discotech investor presentation 4 1-16

31
Discotech OpenTable for Nightlife 1 For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]

Upload: ian-chen

Post on 10-Jan-2017

782 views

Category:

Mobile


2 download

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 (human

middlemen) and is highly fragmented

Discotech will disrupt the nightlife industry the same way that Priceline and Kayak

disrupted the travel industry

Then Now

$25B Global Market

Why Discotech?

Texting and calling club promoters to get information and access to nightlife

venues is non-transparent and inefficient.

Typical customer experience

2

Nightlife venue pain points

Large teams of individual promoters are hard to manage, unreliable, and

difficult to scale. Data collection and analytics non-existent.

The nightlife app for millennials

Discotech aggregates venue and event information all in one place - Making it easy to discover local attractions.

Discotech provides users with pricing options for tables and tickets directly on the app. Customers no longer need to text and call multiple promoters for quotes.

Discotech allows users to make reservations, purchase tickets, and receive confirmation with a few simple clicks.

INFORMATION TRANSPARENCY EFFICIENCY

Discotech changes that experience

3

Venue Partners

Discotech is currently working with over 100 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

Monthly bookings have grown significantly

$0

$50,000

$100,000

$150,000

$200,000

Jan'1

4Mar'

14

May'14

Jul'14

Sept'1

4

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Sep'15

Nov'15

Jan'1

6Mar'

16

$183,317

$108,219

$134,164

$117,155

$97,332

$137,341$139,975

$161,867$160,238$148,759

$110,609$99,993

$61,861

$34,465$37,610$38,566$29,863

$41,819$51,262

$41,047$45,834

$27,377$25,631$16,769$13,103$7,025$8,606

Dollars ($)

9

Note: Summer seasonality is due to the presence of day parties and pool parties. Average selling prices are also higher during the summer.

Gross Profit vs. Marketing Spend (Monthly)

$0

$5,000

$10,000

$15,000

$20,000

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Sep'15

Nov'15

Jan'1

6Mar'

16

Marketing Spend (monthly) Gross Profit (monthly)

Dollars ($)

Monthly contribution continues to grow without marketing spend

10

Guest list usage & retention improved across cohorts

0

0.125

0.25

0.375

0.5

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

19-21 months16-18 months13-15 months10-12 months7-9 months4-6 months1-3 months

Guest list sign ups per download

Time Joined

Cohort analysis - Guest list sign ups

11

0

1,250

2,500

3,750

5,000

Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16

150621478

730

9221,136

9691,262

4,799

3,8164,249

3,364

2,8012,8203,275

3,8123,6443,531

2,443

1,3821,282792

516

Organic DownloadsPaid Downloads

Paid vs. Organic Downloads

# of downloads

12

Discotech organic downloads have grown considerably over time

1,778

4,249

1,761

2,4182,304

4,009

% Organic 100%29% 45% 53% 60% 77% 87%

3,173

4,265

88%

3,962

96%

3,275

2,820 2,801

3,364

100% 100% 100% 100%

3,816

4,799

100% 100%

We are targeting a $1.0M round of financing

Use of Funds (18 months): • $270K Management Salaries (3 Founders) • $500K Product Development (Hire Three Developers) • $120K Sales and Operations (Hire 2 Sales / Ops Associates) • $110K Customer Acquisition / Marketing • Total: $1.0M

13

We want to invest heavily in our technology to add social features and growth hacks to supercharge our organic growth. We also want to further develop our data analytics capabilities.

Product Roadmap

Social Features • See where your friends are going • Notifications when your friends make an action • “Invite a Friend” growth hack • Split the bill

Web app development • Implement full app functionality to website • Website received 19K+ unique visitors in July, 2015

Merchant functionality and data analytics • Track & analyze customer preferences and spending patterns • Basic Merchant CRM • Event and Inventory API (For B2B purposes) 14

4-6 months

3-4 months

Discotech will be THE lifestyle app for nightlife

15

We are establishing our first beach front in the night club market because of its severe need

for disruption. After penetrating tier 1 markets in this industry, we plan to expand our offering

to include:

$25B Nightclub

Market • Music Festivals • Bars • Lounges • Live music venues (i.e, jazz bars)

$100B+Nightlife Market

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

Raffi Krikorian Engineering Lead @ Uber

VP of Engineering @ Twitter Co-Founder @ WattzOn

Thank You

For Additional Information, please contact Ian Chen

Cell: 301-793-0186

Email: [email protected]

