discotech investor presentation 4 1-16
TRANSCRIPT
Discotech OpenTable for Nightlife
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For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]
Nightlife Market is Ripe for Disruption
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1%
99%
Traditional Promoters Other
Nightlife reservation market is comprised of 100,000+ individual promoters (human
middlemen) and is highly fragmented
Discotech will disrupt the nightlife industry the same way that Priceline and Kayak
disrupted the travel industry
Then Now
$25B Global Market
Why Discotech?
Texting and calling club promoters to get information and access to nightlife
venues is non-transparent and inefficient.
Typical customer experience
2
Nightlife venue pain points
Large teams of individual promoters are hard to manage, unreliable, and
difficult to scale. Data collection and analytics non-existent.
The nightlife app for millennials
Discotech aggregates venue and event information all in one place - Making it easy to discover local attractions.
Discotech provides users with pricing options for tables and tickets directly on the app. Customers no longer need to text and call multiple promoters for quotes.
Discotech allows users to make reservations, purchase tickets, and receive confirmation with a few simple clicks.
INFORMATION TRANSPARENCY EFFICIENCY
Discotech changes that experience
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Venue Partners
Discotech is currently working with over 100 venues in Los Angeles, Las Vegas, and San Francisco. Our partners include 7 of the top 10 largest clubs in the country.
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Mobile App % % % %
Event Discovery % % % % %
Table Booking % % % % %
Guest List %
Ticket Sales % %
Loyalty Program % %
Competition
Discotech is the only “One-Stop Shop” for Nightlife Booking
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Discotech & Wantickets Partnership
In January of 2015, Discotech entered into a partnership with Wantickets to roll out the app on a world wide basis. Wantickets will provide Discotech with access to all of its ticketing inventory, including to venues where it has exclusive partnerships.
Wantickets is the largest ticketing provider in the nightlife/EDM space, working with over 1,000 venues in the U.S and 1,300 world wide.
Partnership with Wantickets gives us instant national distribution
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Exclusive Ticketing Partnerships
Wantickets is the exclusive ticketing provider for the country’s largest venues
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10-20+% commissions on revenue booked
$3-7 commission per guestlist attendee
15-20% service fee commission on ticket sales (charged to the end customer)
$1-10 per guest “bounty” for some tickets
TABLE BOOKINGSGUESTLIST TICKETING
K
Primary Revenue Model
*a
8
Monthly bookings have grown significantly
$0
$50,000
$100,000
$150,000
$200,000
Jan'1
4Mar'
14
May'14
Jul'14
Sept'1
4
Nov'14
Jan'1
5Mar'
15
May'15
Jul'15
Sep'15
Nov'15
Jan'1
6Mar'
16
$183,317
$108,219
$134,164
$117,155
$97,332
$137,341$139,975
$161,867$160,238$148,759
$110,609$99,993
$61,861
$34,465$37,610$38,566$29,863
$41,819$51,262
$41,047$45,834
$27,377$25,631$16,769$13,103$7,025$8,606
Dollars ($)
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Note: Summer seasonality is due to the presence of day parties and pool parties. Average selling prices are also higher during the summer.
