Icr conference 1.12.16 final

© 2015 XO GROUP INC. ALL RIGHTS RESERVED.
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This presentation may contain projections or other forward-looking statements regarding future events or our future financial performance or
estimates regarding third parties. These statements are only estimates or predictions and reflect our current beliefs and expectations. Actual
events or results may differ materially from those contained in the estimates, projections or forward-looking statements. It is routine for internal
projections and expectations to change as the quarter progresses, and therefore it should be clearly understood that the internal projections and
beliefs upon which we base our expectations may change prior to the end of the quarter. Although these expectations may change, we will not
necessarily inform you if they do. Our policy is to provide expectations not more than once per quarter, and not to update that information until
the next quarter. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein
include, without limitation, (i) our online wedding-related and other websites, mobile and other digital properties may fail to generate sufficient
revenue to survive over the long term, (ii) we incurred losses for many years following our inception and may incur losses in the future, (iii) we
may be unable to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) efforts to launch new or upgrading existing
technology and features may not generate significant new revenue or may reduce revenue from existing services, (v) we may be unable to
develop solutions that generate revenue from advertising and other services delivered to mobile phones and wireless devices, (vi) the significant
fluctuation to which our quarterly revenue and operating results are subject, (vii) the seasonality of the wedding industry, (viii) our operations are
dependent on Internet search engine rankings, and our ability to influence those rankings is limited, (ix) the dependence of our registry and
commerce services business on third parties, (x) increased competition in our markets could reduce our market share, and (xi) other factors
detailed in documents we file from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are
made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
This presentation includes certain "Non-GAAP financial information." A reconciliation of such information
the most directly comparable GAAP data can be found at the end of this presentation.
SAFE HARBOR

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• #1 online wedding property; growing baby property
• Replenishing audience in an attractive demographic
• Strong multi-platform brand built over 19 years
• Diversified revenue streams
• ~80% of the executive management team assembled
over the past 2.5 years
- ~50% of the broader leadership team assembled
• Revamped business operations
• Upgraded user products and underlying technology
• Expanding market opportunity with new offerings
• Balanced capital allocation while transforming business
• New double digit revenue growth target model
- Average revenue growth 2010 – YTD 9/30/2015 ~5%
• New adjusted EBITDA margin target of 20%+
- While investing in the company, delivered adjusted
EBITDA margin of 19% from 2014 - YTD 9/30/2015
INVESTMENT OPPORTUNITY

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TOGETHER.
transformative lifestages

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XO GROUP AT A GLANCE
$103M YTD September 30, 2015 and Respective % of Revenue
*as of September 30, 2015
The Nest:
The Bump:
The Knot:
Local Online:
National Online:
Publishing + Other:
Guest and Commerce
Transactions:
Merchandise (exited Q1 2015):
Full Year 2014 Revenue by Brand

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STRATEGIC TRANSFORMATION UNDERWAY
Focus, Leadership, Product & Operational Excellence
Revamped
executive &
leadership team
Evaluated & took
decisive action on
non-core assets
[Ijie (The Knot China) &
Merchandise operations]
Greatly improved
our product and
technology
Made capital
allocation a
priority and set
target financial
model

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MIKE STEIB
Chief Executive Officer
Google Inc.
NBC Universal
McKinsey
GILLIAN MUNSON
Chief Financial Officer
Allen & Co.
Symbol Technologies
Morgan Stanley
KRISTIN SAVILIA
President, Local Marketplace
Linens ’n Things
Macy’s
NIC DI IORIO
Chief Technology Officer
City 24/7 LLC
Interpublic Group
of Companies (IPG)
BRENT TWORETZKY
EVP, Product
KATHY WU BRADY
EVP, E-Commerce & Registry
DHANUSHA SIVAJEE
EVP, Marketing
JENNIFER GARRETT
EVP, National Enterprise
Viacom Inc.
Mayer Brown
AOL Brand Group
Bloomberg Mobile
HBO
Vente-Privee USA
AOL
NBC Universal
Udacity
Chegg
WebMD
MICHELLE DVORKIN
EVP, Human Resources
AppNexus
Lot18
AOL
LEADERSHIP TEAM

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-10%
0%
10%
20%
2012 2013 2014 YTD 2015
Year-Over-Year Growth Rates
Revenue Non-GAAP Opex
In the midst of investment cycle:
operating expenses to grow at higher
rates than revenue growth rates
[2013-2014] Acqui-hired two award
winning mobile development teams (~$1M)
[2014] Acquired (~$5M)
[Q3 2015] Invested in & vendor
services company ($2.5M)
[Oct. 2015] Acquired (~$6M*)
INTERNAL
INVESTMENTS
STRATEGIC
ACQUISITIONS &
INVESTMENTS
OPPORTUNISTIC
STOCK
BUYBACKS
$20M authorization
Repurchased $1.6M during 2014
Repurchased $8.8 million year-to-date
through September 30, 2015
CAPITAL ALLOCATION PRIORITIES
* The total acquisition price for GigMasters is $8.5 million in cash for complete ownership of the company. Prior to the
acquisition, XO owned approximately 28 percent of GigMasters

