Investor Overview Q Slides updated as of February 21, 2018

Similar documents
Q3 FY 18 Financial Results

Media Contact: Jennifer Saxon Exhibit MINDBODY Reports First Quarter 2018 Financial Results

SunTrust 2018 Internet & Digital Media Conference. May 8, 2018

MINDBODY Reports Third Quarter 2015 Financial Results. Company Delivers Revenue Growth of 48% Year over Year. Adds Record Number of Subscribers

Q1 FY17 Financial Results

Three months ended Dec. 31,

Q1 FY2015 Earnings Presentation May 5, 2015

Helping Clients Win with Digital

Wix Reports Strong Third Quarter 2016 Results, Exceeding Expectations Leading to Significant Increase in Full Year Outlook

Q2 FY19 Supplemental Earnings Slides. October 29, 2018

Revenue $144M $134M $119M $110M $102M $89M $76M $71M $61M $55M $46M $150 $125 $100 $50 $25

Q Earnings Results

Investor Presentation. Third Quarter 2018

Wix.com Reports First Quarter 2016 Results

Castlight Health. Q Financial & Business Update November 6, 2018 Q3 FY

4Q 2017 FINANCIAL RESULTS F e b r u a r y 8,

Web.com Reports Fourth Quarter and Full Year 2017 Financial Results

Fourth Quarter & Full Year 2018 Results. February 26, 2018 (U.S. Eastern Time) February 27, 2018 (Singapore / Hong Kong Time)

The Platform for the Connected Home and Business March 2018

1Q 2018 FINANCIAL RESULTS M a y 3,

SAFE HARBOR STATEMENT

Cloud Contact Center Software. Five9 (NASDAQ: FIVN) Q Investor Presentation

FORWARDING LOOKING STATEMENTS & NON-GAAP MEASURES

Accelerating the Shift to Digital

FORWARDING LOOKING STATEMENTS & NON-GAAP MEASURES

Q2 FY 18 Financial Results

Cloud Contact Center Software. Five9 (NASDAQ: FIVN) Q Investor Presentation

Q Earnings Conference Call

THIRD QUARTER FISCAL 2019 EARNINGS CALL PROVIDING THE BEST SOLUTIONS MARCH 7, 2019

Q2 Fiscal 2016 Earnings Presentation August 2, endurance.com /

Earnings Results. Third Quarter 2017

Salesforce.com Announces Fiscal 2013 Fourth Quarter and Full Year Results

Carbonite, Inc. Q4 and FY 2017 Financial Results. February 13, carbonite.com 1

Castlight Health. Investor Overview. June 2018 NYSE: CSLT

Investor Overview Presentation. July 26, 2018

Investor Presentation

Q2 Fiscal 2018 Earnings Presentation. July 26, 2018

FORWARDING LOOKING STATEMENTS & NON-GAAP MEASURES

Web.com Reports Fourth Quarter and Full Year 2009 Financial Results

F O U R T H Q U A R T E R R E S U L T S February 6, 2018

Q Earnings Conference Call

Deutsche Bank 24 th Annual Media, Internet & Telcom Conference. March 8, 2016

Appendix to Zendesk, Inc Analyst & Investor Day

Cloud Contact Center Software. Five9 (NASDAQ: FIVN) Q Investor Presentation

Investor Presentation

Roper Technologies, Inc. EPG Annual Spring Conference

Web.com Reports Fourth Quarter and Full Year 2016 Financial Results

Company Overview. F e b r u a r y M a r c h 2018

Cloud Contact Center Software. Five9 (NASDAQ: FIVN) Q Investor Presentation

SAFE HARBOR STATEMENT

4th Quarter Supplemental Information February 14, 2018

Wix.com Reports Second Quarter 2015 Results

ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

MiX Investor presentation. Stefan Joselowitz, CEO March 2018

Shutterfly Announces Fourth Quarter and Full Year 2017 Financial Results

Q1 Fiscal 2018 Earnings Presentation. May 1, 2018

Acquisition of Dealer Inspire and Launch Digital Marketing

Second Quarter Fiscal 2018 Investor Presentation

I N V E S T O R P R E S E N T A T I O N

Q2 18 Results and Conference Call August 1, 2018

Q2 FY2015 Earnings Presentation August 4, 2015

Castlight Health. Q Financial & Business Update May 10, 2018 Q1 FY

Q Earnings Conference Call

Q Financial Results

CARBONITE (NASDAQ: CARB)