18

Back Up Slides

19

Monthly cost per customer

$0.00

$25.00

$50.00

$75.00

$100.00

$125.00

$150.00

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Cost per customer (monthly)

Dollars ($)

2014 avg - $51.36

20

Monthly cost per paying customer has declined significantly in 2015

2015 avg - $26.53

Customer LTV is on the rise

$0.00

$25.00

$50.00

$75.00

$100.00

$125.00

$150.00

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Customer LTV (monthly)

Dollars ($)

21

Customer LTV is $49.09 at the end of August and has been growing consistently

Website traffic is growing

0

7,500

15,000

22,500

30,000

Jan'15 Feb'15 March'15 April'15 May'15 June'15 July'15 Aug'15

23,82023,770

19,218

13,48012,290

8,941

4,0563,009

# of unique visitors

22

Guestlist Signups growing

0

5,000

10,000

15,000

20,000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Jan'15

9,142

16,538

18,530

12,386

6,742

4,7544,2712,730

1,075

# of Guest List Sign Ups

23

*Decline in guest list sign ups in Q4’15 is a function of day parties & pool parties closing in the winter. Pool parties typically re-open in March.

Revenue has grown significantly YoY from 2014

0%

175%

350%

525%

700%

Jan'1

5Fe

b'15

March'1

5

April'15

May'15

June

'15

July'1

5

Augus

t'15

Sept'1

5Oct'

15

494%

309%

418%

244%

552%

453%

632%

499%485%443%

% Revenue Growth

24

*Gross Revenue is a combination of table bookings, gross ticket sales, and guest list commission. Note: Summer/ Pool season ends in September.

Discotech Burn Rate

Discotech has been extremely lean since our inception

25

*Note: Founders have not drawn salary since founding of company

Part 1 Expenses SG&A Total

Aug-13 $918.58 $8,500.00 $9,418.58

Sep-13 $3,264.64 $10,000.00 $13,264.64

Oct-13 $5,177.28 $11,500.00 $16,677.28

Nov-13 $4,481.71 $0.00 $4,481.71

Dec-13 $1,920.63 $11,000.00 $12,920.63

Jan-14 $5,427.93 $5,000.00 $10,427.93

Feb-14 $5,058.05 $5,600.00 $10,658.05

Mar-14 $12,834.73 $8,500.00 $21,334.73

Apr-14 $9,209.06 $9,500.00 $18,709.06

May-14 $10,878.88 $6,925.00 $17,803.88

Jun-14 $7,511.83 $4,358.00 $11,869.83

Jul-14 $7,591.01 $3,000.00 $10,591.01

Expenses SG&A Total

Aug-14 $8,133.78 $7,319.30 $15,453.08

Sep-14 $7,494.18 $7,330.70 $14,824.88

Oct-14 $6,984.88 $9,436.55 $16,421.43

Nov-14 $4,723.31 $10,099.40 $14,822.71

Dec-14 $2,381.23 $13,488.44 $15,869.67

Jan-15 $8,547.39 $20,114.22 $28,661.61

Feb-15 $7,957.10 $15,691.35 $23,648.45

Mar-15 $8,810.71 $15,509.19 $24,319.90

Apr-15 $5,307.58 $55,096.59 $60,404.17

May-15 $4,974.21 $8,608.50 $13,582.71

Jun-15 $4,225.57 $4,408.28 $8,633.85

Jul-15 $5,771.99 $11,625.00 $17,396.99

Aug-15 $2,519.94 $11,750.00 $14,269.94

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 26

Repeat Customers - Bottle Service

27

0%

25%

50%

75%

100%

Total Bottle Service Users Bottle Service Sales ($)

41.3%24.6%

58.7%

75.4%

Single use customers Repeat Customers

Repeat customers make up a substantial portion of our overall bottle service sales

Repeat Customers - Tickets

28

0%

25%

50%

75%

100%

Unique Ticket Customers Tickets Sold

59.7%24.3%

40.3%

75.7%

Single purchase customers Repeat Customers

Repeat ticket customers comprise the majority of our total ticket sales

*Note: As of February 17th, 2016

Discotech Guest List Feature is Sticky

0%

25%

50%

75%

100%

% of GL Bookings

87%

13%

One-time Users Repeat Users

Guest List

Since inception, we have had significant repeat usage of our guest list

29

Monthly cost per download

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

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

5Ju

l'15

Aug'15

Cost per download (monthly)

Dollars ($)

2014 Avg - $2.17

30

Monthly cost per download has declined significantly

2015 Avg - $1.00