Q Results Presentation - PDF Free Download

2 Safe Harbor Statement and Non-GAAP Disclosures The statements made in the accompanying conference call or contained in this presentation that are not historical facts are forward-looking statements under the federal securities laws. Words such as anticipates, could, may, estimates, expects, projects, intends, plans, believes, will and words of similar substance used in connection with any discussion of future operations or financial performance identify forward-looking statements. In particular, statements regarding expectations and opportunities, new product expectations and capabilities, and our outlook regarding our performance and growth are forward-looking statements. These forward-looking statements, including, that (i) the company expects to see a slight uptick in volumes in Houston in the coming months as consumers begin to replace their damaged vehicles; (ii) the DealerX ROiQ audience creation and management platform will enable the company to generate highly-targeted clicks and leads for our dealer and OEM customers, while building upon its initiatives to diversify and expand the company s sources of high-quality traffic; (iii) in addition to the monetary benefits, the DealerX platform will provide the company with an entirely new source of traffic, which builds upon the company s strategy to diversify its consumer acquisition partners, and the company plans on using the DealerX technology to support the company s clicks and leads products; (iv) the company will continue to work with its Google experts to adopt more adaptive experiences to create an optimal user flow for usedcars.com, and expects that its progress in recovering lost traffic will continue into 2018; (v) the company expects to launch a more robust version of the usedtrucks.com URL site in the second half of 2018; (vi) as the company continues to improve the user experience for its consumers and expand inventory across its used vehicle sites, the company will accelerate its approach and mission to drive new traffic in the coming quarters; (vii) the company is creating a mobile first experience that it believes will allow it to reach all in-market consumers with ease; (viii) the company plans to keep the Autobytel.com site active, along with its other consumer-facing sites car.com, usedcars.com, and usedtrucks.com -- as they remain strong consumer facing sites and continue to generate high-margin, meaningful advertising revenue for the company; (ix) the company is maintaining its previously issued guidance and expects 2017 revenue to range between $144 million and $148 million, compared to an adjusted $150.4 million in 2016, and non-gaap EPS to range between $0.78 and $0.82 on 13.3 million shares; (x) the company intends to continue to execute on its initiatives and work with its traffic partners to rebuild the company s high-quality traffic streams, while restoring the company s revenue and margin profiles; (xi) the company plans to accelerate its clicks business by expanding the offerings to more dealer and OEM customers, while utilizing the new sources of traffic from DealerX to increase click volumes; (xii) the company expects the incremental sources of traffic to equally support its new and used vehicle leads business; and (xiii) with multiple initiatives and products in place, the company will continue to serve dealers and OEMs with highly-targeted clicks and leads, while developing a more efficient pathway to purchase for consumers, are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, these forward-looking statements. AutoWeb undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forwardlooking statements are changes in general economic conditions; the financial condition of automobile manufacturers and dealers; disruptions in automobile production; changes in fuel prices; the economic impact of terrorist attacks, political revolutions or military actions; failure of our internet security measures; dealer attrition; pressure on dealer fees; increased or unexpected competition; the failure of new products and services to meet expectations; failure to retain key employees or attract and integrate new employees; actual costs and expenses exceeding charges taken by AutoWeb; changes in laws and regulations; costs of legal matters, including, defending lawsuits and undertaking investigations and related matters; and other matters disclosed in AutoWeb s filings with the Securities and Exchange Commission. Investors are strongly encouraged to review the Company s Annual Report on Form 10-K for the year ended December 31, 2016, and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect the business, operating results, or financial condition of AutoWeb and the market price of the Company s stock. This presentation includes non-gaap financial measures as defined by SEC Regulation G. AutoWeb s definitions of the non-gaap financial measures used in this presentation and reconciliations of these non-gaap financial measures to the most directly comparable GAAP measures can be found in the appendix of this presentation. In addition to the foregoing non-gaap financial measures, for year-over-year comparisons, prior year results for all periods presented are adjusted to exclude the company s specialty finance leads product, which was divested on December 31, 2016, which comparisons and prior year results are also non-gaap financial measures as defined by SEC Regulation G. The company's management believes that presenting non-gaap income and non-gaap EPS and the adjusted year-over-year comparisons and prior year results provides useful information to investors regarding the underlying business trends and performance of the company's ongoing operations and are better metrics for monitoring the company's performance given the company's net operating loss (NOL) tax credits and recent acquisitions and divestitures. These non-gaap financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the company's consolidated financial statements in their entirety and to not rely on any single financial measure.

