Jun 27, 2015
Our visionIncrease websites business performance by playing personalized background music
2 / 21
Fast factsGenerating revenue , 15% increase in customer's performance
Over 700 business customers, growing at ~40% a month
Launched in July 2013, B2B SaaS model, two granted patents
Bill Boyd, former CEO of Muzak* on our advisory board
Five employees, raised $750K from Capital Point Ltd
* World leader in business music
3 / 21
10M businesses play background music to 1B people each day
Gallup Survay33%
Muzak research
97%
increase in sales when in-store music is played
of brands think that music creates emotional engagement and strengthen their brand
Sound Like Branding Research
11%
of consumers claim that music influenced their decision to purchase
4 / 21
5 / 21
righTune leverages this for the online world
5 / 196 / 21
Our solutionEnd-to-end, personalized, background music service (SaaS) for websites.
Continuous fresh, enhanced playlists according to actual measured results.
Customer dashboard with details on what we played and its business impact
Easy, one-minute technical integration (cut & paste of code snippet).
Real time, machine learning algorithm that chooses playlist for each new user tailored to:
Website’s content, brand value and target audience
Knowledge of users’ actual behavior while hearing music for each website, playlist and users’ profile
Website’s business goal (e.g. transactions, leads, staying time)
User’s profile
Measureable resultsMain Objective: Increase conversion rate
12.1%visit duration (% change) conversion rate (% change) 14.6%
7 / 21
(actual results from 700+ customers)
15% increaseAverage increase in websites performance using righTune
8 / 21
Key benefit:Increase revenues & brand loyalty
Our music adds deep emotional dimension to website’s content
and drives commerce
Reinforce brand values and create an unforgettable
user experience
Higher engagement level, increase in staying time, page
views & conversion rate
9 / 21
We’re growing fast!Number of websites using righTune
~40% average monthly growth
10 / 21
AprMar 0
100
200
300
400
500
600
700
10 23 4782 109
154226
308
603
427
11/ 21
customer acquisition channels Current
60%Distribution PartnersE-commerce platforms: Magento,
Virtuemart. Content Platforms (CMS): WordPress, Joomla, Drupal
30%Viral acquisition
Referral from existing customers
10%Direct
Advertisement, SEO, SNM
12 / 21
According to actual measurements of over1M users, less than 7% mute our music!
But, people don’t like music on websites, no?
The music is relevant to the content and adds additional dimension, like the music in the movies
Not intrusive - Our Music is played in relative low volume and can be muted easily
No delay on page load time - The music is streamed only after the page is loaded
It works! we increase website's business performance by 15%
13 / 21
The value we generatefor a typical customer
We accommodate a subscription based business model
100K sessions a month @ 1% conversion rate 1,000 transactions
15% increase in conversion rate150 additional monthly transactions
$1,500 additional monthly gross revenue (@ $10 gross per transaction)
We charge such a business only $200 a month
$200
14 / 21
A global market $1.5BN Annual Opportunity
Addressable market:
Market is growing at 15% a year
Top 1M brands, content website s
500,000 ecommerce websites worldwide (with >$12K annual revenue)
ARPU for SMB customer - $300 ( X 1,200,000 websites)
ARPU for large/corporate customer - $4K ( X 300,000 websites)
15 / 21
Our BIG visionCreate emotional connection that drives
commerce in every commercial channel:
Online websitesBrick & mortar stores using our recommendation
engine
16/ 21
Financials
Revenue
COGS
Gross ProfitGross Margin
OperatingExpenses
EBITDA
2014
29,400
16,718
12,682
418,250
43%
-405,568
2015
795,828
318,963
476,865
1,467,250
60%
-990,385
2016
5,663,104
1,577,900
4,085,204
2,764,000
72%
1,321,204
2017
16,412,087
3,271,652
13,140,435
5,533,500
80%
7,606,935
31,531,160
4,694,838
26,836,32285%
9,465,250
17,371,072
2018
17 / 21
Positioning & competition Online, personalized solution
B2Cconsumer focus
B2Bbusiness focus
Brick & mortar solution
18/ 21
Technology & IP
Big data solution based on knowledge system
Machine learning algorithm to predict users’ behavior for every potential playlist
Two granted US Patents and more in the pipeline
19/ 21
Working in harmony
Genady TrifonCTO
CTO at Sparkeo, online video platform
Technical leader at Ava, worldwide leading on-line forex trading brokerDeveloper at SuperDerivatives, cloud-based derivatives data & technology industry
Omer TayarChief music editor
8 years experience as a business music editor
Performing DJ and music producerLecturer in a leading music school
Erez PerlmuterFounder & CEO
VP Bizdev at Kasamba.com, acquired by LivePerson for $40M
Co-founder & VP bizdev of P1000, a leading ecommerce platformMajor in elite tech-unit of the Israeli Air Force
Bill BoydAdvisory board member
Former CEO and Chairman of Muzak
Muzak is the world leader in business music serving over 500,000 businesses 30 years experience in the business music industry, working with top US brands
20 /21
Unique solution for a huge, growing market
Proven value to customers with early traction
Strong, patented technology
Focused, experienced team
Highlights
Machine learning algorithm to predict users’ behavior for every potential playlist
Erez [email protected] +972-54-7644076