2. 2
SAFE HARBOR
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements concerning
Synacor’s expected financial performance as well as Synacor’s strategic and operational plans. The achievement or success of the matters covered by such
forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove
incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements the company makes.
Synacor is under no obligation to, and expressly disclaims any such obligation to, update or alter forward-looking statements, whether as a result of new
information, future events, or otherwise.
The risks and uncertainties referred to above include - but are not limited to - risks associated with: execution of Synacor’s plans and strategies; the loss of a
significant customer; the company’s ability to obtain new customers; expectations regarding consumer taste and user adoption of applications and
solutions; developments in Internet browser software and search advertising technologies; developments in display advertising technologies and practices;
general economic conditions; expectations regarding the company's ability to timely expand the breadth of services and products or introduction of new
services and products; consolidation within the cable and telecommunications industries; changes in the competitive dynamics in the market for online
search and display advertising; the risk that security measures could be breached and unauthorized access to subscriber data could be obtained; potential
third party intellectual property infringement claims; and the price volatility of Synacor’s common stock.
Further information on these and other factors that could affect the company's financial results is included in filings it makes with the Securities and
Exchange Commission from time to time, including the section entitled "Risk Factors" in the company's most recent Form 10-K filed with the SEC. These
documents are available on the SEC Filings section of the Investor Information section of the company's website at investor.synacor.com.
3. 3
INVESTMENT HIGHLIGHTS
A Transformation Story with Multiple Profitable
Growth Avenues
STRONG
OPPORTUNITIES FOR
GROWTH
RECURRING AND
FEE-BASED
REVENUE
MASSIVE
TRANSFORMATION
ON A PATH:
• 3 YEARS (2019)
• $30M EBITDA
• $300M REVENUE
SEASONED
MANAGEMENT
TEAM
3
6. 6
TWO PRIMARY SOURCES OF REVENUE
SEARCH AND ADVERTISING RECURRING AND FEE-BASED
Advanced Portal
Experiences
Email/Collaboration Video Platform/Cloud IDAdvertising Solutions
7. 7
MULTI-PLATFORM PORTAL EXPERIENCES
DESIGNED FOR ENGAGEMENT AND MONETIZATION
Personalized, curated, and relevant content
experience that drives engagement and
reinforces ISP brand across devices
• Modern design, stream-based experience
• Hundreds of thousands of articles and videos
• Push notification for breaking news
• Flexible and customizable for
customer needs
• Monetization through integration with
Synacor Media
8. 8
Combined Technorati with Synacor, creating direct and
programmatic advertising platform at scale:
• Strong Monetization
• Search, display, video and
mobile ad products
• Direct, programmatic,
network monetization
• Publisher and Portal Network
• Operated and managed portals
• Publisher platform
• Targeting Expertise
• Proprietary and third-party data
• Ad Ops and Analytics
Hundreds
of Publishers
SYNACOR MEDIA: COMPELLING
AD PLATFORM AT SCALE
200M
Uniques
35M+
Broadband
Households
9. 9
SEARCH & ADVERTISING GROWTH
OPPORTUNITY
• Launch AT&T
• Win new portal customers
• Programmatic growth
• Grow publisher reach and products
• Expand mobile monetization
Digital Ad Spending
15%
$72B
Total Market
Source: eMarketer, growth for 2016 - 2020 9
10. 10
EMAIL & COLLABORATION
OPEN, SECURE, PRIVATE PRODUCT SUITE
• Powering ~500M mailboxes –
one of the largest providers
of white label email in the world
• Offered as open source, on-prem
software, and as a fully managed &
hosted solution
• Unmatched migration
& hosting capability
• Serving service providers,
government agencies, and
business enterprises
10
11. 11
EMAIL & COLLABORATION GROWTH
OPPORTUNITY
