CTEL Investor Deck PUBLIC Sept DB

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CTEL Investor Deck PUBLIC Sept DB Powered By Docstoc
					     SMS	
          MMS	
           IVR	
  	
  




Mobile	
  Web	
     Apps	
      Mobile	
  Video	
  
                                                      CommerceTel
                                                      OTCBB:	
  MFON	
  




    Connec&ng	
  Brands	
  to	
  Consumer’s	
  Mobile	
  Phones	
  
            Through	
  Patented	
  Technology	
  

      9/27/11	
                                                            1	
  
legal	
                                     Legal	
  Disclaimer
 Included herein are certain forward-looking statements. All statements, other than statements of
 historical facts, included herein that address activities, events or developments that we expect or
 anticipate will or may occur in the future are forward-looking statements. Forward-looking statements
 involve assumptions and are subject to known and unknown risks and uncertainties that could cause
 actual results or performance to differ materially from those expressed or implied by such forward-
 looking statements. Although we believe that the assumptions reflected in forward-looking statements
 are reasonable as of the date of this presentation, we can give no assurance that such assumptions
 will prove to have been correct. You should also know that forward-looking statements are not
 guaranties of future performance and are subject to risks, uncertainties and assumptions. Should any
 of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual
 results may differ materially from those included within our forward-looking statements. These and
 other risks and uncertainties associated with out business are described in our public reports including
 our Annual Report on Form 10-K for the year ended December 31, 2010 filed with the Securities and
 Exchange Commission. We do not assume any obligation and do not intend to update these forward
 looking statements.
 The industry and market data presented herein are inherently estimates and are based upon third-party
 data as well as information derived from the Company’s own internal estimates. While the Company
 believes that these data are reasonable, in some cases these data are based on others’ estimates and
 cannot be verified by the Company. Accordingly, readers are cautioned not to place undue reliance on
 the industry and market data included herein.
 This presentation contains trademarks, trade names and service marks of other companies. We do not
 intend our use or display of other companies' trademarks, trade names or service marks to imply a
 relationship with, or endorsement or sponsorship of us by, these other companies.



                                                                                      CommerceTel
  mobile	
                      Next	
  Major	
  Compu;ng	
  Cycle:	
  Mobile	
  	
  
 “Mobile	
  web	
  adop&on	
  is	
  expanding	
  8X	
  faster	
  
 than	
  desktop.	
  	
  By	
  2013,	
  mobile	
  devices	
  are	
  
 expected	
  to	
  be	
  used	
  more	
  oVen	
  than	
  PCs	
  to	
                                             Mobile	
  Internet	
  
 access	
  the	
  Web.”	
  
                                                      -­‐Morgan	
  Stanley	
  
                                                                                 Desktop	
  Internet	
  
                                                                                   Compu5ng	
  	
  
“Half	
  of	
  all	
  new	
  Internet	
  connec&ons	
  come	
  



                                                                                                                                ?
from	
  mobile	
  devices.”	
  
                                                            Personal	
  
                                                           Compu&ng	
  



                                       Mini	
  	
  
                                     Compu&ng	
  


                Mainframe	
  
                Compu&ng	
  




               Sperry	
  
                 1960	
                  1970	
                   1980	
                            1990	
           2000	
  




                                                                                                               CommerceTel
mobile	
                                             Bigger	
  Than	
  the	
  Net…	
  
                                                            “We’re	
   adop;ng	
   mobile	
   technologies	
   at	
   a	
  
                                                            faster	
   rate	
   than	
   anyone	
   predicted.	
   Half	
   of	
   all	
  
                                                            new	
   Internet	
   connec;ons	
   come	
   from	
   mobile	
  
                                                            devices,	
   smartphones	
   will	
   overtake	
   feature	
  
                                                            phones	
   this	
   year	
   and	
   data	
   usage	
   is	
   already	
  
                                                            passed	
  voice	
  usage	
  on	
  phones.”	
  
                                                            -­‐Tony	
  Keusgen,	
  Google	
  Head	
  of	
  Technology	
  




 “Ramping	
  faster	
  than	
  desktop	
  internet,	
  the	
  
 mobile	
  internet	
  will	
  be	
  bigger	
  than	
  most	
  
 think.” 	
  	
