Q2 2015 Results & Acquisition of Tea Leaves Health
Q2 2015 Results &
Acquisition of
Tea Leaves Health
Safe Harbor
During the course of this presentation, we may make forward-looking statements,
including statements regarding the company's future financial and operating results,
the expected impact of the acquisition of Tea Leaves Health, future market
conditions, and the plans and objectives of the management for future
operations. These forward-looking statements are not historical facts, but rather are
based on our current expectations and beliefs and are based on information currently
available to us. The outcome of the events described in these forward-looking
statements is subject to known and unknown risks and uncertainties that could cause
actual results to differ materially from the results anticipated by these forward-looking
statements, including, but not limited to those Risk Factors contained in our SEC
filings. All information provided in this presentation is as of today. Except as required
by law, we undertake no obligation to update publicly any forward-looking statement
to conform the statement to actual results or changes in our expectations. Also, it is
our policy not to comment on our financial guidance other than in public
communications.
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CEO Remarks
Q2 2015 Results
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Q2 2015 Q2 2014% Y-O-Y
GROWTH
Advertising & Sponsorship Revenue $50.2M $36.9M +36%
Premium Services Revenue $4.6M $4.6M -
Total Revenue $54.8M $41.4M +32%
Adjusted EBITDA $10.2M $6.9M +48%
Cash Flow from Operations $8.5 $4.9 +75%
Q2 2015 Financial Summary
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Q2 2015 Key Metrics
Q2 2015 Q2 2014% Y-O-Y
GROWTH
# of Advertisers 208 156 +33%
Average Revenue Per Advertiser $235K $236K (1%)
Average Revenue Per Top 30 Strategic
Advertiser$1.1M $791K +41%
Pharma Advertising Revenue $38.0M $28.5M +33%
Acquisition of
Tea Leaves Health
The leading SaaS-based
marketing and analytics CRM
used by hospital systems
to identify and engage
consumers and physicians
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What Is Tea Leaves Health?
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A Large Revenue Opportunity
Direct access to $2 billion dollars in annual
hospital marketing spend, a fast-growing opportunity
Source: Kantar Media, 2015
$1.0
$2.0
$3.0
2010 2011 2012 2013 2014
15.8%
CAGR
Annual Hospital System Marketing Spend($ in billions)
The Tea Leaves Health CRM Solution
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IDENTIFY
Target high-value
patients and physicians
using first- and third-
party data
ENGAGE
Create and deploy
segmented, engaging
marketing campaigns
MEASURE ROI
Use data and
analytics to prove out
the efficacy of
marketing programs
Case Study: Patient Acquisition
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CUSTOMER
Large medical center
San Antonio, TX
1,000 Beds
Goal to drive new
patients to cardiology
services
SOLUTION
Tea Leaves Health CRM to identify and engage 10,000
potential patients
First- and third-party data
Resulted in 1,200 patient engagements and ROI in excess of
10:1
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Why Acquire Tea Leaves Health?
New and large market opportunity
New premier customer base
SaaS-based recurring revenue model
Leverages existing core assets
Tea Leaves Health
Going Forward
Continue to gain share in the large hospital
system market
Leverage EVDY’s content, audience, data, and
digital marketing capabilities
Cross-selling opportunities with existing EVDY
customers
Expand Tea Leaves Health solution to small- and
mid-market pharma
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The EVDY Vision
We operate the leading digital marketing and
communications platform for healthcare
marketers who want to engage with
consumers or health care professionals.
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PHARMA
COMPANIES
PAYERS /
EMPLOYERS
PROVIDERSCPG & OTC
COMPANIES
RETAIL /
PHARMACIES
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Our Customers’ Objectives
IDENTIFY : Identifying and understanding who to reach
: Ability to access their target audienceREACH
: Creative assets and content to engage that audienceENGAGE
: Data and analytics to optimize and measure the impactMEASURE
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Customer
Relationship
Management
Audience
ContentAdvanced
Analytics
Reach
EngageMeasure
Identify
Our Solutions
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Leading Digital Marketing & Communications Platform
PHARMA
COMPANIES
PAYERS /
EMPLOYERS
PROVIDERSCPG & OTC
COMPANIES
RETAIL /
PHARMACIES
Reach
EngageMeasure
Identify
Acquisition Details
& Financials
Tea Leaves Health Key Metrics at June 30, 2015
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AT JUNE 30, 2015
# of Signed Customers 23
% of Total Customers Live ~60%
Average Annual SaaS Revenue Per Live Customer ~$300K
Tea Leaves Health Transaction Summary
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Acquisition Completed August 6, 2015
Purchase Price $30 million
> Cash on Closing $15 million
> Common Stock Escrow on Closing $4 million
> Deferred Payment Due in Cash or
Common Stock¹$11 million
Potential Earnout² Payable in March 2017 $20 million
Total Potential Purchase Price $50 million
¹ Payable within six months of closing, at EVDY’s discretion, in cash, shares of common stock, or a combination of cash and shares of common stock.
² Earnout contingent on a specific contracted amount of recurring SaaS revenue at 12/31/16 and paid 50% cash / 50% EVDY common stock. Earnout
contingent on retention of top executives, who are subject to a four-year non-compete.
We operate the leading digital marketing and
communications platform for healthcare
marketers who want to engage with
consumers or health care professionals.
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PHARMA
COMPANIES
PAYERS /
EMPLOYERS
PROVIDERSCPG & OTC
COMPANIES
RETAIL /
PHARMACIES
Full Year 2015 Financial Outlook
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Reaffirming Everyday Health total revenue guidance provided on May 11, 2015
EVDY GUIDANCEEVDY ANNUAL
GROWTH(2)
Total Revenue(1) $236.0 – $244.0M 28% – 32%
Adjusted EBITDA $46.5M – $49.5M 29% – 37%
(1) Everyday Health total revenue guidance provided on May 11, 2015
(2) Growth over full year 2014 financial results
(3) Includes approximately four and a half months estimated impact from Tea Leaves Health
Q3 2015 Financial Outlook
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(1) Growth over Q3 2014 financial results
(2) Includes approximately two months estimated impact from Tea Leaves Health
EVDY
GUIDANCE
EVDY ANNUAL
GROWTH(1)
Advertising & Sponsorship Revenue $51.5M – $56.0M 36% – 48%
Total Revenue $55.0M – $59.5M 30% – 41%
Adjusted EBITDA $9.0M – $11.0M 26% – 54%
CEO Wrap Up
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THANK YOU