• Open source program to monetize ~400 million
existing mailboxes
• Open Source Support subscription
• Suite Plus (e.g. backup, admin tools)
• Grow government customer base focusing on
security & privacy
• Leverage partner community to accelerate
feature development and grow sales
Market Growth
24%
$19B
Total Market
11Source: Radicati, growth for 2016 - 2020
12. 12
VIDEO PLATFORM/CLOUD ID
END-TO-END VIDEO AND IDENTITY MANAGEMENT PLATFORM
• Able to authenticate nearly all
Pay TV households in US
• Selected to provide Cloud ID
Authentication for HBO Go
• Supported deployment of Apple’s
Single Sign-On platform
• Participating with CTAM & OATC on
industry standards
• Debuted end-to-end TVE and OTT
solutions for GVTC and Consolidated
12
13. 13
VIDEO PLATFORM/CLOUD ID GROWTH
OPPORTUNITY
• Win new video platform customers
• Win new content provider customers
• Extend Cloud-ID into new verticals and
geographies
Online OTT & Video Revenue
76%
$37B
Total Market
13Source: Digital TV Research, 2010 - 2020
14. 14
BLUE-CHIP CUSTOMERS AND PARTNERS
Advertising and Content Partners
Command and Simulation Solutions
Chile
120 Service Providers, 1,000 Government Agencies, 2,500 Businesses, 1,000 Publishers
ADVERTISING
15. 15
2016
Won new portal customers
Won new video platform customers
2017
Win new portal customers
Grow government email customers
Win new video platform & content
provider customers
2016
Became a significant player in
programmatic advertising
2017
Launch AT&T
Programmatic growth
Expand mobile monetization
4-PILLAR GROWTH AGENDA BUILT ON OPERATING DISCIPLINE
Increase value for
existing customers by
optimizing consumer
experience &
monetization
Innovate on Synacor-as-
a-platform for
advanced services
Win new
customers in
current and
related verticals
Extend product
portfolio into
international
and enterprise
PROFITABLE REVENUE GROWTH
OPERATING DISCIPLINE
2016
Extended Cloud-ID into new content
vertical
Launched Open Source Support offering
for email
2017
Grow Open Source Support adoption
2016
Activated email partner community
Introduced Synacor products in
new geographies
2017
Leverage partner community to
accelerate email feature development
Win customers in new geographies
16. 16
SYNACOR’S 3/30/300 PATH
TARGETING $300M IN REVENUES AND $30M IN EBITDA IN 2 YEARS
Revenue, $Millions Adjusted EBITDA*, $Millions
*Please refer to the appendix for information regarding the reconciliation of GAAP net loss to adjusted EBITDA for twelve months ended December 31, 2015 and
December 31, 2016 and for guidance for twelve months ending December 31, 2017. Guidance is as of March 15, 2017.
INVESTING ~$10M BETWEEN 2H16 – 1H17 TO DEVELOP AND DEPLOY AT&T
$106.6
$127.4
$160 - $170
~$300
2015 2016 2017G 2019G
$7.6
$3.2
$6 - $10
~$30
2015 2016 2017G 2019G
17. 17
INVESTMENT HIGHLIGHTS
A Transformation Story with Multiple Profitable
Growth Avenues
STRONG
OPPORTUNITIES FOR
GROWTH
RECURRING AND
FEE-BASED
REVENUE
MASSIVE
TRANSFORMATION
ON A PATH:
• 3 YEARS (2019)
• $30M EBITDA
• $300M REVENUE
SEASONED
MANAGEMENT
TEAM
17
21. 21
FISCAL 2017 AND Q1 2017 GUIDANCE RECONCILIATION*
▪ FY 2017 Guidance: Revenue for the full year of 2017 is projected to grow 26% to 33%
to be in the range of $160.0 million to $170.0 million. Synacor expects to report a net
loss in the range of $2.8 million to $8.0 million and adjusted EBITDA in the range of
$6.0 million to $10.0 million, which excludes stock-based compensation expense of
$2.8 million to $3.2 million, depreciation and amortization of $8.8 million to $9.6
million, and tax, interest expense and other income and expense of $1.2 million.
▪ Q1 2017 Guidance: Revenue for the first quarter of 2017 is projected to be in the
range of $26.0 million to $28.0 million. Synacor expects to report a net loss of $6.2
million to $7.5 million and adjusted EBITDA of $(3.0) million to $(4.0) million, which
excludes stock-based compensation expense of $0.7 million to $0.8 million,
depreciation and amortization of $2.2 million to $2.4 million and tax, interest expense
and other income and expense of $0.3 million.
*Guidance is as of March 15, 2017.