  	
  	
  	
  
 –	
  Mary	
  Meeker,	
  Morgan	
  Stanley	
  	
  



                                                           “Mobile	
  search	
  traffic	
  was	
  up	
  50	
  percent	
  in	
  the	
  
                                                           first	
   half	
   of	
   2010	
   and	
   mobile	
   web	
   adop;on	
  
                                                           is	
   occurring	
   8	
   ;mes	
   faster	
   than	
   it	
   was	
   on	
   the	
  
                                                           PC	
  a	
  few	
  years	
  ago.	
  	
  	
  In	
  two	
  years,	
  smartphone	
  
                                                           sales	
  will	
  surpass	
  PC	
  sales	
  —	
  this	
  is	
  the	
  future.”	
  	
  
                                                           -Eric	
  Schmidt	
  ,	
  Former	
  Google	
  CEO	
  

                                                                                                                            CommerceTel
 intro	
                                               Corporate	
  Overview
                                                                                                                                Quarterly	
  Revenue	
  
              •  Mobile	
  Marketer/Year	
  Award	
  
              •  Sybase	
  Innovator/Year	
  Award	
  
2008/09	
                                                                                	
  650,000	
  	
  
                                                                                         	
  600,000	
  	
  
                                                                                         	
  550,000	
  	
  
                                                                                         	
  500,000	
  	
  
                                                                                                                                                                 	
  +	
  292%	
  
                                                                                                                                                                      Growth	
  
                                                                                         	
  450,000	
  	
                                                           Q2	
  vs	
  Q1	
  	
  
                                                                                         	
  400,000	
  	
  
                                                                                         	
  350,000	
  	
  
                                                                                         	
  300,000	
  	
  
                                                                                         	
  250,000	
  	
  
                                                                                         	
  200,000	
  	
  
                                                                                         	
  150,000	
  	
  
              •  Public	
  Lis&ng,	
  OTCBB:	
  MFON	
                                   	
  100,000	
  	
  
                                                                                              	
  50,000	
  	
  

  2010	
  
                                                                                                      	
  -­‐	
  	
  	
  	
  
                                                                                                                                      Q1	
  '11	
                Q2	
  '11	
  
                                                                                                Revenue	
                            140,637	
  	
              553,108	
  	
  


                                                                                                     Earnings	
  and	
  Adjusted	
  EBITDA	
  
              •  Acquires	
  Mobivity	
  
              •  Acquires	
  Txtsta&on	
                                                                         	
  (200,000)	
  
              •  Acquires	
  Boomtext	
                                                                          	
  (250,000)	
  

  2011	
  
                                                                                                                 	
  (300,000)	
  
                                                                                                                 	
  (350,000)	
  
              •  Customer	
  base	
  grows	
  to	
  over	
                                                       	
  (400,000)	
  
                                                                                                                 	
  (450,000)	
  
                 1,500	
                                                                                         	
  (500,000)	
  
                                                                                                                 	
  (550,000)	
  
              •  Announces	
  two	
  mobile	
                                                                    	
  (600,000)	
  
                                                                                                                 	
  (650,000)	
  
                 technology	
  patents	
                                                                         	
  (700,000)	
  
                                                                                                                 	
  (750,000)	
  
                                                                                                                                               Q1	
  '11	
             Q2	
  '11	
  
              ***Adjusted EBITDA is defined as earnings before interest, taxes,              Net	
  loss	
                                   (728,217)	
             (466,186)	
  
              depreciation & amortization, non-cash stock based compensation, and non-
              cash changes in the fair market value of derivatives.                          Adjusted	
  EBITDA	
                            (429,220)	
             (329,209)	
  

                                                                                                                                                               CommerceTel
intro	
                    CommerceTel	
  In	
  The	
  Marketplace…




            ON	
  TV	
               IN	
  VENUE	
         RESTAURANT	
  
    Send a text message           Vote using your mobile   Opt in to get special
    Into a CNN news               phone at a Dodgers       Offers from your local
    Broadcast…                    game…                    Sonic restaurant…


              Brands license our patented software to connect, engage,
              and market to consumer’s mobile phones regardless of
              phone type, method (SMS, IVR, MMS), or wireless network.


                                                                   CommerceTel
Trac&on	
     Customers	
  




                              CommerceTel
       intro	
                           Why	
  Invest	
  in	
  CommerceTel?
	
  
o  Patented,	
  Award-­‐Winning	
  Technology	
  
o  Proven	
  
         o  Major	
  brands	
  such	
  as	
  Disney,	
  CNN,	
                                              M&A	
  
            Universal	
  Music	
  Group,	
  and	
  na;onal	
                       Organic	
  
            sports	
  franchises	
  rely	
  on	
  CommerceTel’s	
                  Growth	
  
            award-­‐winning	
  technology	
  to	
  engage	
  
            consumers	
  on	
  a	
  daily	
  basis.	
  	
