Full Press Release Details
Investor Relations Presentation
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, about Atrinsic ( ATRN ) and its affiliates. Forward-looking
statements are statements that are
not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of ATRN's
management, are subject to risks and uncertainties, which could cause actual results to differ from the
looking statements. The following factors, among others, could cause actual results to differ from those set forth in
the forward-looking statements: general economic conditions; geopolitical events and regulatory changes;
changes adversely affecting the businesses in which ATRN is engaged; demand for the products
and services that ATRN provides, as well as other relevant risks detailed in ATRN's filings with the Securities and
Exchange Commission. The information set
forth herein should be read in light of such risks. ATRN assumes no
obligation to update the information contained herein.
Adjusted EBITDA presented for all periods is a non-GAAP financial measure. Refer to Supplemental Disclosure
regarding Non-GAAP Measures, presented in the Company s most recent quarterly earnings
release, available at
http://www.atrinsic.com/press/press-release/38, and filed with the Securities & Exchange Commission
K, for additional information regarding Adjusted EBITDA and other non-GAAP financial measures presented
Forward Looking Statement
We have a recurring revenue, subscription-
based direct-to-consumer business model
Recognizable and relevant entertainment
We offer alternative billing capabilities
Our focus is on digital music in the rapidly
growing mobile space
Direct-to-Consumer Subscriptions:
We are a top ten search agency according to
We offer advertisers an integrated service offering
across paid search, SEO, display, affiliate marketing,
business intelligence and brand protection services
We work with all facets of advertisers, large and
small, to acquire customers and expand markets
Interactive Agency/Affiliate Network:
Atrinsic Interactive
We are a best-in-class search agency that
owns/operates a top-tier affiliate network
To build and sustain a large and profitable subscriber base and a growing and engaged
Atrinsic Interactive s Business Mission
To become the largest, independent search marketing agency
To become a top five affiliate network
To leverage our multi-channel marketing expertise and technology to drive advertisers results
Direct-to Consumer Subscriptions: Kazaa
Deliver entertainment content to our customers anywhere, anytime, and on any device in a
manner our customers choose
We currently have 217,000 paying subscribers
(3Q 2010) across our entertainment products
We have approximately 64,000 Kazaa
subscribers (3Q 2010)
Ticker: ATRN (ATRND until 1/3/10)
Exchange: Nasdaq Global Market
Average Daily Volume: 38,000 shares
Shares Outstanding: 6.3 million
Recent Market Cap: $11 million
Cash (3Q 2010): $4.2 million (additional
$2.7MM in cash tax refunds
Working Capital: $6.0 million
3Q 2010 Revenue: $9.2 million
2010 Revenue (YTD): $32 million
We are a top ten search agency according to
We will have approximately 60 employees,
transitioning to a single location in NY by 1Q
As a result of restructuring and focus, we
expect to achieve fixed operating expense cost
savings of between 30% to 50%
ARPU of $5.74 across all of our subscription
Due to improvements in churn and higher rates
of subscriber acquisition, we expect 10%
month-over-month growth in Kazaa subs
Atrinsic Interactive
We are a top ten search agency according to
We offer advertisers an integrated service offering
across paid search, SEO, display, affiliate marketing,
business intelligence and brand protection services.
We are focused on targeting and maintaining clients
that participate across the agency services, including
search and affiliate marketing.
CROSS CHANNEL REPORTING
The Atrinsic Affiliate Network uses state of the art
business intelligence tools for brand protection and to
identify common publisher violations.
The paid search team utilizes highly intelligent search
tools to drive sales at the lowest cost for advertisers.
Our multi-channel path to conversions enables us to see
the entire conversion funnel across any online marketing
channel. We have the ability to take the proverbial black
box out of the conversion
Atrinsic Affiliate Network
Representing an evolution in affiliate marketing platforms, our platform offers a
full- service solution while maintaining the highest level of brand protection.
Using our affiliate network, we create mutually beneficial, easy partnerships for
advertisers and publishers to drive website traffic and customer acquisition.
Our Network is low-risk, yet high-reward. Our software increases transparency
between publishers and advertisers, giving both parties access to higher
Through the use of comprehensive reporting, trademark monitoring and
proprietary business intelligence tools, our team is able to identify
opportunities and flag potential issues before they become brand destructive.
We hope that in the future, Kazaa will be one of our largest advertisers on the
On October 13, 2010, we amended our existing Kazaa marketing agreements with Brilliant Digital in exchange
for 4,161,430 shares of our common stock. We also entered into an agreement to acquire all of the assets of
Brilliant Digital that relate to the Kazaa digital music subscription business for an additional 7,125,665 shares.