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$14,006
$4,711
$4,350
$2,141
$1,973
$4,032
WEDDING MARKET
1 United States Census Bureau American Community Survey and The 2014 The Knot Market Intelligence’s Annual Real Weddings Survey
2 2014 Real Weddings Study
Avg. Cost Of A Wedding1
Includes engagement ring but does not include honeymoon
Local Wedding
Vendors
Annual Weddings
Per Year
Avg. Number Of
Guests Per Wedding
Wedding Industry
Market Size
Includes day -of wedding vendors, jewelry,
registry, honeymoon and other categories
Event/Wedding
Planner Venue
Band/
DJ
Photo/
Video
Florist
Avg. $ Spent In 2014 [Top 5 Wedding Verticals]2
Multiple Verticals

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THE KNOT: #1 IN WEDDINGS
Unique Visitor Source: comScore Multi Platform
0
0.6
0.7
1.9
2.3
4.3
10.0
Zola / Loverly / Appy Couple
Martha Stewart Weddings
MyWedding
Brides.com
Wedding Bee
Wedding Wire Network
The Knot Wedding Network
[+66%]
[(15%)]
[+53%]
[(19%)]
[+77%]
Does not meet minimum reporting requirements
Unique Visitors Monthly Average (In Millions) With Year-Over-Year % Growth
[9 months ended September 30, 2015]

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IN ADDITION TO MAXIMIZING OUR MEDIA OPPORTUNITY,
WE HAVE A LONG-TERM AMBITION TO UNLOCK A SIGNIFICANT
MARKET OPPORTUNITY WITH TRANSACTIONS.
Advertising
Market
Transactions
+ Advertising
* image is not intended reflect revenue projections or scale
Q3 Online Adverting Revenue Growth: +13% Y/Y
Q3 Transaction Revenue Growth: +40% Y/Y

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THE WEDDING OPPORTUNITY: TODAY
* image is not intended to reflect revenue projections or scale

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THE WEDDING OPPORTUNITY: TOMORROW
* Numbers reflect market size, not revenue projections
* Data based on internal projections and 2014 Real Weddings Study

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OUR 2015 PROGRESS
The cost of love.
* Numbers reflect market size, not revenue projections
* Data based on internal projections and 2014 Real Weddings Study
* Leads data as of September 30, 2015

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THE BUMP: GROWING BABY PLATFORM
Unique Visitor Source: comScore Multi Platform;
*NCHS National Vital Health Statistics Reports and USDA report- expenditures on children
**9 months ended as of September 30, 2015
9% of REVENUE
Growing mobile user-base dramatically expands editorial and advertisers’ reach
with innovative products, services and expert advice

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The cost of love.
$MM
2008-
2013
FY
2014
2015 YTD Target Model
Net Revenue Y/Y Growth
5%
CAGR
7% (3%)*
Double digit
growth
Gross Margin %
81.0 %
avg.
85.2% 92.7% 90-95%
Adj. EBITDA Margin %
17.5%
avg.
17% 21% At least 20%
FINANCIAL MODEL
*2015 YTD Revenue Excluding Merchandise Operations, +10% Y/Y

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Revenue $34.7 $35.9
Gross Profit $32.7 $31.0
Margin 94.1% 86.4%
*Adjusted EBITDA $7.3 $7.1
Net Income $2.9 $2.1
Earnings per Diluted Share $0.11 $0.08
*Non-GAAP Earnings per Diluted Share $0.11 $0.09
Q3 UPDATE
• Total revenue decreased 3% year-over-year
• Total revenue excluding exited Merchandise
operations increased 10.6% year-over-year
• Transactional businesses, including Registry
and Commerce, revenue increased 40%
year-over-year
• Non-GAAP operating expenses increased
2% year-over-year
• Adjusted EBITDA increased 2.9%
year-over-year; 21% Adj. EBITDA Margin
• $86.3 million in cash
• Used $2.5 million cash during the third quarter
to make investments in Jetaport, Inc. and a
vendor services company
*Non-GAAP, please see reconciliation at the end of this presentation
Cash and cash equivalents $86.3 $90.0
Other current assets 26.9 23.5
Total Assets 193.1 193.6
Debt --- ---
Current Liabilities 26.9 28.7
Total Liabilities 32.8 35.7
Total Liabilities and Stockholders’ Equity $193.1 $193.6

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• #1 online wedding property; growing baby property
• Replenishing audience in an attractive demographic
• Strong multi-platform brand built over 19 years
• Diversified revenue streams
• ~80% of the executive management team assembled
- ~50% of the broader leadership team assembled
• Revamped business operations
• Upgraded user products and underlying technology
• Expanding market opportunity with new offerings
• Balanced capital allocation while transforming business
• New double digit revenue growth target model
- Average revenue growth 2010 – YTD 9/30/2015 ~5%
• New adjusted EBITDA margin target of 20%+
- While investing in the company, delivered adjusted
EBITDA margin of 19% from 2014 - YTD 9/30/2015
INVESTMENT OPPORTUNITY

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Questions? Contact ir@xogrp.com

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Reconciliation of GAAP to NON-GAAP Financial Measures: Q3 2015 & YTD
9/30/2015

Icr conference 1.12.16 final

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