                                        Intellectual	
  
                                                                                                  Property	
  

o  Massive	
  Target	
  Market	
  
         o  The	
  local	
  adver;sing	
  industry	
  is	
  projected	
                              	
  
            to	
  grow	
  from	
  $136.3B	
  in	
  2010	
  to	
  $153.5B	
                           	
  
            in	
  2015.	
  CommerceTel	
  already	
  serves	
                                        	
  
            over	
  1,000	
  local	
  businesses.	
  
                                                                                 Recurring	
  Patent	
  and	
  
                                                                                  Solware	
  Licensing	
  
o  Management	
  Showing	
  Results	
                                          Revenues	
  from	
  the	
  $153B	
  
         o  The	
  Company	
  has	
  already	
  completed	
                    Local	
  Adver&sing	
  Market	
  
            three	
  acquisi;ons	
  and	
  produced	
  two	
  
            patents	
  since	
  going	
  public	
  in	
  late	
  2010.	
  
                                                                                                    CommerceTel
team	
                                                                                         	
  
                                                                                      Management
           DENNIS	
  BECKER	
                                                                         ALEX	
  SHAH	
  
           BOARD	
  MEMBER,	
  PRESIDENT	
  &	
  CEO	
                                                CHIEF	
  TECHNOLOGY	
  OFFICER	
  
           	
                                                                                         	
  
           § 	
  	
  CEO	
  and	
  Founder,	
  Fron;eric	
  Corpora;on	
                             § 	
  CTO,	
  Face	
  Double	
  	
  
           § 	
  	
  CEO,	
  Bexel	
  Technologies	
                                                 § 	
  	
  SVP	
  of	
  R&D,	
  Blue	
  Titan	
  
           § 	
  	
  Holds	
  fastest	
  telecom	
  patent	
  ever	
  issued	
                       § 	
  	
  Founder	
  and	
  CTO,	
  VelociGen	
  
           § 	
  	
  US	
  Air	
  Force	
                                                            § 	
  	
  M.S.	
  Biochemistry,	
  UCLA	
  
           § 	
  	
  Computer	
  Science,	
  University	
  of	
  Oregon	
                            § 	
  	
  B.S.	
  Computer	
  Science	
  &	
  Biochemistry,	
  UCSD	
  
           	
                                                                                         	
  
           	
                                                                                         	
  
           	
  
           Mah	
  Szot,	
  CPA	
                                                                      SPENCER	
  BRANNAN	
  
           CFO	
                                                                                      VP	
  Business	
  Development,	
  SMB	
  
           	
                                                                                         	
  
           	
  
           §        CFO,	
  Cardiff	
  Partners	
  	
                                                 § 	
  	
  Co-­‐Founder/CEO,	
  DigiMark/Boomtext	
  
           	
  
           §  	
  	
  CFO,	
  S&W	
  Seed	
  Co.	
  (NASDAQ:SANW)	
  
           	
                                                                                         § 	
  	
  Achieved	
  100%	
  YoY	
  growth	
  since	
  2007	
  	
  	
  
           §        CFO,	
  Rip	
  Curl	
  Inc.	
                                                    § 	
  	
  Grew	
  Boomtext	
  client	
  list	
  to	
  over	
  1,000	
  customers	
  	
  
           §        CPA	
  KPMG	
                                                                    § 	
  	
  Led	
  all	
  major	
  account	
  acquisi;ons	
  
           §  	
  	
  B.S.	
  Econ/Accountancy,	
  Univ.	
  of	
  Ill.	
  Champaign-­‐Urbana	
       	
  
           	
                                                                                         	
  
                                                                                                      	
  
           MICHAEL	
  FALATO	
                                                                        	
   MCCLENDON	
  
                                                                                                      LEVI	
  
           VP	
  SALES	
  &	
  BUSINESS	
  DEVELOPMENT	
                                              General	
  Manager,	
  SMB	
  
           	
                                                                                         	
  
           	
                                                                                         §  Co-Founder/CEO, DigiMark	
  /Boomtext	
  
           §        VP	
  Sales	
  &	
  Business	
  Development,	
  TxtSta;on	
  
           	
  