FORWARDING LOOKING STATEMENTS & NON-GAAP MEASURES

COMPANY OVERVIEW. February 7, 2019

Click here to edit the name of your presentation. Fourth Quarter and Full Year Earnings Results

Fiscal 2018 Fourth Quarter Results. July 26, 2018

Q1 FY 18 Financial Results

Q1 18 Results and Conference Call

2017 WELLS FARGO HEALTHCARE CONFERENCE

Earnings Call Presentation Q3 2018

Company Presentation. December 2015

Trimble Second Quarter 2018 Results Summary

THIRD QUARTER 2018 RESULTS November 6, 2018

Click here to edit the name of your presentation. Second Quarter Earnings Results UNDER EMBARGO UNTIL 1AM ET ON MAY 10, 2017

Q2 FY 18 Investor Presentation. February 26, 2018

Important Information for Investors and Stockholders

Q EARNINGS PRESENTATION

SS&C Technologies (NASDAQ:SSNC) Investor Presentation February 2015

Helping people share life s joy

Raymond James 37 th Annual Institutional Investors Conference. March 8, 2016

Investor Presentation Q1 2017

The Platform for the Connected Home and Business. November 2017

Third Fiscal Quarter FY19 Financial Results. November 28, 2018

Safe Harbor Statement

Q Earnings Report. November 7, 2017

Fourth Quarter and Full Year 2018 Financial Review and Analysis

Safe Harbor. Non-GAAP Financial Measures. Forward-Looking Statements

FTD Group, Inc. FTD Companies, Inc. Acquisition of Provide Commerce Supplemental Presentation

AVAYA Q1 FISCAL YEAR 2017 EARNINGS

ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

Safe Harbor. Non-GAAP Financial Information

ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

Q Earnings Conference Call

ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

Zscaler Reports Third Quarter Fiscal 2018 Financial Results

Fourth Quarter and Full Year February 22, 2018

Transcription:

Investor Overview Q4 2017 Slides updated as of February 21, 2018

Safe Harbor and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of federal securities laws, which are based on our management s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as may, will, should, might, expects, plans, anticipates, could, intends, target, projects, contemplates, believes, estimates, predicts, potential, or continue or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this presentation include, but are not limited to, statements concerning our future financial and operational performance; the impact of the network effects of our marketplace; our business and growth strategy; and our ability to effectively manage our growth and future expenses. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The known risks and uncertainties are discussed under the caption Risk Factors and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and will be discussed in other filings that we make with the SEC from time to time. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. Forward-looking statements represent our management s beliefs and assumptions only as of the date of this presentation. Except as required by law we assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. You should read the documents that we have filed and may file from time to time with the SEC for more complete information about MINDBODY. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov or by visiting the SEC Filings section of the Investor Relations page of our website at investors.mindbodyonline.com. This presentation includes certain non-gaap financial measures as defined by the SEC rules. These non-gaap financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-gaap financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-gaap financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-gaap financial measures as tools for comparison. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the appendix. Note: All fourth quarter 2017 figures on the accompanying slides are unaudited. 2

Helping People Lead Healthier, Happier Lives by Connecting the World to Wellness

MINDBODY Highlights Leading SaaS Platform for Large and Growing Global Wellness Services Industry Loyal Customer Base Delivers Strong Unit Economics and Predictable Revenue Growth Powerful Consumer Marketplace Drives Customer Success Multi-billion Dollar Integrated Payments Platform Powerful Network Effects Create Sustainable Competitive Advantage Strong Management Team and Exceptional Company Culture 4

Our Strategy A company and brand people love Rapidly growing transaction-enabled marketplace Essential for businesses and consumers Ecosystem of choice for partners and competitors 5

