We are the Leader in Type

Transcription

1 Monotype

2 Safe Harbor This presentation contains forward-looking statements that involve significant risks and uncertainties, including those discussed in the Risk Factors section of Monotype Imaging Holdings Inc. s Form 10-K and subsequent filings with the SEC. We are providing this information as of today s date and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. No forwardlooking statement can be guaranteed and actual results may differ materially from those that are projected. 2

3 We are the Leader in Type 3

4 Type is Everywhere 4 May 12, 2016

5 Trillions Impressions ~500 Employees Billions Devices Millions Customers $205M* Revenue ~$1B Valuation 5 *Midpoint of guidance given on April 29, 2016

6 New & Significant Markets Static Dynamic Newspaper Printer Books Foundation Expression Engagement 6 Message bubbles Created by Lorena Salagre, Apps icon Created by Falco Walde, watch Created by Hakan Yalcin, Ad icon Created by Sharon Showalter, all from Noun Project

7 New & Significant Markets Static Dynamic Newspaper Desktop Phone Tablet epub Printer Books Apps Messaging Ads Websites Wearable Foundation Expression Engagement 7 Message bubbles Created by Lorena Salagre, Apps icon Created by Falco Walde, watch Created by Hakan Yalcin, Ad icon Created by Sharon Showalter, all from Noun Project

8 Our Connected World Smartphones Active Websites 2.8B 333M Consume Internet of Things Smart TV 50B 140M 204B 2B Digital Advertising Messaging Apps Create 118M Automotive 3.5B Internet Users 8 Sources: Gartner, Strategy Analytics, KPMG, emarketer, Netcraft Reports

9 Monotype Opportunities Consumption Everything has a screen: fridge, car, medical devices Content increasingly digital and mobile Mobile first in many countries and for young consumers Everyone has a voice Websites, blogs, social, messaging 9

10 Vision Empower expression & engagement 10

11 Consumption, OEM Creation, CP Printer Desktop Display Web Fonts 11

12 Our Connected World ~50% Revenue OEM ~50% Revenue 3-5% Growth 15-20% Growth Creative Professional 12

13 Creative Professional Market Insights Cross-screen brand mandate Responsive design requirement >50% top websites use web fonts Digital advertising spend: $204B by 2018 Consumer personalization Strategy Enable brand consistency across print and digital Simplify workflow for creative professionals Our IP at the center of personalization Growth Initiatives Web fonts (websites, apps, digital advertising, ) In-app mobile messaging, branded content 13

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15 Creative Professional Market Evolution Major Brand 2007 Desktop licenses, custom fonts Perpetual licenses 2010 Web fonts for websites, desktop licenses, custom fonts Recurring (per impression-based), perpetual licenses 2016 Web fonts (websites, apps, digital advertising), branded content, desktop licenses, custom fonts Subscription, recurring (per impression-based), campaign-based, perpetual licenses 15

16 OEM Market Insights Laser printer unit CAGR of 1% ( ) Evolution of screens Smartphones, tablets, ereaders, automobiles Internet of Things, 50B units by 2020 Strategy Develop innovative solutions to optimize use of text on all devices and platforms Growth Initiatives Automotive Internet of Things, medical devices, wearables 16

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18 Market Insights OEM Device CP Community CP Engagement I ran a 5k today! Great work! 18 May 12, 2016

19 Key Takeaways Leader in field Serving large, growing markets Meaningful growth opportunities Proven and winning business model 19

20 Business Models and Financials 20

21 Revenue 11% CAGR $220 $200 $ $ $140 $120 $ G 21 G = Midpoint of guidance given on April 29, 2016; range $202.0M to $208.0M

22 naebitda $ % CAGR $70 $ $50 $40 $ G 22 G = Midpoint of guidance given on April 29, 2016; range $72.0M to $77.0M Note: Reconciliations of all non-gaap measures are available at

23 Cash Flow from Operations $75 $ $ $ ~50% available for M&A $35 $ ~50% available for dividends and share repurchase 23

24 Strength of Our Model Cash Debt Recurring & Predictable Revenue Dividends M&A 24

25 Key Takeaways Leader in field Serving large, growing markets Meaningful growth opportunities Proven and winning business model 25

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