Q3 2017 Financial Summary¹ (vs. YoY) Revenues were $36.9 million vs. adjusted $42.2 million Advertising revenues up 21% to $8.9 million Click revenues increased 35% to $7.4 million Net Income was $0.1 million or $0.01 per diluted share Non-GAAP income² was $2.4 million or $0.18 per diluted share 1) For comparative purposes, prior year results exclude the company s specialty finance leads product, which was divested on December 31, 2016. 2) Non-GAAP Income is equal to net income/(loss) plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements. See appendix for reconciliation. Click Revenues Continue to Grow at a Strong Rate 3

Quarterly Revenue¹ Automotive Leads & Services Advertising $42.2 (millions) $25.6 $24.5 $24.6 1.1 1.6 1.6 $28.8 2.0 $38.5 3.2 $34.8 $34.6 $34.6 3.7 3.8 5.3 7.4 $39.0 8.1 $37.3 8.0 $34.6 8.0 $36.9 8.9 24.5 22.9 23.0 26.8 35.3 31.1 30.8 29.3 34.9 30.9 29.4 26.6 27.9 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 Q3 17 Advertising: Up 21% YoY due to continued strong growth of click revenues. Q3 17 Automotive Leads & Services: Expected decline due to the elimination of certain traffic campaigns. 1) For comparative purposes, all prior results exclude the company s specialty finance leads product, which was divested on December 31, 2016. AutoWeb Q3 Advertising Revenue up 21% YoY 4

Total Lead Volume (millions) New Car Leads Used Car Leads 1.7 0.2 1.6 1.6 0.2 0.2 2.0 0.3 2.8 0.5 2.4 0.4 2.3 0.4 2.1 0.3 2.6 0.4 2.3 0.3 2.2 0.4 2.0 0.4 2.1 0.4 1.5 1.4 1.4 1.7 2.3 2.0 1.8 1.8 2.2 2.0 1.8 1.6 1.7 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 Total lead volume slightly down due the elimination of certain traffic campaigns. In Q4 15, the company began implementing its high-quality leads supply initiatives by focusing on increasing internal-lead generation and systematically reducing the volume of lower quality leads from 3 rd party suppliers. 5

AutoWeb Footprint Dealers New Car Franchises 24,817 25,000 25,049 24,852 24,930 23,989 24,201 24,294 24,521 24,243 24,464 24,191 23,666 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16¹ Q1'17 Q2'17 Q3'17 Total dealer count now reflects our entire dealer network, including both OEM/wholesale and retail dealers. AutoWeb delivers leads to approximately 76% of all franchise dealers in the U.S. 1) The decrease in dealer count in Q4 16 was driven by Toyota s discontinuation of the Scion brand. 6

Click Product Continues to Accelerate Click Revenue (millions) $7.4 Q3 click revenues up 35% YoY, reflecting significant volume growth and expanding revenue per click $5.5 $6.4 $6.5 $6.5 $3.7 $1.4 $2.0 $2.6 $0.1 $0.4 $0.4 $0.7 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15¹ Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 1) Acquired AutoWeb October 1, 2015. 7

Financial Overview¹ 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue ($M) $34.6 $34.6 $42.2 $39.0 $37.3 $34.6 $36.9 Gross Profit ($M) $13.2 $13.5 $15.3 $14.2 $12.9 $10.6 $11.1 Gross Margin 38.2% 39.1% 36.2% 36.5% 34.6% 30.7% 30.1% Operating Expenses ($M) $14.2 $12.7 $11.2 $12.4 $11.7 $10.4 $10.8 Operating Margin -2.9% 2.4% 9.7% 4.8% 3.2% 0.7% 0.7% Net Income ($M) ($0.7) $0.4 $2.6 $1.4 $0.5 $0.3 $0.1 GAAP EPS Diluted ($0.07) $0.03 $0.20 $0.10 $0.04 $0.02 $0.01 Non-GAAP Income ($M) $2.8 $3.0 $6.3 $4.7 $3.5 $2.5 $2.4 Non-GAAP EPS $0.21 $0.23 $0.47 $0.35 $0.26 $0.19 $0.18 Cash ($M) $24.0 $27.1 $32.7 $38.5 $39.6 $44.6 $44.7 Cash Flow From Operations ($M) $1.6 $4.6 $5.9 $6.2 $3.5 $6.5 $2.5 Closing Stock Price $17.36 $13.87 $17.80 $13.45 $12.53 $12.61 $6.89 The above financials are impacted by rounding to the nearest $0.1M. 1) For comparative purposes, prior year results (with the exception of Cash Flow From Operations), exclude the company s specialty finance leads product, which was divested on December 31, 2016. 2) Non-GAAP Income is equal to net income/(loss) plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements. See appendix for reconciliation. 3) Non-GAAP EPS is non-gaap income divided by weighted average diluted shares outstanding. See appendix for reconciliation. 8