           	
   	
  	
  Sales	
  Execu;ve,	
  Next>Edge	
  
           §                                                                                         § 	
  	
  Oversaw	
  Boomtext	
  opera;ons	
  since	
  incep;on	
  in	
  2007	
  

           §        Sr.	
  Account	
  Execu;ve,	
  E-­‐cen;ves.com	
                                 § 	
  	
  Grew	
  account	
  revenues	
  in	
  excess	
  of	
  $1M/yr	
  

           §        Director	
  of	
  New	
  Business,	
  Monster.com	
  
                                                                                                      	
  
           §  	
  	
  B.A.	
  Broadcast,	
  Southern	
  Illinois	
  University	
  
           	
  
                                                                                                                                                     CommerceTel
team	
                                                                                             	
  
                                                                                    Board	
  Members
           DENNIS	
  BECKER	
                                                                       DOUG	
  SCHNEIDER	
  
           BOARD	
  MEMBER,	
  PRESIDENT	
  &	
  CEO	
                                              BOARD	
  MEMBER	
  
           	
                                                                                       	
  
           § 	
  	
  CEO	
  and	
  Founder,	
  Fron;eric	
  Corpora;on	
                           § 	
  	
  CEO,	
  Transac;on	
  Wireless	
  
           § 	
  	
  CEO,	
  Bexel	
  Technologies	
                                               § 	
  	
  Investment	
  Advisor,	
  Pelion	
  Venture	
  Partners	
  
           § 	
  	
  Holds	
  fastest	
  telecom	
  patent	
  ever	
  issued	
                     § 	
  	
  President,	
  SME	
  Hos;ng,	
  Web	
  Services	
  Division,	
  Verio	
  
           § 	
  	
  US	
  Air	
  Force	
                                                          § 	
  	
  B.S.,	
  University	
  of	
  California,	
  Davis	
  
           § 	
  	
  Computer	
  Science,	
  University	
  of	
  Oregon	
                          § 	
  	
  MBA,	
  Kellogg,	
  Northwestern	
  
           	
                                                                                       	
  
           	
                                                                                       	
  
           	
                                                                                       	
  
           JOHN	
  HARRIS	
                                                                         FRASER	
  CLARK	
  
           BOARD	
  MEMBER	
                                                                        BOARD	
  MEMBER	
  
           	
                                                                                       	
  
           	
   Director,	
  Premiere	
  Global	
  (NYSE:	
  PGI)	
                                 §  President	
  &	
  COO,	
  Herbal	
  Magic	
  
                                                                                                    	
  
           § 
           	
                                                                                       	
   	
  	
  CFO,	
  NLRC	
  
                                                                                                    § 
           §        President	
  &	
  CEO,	
  	
  eTelecare	
  
           	
                                                                                       	
  
                                                                                                    §      CEO,	
  Hair	
  Club	
  
           §  	
  	
  CEO,	
  Seven	
  World	
  Wide	
  
                                                                                                    	
  
           §        25	
  years	
  at	
  EDS,	
  Corporate	
  Officer	
  
           	
  


           DAVID	
  SOUAID	
  
           BOARD	
  MEMBER	
  
           	
  
           § 	
  President,	
  SterlingCard	
  Payment	
  Solu;ons	
  
           § 	
  	
  SVP	
  Sales	
  &	
  Marke;ng,	
  Op;cal	
  Payments,	
  Inc	
  
           § 	
  	
  Director,	
  Mercan;le	
  Advance	
  Corp.	
  	
  
           § 	
  	
  B.A.	
  Poli;cal	
  Science,	
  Mount	
  Allison	
  University	
  
           	
  
                                                                                                                                                   CommerceTel
solu&on	
                                                                                           	
  
                                                                                    Business	
  Model
Consumers	
  are	
  LESS	
  Accessible	
  via	
  …	
                                            Consumers	
  ARE	
  MOBILE…	
  
                      §  Viewers	
  down	
  in	
  key	
  18-­‐49	
  age	
  demo	
                                §  More	
  Americans	
  own	
  mobile	
  phones	
  than	
  
       TV	
                          (Nielson)	
                                                                           computers	
  (Pew	
  Research)	
  
                      §  	
  	
  DVR	
  has	
  reduced	
  TV	
  ad	
  effec;veness	
                              §  	
  	