We are a Platform For Consumers 8.3MM Registered App Users* For Businesses 59,000 Businesses 373,000 Practitioners 41MM Consumers 600MM Class and Appointment Bookings** in 2017 For Partners 750+ Registered API Integrations * Registered app users refer to the total number of registered consumer users of the MINDBODY app and branded apps as of December 31, 2017. ** Bookings refers to the action of reserving a spot in a class or an appointment time with a business. All data is presented as rounded numbers and is as of December 31, 2017. 6

Our Foundation: Integrated Cloud Software & Payments Platform Online Booking Staff Management CRM Point of Sale Payments Marketing Tools Scheduling Analytics 7

Integrated Payments Key to Value Proposition Point of Sale Purchases Recurring Memberships Web and Mobile Sales MINDBODY App Promotional Sales Network Partner Sales $7.9Bn Integrated Payments Volume 23% YoY Growth Note: Payments volume data for last twelve months ended December 31, 2017.

Tiered Software Packages Fuel Customer Success Essential Accelerate Ultimate Get the features you need to manage schedules, sell products and services, and streamline tasks. Expand your reach and increase engagement with advanced retention and marketing tools. Elevate your brand with custom mobile apps, extensive analytics and enterprise-grade features. $125/mo* $195/mo* $395/mo* *U.S. Prices 9

Scalable from Local Businesses to Large Enterprises Large Enterprises National Chains Local Businesses 10

Leveraging Neighborhood Network Effects Boutique Fitness Integrative Health Salon & Spa Union & Polk Streets San Francisco 11

MINDBODY Network Growing marketing platform promotes wellness businesses to consumers 4.9MM class and appointment sessions available each day* more than half go unsold *Average available inventory per day in Q4 2017 12

The MINDBODY App Featuring Intro Offers and Dynamic Pricing Intro Offers Dynamic Pricing Expanding our Consumer Reach & Driving Engagement 13

Flourishing Platform Partner Ecosystem 750+ REGISTERED API INTEGRATIONS bowtie.ai Former Platform Partners Acquired: February 2018 March 2017 September 2016 February 2015 14

Performance tracking solutions drive consumer engagement and member retention 15

Transaction-enabled Marketplace Provides Multiple Growth Opportunities Promote Customer Inventory Grow High Value Customer base Broaden Payments Platform Deepen Customer Relationships Increase Consumer Adoption Refer to Form 10-K for customer and consumer definitions. 16

Our Clients Share Our Values Committed & Purpose Driven Humble & Helpful Caring & Happy Seeking Wellness: Mind, Body & Spirit v Environmentally Conscious Practicing Five C Leadership Continuously Evolving 17

Financial Highlights Strong Revenue Growth and Margin Expansion Recurring Subscription, Services and Payments Revenue Model Compelling Unit Economics Strong Dollar-Based Net Expansion Rates 18

High Visibility Revenue Model % of Q4 17 Revenue Multiple Pricing Packages (Monthly Subscription) Subscription & Services Branded Mobile Apps Platform Partners (Monthly Subscription) (Revenue Share / Transaction Fees) 60% Promoted Offers (Transaction-Based) Payments Recognized Net of Processing Fees Reflects Business to Consumer Engagement Recurring Relationships Drive Predictability 38% 19

Q4 17 Financial Highlights Total Revenue Payments Volume ARPS 1 Dollar-based Net Expansion 2 30% growth 23% growth 31% growth $38.2 MM $49.7 MM $1.7Bn $2.1Bn $212 $278 108% 107% Q4 2016 vs Q4 2017 1 ARPS (average monthly revenue per subscriber) is calculated by dividing the subscription and services and payments revenue generated in a given month by the number of subscribers at the end of the previous month. For periods greater than one month, ARPS is the sum of the average monthly revenue per subscriber for each month in the referenced time period, divided by the number of months in the period. 2 Dollar-based net expansion rate is measured at the end of the period. Dollar-based net expansion nets the effects of subscriber churn against the increasing value of subscribers retained, indicating the tendency of subscriber cohorts to gain value over time. 20

Consistently Strong Revenue Growth Annual ($MM) Quarterly ($MM) 30% YoY $49 $70 $101 $139 $183 $20 $18 $16 $17 $22 $25 $26 $28 $35 $34 $32 $38 $42 $44 $47 $50 $32 2012 2013 2014 2015 2016 2017 YoY Growth 52% 44% 45% 37% 31% 21

