![]() Copyright 2012 eDiets.com, Inc. All Rights Reserved 2 Exhibit 99.1 This presentation contains “forward-looking statements” within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements and assumptions regarding (i) our need for additional financial support to continue in business, (ii) our expectation that our total gross margins and advertising efficiency will improve in the future, (iii) our assumption that we will acquire new customers at an acceptable cost, (iv) our expectations regarding the effectiveness of our advertising and our call center conversion strategies, (v) our assumption that we are well-positioned to compete and capture market share, (vi) our expectation regarding our ability to comply with regulatory requirements, (vii) our assumptions regarding market size, projected results and the demand for our products and services. These statements and assumptions are based on management’s estimates and projections with respect to future events and financial performance and are believed to be reasonable, although they are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors, including (i) our ability to raise additional capital, (ii) our ability to attract and retain customers at an acceptable cost, (iii) our ability to maintain or improve meal delivery margins and advertising efficiency, (iv) our ability to manage our business effectively at reduced staff levels, (v) our ability to manage fluctuations in advertising costs, (vi) our ability to sufficiently increase revenues and maintain expenses and cash capital expenditures at appropriate levels, (vii) the state of the credit and capital markets, including the level of volatility, illiquidity and interest rates, (viii) our ability to maintain compliance with regulatory requirements and (ix) our ability to rapidly secure alternate technology infrastructure vendors if we experience call center or Web site service interruption. A discussion of factors that could cause results to vary is included in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this presentation speak only as of the date of this presentation. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements. This presentation also contains non-GAAP financial measures. For a reconciliation of the non-GAAP measures to the most comparable GAAP measure, please refer to the eDiets.com website at www.ediets.com, under the Events and Presentation section of the Investor Relations page. |
![]() 10 2010 2011 Target Average Weekly Selling Price $126 $133 $136 Average Length of Stay - # of Weeks 6.2 7.2 7.6 Average Revenue per Customer $781 $958 $1,034 Cost of Goods Sold $469 $535 $527 Adjusted Gross Margin $312 $423 $507 Adjusted Gross Margin Full Year Target% 40% 44% 49% Customer Acquisition Cost $240 $255 $200 Key Factors To Success Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() 11 Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() Meal Delivery Average Number of Shipments for Active & Canceled Pool of Customers Measures changes for all customers on a rolling 12-month period 12 5 5.4 5.7 6.1 6.1 6.4 6.2 6.2 6.3 6.6 6.9 7.2 0 1 2 3 4 5 6 7 8 2 0 1 2 F Y T a r g e t 7.6 Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() 13 Introduced Favorites Package for first time customers Quicker delivery AND optimum taste – greater customer satisfaction Added New Smoothies and Bars to our offering Introduction of cost-effective shelf-stable items to the lineup 7-Day Dinners Only Program for Q2 Expecting no impact to gross margin CHOCOLATE ! Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() Increased price to allow for stronger promotions while maintaining margin Introduced Premium Program Higher margins The Goal: sell more 5-Day and 7-Day plans at full price (less discounts) Since launch, ASP has increased $10 Creating Cost Effective Meal Occasions for Q2 Re-configuring lunches and dinners Greater compliance within our caloric guidelines Minimal impact to customer $130K monthly cost savings Expect to achieve large volume discounts as business grows Expect to initiate bi-coastal production and reduce shipping costs 14 Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() Meal Delivery Gross Margin Before Depreciation and CAC (Excludes Revenue Share) 15 30% 35% 37% 35% 40% 39% 41% 40% 46% 44% 42% 44% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% • Raised price of meal delivery service Q3 2011 • Moved to lower-cost manufacturer Q2 2010 • Negotiated lower shipping rates Q1 2011 2 0 1 2 Q 2 T a r g e t 48% 2 0 1 2 F Y T a r g e t 49% Copyright 2012 eDiets.com, Inc. All Rights Reserved |
![]() Improving advertising Re-energized testimonial campaign with FIRST NEW COMMERCIAL in 2 years Continually testing television, magazine and online advertising channels and content to find the optimal mix for driving customers to call center Website sales funnel overhaul – improved user experience - Before: 7-9 clicks to order - Now: 3 clicks to order Eliminated distracting and competing 3rd party advertising Optimize the customer database - turn leads to sales - reactivate the customer Reactivation – identified 100k+ untapped customer base - developed and implemented a “we want you back” email campaign Introducing NEW 3-Day Plan for Q2 Lower entry price point . Greater opportunity for call center to upsell and close Targeting a 5-7% improvement in CAC (customer acquisition cost) Competitive in marketplace (under $100/wk) Improved Call Center Efficiency Implemented commission-only compensation structure Early Termination Fee – allows for aggressive offer testing 16 Copyright 2012 eDiets.com, Inc. All Rights Reserved |