TSCM at Emerald Feb 7 2008.ppt - library.corporate-ir.netlibrary.corporate-ir.net/.../items/278680/TSCMEmeraldFeb72008.pdf · Safe Harbor Statement This presentation may contain certain

TheStreet comTheStreet.com15th Annual15th Annual

Emerald Groundhog Day Investment ForumInvestment Forum

Safe Harbor Statement

This presentation may contain certain financial data, estimates, and projections and other statements or information not based on historical facts, which may constitute forward-looking information within the meaning of the applicable securities laws. These forward-looking statements which may concern Th St t ’ fi i l f ll it t t i d ti lTheStreet.com’s financial performance, as well as its strategic and operational plans involve significant assumptions, elements of subjective judgment and analysis that may or may not be correct and are subject, among other things, to business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the control of the Company. Accordingly, there can be no assurance th t ti t d j t d lt hi t d l t ill bthat any estimated or projected results, achievements, or developments will be achieved. Actual results can be expected to vary from those set forth in or implied by such forward-looking statements, and such variations may be material and adverse. The Company expressly disclaims any obligation to update the information herein or provide the recipient with any additional information.

The risks and uncertainties that may affect the company’s actual results are described in the Company's regulatory filings with the Securities and Exchange Commission (“SEC”), which are on file with the SEC and available at its website at www.sec.gov.

© 1996-2007 TheStreet.com, Inc. All rights reserved.

g


Leading Financial Media CompanyLeading Financial Media CompanyStockpickr.com BankingMyWay.com MainStreet.com

TheStreet.com TBD

RealMoney.com TBD

Promotions com:


Promotions.com:Awareness • Engagement • Consumer Activation


The Network Opportunitypp yKey Growth Drivers for 2008:

MainStreet com launch- MainStreet.com launch- Re-designs of TheStreet.com & Stockpickr.com- BankingMyWay- Continued network expansionContinued network expansion

Diversification of the Advertising Business:- Expansion within the non-financial categoriesp g- Hyperlink offering

Leveraging operational platform: - Technology- Advertising sales- General and Administrative

© 1996-2007 TheStreet.com, Inc. All rights reserved.© 1996-2008 TheStreet.com, Inc. All rights reserved.

Strategic Directiong

Q3 2007 Revenue Composition 2008 Projected Revenue Composition2006 Revenue Composition

Marketing Services

43%

Marketing Services

50%

Marketing Services

30%

Paid Services 57%

Paid Services 50%

Paid Services70%


BankingMyWay & RateWatchg y y


Overview

Rate-Watch.com:- Business to Business- Leading provider of subscription based competitive bank rate information to financial institutions

BankingMyWay.com: - Business to Consumer

A f b ki d C i- Aggregator of consumer banking products: CDs, savingsaccounts, interest checking, money markets, mortgage/homeequity and auto loans

- Leverages RateWatch data to provide consumers withthe best local rates for savings and debt products


Mainstreet.com


Mainstreet.com

The “TMZ of Personal Finance ” mainstream newsThe TMZ of Personal Finance, mainstream newsin the context of how events affect one’s financial life(where Life and Money intersect)

Timely, relevant and interactive experience through a unique combination of news, community and evergreen content

Advertising-supported revenue model with a lead generation component

Nature of the site lends itself easily to expansion opportunity


The New Stockpickr.compFastest growing financial social networking site

130 000+ user-generated portfolios 800+ professional portfolios


130,000+ user generated portfolios, 800+ professional portfolios41.9 million page views in Q3 2007


TheStreet.com Demographicg pOur audience is one of the most affluent, influential audiences on the Web:

Average age: 46 Average household Income: $101,919 Approx. 88% own a residence*Approx. 26% are C-level and Executive Management*25% have an investment portfolio worth >$250,000*Approx. 86% have an account with an onlineor offline brokerage firm*59% used a computer for streaming audio or videoin the past 30 days*A 89% it d b i /fi i lApprox. 89% monitored business/financialnews online in the past 30 days*


