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We use non-GAAP financial measures in evaluating our financial performance. Please refer to the press release we issued today for how we define such non-GAAP measures and our reasons for using them as well as a detailed review of our fourth quarter and full year 2011 results including the corresponding GAAP financial measures and a reconciliation of our non-GAAP financial measures to GAAP financial measures.This conference call is publicly available via audio webcast through our website and a replay of the call will be available for the next 90 days. I'd now like to turn the call over to our CEO, Heath Clarke. Heath Clarke Thanks Janine. I'd like to welcome Janine Zanelli who recently joined Local to lead our Investor Relations effort. So please feel free to contact Janine, Ken or myself anytime. Over the past five years, we've grown from a single website to a local online media business powering over 1,000 websites and touching a million consumers a day. The first half of 2011 was challenging, yet we delivered on our guidance that we would turn things around sharply in the second half. We grew our business 64% between Q2 and Q4 and ended the year with record revenues and exceeding both revenue and adjusted net income guidance. We believe we ended 2012 better positioned than ever before with a strong and focused leadership team, key industry partnerships, greatly improved sales capabilities, a broader product range than we've ever had, overall traffic and organic traffic at or near record levels, record monetization, more diversified partner revenue, record proprietary revenue and a more powerful and proprietary technology platform than we've ever had. We operate in a very competitive environment, yet we have three key reasons to feel confident about our prospects. First, we benefit from the secular trend by advertisers transitioning spend away from print and towards digital media. Second, we believe we have the right set of assets to capture these transitioning ad dollars and third, we believe we've demonstrated an ability to adapt and actively compete in this rapidly evolving marketplace. Let me talk about each of these in more detail.
Firstly secular trends. More consumers are spending more time online and quite simply, advertising in the US is going digital in order to reach those consumers. Between 2010 and 2015 old media advertising declined at the rate of 1% or about $1 billion per year but in that same time frame, digital media will grow from 15 to 25% of all local advertising or from 20 to $38 billion generating a compound annual revenue growth of nearly 14%. This year is the first time in history that digital ad spend is forecast to exceed print ad spend in the US. So you can see that digital media companies benefit from these secular ad trends. And Local Corporation's advantage goes deeper than this to also capitalize on the revolution occurring within digital media itself.Because consumers spend about 80% of their household income within 20 miles of their homes, advertisers want to target those consumers locally. And this need is shifting digital ad spend towards local digital in key segments. For example, local search advertising will grow from 29% of all search to 35% of all search between 2010 and 2015 or $5 billion to $9 billion in spend representing a compound annual growth rate of nearly 12%. Over that same time, local display advertising will grow from 20% to 30% of all display or from $2 billion to $5 billion representing a compound annual revenue growth rate of nearly 20%. Local rich media, a segment within local display is forecast to grow even faster at 50% per year through 2015 and finally daily deals and innovative local ad segments that didn't even exist a few years ago is projected to grow about 37% per year in that time frame increasing from $900 million in 2010 to $4.2 billion in 2015. Read the rest of this transcript for free on seekingalpha.com