Balance Sheet Supports Growth $44.7 million cash $10.1 million term loans, $8.0 million revolving line of credit, $1.0 million convertible note As of Dec 31, 2016, $106.3 million net operating loss carryforwards $75.8 million federal; $30.5 million state Federal NOLs do not expire until 2025 and beyond $ Millions Select Balance Sheet Items Sept 30, 2017 Dec 31, 2016 Cash & cash equivalents $44.7 $38.5 Receivables 27.5 33.6 Net deferred tax assets 25.8 19.5 Total assets 168.7 165.3 Debt 19.1 23.1 Total liabilities 38.9 45.7 Total stockholders equity 129.8 119.6 $44.7 Million in Cash, $106.3 Million in Net Operating Loss Carryforwards 9

DealerX Transaction $8.0 million cash upfront for perpetual license to DealerX platform, with tech development & support for initial 5-year period Tech development and support will continue beyond the initial 5-year period upon the occurrence of one of the following prior to October 2022: The issuance of common stock representing approximately 5% of the company s outstanding shares if: Market cap reaches $225 million for 90 consecutive days; or A change in control of AutoWeb (with a valuation representing a market cap of at least $225 million) At the election of AutoWeb, the payment of $12.5 million in cash upon the occurrence of certain specified events set forth in the license agreement. 1) Based on market capitalization of $89.4 million on November 1, 2017. Market Cap Event Reflects 152% Increase in AUTO Market Cap¹ 10

DealerX Platform 11

High Buy Rates We estimate¹ buy rates that reflect how many leads submitted by consumers through the AutoWeb network convert to purchases, and how many leads were lost to other dealers Most competitors rely only on feedback from dealers/manufacturers with minimal attribution 31% 18% Lead Conversions (Consumers who Submitted a New Vehicle Lead & Bought New) Internally-generated AutoWeb leads have a buy rate of 18% -- significantly higher than those we source from 3 rd parties or purchase from our competitors Buy rate information provides the ability to drive pricing with dealers, as well as incremental lead volume 15% 14% 10% Internally generated leads account for ~80% of leads sold by AutoWeb Autobytel.com Website All AUTO Internally Generated Other 3rd Party Supplier Competitor/ Supplier A Competitor/ Supplier B 3% Competitor/ Supplier C 1) Estimated buy rates based on vehicle registration data and internal analysis. Buy rates are calculated using a three-month rolling average of 90 day close rates. 80% of Leads Sold by AutoWeb 20% of Leads Sold by AutoWeb (Sourced from 3 rd Parties or Competitors) AutoWeb Internally-Generated Lead Buy Rate is 3x Industry Average of ~6-8% 12

Average Buy Rate¹ We have a proven track record of providing high quality leads AutoWeb s leading edge SEM practice featured in several Google White Papers We have consistently maintained these high buy rates since Q1 2011 Autobytel.com avg. buy rate = 27% All internally generated avg. buy rate = 18% Buy Rates - Autobytel.com 25% 26% 25% 27% 27% 29% 30% 31% 22% Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Buy Rates - All Internally Generated AutoWeb 20% 19% 17% 16% 17% 17% 18% 17% 18% Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 1) Contribution from Dealix began in 2016. 13

