Exhibit 99.2
Second Quarter 2007
Earnings Conference Call
August 30, 2006
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.
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Agenda
Tom Rogers, President & Chief Executive Officer
- Highlights
- Sales & Marketing Efforts
- Distribution Update and MSO Plans
- Product Differentiation
- Litigation
Steve Sordello, Senior Vice President & Chief Financial Officer
Stuart West, Vice President Finance
- Financial and Operational Highlights
- Financial Guidance
Q&A
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Highlights
30% Service & Technology Revenue Growth
Over 4.4 million subscriptions
Advertising revenues doubles in Q2
3,000 RadioShack stores to distribute TiVo
Cox Distribution Deal
BellSouth Distribution Deal
EchoStar Litigation
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Sales & Marketing
TiVo.com on-line sales climb to 33% of total sales
- Improves margins
Special offer for three-year bundled pricing
- Substantially adds subs
- Increases cash balance
- Positively impacts churn
Dual Tuner
- 54% of new subs
Churn at 0.9%
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Distribution
RadioShack
- Rollout to 3,000 stores Nationwide
Cox Distribution Agreement
- DVR – Software Upgrade to Cable Box
- TiVo Interactive Advertising Service
- 4th Largest MSO
Comcast
- Plan to have the product available in trials before the end of 2006
- Broad distribution in early 2007
- Over 23 mm cable subscribers
BellSouth
- First DSL provider to offer TiVo-standalone DVR
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Differentiation
Dual Tuner
- Solid product reviews
- Retail Channel Rolled-out – May 2006
- 54% of new subs
Roll-out of
- Parental Control — Provides parents with freedom and flexibility to choose quality programming for children – while giving kids choice
Partners — >4 million members
- Growing number of religious and political leaders
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Differentiation
TiVoCast
- Broadband video directly to television set
- Early content providers include: National Basketball Association, The New York Times, Heavy, iVillage and CNET
TiVo® Guru Guide Recommendations
- Delivering weekly programming recommended by editorial experts at:
- Sports Illustrated - Automobile
- Star Magazine - Billboard
- Entertainment Weekly
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Advertising
Advertising revenue doubles in Q2
Omnicom Media Group
- Now have comprehensive deals with two of the three top advertising holding companies
- Relationship includes purchasing of key research
TiVo Audience Research & Measurement
- Second by second analysis of commercial viewing
- Demographic overlays
TiVo Advertising Advisory Council
- Represent 95% of Television Media Buyers
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EchoStar Lawsuit Victory
Jury Verdict
- Found willful infringement of patent
- Awarded almost $74 million
- Prejudgment interest of approximately $5.6 million
- Supplemental damages for infringement of approximately $10.3 million
- TOTAL: Over $89.6 million
Motion granted for permanent injunction
Motion granted to stay litigation EchoStar filed against TiVo
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Agenda
Tom Rogers, President & Chief Executive Officer
Highlights
Sales & Marketing Efforts
Distribution Update and MSO Plans
Product Differentiation
Litigation
Steve Sordello, Senior Vice President & Chief Financial Officer
Stuart West, Vice President Finance
Financial and Operational Highlights
Financial Guidance
Q&A
Tom Rogers, President & Chief Executive Officer
Stuart West, Vice President Finance
Steve Sordello, Senior Vice President & Chief Financial Officer
Matt Zinn, General Counsel
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Q2 Financial Metrics
($ ‘s in MMs except per share data)
Service and technology revenues
Costs of service and tech revs
Service & tech margin
Total acquisition costs 1(S&M, rebates, HW) Research and development General, administrative & legal Interest & taxes
Total spending
Net income/(loss)
EPS
Cash flow from operations
Ending Cash and Short-term Investments Ending Inventory
Q2 FY07 ending Q2 FY06 Adjusted ending July 31, 2006 July 31, 2005
$53
($13) $40
($ 23)
($ 13)
($ 11) $1
($ 46)
($ 6)
($ 0.07)
($18) $75 $18
$41
($8) $33
($ 17)
($ 10)
($8) $1
($ 34)
($ 1)
($ 0.01)
($6) $104 $20
1For complete definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 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 ).
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Operational Highlights
TiVo-Owned Subscription Gross Additions
TiVo-Owned Monthly Churn
TiVo-Owned Subscription Net Additions
TiVo-Owned ARPU
74,000 0.9% 30,000 $8.88
Churn – % of Subscriptions cancelled
ARPU – Average Revenue Per Subscription
1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
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Subscription Acquisition Costs
SAC (current quarter)
SAC (trailing 12 months)
$300 $250 $200 $150 $100 $50 $0
$139 $174 $182 $180 $180 $180 $196 $213 $229 $320
Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06
1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
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Average Revenue Per TiVo-Owned Subscription
ARPU
$9 $8
Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06
$8.88
1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
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Guidance - Q3’07
Q3 Service and Tech Revenues $54 - $56
Q3 Net Loss $(12) - $(17) mm
1 For definitions and reconciliations, please see TiVo’s Second Quarter 2007 Press Release Dated August 30, 2006 and quarterly and annual SEC Filings.
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Agenda
Tom Rogers, President & Chief Executive Officer
Highlights
Sales & Marketing Efforts
Distribution Update and MSO Plans
Product Differentiation
Litigation
Steve Sordello, Senior Vice President & Chief Financial Officer
Stuart West, Vice President Finance
Financial and Operational Highlights
Financial Guidance
Q&A
Tom Rogers, President & Chief Executive Officer
Stuart West, Vice President Finance
Steve Sordello, Senior Vice President & Chief Financial Officer
Matt Zinn, General Counsel
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