Impact Call GuideStar First Quarter 2014 Results Reporting

Live Tweeting: #GSImpactCall

Our First Impact Call • More than 450

participants

• Feature article in The Washington Post: “Nonprofit hosts its first ‘earnings call’” http://npo.gs/WPGSIC

• Robust conversation on GuideStar Blog: http://npo.gs/icye2013

• GuideStar’s impact page: http://npo.gs/impactpage

Next Impact Call: Monday, August 11, 2 pm ET http://npo.gs/impactcall3

Submit feedback about today’s call here: http://npo.gs/ic1q2014

AGENDA

GuideStar’s work • GuideStar 2020 strategic plan • Review of quarterly programmatic

and operational results

Jacob Harold President & CEO

GuideStar’s finances • Review of quarterly financial results • Lessons learned

James Lum CFO

Question & answer session Audience questions

#GSImpactCall

Please suggest questions throughout the conversation We’ll answer as many as we can.

#GSImpactCall

#GSImpactCall

Q1 2014

Programmatic and operational results Financial results

#GSImpactCall

#GSImpactCall

“Nonprofits need to help their donors make the shift from focusing on a ratio to…assessment of [nonprofits’] goals, effectiveness and impact.”– “The Great Debate,” AFP “My call to action is for nonprofits to be systematic about including all different kinds of information when they tell their story.” – Jacob Harold in “The Great Debate,” AFP

1: Refresh ONE GuideStar - EXternal • Update GuideStar.org • Refresh GuideStar brand identity

2: Create 21st Century Business Model • Begin implementation of Infrastructure

Strategy Plan thereby creating an environment that improves critical systems

• Increase GX participation to field-wide standard • Conduct product portfolio strategic planning -

short-term and long-term • Extend SaaS products to more community

foundations and other communities of interest • Reach meaningful market penetration for

APIs

3: Enhance Data • Increase data quantity and type to increase

appeal of search products to target market segments

• Improve program data or tools to strengthen current and enable new products

• Improve data accessibility, usability, and quality to strengthen current product offerings and enable new products

• Reduction of Technical Debt through refactoring, process re-engineering, and procedural change

4: Improve Financial Sustainability • Rearticulate membership program • Raise sufficient philanthropic capital • Exceed the Direct Sales budget by 10% • Increase E-Commerce revenue - in

particular volume-based growth • Manage expenses (relative to revenues)

to maintain minimum cash level and cash flow

• Create financial culture for organization supported by appropriate policies, processes, and systems

5: Reinforce One GS .Org - INternal • Strengthen GS culture and values • Create clarity on roles, responsibilities,

and internal collaboration systems and processes

• Create systematic and data-driven decision-making processes

2014 Objectives

#GSImpactCall

#GSImpactCall

#GSImpactCall

Organizational Dashboard evolution

#GSImpactCall

Responsible 2012 2013 Var 2012 2013 Var

%Change

Engagement

WebsiteVisits Christine 2,454,704 2,975,224 520,520 9,808,647 12,153,987 2,345,340 24%

WebservicesHits Christine 4,922,997 5,666,628 743,631 15,275,834 22,432,677 7,156,843 47%

GSEverywhereIndex Chuck 1.31 1.64 25%

UserCalls,Emails Melanie 1,086 958 (128) 4,758 4,004 (754) -16%

NPOCalls,Emails,Chat

Sessions

Melanie

7,103 10,087 2,984 30,949 34,287 3,338 11%

SocialMediaFollowers Lindsay 39,228 67,166 27,938 39,228 67,166 27,938 58%

UniqueCustomerCount

(annualonly)

Shannon

530 528 (2) 2,303 2,353 50 2%

Members Jessica 122 119 (3) 122 119 (3) -2%

MarketingEmailsSent Usma 9,006,127 8,526,944 (479,183) 32,791,409 31,600,932 (1,190,477) -4%