Source: Nielsen/NetRatings@Plan. Fall 2007 release*Nielsen/NetRatings@Plan. Winter 2007 release

www.thestreet.com 2008


Promotions.comDevelops and deploys online tools and services that

leverage and provide added value across TheStreet com’s network of Web sites by increasing:

Awareness Products/Offers: Brand/Product Promotions including

TheStreet.com s network of Web sites by increasing:

- Products/Offers: Brand/Product Promotions includingGames of Chance (online, mobile and 800#)

- Marketing sites: Mini-sites, bridge pages (often Brand Promotions)

Engagement- Social networking/consumer content promotions includingcontests, voting, polling, quizzes, viral games, etc.

Consumer Activators- Individual tools and systems (flash games, poll engines, etc.) for use as part of a site’s ongoing content pool


p g g p


Promotions.com

Our clients:Marketers

Agencies

Media / Publishers


Multimedia Opportunitypp yViral distribution platforms: Video/Mobile/Podcast. Initiatives for 2008:

E i f i i l t t/ i d t W ll St & M i StExpansion of original content/programs aimed at Wall St. & Main St.

Development of new personalities/leveraging of talent:- Video from San Francisco and Live from Boston- Enhanced Tech coverage with Emmy award-winner Gary Krakow

Broaden syndication on and offline:optimize opportunities for monetization and brandingoptimize opportunities for monetization and branding

Video presence: full integration of video with TheStreet.com experience

Mobile: leverage the infrastructure of the mobile provider, to broaden audience

Advertising: refinement of strategic advertising - formatting and presentation


Video


Delivering Higher Marginsg g gImpact of launching the redesigned TheStreet.comand the new MainStreet comand the new MainStreet.comLeveraging editorial content across the networkIncreasing amount of evergreen contentIncreasing amount of evergreen contentSEO in 2008Ad Sales team and the selling of the networkBankingMyWayLeveraging operational infrastructure

Deliver ongoing expansion of Gross Margin & Adjusted EBITDA Margin throughout 2008


Adjusted EBITDA Margin throughout 2008


Q3 2007 Financial ResultsQRevenue: Q3 2005 - Q3 2007 (millions)

$12 9

$14.4 $14.5 $14.9$16.1

$12.4$12.9

$8.2

$11.1$10.0

Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07

Adjusted EBITDA (continuing): Q3 2005 - Q3 2007 (millions)

$2 9

$3.5 $3.4

$4.3

$3.5$3.9

$4.5

$1.6$2.0

$2.9


Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07


Financial Impact of TCV InvestmentpInvestment of $55m

Purchase of 5 500 preferred shares: convertible into 3 9m shares ofPurchase of 5,500 preferred shares: convertible into 3.9m shares of common at $14.26 per share – 4.4% premium to closing share priceWarrants to purchase 1.2m shares of common for $15.69 per share –15% premium to closing share price15% premium to closing share priceConvertible shares will be included in diluted share count in 2008

Outside valuation of warrants currently underway

Ongoing impact of dividends paid to Preferred SharesOngoing impact of dividends paid to Preferred SharesDividend rate on preferred stock equal to common stock rate$96k based upon current dividend rate per quarter


Creating Shareholder ValuegWhy TheStreet.com?

Growing, profitable, financially strong Positioned to grow organically and through accretive acquisitionsPositioned to grow organically and through accretive acquisitionsSuperior audience demographic monetized many waysBroad inventory of paid and free proprietary contentManagement team focused on creating shareholder value:

2007:Simple Price Appreciation = 78 9%Simple Price Appreciation = 78.9%Price Appreciation w/dividend = 80.1%


Q&AQ&A

For more information please contact:Chaela Volpe, Investor Relations manager

Ch l V l @ h


[email protected], visit: www.thestreet.com/ir


Documents

TSCM at Emerald Feb 7 2008.ppt - library.corporate-ir.netlibrary.corporate-ir.net/.../items/278680/TSCMEmeraldFeb72008.pdf · Safe Harbor Statement This presentation may contain certain