Local Corp. Logo
(NasdaqCM: LOCM)
Technology
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Investment Highlights
  • Rapidly growing company in a rapidly growing market
  • Beneficiary of secular trend toward online ad spend by SMBs
  • Extensive technology platform and differentiated product portfolio
  • Growing revenue streams with considerable future growth potential
  • Proprietary products that improve operating leverage over time
  • Experienced executive team focused on execution with strategy discipline
  • Near-term completion of major business transformation
  • Not just a search engine - a media business with greater product differentiation
  • Projecting a return to strong growth with greater revenue diversification
Value Proposition
Local Corp., currently trading at a discount to book value, has historically maintained a top-line 40% CAGR. While this growth was briefly interrupted in 1H11 due to issues related to the Yahoo/Bing integration, the Company has achieved a return to strong growth with greater revenue diversification; management has guided for a record $110 million in revenue and $1.1 million in adjusted net income for 2012.

Canaccord Genuity and Morgan Joseph currently cover Local Corp. with a median price target of $4.90, representing greater than 100% upside. With the Company’s near-term completion of a major business transformation and its strong entrance into the high-growth daily deal business, this is a very conservative target.
Overview
Local Corp. (“Local” or the “Company”) is a leading online local media company that enables brick-and-mortar businesses to connect with online customers using a variety of digital marketing products. The Company reaches more than 25 million consumers each month on its flagship Local.com website, approximately 1,500 regional media sites and more than 100,000 geo-category websites. The Company distributes daily deals to hundreds of thousands of email subscribers in 14 markets via Spreebird, rich media ads via Rovion.com, and real-time product inventory information from more than 60,000 retailers nationwide via Krillion.com. Local Corp. was founded in 1999 and is headquartered in Irvine, California.
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