Annual Retail Auto Sales Forecast¹ (millions) -21% 10.4-19% 8.6 +12% 11.6 +7% 9.2 U.S. LV Sales Forecast 2008 to 2017E Retail LV Sales Total LV Sales +6% 0% +6% -3% -1% +8% 17.5 17.5 +14% 16.5 17.1 17.0 15.6 +9% 14.5 +5% -1% +6% -2% -1% 12.7 +9% 14.3 14.1 +14% 13.6 13.9 13.8 +12% 12.8 11.7 10.3 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018E 2017 U.S. light vehicle sales forecast down slightly to 17.1 million units Down 3% YoY 2017 U.S. retail light vehicle sales forecast down slightly to 13.9 million units Down 2% YoY 1) J.D Power/LMC Automotive 14

2017 Outlook 1,2 Low High Revenue Non-GAAP EPS Revenue $144.0 $148.0 vs. YoY (4)% (1)% Non-GAAP EPS $0.78 $0.82 vs. YoY (39)% (35)% $99M $127M $1.19 $150M $1.27 $144M- $148M $61M $72M $0.76 $0.78- $0.82 $0.32 $0.45 FY12 FY13 FY14 FY15 FY16 FY17E 1) Guidance updated and effective only on November 2, 2017. 2) For comparative purposes, all YoY calculations and chart figures exclude contribution from the company s specialty finance leads product, which was divested on Dec 31, 2016. 3) Non-GAAP Income is defined as net income/(loss), plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements, and non-gaap EPS is defined as non-gaap income divided by weighted average diluted shares outstanding (see appendix for reconciliation). The company has not provided a reconciliation of its 2017 non-gaap diluted EPS guidance to the most directly comparable GAAP financial measure because the effect, timing and potential significance of the effects of tax considerations, primarily related to the company s net operating loss carryforwards, are out of the company's control and/or cannot be reasonably predicted. Consequently, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort. See appendix for reconciliation. 15

Contact Us COMPANY CONTACT Kimberly Boren Chief Financial Officer 949-862-1396 kimberly.boren@autoweb.com AUTOWEB, INC. 18872 MacArthur Blvd Irvine, CA 92612 INVESTOR RELATIONS Sean Mansouri or Cody Slach Liolios Group, Inc. 949-574-3860 AUTO@liolios.com About AutoWeb, Inc. AutoWeb, Inc., formerly Autobytel Inc., provides high-quality consumer leads, clicks and associated marketing services to automotive dealers and manufacturers throughout the United States. The company also provides consumers with robust and original online automotive content to help them make informed car-buying decisions. The company pioneered the automotive Internet in 1995 and has since helped tens of millions of automotive consumers research vehicles; connected thousands of dealers nationwide with motivated car buyers; and has helped every major automaker market its brand online. Investors and other interested parties can receive AutoWeb news alerts and special event invitations by accessing the online registration form here. 16

17 Reconciliation Tables High ROI for Dealers Appendix AutoWeb Leads Drive Car Sales Market Data

Reconciliation of Specialty Finance Divestiture Schedule A ($ millions) 2012 2013 2014 2015 2016 Revenue $ 66.8 $ 78.4 $ 106.3 $ 133.2 $ 156.7 Finance Leads $ 6.2 $ 6.2 $ 6.9 $ 6.5 $ 6.3 Adjusted Revenue $ 60.6 $ 72.2 $ 99.4 $ 126.7 $ 150.4 ($ millions) 2012 2013 2014 2015 2016 Non-GAAP Income¹ $ 3.7 $ 5.1 $ 9.3 $ 15.4 $ 17.3 Finance Leads $ 0.7 $ 0.3 $ 0.8 $ 0.4 $ 0.5 Adjusted Non-GAAP Income $ 2.9 $ 4.7 $ 8.5 $ 15.0 $ 16.8 2012 2013 2014 2015 2016 Non-GAAP EPS² $ 0.40 $ 0.48 $ 0.83 $ 1.22 $ 1.30 Finance Leads $ 0.08 $ 0.03 $ 0.07 $ 0.03 $ 0.03 Adjusted Non-GAAP EPS $ 0.32 $ 0.45 $ 0.76 $ 1.19 $ 1.27 The above financials are impacted by rounding to the nearest $0.1M. 1) Non-GAAP Income is equal to net income/(loss) plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements. See appendix for reconciliation. 2) Non-GAAP EPS is non-gaap income divided by weighted average diluted shares outstanding. See appendix for reconciliation. 18