Significant Payments Volume Expansion Annual ($Bn) Quarterly ($Bn) 23% YoY $7.9 $6.5 $2.1 $3.1 $4.1 $5.1 $1.0 $1.0 $1.0 $1.1 $1.2 $25 $2.1 $2.0 $1.9 $1.9 $1.7 $1.6 $1.6 $1.5 $1.3 $1.4 2012 2013 2014 2015 2016 2017 YoY Growth 47% 33% 23% 28% 23% 22

Increasing Average Monthly Revenue Per Subscriber $278 $259 $244 $230 $201 $202 $204 $212 $154 $151 $152 $163 $174 $185 $182 $185 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 23

Strong Practitioner and Inventory Growth 373 329 4.9 143 189 240 278 1.9 2.5 3.1 3.7 4.4 2012 2013 2014 2015 2016 2017 Number of Practitioners 1 (end of period in thousands) Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Available Inventory 2 per day (average of quarter in millions) 1 Practitioners are defined as the number of staff members/instructors/trainers/stylists with one or more bookings on the MINDBODY platform in the last month of the period. 2 Inventory is defined as the class and appointment spots available for booking within the MINDBODY platform (via online booking website or app, or in person with the business) in the period. 24

Subscriber Mix Shift Delivers Increasing Platform Value High Value Subscribers (in thousands) 600 Solo (Single Practitioners) (in thousands) 485 Total Bookings (in millions) 393 251 320 51.5 60.4 58.6 7.4 3.4 185 40.5 6.8 31.0 3.9 22.1 1.9 2.4 36.6 44.7 53.0 55.2 28.6 20.2 2012 2013 2014 2015 2016 2017 Number of Subscribers on-board at period end (in thousands) 25

Innovative Mobile Apps Driving Strong Consumer Adoption 18.4 19.4 21.2 23.1 12.1 13.8 12.1 12.6 12.8 13.2 8.0 10.6 8.4 11.2 8.5 9.1 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1 '16 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q1 '16 Q1 '16 Q3 17 Q1 '16 Q4 17 Consumer app bookings (in millions) MB App Branded Mobile Apps 26

Long-Term Financial Model Non-GAAP FY'14 FY 15 Q1'16 Q2'16 Q3'16 Q4 16 Q1 17 Q2'17 Q3'17 Q4 17 Long-Term Model Gross Margin 58% 64% 70% 69% 70% 71% 73% 73% 73% 74% 80% - 85% S&M as % of Revenue 44% 42% 40% 40% 40% 38% 37% 38% 38% 38% 30% - 35% R&D as % of Revenue 23% 22% 22% 21% 21% 18% 19% 18% 17% 16% 12% - 15% G&A as % of Revenue 25% 26% 22% 19% 18% 18% 18% 18% 17% 16% 8% - 10% Adjusted EBITDA Margin (27%) (20%) (7%) (6%) (3%) 2% 3% 4% 5% 7% ~30% Note: A reconciliation of non-gaap measures to GAAP measures is contained in the Appendix. For future periods, we are unable to provide a reconciliation of non-gaap financial measures without unreasonable effort as a result of the uncertainty regarding, and the potential variability of, stock-based compensation, and certain other infrequently occurring items, such as acquisition related costs, that may be incurred in the future. 27

