theScore, Inc. Q1 F2017 Conference Call Presentation

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January 12, 2016 Q1 F2017

Transcript of theScore, Inc. Q1 F2017 Conference Call Presentation

Page 1: theScore, Inc. Q1 F2017 Conference Call Presentation

January 12, 2016

Q1 F2017

Page 2: theScore, Inc. Q1 F2017 Conference Call Presentation

Forward looking statements

All 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 November 30, 2016.

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Page 3: theScore, Inc. Q1 F2017 Conference Call Presentation

Q1 F2017 OVERVIEW

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Page 4: theScore, Inc. Q1 F2017 Conference Call Presentation

•Quarterly revenue of $8.5M, up from $7.0M in F2016.•EBITDA loss improved significantly to $0.4M in F2017 from $2.3M in F2016.

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Q1 F2014 Q1 F2015 Q1 F2016 Q1 F2017

Fiscal Year: September 1 – August 31

Q1 F2017 Overview

Up to $8.5M from $7.0 million

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Q1 F2017 Overview

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•Record user engagement within our mobile apps, with users opening us 98 times a month each on average. Average monthly app sessions up to 459 million from 414 million.

•Number one priority is meeting the challenge of app user growth.

Record monthly user engagement

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•Attacking audience growth from a position of strength.

•theScore remains the number one challenger to ESPN on mobile in North America, with the second largest user base for sports news and data apps.

•Remains an opportunity to improve growth through combination of product and marketing initiatives.

Q1 F2017 Overview

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•Developing a new strategic and data-driven feature roadmap for theScore app on iOS and Android.

•Implemented significant improvements to our product development process.

•Primary focus is on our flagship app, but continuing to build on our early foothold in other areas with high-growth potential, like bots and esports.

Q1 F2017 Overview

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Product Updates• Implemented a faster product

development cycle, allowing us to release updates to theScore app every two weeks versus every six weeks.

• This improvement has made us more nimble and efficient in the way we ship product updates.

• Provided us with renewed focus to spearhead the execution of an ambitious product roadmap for theScore:

• Broadening and deepening our news and event-based coverage.

• Strengthen our community of users.

• Better surface and amplify our powerful and engaging content.

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Product Updates

• theScore Bot for Facebook Messenger has gained a significant foothold as the first sports media chatbot on the platform.

• Quickly iterating and rolling out new features and additional coverage, including college sports and cricket.

• theScore is well positioned to capitalize on the continued growth of bots as a platform.

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Product Updates• theScore has established

itself as a market leader in offering the most dedicated esports coverage.

• Have built upon our strong app presence with a dedicated video team, as well as working on enhancing our desktop and web presence.

• Now actively working on tapping into a larger and more casual gaming audience with content that educates as well as entertains.

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Product Updates

• Continuing to operate Squad Up on iOS in Beta.

• Focus remains on iterating on gameplay while strategizing how to scale user base.

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Financials

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Page 13: theScore, Inc. Q1 F2017 Conference Call Presentation

• Q1 revenue growth of 22%.• Increased user engagement• Execution of Canadian and US direct sales teams

Revenue – Q1 $ 7,003

F2017 F2016

$ 8,548

Fiscal Year: September 1 – August 31

22%

Financials – Revenue Q1 F2017

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Page 14: theScore, Inc. Q1 F2017 Conference Call Presentation

• Expense decreases in marketing offset by growth in personnel.

•Other expense line items consistent year over year.

Revenue

Operating Expenses

EBITDA

$ 9,489

$ (355) $ (2,344)

$ 10,110

$ 7,003

Q1 F2017 Q1 F2016

$ 8,548

Fiscal Year: September 1 – August 31

22%

Financials – Q1 F2017

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Page 15: theScore, Inc. Q1 F2017 Conference Call Presentation

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

by early Q3 of 2017.• DSO’s at 82 days.• Cash use down 45% versus Q1 last year

Cash

Current Assets

Working Capital

$ 25,492

$ 21,183 $ 21,900

$ 27,080

Q1 F2017 Q4 F2016

$ 11,693

Fiscal Year: September 1 – August 31

$ 15,554

Financials – Q1 F2017

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Q&A