discotech investor presentation 7 2-15
TRANSCRIPT
Discotech OpenTable for Nightlife
1
For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]
Nightlife Market is Ripe for Disruption
1
1%
99%
Traditional Promoters Other
Nightlife reservation market is comprised of 100,000+ individual promoters and is
highly fragmented
Discotech will disrupt the nightlife industry the same way that Priceline and Kayak
disrupted the travel industry
Then Now
$20B Global Market
Why Discotech?
Texting and calling club promoters to get into nightlife venues is outdated and inefficient
Typical nightlife experience
2
The nightlife app for millennials
Discotech allows users to find nightlife events in their area. The app uses location services to deliver what is happening near the user.
Users can make table reservations in just a few taps on their phone. Discotech’s booking system brings transparency and convenience to the table reservation process.
Discotech allows users to sign up and add their friends to guestlists. Discotech will also be integrated with Wantickets to sell tickets to venues directly on the app.
DISCOVERY BOTTLE SERVICE GUESTLIST & TICKETING
Discotech changes that experience
3
Venue Partners
Discotech is currently working with over 80 venues in Los Angeles, Las Vegas, and San Francisco. Our partners include 7 of the top 10 largest clubs in the country.
4
Mobile App % % % %
Event Discovery % % % % %
Table Booking % % % % %
Guest List %
Ticket Sales %
Loyalty Program % %
Competition
Discotech is the only “One-Stop Shop” for Nightlife Booking
5
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
6
Exclusive Ticketing Partnerships
Wantickets is the exclusive ticketing provider for the country’s largest venues
7
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
Revenue has grown significantly in 2015
$0
$40,000
$80,000
$120,000
$160,000
Jan'1
5Fe
b'15
March'1
5
April'15
May'15
June
'15
$146,879
$113,965$101,493
$61,861
$34,465$37,610
Dollars ($)
10
*Revenue is a combination of table bookings, gross ticket sales, and guest list commission
Guestlist Signups
0
3,500
7,000
10,500
14,000
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15
12,386
6,742
4,7544,271
2,730
1,075
# of Guest List Sign Ups
11
Gross Margin vs. Marketing Spend (Monthly)
$0
$3,500
$7,000
$10,500
$14,000
Nov'13
Jan'1
4Mar'
14
May'14
Jul'14
Sep'14
Nov'14
Jan'1
5Mar'
15
May'15
Marketing Spend (monthly) Gross Margin (monthly)
Dollars ($)
Monthly contribution has surpassed monthly marketing spend since July of 2014
12
Cohort analysis - Table Booking Dollars
$0.00
$2.00
$4.00
$6.00
$8.00
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months
Table Booking Dollars per download ($’s)
Time Joined
13
Table booking dollars per download has grown significantly across cohorts
Monthly cost per download
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Nov'13
Dec'13
Jan'1
4Fe
b'14Mar'
14Apr'1
4
May'14
Jun'1
4Ju
l'14
Aug'14
Sep'14
Oct'14
Nov'14
Dec'14
Jan'1
5Fe
b'15Mar'
15Apr'1
5
May'15
Jun'1
5
Cost per download (monthly)
Dollars ($)
avg - $2.01
14
Monthly cost per download has declined significantly across last 5 months
0
1,250
2,500
3,750
5,000
Dec'14 Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15
478
730
9221,136
9691,2621,187
3,531
2,443
1,3821,282792
516375Organic DownloadsPaid Downloads
Paid vs. Organic Downloads
# of downloads
15
Average cost per download has decreased due to growth of organic downloads
1,5621,778 1,761
2,418 2,304
4,009
% Organic 24% 29% 45% 53% 60% 77% 87%
3,173
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
16
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
17
Patrick Sarkissian CEO @ SM
Co-Owner @ Scion Group Founder @ ONEArmenia
Thank You
For Additional Information, please contact Ian Chen
Cell: 301-793-0186
Email: [email protected]
19
Cohort analysis - Table Bookings
0%
0.175%
0.35%
0.525%
0.7%
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months
Table Bookings per download
Time Joined
Number of table bookings has also grown across cohorts
21
Cohort analysis - Guest List
0
0.1
0.2
0.3
0.4
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
16-17 months13-15 months10-12 months7-9 months4-6 months1-3 months
Guest list sign ups per download
Time Joined
Guest list usage and retention has grown significantly over time
22
Discotech is Sticky
0%
25%
50%
75%
100%
% of Boo
kings
34%
66%
One-time Users Repeat Users
0%
25%
50%
75%
100%
% of Boo
kings
87%
13%
Bottle Service Guest List
Since inception, we have had significant repeat usage in bottle service and guest list
23
Discotech Burn Rate
Expenses SG&A Total Aug-13 $919 $8,500 $9,419 Sep-13 $3,265 $10,000 $13,265 Oct-13 $5,177 $11,500 $16,677 Nov-13 $4,482 $0 $4,482 Dec-13 $2,223 $11,000 $13,223 Jan-14 $5,125 $5,000 $10,125 Feb-14 $5,058 $5,600 $10,658 Mar-14 $12,835 $8,500 $21,335 Apr-14 $9,209 $9,600 $18,809
May-14 $10,879 $6,925 $17,804 Jun-14 $7,512 $4,358 $11,870 Jul-14 $7,591 $3,000 $10,591
Aug-14 $8,134 $7,319 $15,453 Sep-14 $7,494 $7,331 $14,825 Oct-14 $6,985 $9,437 $16,421 Nov-14 $4,649 $9,339 $13,987 Dec-14 $2,261 $13,488 $15,749 Jan-15 $8,493 $20,114 $28,607 Feb-15 $5,620 $15,691 $21,312
Total $117,910 $166,702 $284,612
Discotech has been extremely lean since our inception
24
Discotech Geographical Expansion Plan
Cities where we have most club venues
Cities where we have some presence Next 5 Cities Next 10 Cities
Los Angeles Washington D.C San Diego Austin
Las Vegas Miami New York City Atlanta
San Francisco Chicago Boston
Seattle Dallas
Toronto Philadelphia
Montreal
Orlando
Phoenix
Vancouver 25
Financial Projection
($’s in 000’s) 2013 2014 2015 2016 2017 2018
Total Bookings $8 $414 $2,282 $16,543 $60,522 $151,100
Gross Margin $1 $45 $267 $2,225 $9,575 $24,204
OPEX $67 $178 $972 $2,963 $5,987 $10,332
EBIT ($66) ($133) ($705) ($738) $3,588 $13,872
Investment $425 0 $1,500 0 0 0
Cash Balance $359 $226 $1,021 $283 $3,871 $17,743
26
Recent Acquisitions in Space
$280M
$1.6B
$2.6B
$1.8B
Acquired Amount Date
June 2014
$658M
Buyer
June 2013
Jan 2015
July 2014
Feb 2015
0.7x
1.9x
13.7x
6.1x
4.5x
Sales Mult. EBIT Mult.
-9.8x
25.8x
56.0x
45.2x
8.9x27