Appendix 28

Reconciliation of Non-GAAP Figures Year Ended Three Months Ended Dec. 31, March 31, June 30, Sept. 30, Dec. 31, (in thousands) 2014 2015 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Total Revenue $70,010 $101,369 $139,021 $182,626 $32,006 $42,214 $33,561 $44,107 $35,262 $46,612 $38,191 $49,693 Gross profit, as reported $40,006 $64,179 $95,941 $130,756 $22,034 $30,195 $22,848 $31,369 $24,290 $33,489 $26,768 $35,703 Gross Margin, GAAP 57% 63% 69% 72% 69% 72% 68% 71% 69% 72% 70% 72% Plus: Amortization of acquired intangible assets 339 337 426 1,401 76 174 76 407 109 410 165 410 Plus: Stock-based compensation 220 651 910 1,334 215 261 220 366 231 287 244 420 Gross Profit, non-gaap $40,565 $65,167 $97,277 $133,491 $22,325 $30,630 $23,144 $32,142 $24,630 $34,186 $27,177 $36,533 Gross Margin, non-gaap 58% 64% 70% 73% 70% 73% 69% 73% 70% 73% 71% 74% Sales and marketing, as reported $30,922 $46,345 $56,460 $71,825 $13,229 $16,334 $13,706 $17,362 $14,599 $18,514 $14,926 $19,615 As percentage of revenue, GAAP 44% 46% 41% 39% 41% 39% 41% 39% 41% 40% 39% 39% Less: Stock-based compensation 196 3,533 2,059 2,872 583 506 440 671 613 836 423 859 Sales and marketing, non-gaap $30,726 $42,812 $54,401 $68,953 $12,646 $15,828 $13,266 $16,691 $13,986 $17,678 $14,503 $18,756 As percentage of revenue, non-gaap 44% 42% 39% 38% 40% 37% 40% 38% 40% 38% 38% 38% Research and development, as reported $16,167 $23,057 $30,316 $35,810 $7,417 $8,648 $7,594 $8,802 $7,747 $8,976 $7,558 $9,384 As percentage of revenue, GAAP 23% 23% 22% 20% 23% 20% 23% 20% 22% 19% 20% 19% Less: Stock-based compensation 298 902 1,971 3,864 495 527 470 980 490 1,167 515 1,190 Research and development, non-gaap $15,869 $22,155 $28,345 $31,946 $6,922 $8,121 $7,124 $7,822 $7,257 $7,809 $7,043 $8,194 As percentage of revenue, non-gaap 23% 22% 20% 17% 22% 19% 21% 18% 21% 17% 18% 16% General and administrative, as reported $18,422 $29,530 $30,497 $37,471 $7,523 $8,686 $7,681 $9,358 $7,346 $9,763 $7,947 $9,664 As percentage of revenue, GAAP 26% 29% 22% 21% 24% 21% 23% 21% 21% 21% 21% 19% Less: Stock-based compensation 1,023 3,289 3,823 6,031 620 1,203 1,253 1,496 975 1,625 975 1,707 General and administrative, non-gaap $17,399 $26,241 $26,674 $31,440 $6,903 $7,483 $6,428 $7,862 $6,371 $8,138 $6,972 $7,957 As percentage of revenue, non-gaap 25% 26% 19% 17% 22% 18% 19% 18% 18% 17% 18% 16% 29

Reconciliation of Adjusted EBITDA Year Ended Three Months Ended Dec. 31, March 31, June 30, Sept. 30, Dec. 31, (in thousands) 2014 2015 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Net loss ($24,606) ($36,088) ($22,979) ($14,792) ($6,594) ($3,909) ($6,550) ($4,375) ($5,895) ($3,630) ($3,940) ($2,878) Year over year favorable/(unfavorable) % change (51)% (47)% 36% 36% 16% 41% 26% 33% 39% 38% 60% 27% Stock-based compensation expense $1,737 $8,375 $8,763 $14,101 $1,913 $2,497 $2,383 $3,513 $2,309 $3,915 $2,157 $4,176 Depreciation and amortization $4,574 $6,516 $7,755 $9,150 $1,848 $2,090 $1,810 $2,309 $2,013 $2,337 $2,084 $2,414 Change in fair value of contingent consideration ($1,434) ($11) Change in fair value of preferred stock warrant $283 $25 Impairment charges $426 Provision for income taxes $116 $246 $321 $167 $73 $142 $64 $118 $142 $83 $42 ($176) Other (income) expense, net $136 $1,075 $1,326 $275 $386 $294 $353 $104 $351 ($217) $235 $94 Adjusted EBITDA (unaudited) ($18,768) ($19,862) ($4,814) $ 8,901 ($2,374) $1,114 ($1,940) $1,669 ($1,080) $2,488 $578 $3,630 Adjusted EBITDA Margin (27)% (20)% (4)% 5% (7)% 3% (6)% 4% (3)% 5% 2% 7% Year over year favorable/(unfavorable) % change (63)% (6)% 76% 285% 55% 147% 62% 186% 79% 330% 113% 528% 30