SYNCContains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
SYNACORNASDAQ: SYNC
DRI V I NG GROW TH I N ATTRACTI VE D I G I TAL MARKETS
AT&T SELECTS SYNACOR TO ENABLE
PORTAL SERVICES
MAY 5, 2016
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SAFE HARBOR
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements
concerning Synacor’s expected financial performance as well as Synacor’s strategic and operational plans. The achievement or success of the
matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize
or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-
looking statements the company makes. Synacor is under no obligation to, and expressly disclaims any such obligation to, update or alter
forward-looking statements, whether as a result of new information, future events, or otherwise.
The risks and uncertainties referred to above include - but are not limited to - risks associated with: execution of Synacor’s plans and strategies;
the loss of a significant customer; the company’s ability to obtain new customers; expectations regarding consumer taste and user adoption of
applications and solutions; developments in Internet browser software and search advertising technologies; developments in display advertising
technologies and practices; general economic conditions; expectations regarding the company's ability to timely expand the breadth of services
and products or introduction of new services and products; consolidation within the cable and telecommunications industries; changes in the
competitive dynamics in the market for online search and display advertising; the risk that security measures could be breached and
unauthorized access to subscriber data could be obtained; potential third party intellectual property infringement claims; and the price volatility
of Synacor’s common stock.
Further information on these and other factors that could affect the company's financial results is included in filings it makes with the Securities
and Exchange Commission from time to time, including the section entitled "Risk Factors" in the company's most recent Form 10-K filed with the
SEC. These documents are available on the SEC Filings section of the Investor Information section of the company's website at
investor.synacor.com.
2Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
SYNC 3
MISSION
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
We enable our customers to
better engage with their
consumers
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TRUSTED TECHNOLOGY DEVELOPMENT, MULTIPLATFORM SERVICES
AND REVENUE PARTNER
Managed Portals Email/CollaborationVideo Platform/Cloud IDAd Solutions
Operate 50 portals 120M monthly visitors
Authentication Reaches 75M Pay TV subscribers 500M mailboxes
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc. 4
SYNCContains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
Then: 1Q ‘14
MASSIVE TRANSFORMATION AT SYNACOR
• Desktop: Portals, Search,
Advertising, ServicesPRODUCTS
• 50 Service ProvidersCUSTOMERS
• United StatesGEOGRAPHY
• Direct SalesCHANNEL
• 80% Search & Advertising,
• 20% Fee-Based RevenueREVENUE
• 20 Million
Monthly Portal VisitorsREACH
• Multiplatform: Portals, Search, Advertising, Email,
Video, Cloud ID
• 120 Service Providers
• 3500 Enterprises, 1000 Web Publishers
• Worldwide
• Direct Sales, 1500 Resellers
• 60% Search & Advertising
• 40% Recurring and Fee-Based Revenue
• 120 Million Monthly Total Visitors
Now: 1Q ‘16
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WINNING NEW CUSTOMERS
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc. 6
120
Service
Providers
1,000
Government
Agencies
2,500
Businesses
1,000
Web Publishers
Won many email/collaboration
engagements with domestic and
international government agencies,
such as:
The National Space Institute for India
The Ministry of Foreign Affairs of The Russian Federation,
an international defense agency
the New York State Assembly
Won multiple contracts with
communications providers to
deploy Synacor’s End-to-End Video
Solutions
Won and expanded contracts with
several communications companies
for next-generation portals
Serve 1,000+ publishers through
the acquisition of Technorati
Syndicated ad-supported video
content modules to web
publishers
Won key new email/collaboration
deals for many business
enterprises, such as:
a large insurance and financial services company
the leading network technology service provider for many industries in Indonesia
a leading retailer in Indonesia
a leading provider of ICT infrastructure services in Thailand
SYNCContains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc. 7
AT&T SELECTS SYNACOR TO ENABLE PORTAL SERVICES
120
Service
Providers
1,000
Government
Agencies
2,500
Businesses
1,000
Web Publishers
In partnership with AT&T, Synacor will:
• Develop and manage innovative desktop and
mobile portal services designed to drive user
engagement
• Populate these portal experiences with rich
Internet content sourced from popular brands
• Monetize these experiences through search and
advertising
Synacor honored to be selected by AT&T:
• Synacor selected in AT&T RFI process
• Portal services designed to engage AT&T’s
user audience
• 3 year deal with auto-renewals
• Value of ~$100M per year upon full
deployment
INITIAL LAUNCHES IN 2H2016, NEXT-GEN PRODUCTS IN 2017
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WE ENABLE OUR CUSTOMERS TO BETTER ENGAGE WITH THEIR CONSUMERS
120
Service
Providers
1,000
Government
Agencies
2,500
Businesses
1,000
Web Publishers
Why we believe AT&T chose Synacor:
• A proven managed portal services platform
• Significantly improved monetization across
mobile and desktop, video and display
• Flexible technology and UX that serves as a
foundation for next-gen development
• A relevant product portfolio and strong team to
enable additional services as needed
How all Synacor customers benefit:
• Benefits of platform development to
drive engagement shared across all
customers
• Increases scale of traffic to deliver
higher quality content and improved
search and advertising monetization
• Strengthens Synacor’s financial profile
and competitiveness
STRONG PIPELINE OF ADDITIONAL CUSTOMER OPPORTUNITIES
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INVESTMENT HIGHLIGHTS
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc. 9SYNC
A Transformation Story with Multiple
Profitable Growth Avenues
STRONG
OPPORTUNITIES
FOR GROWTH
NEW
MANAGEMENT
TEAM
RECURRING AND
FEE-BASED
REVENUE
MASSIVE
TRANSFORMATION
ON A PATH:
• 3 YEARS (2019)
• $30M EBITDA
• $300M REVENUE
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SYNACOR’S PATH TO 3/30/300
GENERATING $300M IN REVENUES AND $30M IN EBITDA IN 3 YEARS
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
$8M
Revenue, $Millions
$106.6 $110.2
2014 2015
Adjusted EBITDA*, $Millions
$2.2
$7.6
2014 2015
10
*Please refer to the appendix for information regarding the reconciliation of GAAP net loss to adjusted EBITDA for twelve months
ended December 31, 2014 and December 31, 2015.
PLANS TO INVEST $10 MILLION OVER 12 MONTHS TO DEVELOP AND DEPLOY AT&T
~$300
2019E
~$30
2019E
2016 OBJECTIVES
• Win new portal customers
• Become significant player in programmatic advertising
• Win new video platform customers
• Extend Cloud ID into new customer verticals
• Leverage Zimbra partner community to accelerate feature development and grow email/collaboration sales
• Launch open source support offering for email
• Introduce Synacor products into new geographies
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✔
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THANK YOU
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APPENDIX
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ADJUSTED EBITDA RECONCILIATION
Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.
$8M
14
Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015
Revenue 25,248 24,191 26,231 30,910 106,580 26,730 24,716 26,351 32,448 110,245
Net Loss (2,056) (1,868) (2,596) (6,418) (12,931) (1,073) (1,082) (931) (388) (3,474)
Provision (benefit) for income taxes (684) (641) (1,288) 7,434 4,821 4 16 10 209 239
Interest expense 88 23 75 32 218 50 59 35 102 245
Other (income) expense (8) (6) 14 29 28 16 (17) 32 (16) 16
Depreciation & amortization 1,058 1,117 1,133 1,818 5,126 1,496 1,660 1,560 2,185 6,901
Stock-based compensation expense 681 847 1,226 842 3,595 742 800 810 764 3,115
Loss on equity interest 246 344 239 234 1,063 32 25 - 16 73
Gain on sale of domain - (1,000) - - (1,000) - - - - -
Reduction in workforce - - 1,260 - 1,260 - - - - -
Acquisition costs - - - - - - - 478 - 478
Adjusted EBITDA (675) (1,184) 63 3,971 2,180 1,267 1,461 1,994 2,872 7,593