  Google	
  mobile	
  search	
  growth	
  surpasses	
  PC-­‐
                                    by	
  30%	
  (Nielson)	
                                                             browser	
  search	
  (Google)	
  
                      §  Nielson	
  projects	
  TV	
  households	
  down	
                                       §  “Mobile	
  will	
  be	
  bigger	
  than	
  desktop	
  in	
  five	
  
                                     overall	
  in	
  2012	
                                                             years.”	
  –	
  Dave	
  Shapiro,	
  Dir.	
  of	
  Small	
  Business	
  
                      	
                                                                                                 Marke;ng,	
  Google	
  
     Radio	
          §  Forrester	
  reports	
  15%	
  drop	
  in	
  
                                                                                                                  §  Nearly	
  half	
  of	
  Americans	
  get	
  news	
  content	
  on	
  
                                     radio	
  audience	
  over	
  last	
  5	
  years	
  
                                                                                                                           their	
  mobile	
  phone	
  (Pew)	
  
                      	
  
                                                                                                                  	
  
                                                                                                Mobile	
  =	
  SMS,	
  MMS,	
  Voice,	
  Apps,	
  Web!	
  
                                                                                                         §  Brands	
  license	
  our	
  patented	
  technology	
  to	
  engage	
  and	
  
                                                                                                                market	
  to	
  mobile	
  consumers	
  via	
  ALL	
  mobile	
  channels;	
  
      Print	
                §  Online	
  news	
  readers	
  surpassed	
                                       SMS,	
  MMS,	
  Voice,	
  Apps,	
  Web.	
  
                                       print	
  for	
  the	
  first	
  ;me	
  (State	
  of	
              §  	
  	
  Business	
  Model	
  
                                       News	
  Media)	
                                                                  §  Brands	
  pay	
  a	
  recurring	
  	
  license	
  fee	
  for	
  our	
  
                             §  Yellow	
  Pages	
  use	
  down	
  22%	
  this	
                                             solware	
  through	
  monthly	
  or	
  annual	
  contracts	
  
                                       year	
  (Local	
  Search	
  Assoc.)	
                                             §  Our	
  customers	
  also	
  pay	
  incremental	
  fees	
  for	
  
                             	
  
                                                                                                                               every	
  transac&on	
  we	
  process	
  to	
  the	
  consumer	
  
                                                                                                                               (i.e.	
  per	
  SMS	
  message)	
  
                                                                                                         	
                                                    CommerceTel
revenue	
                                Revenue	
  Model	
  
                            1.	
  Monthly	
  Solware	
  Licensing	
  Fees	
  
              Brands…	
                                                   2.	
  Transac;on	
  Fees	
  per	
  SMS,	
  MMS,	
  etc.	
  

                                                                                                        3.	
  Professional	
  
                                   License	
  our	
  solware	
                                          	
  	
  	
  	
  	
  	
  	
  Services	
  
                                   as	
  a	
  service	
  (SaaS)…	
  



                                                                 Which	
  runs	
  off	
  our	
  network	
  
                                                                 connected	
  to	
  all	
  wireless	
  carriers…	
  

                                                                                            To	
  engage	
  mobile	
  
                                                                                            phones	
  via	
  SMS,	
  MMS,	
  
                                                                                            IVR	
  and	
  more…	
  




                                                                                                    CommerceTel
advantage	
                                                                    	
  
                              Patented	
  Technology,	
  Ahead	
  of	
  Industry


                                                                                       CommerceTel	
   has	
   already	
  
                                                                        Third Party
     Phone                                                               Systems       brought	
   together	
   disparate	
  
                                                                                       S M S ,	
   M M S ,	
   a n d	
   V o i c e	
  
                                                                                       networks	
   into	
   a	
   unified	
  
      Mobile Carrier              PST N Carrier
                                                                  Internet             network	
   applica;on	
   layer	
  
       Networks                     Networks
                                                                                       u;lizing	
   internally	
   developed,	
  
                                                                                       proprietary	
  system.	
  	