Reconciliation of Specialty Finance Divestiture Schedule B 2016 QTD 3/31/16 QTD 6/30/16 QTD 9/30/16 QTD 12/31/16 YTD 12/31/16 Specialty As Specialty As Specialty As Specialty As Specialty As Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Total Revenues $ 36.2 $ 1.6 $ 34.6 $ 36.1 $ 1.6 $ 34.6 $ 43.9 $ 1.7 $ 42.2 $ 40.4 $ 1.4 $ 39.0 $ 156.7 $ 6.3 $ 150.4 Cost of revenues 22.6 1.2 21.4 22.2 1.2 21.0 28.2 1.2 26.9 25.8 1.0 24.7 98.8 4.7 94.1 Gross profit 13.6 0.4 13.2 13.9 0.4 13.5 15.8 0.4 15.3 14.6 0.4 14.2 57.9 1.7 56.3 Operating expenses 14.5 0.3 14.2 13.0 0.3 12.7 11.5 0.3 11.2 12.8 0.4 12.4 51.8 1.3 50.5 Operating income (loss) (0.9) 0.1 (1.0) 0.9 0.1 0.8 4.3 0.1 4.1 1.8 (0.0) 1.9 6.1 0.3 5.8 Interest and other income (expense), net (0.2) - (0.2) (0.2) - (0.2) (0.2) - (0.2) 1.2-1.2 0.6-0.6 Income (loss) before income tax provision (benefit) (1.1) 0.1 (1.2) 0.7 0.1 0.6 4.1 0.1 3.9 3.0 (0.0) 3.1 6.7 0.3 6.3 Income tax provision (benefit)¹ (0.4) 0.0 (0.5) 0.3 0.0 0.3 1.3 0.0 1.3 1.6 (0.0) 1.7 2.8 0.1 2.7 Net income (loss) and comprehensive income (loss) $ (0.7) $ 0.1 $ (0.7) $ 0.4 $ 0.1 $ 0.4 $ 2.7 $ 0.1 $ 2.6 $ 1.4 $ (0.0) $ 1.4 $ 3.9 $ 0.2 $ 3.7 Non-GAAP Income² $ 2.9 $ 0.1 $ 2.8 $ 3.2 $ 0.1 $ 3.0 $ 6.5 $ 0.2 $ 6.3 $ 4.7 $ 0.0 $ 4.7 $ 17.3 $ 0.5 $ 16.8 Non-GAAP EPS³ $ 0.22 $ 0.01 $ 0.21 $ 0.24 $ 0.01 $ 0.23 $ 0.49 $ 0.01 $ 0.47 $ 0.35 $ 0.00 $ 0.35 $ 1.30 $ 0.03 $ 1.27 The above financials are impacted by rounding to the nearest $0.1M. 1) Tax provision for specialty finance leads standalone is computed using consolidated effective tax rate multiplied by finance leads income before income tax. 2) Non-GAAP Income is equal to net income/(loss) plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements. See appendix for reconciliation. 3) Non-GAAP EPS is non-gaap income divided by weighted average diluted shares outstanding. See appendix for reconciliation. 19