Gross Profit vs. Marketing Spend (Monthly)
$0
$5,000
$10,000
$15,000
$20,000
Nov'13
Jan'1
4Mar'
14
May'14
Jul'14
Sep'14
Nov'14
Jan'1
5Mar'
15
May'15
Jul'15
Sep'15
Nov'15
Jan'1
6Mar'
16
Marketing Spend (monthly) Gross Profit (monthly)
Dollars ($)
Monthly contribution continues to grow without marketing spend
10
Guest list usage & retention improved across cohorts
0
0.125
0.25
0.375
0.5
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
19-21 months16-18 months13-15 months10-12 months7-9 months4-6 months1-3 months
Guest list sign ups per download
Time Joined
Cohort analysis - Guest list sign ups
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0
1,250
2,500
3,750
5,000
Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16
150621478
730
9221,136
9691,262
4,799
3,8164,249
3,364
2,8012,8203,275
3,8123,6443,531
2,443
1,3821,282792
516
Organic DownloadsPaid Downloads
Paid vs. Organic Downloads
# of downloads
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Discotech organic downloads have grown considerably over time
1,778
4,249
1,761
2,4182,304
4,009
% Organic 100%29% 45% 53% 60% 77% 87%
3,173
4,265
88%
3,962
96%
3,275
2,820 2,801
3,364
100% 100% 100% 100%
3,816
4,799
100% 100%
We are targeting a $1.0M round of financing
Use of Funds (18 months): • $270K Management Salaries (3 Founders) • $500K Product Development (Hire Three Developers) • $120K Sales and Operations (Hire 2 Sales / Ops Associates) • $110K Customer Acquisition / Marketing • Total: $1.0M
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We want to invest heavily in our technology to add social features and growth hacks to supercharge our organic growth. We also want to further develop our data analytics capabilities.
Product Roadmap
Social Features • See where your friends are going • Notifications when your friends make an action • “Invite a Friend” growth hack • Split the bill
Web app development • Implement full app functionality to website • Website received 19K+ unique visitors in July, 2015
Merchant functionality and data analytics • Track & analyze customer preferences and spending patterns • Basic Merchant CRM • Event and Inventory API (For B2B purposes) 14
4-6 months
3-4 months
Discotech will be THE lifestyle app for nightlife
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We are establishing our first beach front in the night club market because of its severe need
for disruption. After penetrating tier 1 markets in this industry, we plan to expand our offering
to include:
$25B Nightclub
Market • Music Festivals • Bars • Lounges • Live music venues (i.e, jazz bars)
$100B+Nightlife Market
The Team
Ian Chen (Co-Founder) CEO Private Equity @ Gores Group, Management Consulting @ Bain
Mark Wu (Co-Founder) COO Marketing & User Acquisition @ Zoosk
Ian Bushong (Co-Founder) CTO Engineer @ Ambarella
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Advisors
Jim Yang CEO @ Gather
Founder and CEO @ Identyx (Identyx acquired by Red Hat)
Advisor @ Mobicents and TeleStax Early Investor @ Refinery29
Diego Carlin CEO @ Wantickets
Co-Founder @ Hot Air LLC President @ Sound in Color
Director @ Abound
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Raffi Krikorian Engineering Lead @ Uber
VP of Engineering @ Twitter Co-Founder @ WattzOn
Thank You
For Additional Information, please contact Ian Chen
Cell: 301-793-0186
Email: [email protected]
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Monthly cost per customer
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
Nov'13
Jan'1
4Mar'
14
May'14
Jul'14
Sep'14
Nov'14
Jan'1
5Mar'
15
May'15
Jul'15
Cost per customer (monthly)
Dollars ($)
2014 avg - $51.36
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Monthly cost per paying customer has declined significantly in 2015
2015 avg - $26.53
Customer LTV is on the rise
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
Nov'13
Jan'1
4Mar'
14
May'14
Jul'14
Sep'14
Nov'14
Jan'1
5Mar'
15
May'15
Jul'15
Customer LTV (monthly)
Dollars ($)
21
Customer LTV is $49.09 at the end of August and has been growing consistently
Website traffic is growing
0
7,500
15,000
22,500
30,000
Jan'15 Feb'15 March'15 April'15 May'15 June'15 July'15 Aug'15
23,82023,770
19,218
13,48012,290
8,941
4,0563,009
# of unique visitors
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Guestlist Signups growing
0
5,000
10,000
15,000
20,000
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Jan'15
9,142
16,538
18,530
12,386
6,742
4,7544,2712,730
1,075
# of Guest List Sign Ups
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*Decline in guest list sign ups in Q4’15 is a function of day parties & pool parties closing in the winter. Pool parties typically re-open in March.
