world usage data.

Page 12: theScore, Inc. Q4 F2016 Conference Call Presentation

Financials

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Page 13: theScore, Inc. Q4 F2016 Conference Call Presentation

• Q4-over-Q4 revenue growth of 70%.• Q4 Advertising revenue growth of 70%.

• Growth driven by increased programmatic advertising sales in US market and direct sales in Canada.

• YTD revenue growth of 94%.• YTD Advertising revenue growth of 105%.

Revenue – Q4

Revenue - YTD $ 23,916 $ 12,359

$ 2,933

F2016 F2015

$ 4,986

Fiscal Year: September 1 – August 31

70%

Financials – Revenue Q4 F2016 / YTD

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94%

Page 14: theScore, Inc. Q4 F2016 Conference Call Presentation

• Expense increases in personnel ($1.2M), mainly development and content.

•Other expense increases in marketing ($0.4M), content ($0.2M), amortization ($0.6M).

Revenue

Operating Expenses

Adjusted EBITDA

$ 10,133

$ (3,829) $ (4,022)

$ 7,620

$ 2,933

Q4 F2016 Q4 F2015

$ 4,986

Fiscal Year: September 1 – August 31

70%

Financials – Q4 F2016

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Page 15: theScore, Inc. Q4 F2016 Conference Call Presentation

• $5.2 million of tax credits recoverable.• Received Certificate of Eligibility, and expect to collect by Q2 of 2017.

• DSO’s at 98 days.

Cash

Current Assets

Working Capital

$ 27,079

$ 21,900 $ 36,253

$ 40,836

Q4 F2016 Q4 F2015

$ 15,554

Fiscal Year: September 1 – August 31

$ 31,841

Financials – August 31, F2016

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Page 16: theScore, Inc. Q4 F2016 Conference Call Presentation

Q&A