nasdaq: sync driving growth in attractive digital … · key trends shaping the opportunity for...

SYNCSYNCContains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.

SYNACORNASDAQ: SYNC

DRIVING GROWTH IN ATTRACTIVE

DIGITAL MARKETS

JANUARY 2016

SYNC

1

SYNCSYNC

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-Q, as amended, 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.

Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.2

SYNC

Managed Start Experiences

/ Portal Platform

Email / Messaging Software;

Identity Management

Platform

End-to-End TVE & OTT

Video Solutions

Advertising and

Search Monetization

SYNACOR AT-A-GLANCE

NASDAQ: SYNC 400+ worldwide employees

White-label tech development, multiplatform services, and revenue partner.

Empowering our global customers to deliver curated and personalized media to engage millions of consumers

worldwide

3Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.

SYNCSYNC

SERVING INTERNET, VIDEO, COMMUNICATIONS PROVIDERS; DEVICE

MANUFACTURERS; AND ENTERPRISES

Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.

45+ TV Programmer Integrations across 100+ networks

Command and Simulation Solutions

Chile

120+ service providers, 3500+ enterprises, and 1500+ reseller partners

SYNC

4

SYNCSYNC

KEY TRENDS SHAPING THE OPPORTUNITY FOR SYNACOR


Video, Mobile and Social are key

drivers of digital engagement and

monetization

Customers seeking scale and more

revenue

High subscriber expectations

driving new services and platforms

Consumers and customers looking

to reduce complexity from content,

device, technology and distribution

proliferation

5

SYNCSYNC

INVESTMENT HIGHLIGHTS


SYNC

A Turnaround Story with Multiple

Profitable Growth Avenues

Compelling worldwide

customer platform that

extends to 120+

service providers,

3500+ enterprises,

and 1500+ reseller

Partners

New, seasoned

management team

generating strong

financial momentum

Driving a steady

increase in higher

margin, SaaS-based

and recurring revenue

businesses

Vehicle to participate

in important digital

trends – high-growth

markets that include

video, advertising,

messaging, and

mobile

SYNCSYNC

SUMMARY GROWTH AGENDA


Profitable revenue growth

Instill operating discipline

Increase value for

existing customers by

optimizing consumer

experience &

monetization

Innovate on Synacor-

as-a-platform for

advanced services

Win new customers in

current and related

verticals

Extend product

portfolio into emerging

growth areas

7SYNC

SYNCSYNC

START/PORTAL

ACCELERATING DEPLOYMENT OF OUR BETTER-DESIGNED EXPERIENCES


Note: Engagement measured by average time spent on our sites per user per month; Comscore; Q3 2015

70% of users upgraded to next-generation portal

platform, helping drive a 11% increase in year-over-

year engagement

New portal designed for engagement and

monetization

o User experience: modern, stream-based,

personalized

o Video: threaded throughout

o Mobile: responsive browser and native app

o Platform: highly-reliable, customizable

8

SYNCSYNC

EMAIL

CAPTURING SYNERGIES FROM ZIMBRA ACQUISITION

• Leader in email solutions; hundreds of millions of free and

paying users in 135 countries

• Established distribution platform of over 1000 resellers and

500 hosting providers to grow International and Enterprise

• Strengthens Synacor’s financial profile and competitiveness


+

SYNCSYNC

Synacor’s solution is a multiplatform, highly-reliable, white-label,

managed service cloud video offering with pre-integrated partnership,

acquisition, and proprietary technology

o Proprietary, award-winning, Cloud ID authentication platform

o Proprietary Metadata and Personalization platform

o Acquisition of Nimble TV for multiplatform live-linear TV and Cloud

DVR

o Strategic partnership with Siemens Convergence Creators, a

Siemens division

o Established data center, cloud services, and CDN infrastructure

o Operational support teams for content workflow, editorial, NOC

o Existing white-label clients and references

End-to-end video

solution

enabled by Synacor


TV AND OTT VIDEO SOLUTIONS

MULTIPLATFORM, HIGHLY-RELIABLE, MANAGED SERVICE

SYNCSYNC

SYNACOR HAS GROWN ADVERTISING* MONETIZATION


Index Revenue per Thousand Pageviews

* Does not include Search

Source: comScore & Company 10-Qs

A. Search

• Google partnership

• Synacor federated and optimized

search results

B. Ad Operations

• Video inventory and ad products

• Specific tooling for clients

• Mobile inventory and ad products

C. Optimization

• Yield management

• Audience targeting

D. Sales

• Direct selling high impact ad units

• Programmatic

100

193

235

Q3 2013 Q3 2014 Q3 2015

11

SEARCH & ADVERTISING

IMPROVED MONETIZATION OF TRAFFIC


COMPELLING CUSTOMER PLATFORM

WINNING NEW CUSTOMERS – SELECT Q3 2015 WINS

12

Winning and Renewing Service Provider Customers

• Announced a multiyear renewal with Grande Communications that includes Next-Gen Portal, Cloud ID Authentication, and Metadata platform for Video Search & Discovery