Non-GAAP Income & EPS Reconciliation 2016 QTD 3/31/16 QTD 6/30/16 QTD 9/30/16 QTD 12/31/16 YTD 12/31/16 As Specialty As Specialty As Specialty As Specialty As Specialty Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Reported Finance Adjusted Net income (loss) $ (0.7) $ 0.1 $ (0.7) $ 0.4 $ 0.1 $ 0.4 $ 2.7 $ 0.1 $ 2.6 $ 1.4 $ (0.0) $ 1.4 $ 3.9 $ 0.2 $ 3.7 Amortization of acquired 1.4-1.4-1.5-1.4-5.7 - intangibles 1.4 1.4 1.5 1.4 5.7 Non-cash stock based compensation Cost of revenues 0.0-0.0 0.0-0.0 0.0-0.0 0.0-0.0 0.1-0.1 Sales and marketing 0.6 0.0 0.6 0.3 0.0 0.3 0.4 0.0 0.4 0.4 0.1 0.4 1.8 0.1 1.7 Technology support 0.3-0.3 0.1-0.1 0.1-0.1 0.1-0.1 0.6-0.6 General and administrative 0.4-0.4 0.4-0.4 0.5-0.5 0.7-0.7 2.0-2.0 Total non-cash stock-based compensation 1.4 0.0 1.3 0.9 0.0 0.8 0.9 0.0 0.9 1.2 0.1 1.2 4.4 0.1 4.3 Acquisition costs 0.4-0.4 0.1-0.1 - - - 0.0-0.0 0.6-0.6 Severance costs 0.8-0.8 - - - - - - 0.5-0.5 1.4-1.4 Litigation settlements (0.0) - (0.0) 0.0-0.0 (0.0) - (0.0) (0.0) - (0.0) (0.1) - (0.1) Gain (loss) on investment - - - - - - - - - 0.8-0.8 0.8-0.8 Gain on disposal - - - - - - - - - (2.2) - (2.2) (2.2) - (2.2) Income taxes (0.4) 0.0 (0.5) 0.3 0.0 0.3 1.3 0.0 1.3 1.6 (0.0) 1.7 2.8 0.1 2.7 Non-GAAP income¹ $ 2.9 $ 0.1 $ 2.8 $ 3.2 $ 0.1 $ 3.0 $ 6.5 $ 0.2 $ 6.3 $ 4.7 $ 0.0 $ 4.7 $ 17.3 $ 0.5 $ 16.8 Weighted average diluted shares 13,346 13,346 13,346 13,295 13,295 13,295 13,337 13,337 13,337 13,369 13,369 13,369 13,303 13,303 13,303 Non-GAAP EPS² $ 0.22 $ 0.01 $ 0.21 $ 0.24 $ 0.01 $ 0.23 $ 0.49 $ 0.01 $ 0.47 $ 0.35 $ 0.00 $ 0.35 $ 1.30 $ 0.03 $ 1.27 The above financials are impacted by rounding to the nearest $0.1M. 1) Non-GAAP Income is equal to net income/(loss) plus amortization of acquired intangibles, non-cash stock compensation, income taxes, gain or loss on investment or sale, severance costs and acquisition related expenses, plus litigation settlements. 2) Non-GAAP EPS is non-gaap income divided by weighted average diluted shares outstanding. 20

High ROI for Dealers Given AutoWeb s high conversion rates, our cost per lead model provides a favorable ROI for dealers $399 Average Dealer Cost Per Sale² $367 The higher the conversion rate, the greater the price disparity Estimated historical average close rate for auto industry is 6-8% $299 $275 $220 AutoWeb estimated buy rate is 17-30% $147 AutoWeb cost to dealer represents about half of all dealers normal marketing expense at $628 1 $116 Used Cost Per Sale New Cost per Sale 6% Dealer Close Rate 8% Dealer Close Rate 10% Dealer Close Rate 15% Dealer Close Rate 19% Dealer Close Rate 1) National Automobile Dealer Association (NADA), 2016. 2) Calculated with an average cost of $22 per lead. Competitor Average Leads Provider Purchasing Leads From AutoWeb Generates a Favorable ROI 21

AutoWeb Leads Drive Car Sales Consumers submitting leads via AutoWeb network accounted for 3.3 million+ new retail sales from 2011-2016 This represents an average of ~4% of all U.S. Light Vehicle New Retail Sales from 2011-2015 Increased to ~5% of U.S. LV New Retail Sales for 2016 Consumers submitting leads via AutoWeb network accounted for an average of ~2% of all U.S. used car sales from 2011-2016 Consistent growth despite minimal investment in the used car business from 2011-2016 435,221 U.S. LV New & Used Retail Sales by AutoWeb Consumers Retail Used Retail New 501,688 469,422 483,923 590,087 539,775 606,302 614,349 748,404 837,430 2012 2013 2014 2015 2016 AutoWeb Consumers Accounted for 22 ~5% of Annual US LV New Retail Sales 22

AutoWeb s Large Addressable Market Total US Automotive Digital Ad Spend Estimate for 2017 $9.13 Billion $3.33 B Search & pay-per-click $3.14 B Video, media & banner display $0.83 B Lead generation & directories Source: emarketer.com estimates. Addressable Market Grows By Entering Pay-per-Click Market 23

All Digital ROI Driven Ad Channels are Growing $7billion $6billion Vehicle Digital Ad Spend by Channel Clicks Display $5billion Leads $4billion $3billion $2billion Listings $1billion Source: emarketer.com estimates. '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 $9B $15B Market Size 2016 Market Size 2020 AutoWeb Focusing In Highest Demand Channels 24