Redefining Digital Marketing and Customer Engagement

Transcription

1 Redefining Digital Marketing and Customer Engagement May 9 th, 2014 OTC: LYRI

2 Safe Harbor This presentation contains forward-looking statements, including statements concerning financial results, anticipated market growth, market size, market vision, product features and availability timing, competitive assessments, the Company s expectations concerning its operating results for fiscal years 2012, 2013,2014 future revenues, margins and operating expenses. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that could cause actual reported results and outcomes to differ materially from those expressed in the forward-looking statements, including but not limited to: quarterly fluctuations in operating results; changing market conditions; government and industry standards; market acceptance of the Company s products by its customers; pricing trends; actions by competitors; future revenues and margins; changes in the cost or availability of critical components; unusual or unexpected expenses; cash usage; and other factors that may affect financial performance. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. Lyris, Inc. believes that the presentation of non-gaap financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. The non-gaap financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-gaap financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies Lyris 2

3 But First Who Are We? We are 20 year-old company with a heritage of innovation We deliver billions of s every month across the globe We are a SaaS company We are digital marketing strategists We have a vision of the future We are implementing that vision 2014 Lyris 3

4 Over 5,000 customers across industries worldwide trust Lyris 2014 Lyris 4

5 Market Potential - Enormous and Growing Interactive Marketing Technology Spend 27% CAGR $16.7B $5.5B Source: Forrester Research, Lyris 5

6 Marketing is in the Hot Seat 2014 Lyris 6

7 Messaging [think ] is everywhere ecommerce Loyalty Programs Digital channels Social behavior Mobile and cloud apps Online banking Sharing services Online health Traditional media Enterprise data Online support 2014 Lyris 7

8 so marketers face new challenges The way people engage via is changing Creating personalized messages requires data insight Difficult to orchestrate experiences through all touch points Managing and integrating siloed systems is expensive Messaging is not a core strategic competency 2014 Lyris 8

9 Even in software industry, which isn t waiting Responsys acquired by Oracle $1.5 Billion 8x revenue) Eloqua acquired by Oracle $935 million (11x revenue) Exact Target acquired by Salesforce $2.5 billion (7x revenue 50% premium) Neolane acquired by Adobe $617 million (10x revenue) Campaign Monitor new $250 Million private investment Silverpop to be acquired by IBM for $280 million 2014 Lyris 9

10 Industry Watcher. As much as we ve seen, we ll see more deals in the next 18 months, While IT budgets in general have been sliced, line-of-business managers the people in charge of human resources or accounting and especially marketing departments still have money to spend. Most of them are spending it on easy-toconsume-and-maintain SaaS offerings - R. Ray Wang, Constellation Research April 10, Gigaom 2014 Lyris 10

11 Most of them are spending it on easy-to-consume-and-maintain SaaS offerings R. Ray Wang, Constellation Research 2014 Lyris 11

12 But First Who Are We? We are 20 year-old company with a heritage of innovation We deliver billions of s every month across the globe We are a SaaS company We are a SaaS company We are digital marketing strategists independent and 100% dedicated to solving marketers problems We have a vision of the future We are implementing that vision 2014 Lyris 12

13 Customers demand personalized engagement and expect relationships based on value and trust. Every customer is an individual Personalized communications informed and triggered by history, real-time behavior, context, location and preferences 2014 Lyris 13

14 Automate Customer Engagement 2014 Lyris 14

15 Every business is unique Flexible, open framework that can orchestrate all the customer experience touch points One size does not fit all 2014 Lyris 15

16 Extend, Integrate and Protect Investments 2014 Lyris 16

17 LYRI Extend, Integrate and Protect Investments 2014 Lyris 17

18 Lyris Customer Platform ecommerce Loyalty Programs Digital channels Social behavior Mobile and Cloud Apps Online banking Sharing services Online health Traditional media Enterprise Data Online support 2014 Lyris 18

19 Every strategy needs to be tailored Expertise to optimize the design of differentiated communication strategies Technology is not a customer strategy the experiences you create are your brand 2014 Lyris 19

20 Deliverability Advanced Segmentation Behavioral Retargeting 25% are doing it 200% open rates 22% are doing it 35% increase open rates 15% are doing it 400% Increase in conversion Optimize Revenue and Reach A/B Split Test Anatomy Mobile Optimization 46% are doing it 200% increase in conversion 27 % consider best practices 2014 Lyris % increase in open rates 25% are doing it 10% increase in click-to open (CTO)

21 LYRI Lyris uniquely delivers the only Independent Connected Customer Communication Platform that increases revenue and maximizes ROI Applications to AUTOMATE customer engagement 2014 Lyris Open architecture to EXTEND, integrate and adapt for best fit 21 Expertise to OPTIMIZE customer experience

22 Lyris solution and services offerings REAL-TIME RETARGETING ECOMMERCE AUTOMATION Automate LIVE CONTENT Strategy Deliverability Verification Design and Content Adapt, Extend, Protect Investment Optimize Extend Optimize Lyris Enterprise Connectors Lyris Platform Services Integration Lyris Data Services 2014 Lyris Training, Support, Account 22 Management

23 Value Delivered To Our Customers Preference Center LISTEN Web Welcome Program WIN-BACK Post Purchase Program Progressive Profiling Social Media Integration Single view of customer Nurture Program Segmented Newsletter UNDERSTAND Referral Program Advanced Segmentation Replenishment Programs Browse Abandonment Cart Abandonment 2014 Lyris Re-engagement Program Loyalty Welcome ENGAGE & CONVERT 23 GROW LOYALTY

24 A few reminders about Lyris LYRI

25 Financial Metrics Fiscal Third Quarter $8.9 Revenue $7.6 Gross Margin $ Millions 61% 64% Q Q $ Millions $5.4 $4.7 Q Q $ Millions Adjusted EBITDA $0.9 $0.9 Core SaaS Total Revenue Q Q Lyris 25

26 Financial Metrics 9 Months Ended 3/31 $27.5 Revenue $24.0 $ Millions Gross Margin 61% 64% FY 2013 FY 2014 $ Millions $16.4 $14.6 FY 2013 FY 2014 $ Millions Adjusted EBITDA $2.8 $2.9 Core SaaS Total Revenue FY 2013 FY Lyris 26

27 Where We Win Automate Real-time targeting and analytics win over Optimize Focus on expert services win over Extend Openness and best-foryou integration win over 2014 Lyris 27

28 Where We Win Automate Real-time targeting and analytics win over Optimize Focus on expert services win over Extend Openness and best-foryou integration win over 2014 Lyris 28

29 Right Down To The People John Philpin President and CEO Deb Eudaley COO & CFO Alex Lustberg CMO Brennan Carlson SVP Products and Strategy Pam Sogge SVP Customer Success Bernard Fraenkel SVP Engineering Jon Maddison Managing Director EMEA Jeff Rosen VP Sales North America Ramak Capodicasa Managing Director APAC Pablo Gersberg Co-General Manager 2014 Lyris LATAM 29 Fernando Skrobacki Co-General Manager LATAM

30 LYRI Why Lyris Focused on the intersection of automation, optimization, and integration of digital marketing Blue-chip customer base (5,000+ globally) Uniquely positioned to deliver world s first connected customer communications platform > 85% recurring revenues ( > 75% SaaS) Opportunity to participate in next wave of growth 60%+ gross margins 2014 Lyris 30

31 Rich McDonald OTC: LYRI