Q2 2015 Results & Acquisition of Tea Leaves...

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Q2 2015 Results & Acquisition of Tea Leaves Health

Transcript of Q2 2015 Results & Acquisition of Tea Leaves...

Page 1: Q2 2015 Results & Acquisition of Tea Leaves Healths1.q4cdn.com/871549642/files/doc_presentations/2015/EVDY... · 2016-05-24 · 6 Q2 2015 Key Metrics Q2 2015 Q2 2014 % Y-O-Y GROWTH

Q2 2015 Results &

Acquisition of

Tea Leaves Health

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Safe Harbor

During the course of this presentation, we may make forward-looking statements,

including statements regarding the company's future financial and operating results,

the expected impact of the acquisition of Tea Leaves Health, future market

conditions, and the plans and objectives of the management for future

operations. These forward-looking statements are not historical facts, but rather are

based on our current expectations and beliefs and are based on information currently

available to us. The outcome of the events described in these forward-looking

statements is subject to known and unknown risks and uncertainties that could cause

actual results to differ materially from the results anticipated by these forward-looking

statements, including, but not limited to those Risk Factors contained in our SEC

filings. All information provided in this presentation is as of today. Except as required

by law, we undertake no obligation to update publicly any forward-looking statement

to conform the statement to actual results or changes in our expectations. Also, it is

our policy not to comment on our financial guidance other than in public

communications.

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CEO Remarks

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Q2 2015 Results

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Q2 2015 Q2 2014% Y-O-Y

GROWTH

Advertising & Sponsorship Revenue $50.2M $36.9M +36%

Premium Services Revenue $4.6M $4.6M -

Total Revenue $54.8M $41.4M +32%

Adjusted EBITDA $10.2M $6.9M +48%

Cash Flow from Operations $8.5 $4.9 +75%

Q2 2015 Financial Summary

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Q2 2015 Key Metrics

Q2 2015 Q2 2014% Y-O-Y

GROWTH

# of Advertisers 208 156 +33%

Average Revenue Per Advertiser $235K $236K (1%)

Average Revenue Per Top 30 Strategic

Advertiser$1.1M $791K +41%

Pharma Advertising Revenue $38.0M $28.5M +33%

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Acquisition of

Tea Leaves Health

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The leading SaaS-based

marketing and analytics CRM

used by hospital systems

to identify and engage

consumers and physicians

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What Is Tea Leaves Health?

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A Large Revenue Opportunity

Direct access to $2 billion dollars in annual

hospital marketing spend, a fast-growing opportunity

Source: Kantar Media, 2015

$1.0

$2.0

$3.0

2010 2011 2012 2013 2014

15.8%

CAGR

Annual Hospital System Marketing Spend($ in billions)

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The Tea Leaves Health CRM Solution

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IDENTIFY

Target high-value

patients and physicians

using first- and third-

party data

ENGAGE

Create and deploy

segmented, engaging

marketing campaigns

MEASURE ROI

Use data and

analytics to prove out

the efficacy of

marketing programs

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Case Study: Patient Acquisition

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CUSTOMER

Large medical center

San Antonio, TX

1,000 Beds

Goal to drive new

patients to cardiology

services

SOLUTION

Tea Leaves Health CRM to identify and engage 10,000

potential patients

First- and third-party data

Resulted in 1,200 patient engagements and ROI in excess of

10:1

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Why Acquire Tea Leaves Health?

New and large market opportunity

New premier customer base

SaaS-based recurring revenue model

Leverages existing core assets

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Tea Leaves Health

Going Forward

Continue to gain share in the large hospital

system market

Leverage EVDY’s content, audience, data, and

digital marketing capabilities

Cross-selling opportunities with existing EVDY

customers

Expand Tea Leaves Health solution to small- and

mid-market pharma

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The EVDY Vision

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We operate the leading digital marketing and

communications platform for healthcare

marketers who want to engage with

consumers or health care professionals.

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PHARMA

COMPANIES

PAYERS /

EMPLOYERS

PROVIDERSCPG & OTC

COMPANIES

RETAIL /

PHARMACIES

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Our Customers’ Objectives

IDENTIFY : Identifying and understanding who to reach

: Ability to access their target audienceREACH

: Creative assets and content to engage that audienceENGAGE

: Data and analytics to optimize and measure the impactMEASURE

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Customer

Relationship

Management

Audience

ContentAdvanced

Analytics

Reach

EngageMeasure

Identify

Our Solutions

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Leading Digital Marketing & Communications Platform

PHARMA

COMPANIES

PAYERS /

EMPLOYERS

PROVIDERSCPG & OTC

COMPANIES

RETAIL /

PHARMACIES

Reach

EngageMeasure

Identify

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Acquisition Details

& Financials

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Tea Leaves Health Key Metrics at June 30, 2015

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AT JUNE 30, 2015

# of Signed Customers 23

% of Total Customers Live ~60%

Average Annual SaaS Revenue Per Live Customer ~$300K

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Tea Leaves Health Transaction Summary

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Acquisition Completed August 6, 2015

Purchase Price $30 million

> Cash on Closing $15 million

> Common Stock Escrow on Closing $4 million

> Deferred Payment Due in Cash or

Common Stock¹$11 million

Potential Earnout² Payable in March 2017 $20 million

Total Potential Purchase Price $50 million

¹ Payable within six months of closing, at EVDY’s discretion, in cash, shares of common stock, or a combination of cash and shares of common stock.

² Earnout contingent on a specific contracted amount of recurring SaaS revenue at 12/31/16 and paid 50% cash / 50% EVDY common stock. Earnout

contingent on retention of top executives, who are subject to a four-year non-compete.

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We operate the leading digital marketing and

communications platform for healthcare

marketers who want to engage with

consumers or health care professionals.

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PHARMA

COMPANIES

PAYERS /

EMPLOYERS

PROVIDERSCPG & OTC

COMPANIES

RETAIL /

PHARMACIES

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Full Year 2015 Financial Outlook

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Reaffirming Everyday Health total revenue guidance provided on May 11, 2015

EVDY GUIDANCEEVDY ANNUAL

GROWTH(2)

Total Revenue(1) $236.0 – $244.0M 28% – 32%

Adjusted EBITDA $46.5M – $49.5M 29% – 37%

(1) Everyday Health total revenue guidance provided on May 11, 2015

(2) Growth over full year 2014 financial results

(3) Includes approximately four and a half months estimated impact from Tea Leaves Health

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Q3 2015 Financial Outlook

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(1) Growth over Q3 2014 financial results

(2) Includes approximately two months estimated impact from Tea Leaves Health

EVDY

GUIDANCE

EVDY ANNUAL

GROWTH(1)

Advertising & Sponsorship Revenue $51.5M – $56.0M 36% – 48%

Total Revenue $55.0M – $59.5M 30% – 41%

Adjusted EBITDA $9.0M – $11.0M 26% – 54%

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CEO Wrap Up

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THANK YOU