• A large European telecommunications service provider selected Zimbra to expand into a B2B hosted email offering

• Beat out competitors and won a public bid to deliver email for MPT - the leading service provider for Internet and mobile phones in Myanmar

• GVTC selected Synacor’s end-to-end video solution to launch an in-home and out-of-home advanced video service

Extending into International and Enterprise

• Signed one of the leading retailers in Indonesia for email

• Signed the Satish Dhawan Space Centre - the national space institute for India (like India's NASA)

• In Eastern Europe, signed the Ministry of Foreign Affairs of the Russian Federation.

• Won a public bid for email with the New York State Assembly

• Continue to sign new reseller partners – adding 61 new Value-added-Resellers and 26 new hosting providers

SYNCSYNC

GENERATING STRONGER FINANCIAL PERFORMANCE


$8M

Revenue, $Million

$105.1

$108.7

Trailing Twelve Monthsthrough Q3 2014


Adjusted EBITDA*, $Million

$1.0

$8.7



13

*Please refer to the appendix for information regarding the reconciliation of GAAP net loss to adjusted EBITDA for trailing twelve months ended September 30, 2014 and September 30, 2015.

SYNCSYNC

BUSINESS MODEL PROVIDES MULTIPLE REVENUE OPPORTUNITIES


SEARCH REVENUES FEE-BASED REVENUES

$7.4M

Cloud ID Email

$12.0M $7.0M

Video

Solutions

ADVERTISING REVENUES

$10.3M $10.3M $5.73Q14:

3Q15:


PURSUING SIGNIFICANT AND ATTRACTIVE GROWTH MARKETS

GROW ADVERTISING REVENUE

GROW INTERNATIONAL AND ENTERPRISE

GROW VIDEO SOLUTIONS REVENUE

15

$34BSEARCH AND DISPLAY3% growth in ‘16

$5.8BVIDEO31% growth in ‘16

$19BMobile42% growth in ‘16

40M+

Consumers in customerhouseholds

$26BOnline OTT and Video Revenue

181M

37M TV Everywhere Users

100% growth by ‘20

Online OTT Video Users

0.7BInternational

Business Services

28M+

Worldwide email accounts

4.3B 6% growth in ‘16

Broadband households

Sources: eMarketer, Digital TV Research, Parks Associates, Radicati - 2015 numbers

Small Businesses in the US

SYNCSYNC

INVESTMENT HIGHLIGHTS


SYNC

A Turnaround Story with Multiple

Profitable Growth Avenues

Compelling worldwide

customer platform that

extends to 120+

service providers,

3500+ enterprises,

and 1500+ reseller

Partners

New, seasoned

management team

generating strong

financial momentum

Driving a steady

increase in higher

margin, SaaS-based

and recurring revenue

businesses

Vehicle to participate

in important digital

trends – high-growth

markets that include

video, advertising,

messaging, and

mobile


THANK YOU

SYNC

17


APPENDIX

SYNC

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SYNCSYNC

ADJUSTED EBITDA RECONCILIATION – TRAILING TWELVE MONTH

PERIODS


$8M

19

Q4 2013 Q1 2014 Q2 2014 Q3 2014 TTM 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 TTM 2015

Revenue 29,406 25,248 24,191 26,231 105,076 30,910 26,730 24,716 26,351 108,707

Net Loss 173 (2,056) (1,868) (2,596) (6,347) (6,418) (1,073) (1,082) (931) (9,504)

Provision (Benefit) for income taxes 313 (684) (641) (1,288) (2,300) 7,434 4 16 10 7,464

Interest expense 54 88 23 75 240 32 50 59 35 176

Other (income) expense 7 (8) (6) 14 7 29 16 (17) 32 60

Depreciation 1,262 1,058 1,117 1,133 4,570 1,818 1,496 1,660 1,560 6,534

Stock-based copensation 699 681 847 1,226 3,453 841 742 800 810 3,193

Loss in equity interest 246 246 344 239 1,075 234 32 25 - 291

Gain on sale of domain - - (1,000) - (1,000) - - - - -

RIF - - - 1,260 1,260 - - - - -

Zimbra Acquisition costs - - - - - - - - 478 478

Adjusted EBITDA 2,754 (675) (1,184) 63 958 3,971 1,267 1,461 1,994 8,693

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