![]() First Quarter 2007 Earnings Conference Call May 24, 2006 First Quarter 2007 Earnings Conference Call May 24, 2006 Exhibit 99.2 |
![]() This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo’s business development strategies, current and future partnerships, the expected future deployment and availability of the TiVo service, future TiVo service features and advertising technologies, and other factors that may affect future earnings or financial results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “believe,” “expect,” “may,” “will,” “intend,” “estimate,” “continue,” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development and deployment of competitive service offerings and a lack of market acceptance of the TiVo service, as well as the “Factors That May Affect Future Operating Results” included from time to time in the Company’s public reports filed with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements. This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo’s business development strategies, current and future partnerships, the expected future deployment and availability of the TiVo service, future TiVo service features and advertising technologies, and other factors that may affect future earnings or financial results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “believe,” “expect,” “may,” “will,” “intend,” “estimate,” “continue,” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development and deployment of competitive service offerings and a lack of market acceptance of the TiVo service, as well as the “Factors That May Affect Future Operating Results” included from time to time in the Company’s public reports filed with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements. Forward Looking Statements 2 |
![]() Agenda Agenda Tom Rogers, President & Chief Executive Officer - Highlights - Sales & Marketing Efforts - Product Differentiation - Distribution Update and MSO Plans - Litigation Stuart West, Acting Chief Financial Officer - Housekeeping Items - Financial and Operational Highlights - Financial Guidance Q&A - Tom Rogers, President & Chief Executive Officer - Stuart West, Acting Chief Financial Officer - Matt Zinn, General Counsel Tom Rogers, President & Chief Executive Officer - Highlights - Sales & Marketing Efforts - Product Differentiation - Distribution Update and MSO Plans - Litigation Stuart West, Acting Chief Financial Officer - Housekeeping Items - Financial and Operational Highlights - Financial Guidance Q&A - Tom Rogers, President & Chief Executive Officer - Stuart West, Acting Chief Financial Officer - Matt Zinn, General Counsel 3 |
![]() Highlights Highlights 38% Service & Technology Revenue Growth Over 4.4 million subscriptions - TiVo.com on-line sales climb to 29% of total sales - New subs commit to minimum one-year of TiVo service; lowers churn Launched Series2 Dual Tuner DVR Trial Victory in Echostar patent case TiVo initiatives drive heightened level of momentum 38% Service & Technology Revenue Growth Over 4.4 million subscriptions - TiVo.com on-line sales climb to 29% of total sales - New subs commit to minimum one-year of TiVo service; lowers churn Launched Series2 Dual Tuner DVR Trial Victory in Echostar patent case TiVo initiatives drive heightened level of momentum 4 |
![]() Sales & Marketing Sales & Marketing Traffic to TiVo.com up 50% On-line sales climb to 29% of total sales Churn 0.9% Traffic to TiVo.com up 50% On-line sales climb to 29% of total sales Churn 0.9% 5 Bundled Pricing One year commitment: $19.95 $224 Two year commitment: $18.95 $369 Three year commitment: $16.95 $469 Monthly Fee Pre Pay 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. |
![]() Differentiation Differentiation Dual Tuner - Solid product reviews - Promising early consumer response - Retail Channel Roll-out – May 2006 Parental Control - Provides parents with freedom and flexibility to choose quality programming for children – while giving kids choice Partners -- >4 million members - Common Sense Media - The Parents Television Council - Parents’ Choice Foundation Dual Tuner - Solid product reviews - Promising early consumer response - Retail Channel Roll-out – May 2006 Parental Control - Provides parents with freedom and flexibility to choose quality programming for children – while giving kids choice Partners -- >4 million members - Common Sense Media - The Parents Television Council - Parents’ Choice Foundation 6 |
![]() Differentiation Differentiation TiVo ® Guru Guide™ - Delivering programming recommended by editorial experts at: - Sports Illustrated - Automobile - Star Magazine - Billboard - Entertainment Weekly Brightcove - Bringing the “wild west” of web video to TV - As easy to navigate and record as Prime Time content TiVo ® Guru Guide™ - Delivering programming recommended by editorial experts at: - Sports Illustrated - Automobile - Star Magazine - Billboard - Entertainment Weekly Brightcove - Bringing the “wild west” of web video to TV - As easy to navigate and record as Prime Time content 7 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. |
![]() Differentiation Differentiation New TiVo Mobile application will allow TiVo subscribers to schedule recordings directly from some Verizon Wireless mobile handsets New TiVo Mobile application will allow TiVo subscribers to schedule recordings directly from some Verizon Wireless mobile handsets 8 |