NonprofitReporting

#ExpertReviewers Jasmine 3335 3983 648 3335 3983 648 19%

#NPOsReviewed Jasmine 4692 5759 1,067 4692 5759 1,067 23%

#TopNPOs Jasmine 530 645 115 530 645 115 22%

#NPOBasicReports DonG

#NPOSealReports DonG

#BasicGXProfile Erinn 7271 7,271

#BronzeProfiles Erinn 11744 11,744

#SilverProfiles Erinn 22319 22,319

#GoldProfiles Erinn 2047 2,047

TotalSeal/Basic Erinn 50464 50,464

#DonorEdgeProfiles DonG 5309 6697 1388 5,309 6,697 1,388 26%

#NPOsaddedpertheir

request

Melanie

279 329 50 1346 1314 -32 -2%

EDURequests Melanie 60 41 -19 336 358 22 7%

EDUSeats Melanie 1001 1346 345 3218

NPOManagers

Approved

Melanie

5,185 16,900

CoreData

#OrgsinGSBMF Christine 2,279,044 4,789 2,279,044 4,789

#501c3sinGSBMF Christine 1,557,685 3,964 1,557,685 3,964

#non-c3sinGSBMF Christine 721,328 825 721,328 825#990swfindata

(>2009) Christine 535,925 71,250 294,465 535,925 258,449 88%#990-PFswfindata

(>2009) Christine 91,720 397 50,952 91,720 40,758 80%#990-EZswfindata

(>2009) Christine 1,312 - 1,201 1,312 111 9%

#990Images Christine 4,026,220 3,768,137 4,026,220 258,083 7%

#990-PFImages Christine 1,249,846 1,160,069 1,249,846 89,777 8%

#990-EZImages Christine 2,320,826 2,116,379 2,320,826 204,447 10%

HumanResources

Fulltimeemployees Judy 52 57 5 52 57 5

Part-timeemployees Judy 6 4 -2 6 4 -2

Interns Judy 2 2 0 2 2 0

Openpositions Judy 1 1 0 1 1 0

Finances

CashBalance James 1,630,000 2,478,000 848,000 52%

MonthsofCash James 1.7 2.6 0.9

CashFlow James 219,000 849,000

TotalNetRevenue James 10,845,000 11,035,000 190,000 2%

TotalOperating

Expenses

James

9,830,000 9,427,000 (403,000) -4%

GAAPOperatingIncome James

380,000 969,000 589,000 155%

Q4Summary AnnualSummary

YTD

YTD YTD YTD

1. Fewer metrics 2. Clearer targets 3. Better tool for management

Q1 Highlights

#GSImpactCall

HISTORIC HISTORIC CURRENT GROWTH GROWTH

Description Q1 2013A Q4 2013A Q1 2014A QoQ YoY Total NPO

participants 61,304 86,574 96,363 11.3% 57.2%

Gold 809 2,047 2,857 39.6% 253.2% Silver 5,119 22,319 22,959 2.9% 348.5%

Bronze 365 11,744 12,018 2.3% 3,192.6% In progress 55,011 50,464 58,529 16.0% 6.4%

Profile update ratio

19.8% 15.8% 17.1% 8.0% 8.0%

Select “Engagement” Metrics:

HISTORIC HISTORIC CURRENT GROWTH GROWTH Description Q1 2013A Q4 2013A Q1 2014A QoQ YoY

# New Registered Users 52,036 46,223 51,750 12.0% (0.5%)

Number of API Hits 4,807,359 5,428,506 7,582,408 39.7% 39.7%

Number of Customers NA 3,882 3,308 (14.8%) NA

Select “Products” Metrics:

Future iterations

#GSImpactCall

Organizational Dashboard – Version 2 Evaluation Dashboard

• 10 metrics, more predictive • Graphs and visual trends • Auto compilation

• GuideStar’s longer-term sector impact: • Influence • Reach • Engagement

• External stakeholders

Q1 2014

Programmatic and operational results Financial results

#GSImpactCall

Disclaimers

• Numbers are preliminary and unaudited

• Safe Harbor disclosure:

Historical results are not necessarily indicative of future

results. All forward looking statements contain known and unknown risks that may result in future results that are materially different from historical results.

17 #GSImpactCall

Top-Line Performance Recap

$10,327k

$11,308k $11,261k

$11,877k

$11,189k

$10,808k

$11,158k

$10,232k

$9,250k

$9,500k

$9,750k

$10,000k

$10,250k

$10,500k

$10,750k

$11,000k

$11,250k

$11,500k

$11,750k

$12,000k

$12,250k

Revenue Expenses

2010

2011

2012

2013

total unrestricted revenue and total expenses #GSImpactCall

Bottom-Line Performance Recap

19

($1,280k)

($982k)

($760k) ($615k)

$219k

$380k

$849k $926k

($1,500k)

($1,250k)

($1,000k)

($750k)

($500k)

($250k)

$0k

$250k

$500k

$750k

$1,000k

$1,250k

Cash Flow GAAP Oper Income

2010

2011

2012

2013

Q1 2014 Top-Line Performance

20

$3,273k

$2,418k $2,422k

$2,737k

$0k

$500k

$1,000k

$1,500k

$2,000k

$2,500k

$3,000k

$3,500k

Revenue Expenses

2013

2014

total unrestricted revenue and total expenses

Q1 Bottom-Line Performance

$493k

$855k

($692k)

($315k)

($800k)

($600k)

($400k)

($200k)

$0k

$200k

$400k

$600k

$800k

$1,000k

Cash Flow GAAP Oper Income

2013

2014

Timing is Everything

#GSImpactCall

$k

$500k

$1,000k

$1,500k

$2,000k

$2,500k

$3,000k

$3,500k

Prior Yr YTD

Grants

Other

Membership

Products

Revenue Up Nearly $100k, Excluding Timing of Grants

23

$3,273k Total

Grants Comparison 2013: $1M ($600k Hewlett, $285k Omidyar, $85k Charina)

2014: $47k total (Moore)

$2,422k Total

$2,277k excl.

grants

$2,366k excl.

grants

$k

$500k

$1,000k

$1,500k

$2,000k

$2,500k

$3,000k

YTD PY YTD 2014

Personnel

Consulting

Travel

Rent, Office, Misc.

Adv & Marketing

Technology

90% of OPEX Increases from Year-Long Investment in Skills

24

$793k before Staff/Consulting

$2,627k Total

$829k before Staff/Consulting

$2,258k Total

Key Investments Sr Dir, Products Sr Dir, Strategy Development Dir 2 Bus. Intelligence 2 Sales & Support 2 Software engineers $1465k

Staff/ Consulting

$1800k Staff/

Consulting

Operating expenses before depreciation, interest, and special projects

Q2 Outlook

Revenue • Product sales stronger in Q2 seasonally

• Grants of $285k expected Q2 vs. none last year through August

Expenses • Run-rates will plateau

• Year-over-year comparisons will narrow when we compare on like basis, accounting for staff investments

Timing is Everything

#GSImpactCall

Discussion #GSImpactCall

Additional Information Next Impact Call:

August 11, 2 pm ET: http://npo.gs/impactcall3

Our impact:

• GuideStar’s impact page: http://npo.gs/impactpage

• GuideStar APIs: http://npo.gs/6apis

• BoardSource: https://www.boardsource.org/eweb/

• Full Washington Post Impact Call article, “Nonprofit hosts its first ‘earnings call’”: http://npo.gs/WPGSIC

February 24 Impact Call:

Q&A and archive: http://npo.gs/icye2013qa

Give us your feedback:

GuideStar Blog: http://npo.gs/ic1q2014