Revenue has grown significantly YoY from 2014
0%
175%
350%
525%
700%
Jan'1
5Fe
b'15
March'1
5
April'15
May'15
June
'15
July'1
5
Augus
t'15
Sept'1
5Oct'
15
494%
309%
418%
244%
552%
453%
632%
499%485%443%
% Revenue Growth
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*Gross Revenue is a combination of table bookings, gross ticket sales, and guest list commission. Note: Summer/ Pool season ends in September.
Discotech Burn Rate
Discotech has been extremely lean since our inception
25
*Note: Founders have not drawn salary since founding of company
Part 1 Expenses SG&A Total
Aug-13 $918.58 $8,500.00 $9,418.58
Sep-13 $3,264.64 $10,000.00 $13,264.64
Oct-13 $5,177.28 $11,500.00 $16,677.28
Nov-13 $4,481.71 $0.00 $4,481.71
Dec-13 $1,920.63 $11,000.00 $12,920.63
Jan-14 $5,427.93 $5,000.00 $10,427.93
Feb-14 $5,058.05 $5,600.00 $10,658.05
Mar-14 $12,834.73 $8,500.00 $21,334.73
Apr-14 $9,209.06 $9,500.00 $18,709.06
May-14 $10,878.88 $6,925.00 $17,803.88
Jun-14 $7,511.83 $4,358.00 $11,869.83
Jul-14 $7,591.01 $3,000.00 $10,591.01
Expenses SG&A Total
Aug-14 $8,133.78 $7,319.30 $15,453.08
Sep-14 $7,494.18 $7,330.70 $14,824.88
Oct-14 $6,984.88 $9,436.55 $16,421.43
Nov-14 $4,723.31 $10,099.40 $14,822.71
Dec-14 $2,381.23 $13,488.44 $15,869.67
Jan-15 $8,547.39 $20,114.22 $28,661.61
Feb-15 $7,957.10 $15,691.35 $23,648.45
Mar-15 $8,810.71 $15,509.19 $24,319.90
Apr-15 $5,307.58 $55,096.59 $60,404.17
May-15 $4,974.21 $8,608.50 $13,582.71
Jun-15 $4,225.57 $4,408.28 $8,633.85
Jul-15 $5,771.99 $11,625.00 $17,396.99
Aug-15 $2,519.94 $11,750.00 $14,269.94
Discotech Geographical Expansion Plan
Cities where we have most club venues
Cities where we have some presence Next 5 Cities Next 10 Cities
Los Angeles Washington D.C San Diego Austin
Las Vegas Miami New York City Atlanta
San Francisco Chicago Boston
Seattle Dallas
Toronto Philadelphia
Montreal
Orlando
Phoenix
Vancouver 26
Repeat Customers - Bottle Service
27
0%
25%
50%
75%
100%
Total Bottle Service Users Bottle Service Sales ($)
41.3%24.6%
58.7%
75.4%
Single use customers Repeat Customers
Repeat customers make up a substantial portion of our overall bottle service sales
Repeat Customers - Tickets
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0%
25%
50%
75%
100%
Unique Ticket Customers Tickets Sold
59.7%24.3%
40.3%
75.7%
Single purchase customers Repeat Customers
Repeat ticket customers comprise the majority of our total ticket sales
*Note: As of February 17th, 2016
Discotech Guest List Feature is Sticky
0%
25%
50%
75%
100%
% of GL Bookings
87%
13%
One-time Users Repeat Users
Guest List
Since inception, we have had significant repeat usage of our guest list
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Monthly cost per download
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Jan'1
4Fe
b'14Mar'
14Apr'1
4
May'14
Jun'1
4Ju
l'14
Aug'14
Sep'14
Oct'14
Nov'14
Dec'14
Jan'1
5Fe
b'15Mar'
15Apr'1
5
May'15
Jun'1
5Ju
l'15
Aug'15
Cost per download (monthly)
Dollars ($)
2014 Avg - $2.17
30
Monthly cost per download has declined significantly
2015 Avg - $1.00