![]() Distribution Distribution Extended service relationship to approximately 3 mm existing DirecTV TiVo customers to 2010 Comcast -- on track to begin rollout by end of calendar year Radio Shack -- rollout to 3,000 stores expected by mid-summer Extended service relationship to approximately 3 mm existing DirecTV TiVo customers to 2010 Comcast -- on track to begin rollout by end of calendar year Radio Shack -- rollout to 3,000 stores expected by mid-summer 9 |
![]() Advertising Advertising Interpublic Media - Preferred pricing and increased access to for Interpublic clients - Development of interactive advertising products TiVo Product Watch – opt in - 100 brands - 75 advertisers Search Tool & Content Manipulation - Lexus Car Configuration Interpublic Media - Preferred pricing and increased access to for Interpublic clients - Development of interactive advertising products TiVo Product Watch – opt in - 100 brands - 75 advertisers Search Tool & Content Manipulation - Lexus Car Configuration 10 |
![]() Echostar Lawsuit Victory Echostar Lawsuit Victory Jury victory - Found willful infringement of patent - Awarded almost $74 million Actively pursuing damages for willfulness and injunction TiVo IP is valuable Jury victory - Found willful infringement of patent - Awarded almost $74 million Actively pursuing damages for willfulness and injunction TiVo IP is valuable 11 |
![]() Accounting Items Accounting Items FAS 123R – stock option expensing - $3.1 million of total stock based compensation Bundled pricing - Conservative approach to no upfront fee to consumer - expensing H/W cost upfront; recognize revenue over the course of the consumer contract - FAS 154 – “retrospective application” for previous pricing bundles - Total of $2.6 million - Q2’06: $1.1mm - Q4’06: $1.5mm Comcast technology revenue of $7.2 mm, offset by $7.2 mm of Cost of technology revenue - Q1’07 quarterly rate -- $2.6 mm ($4.6 mm relates to prior quarterly development work) FAS 123R – stock option expensing - $3.1 million of total stock based compensation Bundled pricing - Conservative approach to no upfront fee to consumer - expensing H/W cost upfront; recognize revenue over the course of the consumer contract - FAS 154 – “retrospective application” for previous pricing bundles - Total of $2.6 million - Q2’06: $1.1mm - Q4’06: $1.5mm Comcast technology revenue of $7.2 mm, offset by $7.2 mm of Cost of technology revenue - Q1’07 quarterly rate -- $2.6 mm ($4.6 mm relates to prior quarterly development work) 12 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. |
![]() Q1 Financial Metrics Q1 Financial Metrics 13 1 For complete definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. We define Total Acquisition Costs (TAC) as the sum of sales and marketing expenses, rebates, revenue share, and other payments to channel, minus hardware gross margin (defined as hardware revenues less cost of hardware revenues ). ($'s in MMs except per share data) Q1 FY07 ending April 30, 2006 Q1 FY06 ending April 30, 2005 Service and technology revenues $55 $40 Costs of service and tech revenues ($18) ($9) Sub acquisition spending (TAC) ($21) ($16) Research and development ($13) ($11) General, administrative & legal ($15) ($6) Interest & taxes $1 $1 Net income/(loss) ($11) ($1) EPS ($0.13) ($0.01) Cash flow from operations ($14) $0 Ending Cash $92 $105 Ending Inventory $13 $19 1 |
![]() Operational Highlights Operational Highlights TiVo-Owned Monthly Churn 0.9% Total Subscription Net Additions 53,000 TiVo-Owned Subscription Net Additions 51,000 Churn – % of Subscriptions cancelled ARPU – Average Revenue Per Subscription 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. TiVo-Owned Subscription Gross Additions 91,000 14 ARPU $8.54 |
![]() Subscription Acquisition Costs Subscription Acquisition Costs $116 $139 $174 $182 $180 $180 $180 $196 $213 $0 $50 $100 $150 $200 $250 $300 Apr '04 Jul '04 Oct '04 Jan '05 Apr '05 Jul '05 Oct '05 Jan '06 Apr '06 SAC (current quarter) SAC (trailing 12 months) $116 $139 $174 $182 $180 $180 $180 $196 $213 $0 $50 $100 $150 $200 $250 $300 Apr '04 Jul '04 Oct '04 Jan '05 Apr '05 Jul '05 Oct '05 Jan '06 Apr '06 SAC (current quarter) SAC (trailing 12 months) 15 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. $232 |
![]() Guidance – Q2’07 Guidance – Q2’07 Q2 Service and Tech Revenues $50 - $53 Q2 Net Loss $(12) - $(15) mm 16 1 For definitions and reconciliations, please see TiVo’s First Quarter 2007 Press Release Dated May 24, 2006 and quarterly and annual SEC Filings. |
![]() Agenda Agenda Tom Rogers, President & Chief Executive Officer - Highlights - Sales & Marketing Efforts - Product Differentiation - Distribution Update and MSO Plans - Litigation Stuart West, Acting Chief Financial Officer - Housekeeping Items - Financial and Operational Highlights - Financial Guidance Q&A - Tom Rogers, President & Chief Executive Officer - Stuart West, Acting Chief Financial Officer - Matt Zinn, General Counsel Tom Rogers, President & Chief Executive Officer - Highlights - Sales & Marketing Efforts - Product Differentiation - Distribution Update and MSO Plans - Litigation Stuart West, Acting Chief Financial Officer - Housekeeping Items - Financial and Operational Highlights - Financial Guidance Q&A - Tom Rogers, President & Chief Executive Officer - Stuart West, Acting Chief Financial Officer - Matt Zinn, General Counsel 17 |