  	
  
                                                                                       	
  
      Mobile Messaging                 C4 IVR                          C4 API
          Gateway                      Gateway                                         This	
  results	
  in:	
  

                                                                                       •      greater	
  control	
  
                       C4 Mobile Interactive Network
                                                                                       •      lower	
  opera;ng	
  costs	
  
     Mobile
    Message       Carrier       Mobile Sub                                    IVR
      Flow      Integration    Management
                                                 Billing   Reporting
                                                                             Builder   •      higher	
  reliability	
  
                                                                                       •      interna;onal	
  reach	
  
                                                                                       •      Higher	
  throughput	
  for	
  SMS,	
  
                                                                                              MMS,	
  and	
  Voice	
  
          Mobile Device           Mobile Content           Mobile Content
           Discovery               Transcoding              Management                        applica;ons	
  for	
  massive	
  
                                                                                              volume	
  campaigns.	
  


                                                                                                              CommerceTel
IP	
  Poroolio	
                                                    Patent	
  Porwolio	
  
                                                                          #7,991,388	
  	
  
          Mobile	
  Security/Authen&ca&on:	
  
                  •      Two	
  factor	
  Authen;ca;on	
  using	
  mobile	
  devices	
  including	
  facial	
  recogni;on,	
  
                         geoloca;on,	
  SMS,	
  and	
  spa;al	
  orienta;on.	
  
                  •      Filed	
  May,	
  2011	
  
                  •      Published	
  August,	
  2nd	
  2011	
  –	
  82	
  Days	
  

          	
                                                                #6,788,769	
  
          Phone	
  Number	
  to	
  Web	
  Addressing	
  	
  
                  •  Covers	
   process	
   of	
   transla;ng	
   legacy	
   telephone	
   numbering	
   system	
   to	
   next	
   genera;on	
  
                     Internet-­‐based	
  (IP)	
  addressing.	
  
                                                                                                                                                                          	
  
                  • 	
   	
   	
   	
  CommerceTel	
  believes	
  that	
  its	
  process	
  for	
  phone	
  number	
  to	
  IP	
  address	
  transla;on	
  is	
  or	
  will
                  be	
  needed	
  by	
  SMS,	
  MMS	
  and	
  Voice	
  networks.	
  
                  	
  

                                                         	
  Patent	
  Applica;on	
  in	
  Progress	
  
          Wireless	
  Network	
  Performance	
  
                  •       Real-­‐;me	
  monitoring	
  of	
  SMS,	
  Voice,	
  and	
  MMS	
  networks.	
  
                  •       Filed	
  Summer,	
  2011.	
  
                                                                                                                                             CommerceTel
    market	
                                                                                                	
  
                                                                                    The	
  Inflec;on	
  Point	
  

     It’s	
  Just	
  the	
  Beginning	
  -­‐	
  Mobile	
  Marke&ng	
  is	
  Poised	
  to	
  Become	
  a	
  
     Part	
  of	
  the	
  $500B	
  Spent	
  Annually	
  on	
  Adver&sing…	
  


                                 World	
  Wide	
  Media	
  Plaoorms	
                                      Mobile Ad
                                                                                                            Spend
                                                                                                            $1.4B
                    Mobile	
  Phone	
  
                                                                                          5.2B	
  
                     Subscribers	
  


                       TV	
  Viewers	
                                       3.1B	
  


                   Internet	
  Users	
                            2.3B	
  
                                                                                                                       World Wide
                                                                                                                       Ad Spend
                Daily	
  Newspaper	
                                                                                     $500B
                                                            1.9B	
  
                     Readers	
  


                 Computer	
  Users	
                   1.5B	
  




eMarketer	
  (worldwide),	
  juniper	
  (mobile)	
  
                                                                                                                            CommerceTel
target	
                               Local	
  Adver;sing	
  Growth	
  

 •  Growth	
  Projected	
  by	
  BIA/Kelsey	
  
        •  $136.3B	
  Spent	
  on	
  Local	
  Adver;sing	
  in	
  2010	
  to	
  Grow	
  to	
  
           $153.5B	
  by	
  2015.	
  
 	
  
        •  Local	
  Digital	
  Adver&sing	
  to	
  Grow	
  to	
  $42.5B	
  by	
  2015	
  from	
  
           $21.7B	
  in	
  2010.	
  
 	
  
 •  80%	
  of	
  SMBs	
  plan	
  to	
  spend	
  some	
  of	
  their	
  annual	
  marke;ng	
  budget	
  on	
  at	
  
      least	
  one	
  form	
  of	
  mobile	
  adver&sing	
  during	
  2011,	
  according	
  to	
  Borrell	
  
      Associates.	
  
