Investment Opportunity Overview

Transcription

1

2 Investment Opportunity Overview Clip Interactive (Clip) is deploying the leading interactive advertising technology platform for the $16B radio industry. With Clip s technology, users interact with any radio content, advertisers get the performance metrics they demand and radio gets attribution. Proven mobile user adoption 30% all time mobile user retention rate 37 app opens per month, 6.6 hours in app per month Proven revenue model 21% month over month growth in 2015 Advertisers pay a 20% premium over standard ad rates Proven broadcaster demand with a massive backlog of business Contracts with 11 broadcasters representing over 900 radio stations Currently, Clip has 100 stations generating revenue and a backlog of 800+ stations, which, once activated will generate up to $540M in revenue Significant scale potential Contracted with strategic partners including international broadcasters, major recording artists and syndicated radio personalities Clip sits at an inflection point, with proven technology, growing revenue and outstanding user engagement.

3 Interactive Radio Platform Clip s interactive radio platform powers mobile apps for radio stations, radio personalities and recording artists, enabling rich-media content and commercial engagements. Recording Artists Recording artists connect with their fans, funnel them to their favorite radio stations and benefit from the revenue generated by interactive radio campaigns. Radio Personalities Radio personalities leverage interactive radio on a national scale and provide a rich and engaging experience to their listeners. Radio Stations Anything heard over broadcast or streaming radio has a digital asset with which users can engage.

4 Interactive Radio Advertising Users hear a McDonalds ad on the radio and now have the ability to interact with it, providing direct ROI to McDonalds. Each radio station that plays the ad gets credit and McDonalds receives performance metrics and consumer data. Clip generates revenue through the digital activation of audio ads (sold for a 20% premium on top of traditional radio campaigns).

5 Proven User Adoption and Engagement Mobile users are heavily engaged and retained at high rates The average Monthly Active User (MAU) opens their mobile app 37 times per month The average MAU spends 6.6 hours in the app each month The platform has a 30% all-time retention rate MAUs engage content at rates 8x higher than other digital channels Average commercial open rates in the 2% range Average commercial action rates in the 25% range The platform has a 15% compounded MOM user growth rate

6 Proven Revenue Model The revenue model has been proven in 18 months of operation - advertisers pay a premium for mobile, digital ad activation. Net revenue for the platform has increased 877% from 1H 2014 to 1H 2015 Net revenue has increased 21% month over month in 2015 Radio advertising running on the platform is projected to increase 5400% year over year

7 Proven Broadcaster Demand 11 U.S. radio groups representing over 900 stations have signed contracts. 100 stations have been revenue activated An additional 130+ stations have launched and will activate revenue in the coming months Clip has a backlog of 9x U.S. radio stations which will fuel continued user and revenue growth ( stations) An additional 1500 U.S. nonpartner radio stations to be added and deployed for activation The backlog of contractual commitments will grow the platform to 9x the stations and 50x the revenue, generating $540M.

8 Strategic Partnerships Clip is actively executing on major strategic relationships with key parties. Recording artists Leverage massive social network of the most popular people on earth Radio personalities Access existing fans of major radio programs Third Party Partners (Accelerators) Music aggregators Shazam/SoundHound Streaming radio aggregators - ihr, TuneIn These partnership strategies are already live with artist and personality contracts in place. They are expected to increase MAU and revenue growth substantially.

9 Projected Financials From Scaled Rollout Historical and Projected Income Statement Dollars in (000s) Financial Summary: Projected cash flow break-even, Q $5M Series B is the last projected capital raise Pre-tax margins grow to >47%

10 $5M Series B Clip will leverage these funds to Execute on signed contracts Use of Proceeds Expand interactive radio penetration: grow user base, increase ad spend and promote interactive radio Expand beyond partner stations and markets, adding new partners and leveraging non-partner stations in key markets Continue to activate recording artists, radio personalities and aggregators to drive up user base and interactions This plan will result in profitability by early No new equity capital is anticipated beyond Series B.

11 Meet The Team

12