 	
  
 •  20%	
  of	
  these	
  SMBs	
  ad	
  budgets,	
  on	
  average,	
  are	
  expected	
  to	
  be	
  devoted	
  to  	
  
      mobile	
  ini&a&ves,	
  according	
  to	
  Borrell	
  Associates.	
  	
  	
  


                                                                                                    CommerceTel
m&a	
                                                                            M&A	
  Trac;on	
  

                             CommerceTel                                                                                  TxtStation

    Closing	
  Date:	
  11/02/2010	
  (original	
  en;ty)	
                               Closing	
  Date:	
  04/01/2011	
  	
  
    	
                                                                                    	
  
    Business:	
  Develops	
  marke;ng	
  solu;ons	
  and	
  	
  	
  	
  	
                Business:	
  Interac;ve	
  mobile	
  marke;ng	
  plaworm	
  and	
  
                              plaworms	
  for	
  mobile	
  devices.	
  	
  	
             services	
  that	
  allow	
  broadcasters,	
  event	
  owners,	
  
    	
                                                                                    sponsors	
  and	
  general	
  media	
  to	
  interact	
  with	
  viewers	
  
    Key	
  Features:	
  	
  	
                                                            and	
  fans.	
  
         ü 	
  	
  $7M	
  into	
  core	
  product	
  and	
  technology	
                 	
  
         ü 	
  	
  	
  Web-­‐based	
  IVR	
  System	
  
         ü 	
  	
  	
  Sybase	
  Innovator	
  of	
  the	
  Year	
  Award	
  winner	
  




                                     Mobivity                                                                             BoomText

     Closing	
  Date:	
  04/01/2011	
  	
                                                        Closing	
  Date:	
  08/09/2011	
  	
  
     	
                                                                                          	
  
     Business:	
  SMS	
  gateway	
  API	
  and	
  SaaS	
  mobile	
  marke;ng	
                   Business:	
  self	
  serve	
  plaworm	
  with	
  great	
  search	
  engine	
  
     plaworm.	
                                                                                  ranking	
  and	
  a	
  direct	
  sales	
  force	
  
     	
                                                                                          	
  
     Key	
  Features:	
                                                                          Marke&ng:	
  
          ü 	
  	
  Mobile	
  Marke&ng	
  Campaigns	
                                                ü 	
  	
  	
  Client	
  acquisi&on	
  and	
  support	
  teams	
  
          ü 	
  	
  	
  Shared	
  and	
  Dedicated	
  Short	
  Codes	
                               ü 	
  	
  	
  Automated	
  conversion	
  of	
  leads	
  
          ü 	
  	
  	
  2-­‐way	
  SMS/MMS	
  WAP	
  Gateway	
                                       ü 	
  	
  	
  Outbound	
  telemarke&ng	
  


                                                                                                                                                     CommerceTel
advantage	
     Acquisi;on’s	
  Performance	
  Enhanced	
  by	
  Our	
  IP	
  
    Patented technology unifying all possible mobile marketing services across
    acquired service offerings. Acquired customer bases can grow revenues and
    operating income via CommerceTel’s additional SMS, MMS, and Voice network
    services coupled with lower shared operating costs…




                       Mobile Carrier           PSTN Carrier               Internet
                        Networks                 Networks




                      Mobile	
  Messaging	
     C4	
  IVR	
  Gateway	
      C4	
  API	
  
                         Gateway	
  


                                                                                  CommerceTel
summary	
             Growth	
  Success	
  Achieved	
  in	
  2011
	
  
1. Growing	
  IP	
  porwolio.	
  Latest	
  
   patent	
  achieved	
  in	
  just	
  82	
  
   days.	
                                                                    M&A	
  
                                                     Organic	
  
                                                     Growth	
  

2. Rapidly	
  growing	
  client	
  base	
  
     exceeding	
  1,000	
                                          Intellectual	
  
                                                                    Property	
  
     customers.	
  
	
                                                                     	
  

3. Inorganic	
  growth	
  trac;on;	
                                   	
  
                                                                       	
  
     THREE	
  acquisi;ons	
  in	
  first	
          Recurring	
  Patent	
  and	
  
     year.	
                                        Solware	
  Licensing	
  
	
                                               Revenues	
  from	
  the	
  $153B	
  
                                                 Local	
  Adver&sing	
  Market	
  
4. Consolidated	
  Q2	
  2011	
  
     revenues	
  up	
  293%	
  over	
  Q1.	
  
       	
                                                                     CommerceTel

				
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