Luxeyard, inc.

lodgeflumpInternet and Web Development

Jun 26, 2012 (5 years and 1 month ago)

445 views

Luxeyard, inc.

Investor

Presentation


march 2012

This
presentation
contains forward
-
looking statements about our member acquisition and
customer satisfaction
goals and new product expansion initiatives, which
involve risks and
uncertainties, and actual results could differ materially from those discussed. Factors that
could cause or contribute to such differences include, but are not limited to, the factors
included under the headings "Risk Factors” and “Cautionary Note Regarding Forward
Looking Statements” in the company's Form 8
-
K, filed with the Securities and Exchange
Commission on November 8, 2011, a copy of which may be obtained by visiting the SEC's
web site at www.sec.gov.
LuxeYard's

actual results could differ materially from those
predicted or implied and reported results should not be considered as an indication of
future performance.


You
should not rely upon forward
-
looking statements as predictions of future events.
Although we believe that the expectations reflected in the forward
-
looking statements are
reasonable, we cannot guarantee that the future results, levels of activity, performance or
events and circumstances reflected in the forward
-
looking statements will be achieved or
occur. Moreover, neither we nor any other person assumes responsibility for the accuracy
and completeness of the forward
-
looking statements. We undertake no obligation to update
publicly any forward
-
looking statements for any reason after the date of this press release to
conform these statements to actual results or to changes in our expectations.


Safe Harbor Statement

2

I.
Executive Summary

II.
Milestones

III.
Business Model

IV.
Key Differentiators

V.
Systems and Operations

VI.
Marketing

VII.
Merchandising & Product

VIII.
Financial

IX.
Conclusion and Q&A

Appendix A


Management Team


Table of Contents

3

I. Executive Summary

Member
-
based
l
uxury
s
hopping
o
nline

Direct manufacturer to
c
onsumer; replaces
r
etail

No warehouse or brick
-
and
-
mortar
r
etail
e
xpenses

Revolutionary “Group” & “Concierge”
b
uying
c
oncepts

Selling home
f
urnishings
and
décor; major apparel launch
scheduled in March; expansion plans in other verticals

Company attributes
:

www.luxeyard.com

(launched Jan ‘12)

Reverse merger complete; trading OTCBB “LUXR”

42
5
,000 members; on target for 1M end of Q2 ‘12

Solid
m
anagement
t
eam

Raised three
r
ounds


totaling $3.3 Million

Exceeding top
-
line
r
evenue & membership targets

Paradigm Shift in Retail to

F
污獨s
S
慬敳

:

4

II
.
LuxeYard

Milestones

5

Company



Founded 2011, HQ Los Angeles w/ satellite office in NYC


Completed a reverse merger, trading OTC under symbol LUXR.OB


Registrant with SEC in the United States of America

Site
Launch


Member Only Launch 12/2011 systems tested & shipping product


Live Public Launch
-

January 24, 2012


Product Expansion: Apparel (Women, Men & Baby), Travel, & more

Members


425,000 members at Mar 14
th

with 1M projected by end of Q2 2012


Fastest growth of membership acquisition in industry


Member growth provides tremendous leverage w/ Brands

Ops


Attracted top furnishings, tech, marketing & finance talent


Designing & Developing streamline systems to reduce overhead


SEO strategy not embraced by others; huge competitive advantage

Invest


Three rounds $3.3M raised including $1.850 million in commitments


Seeking $5M to finance growth and expansion strategies, post April

6

III.
Business Model

Mission: to
be
premier
online destination
for luxury
items at deep discount, and to pioneer “Group Buy”

Low
Consumer
Prices for
Luxury
Products

Consumer
Driven
Value and
Marketing

Low Cost
Operating
Model

Value
Prop. to
Vendors


Consumers unite to
pressure price
down;
choose
products


Consumer self
-
interest
helps find
more
consumers to
leverage
“Group Buy”


I
tems remain
in

The
Yard


up to
four
days



Group Buys


price
goes down
for
everyone,
as #



orders increase


Vendors drop
-
ship to
consumers directly


Minimal working
capital

no AR


Initial
infrastructural
investments


but low
maintenance
CapEx


Legitimate avenue


for showcasing



products, with
no



impact
to other


channels


LuxeYard

negotiates
with suppliers as a
service for the
aggregated demand

7

IV
. Key Differentiators

The Company is confident that key differentiators will
elevate
LuxeYard

above the crowd


LuxeLife

Trendsetters

:

High profile
industry influencers


Trendsetters


have incentive to



recommend
products
to fans



and followers

7

Inter
-
active Member Engagement:



Diverse Marketing Plan:



Proprietary Vendor Portal:







Product Mix and Culture:






LuxeYard

-
Unique

consumer
-
driven


site

-
Shift of decision
making to
consumers

-
Significant enhancement to inter
-
activity

-
Social
media and dynamic
e
-
mail

-
Paid advertising

-
Dynamic SEO

-
LuxeYard

team of supply chain experts

-
P
roprietary
portal system

-
Easier manufacturer
communications

-
Distinct, edgy southern
California
culture

-
Online
experience & social
engagement

-
Product mix

-
LuxeLIfe

Trendsetters (see below)

8

V.
Business Systems and Operations

Magento



eCommerce
/ CMS
Platform

-

World class platform enables customization

BackYard



Vendor
Portal

-

Streamlined management of sales events

Dynamic
Email
System

-

Manage communications at granular level

Contact
Management
System

-

Open
source to track correspondence
and


deal points with manufacturers


LuxeYard

systems
source
of competitive advantage in
encouraging top
brands to
work with
LuxeYard



Custom
Aesthetics

Graphic Layout,
Look and Feel

Custom
Architecture

Group Buying
Apparatus

Countdown
Display

Voucher email

Deal is on


The

Yard


Messages
-

Limited Offers


What

s in the
Yard


link

LuxeBucks
Rewards

Earnable Store
Credits

Customer
Relationship

Group Product
Nominations

Customer
Product Suggest

Mechanism for
Idea Submission

Picture Upload

Vendor Model/
SKU Submission

Social Aspect

Product Voting
Feature

Promote Deal
at Deal Page

Social Media
Interface

LY Twitter/
Facebook

Social Stream
Feature

Free Room
Planner

LuxeLife
Concept

Trendsetters

1% URL
Commissions

Main Daily
Offer Page

Brand Differentiators and Custom Features:

-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
11/30/2011
12/31/2011
1/31/2012
2/29/2012
3/31/2012
4/30/2012
5/31/2012
6/30/2012
Total members
11/30/2011
12/31/2011
1/31/2012
2/20/2012
2/29/2012
3/14/2012
3/31/2012
4/30/2012
5/31/2012
6/30/2012
Total Members
-
150,000
200,000
270,000
390,000
425,000
500,000
650,000
800,000
1,000,000
Membership Acquisition
9

425,000 members at Mar 14
th


LuxeYard

s marketing plan
includes elements of: SEO, link
building, directory listing,
article/review submissions,
press releases and e
-
mail
campaigns

Marketing strategy consists of
membership growth and
member conversion

VI
. Marketing

M
arketing
goal is to achieve 1 million member count
at faster pace than any other flash sales site ever



Actual

Projection


Strategy
in place to
penetrate
existing
customers

10

VII
. Merchandising and Product

Product sourcing
:

Inline
volume discount


for existing
products
that are in stock, but for which
vendor has too many; or for production lines
with excess capacity

Discontinued
items


Mainly targeted to distributors, and consisting of
excess buying, last year

s models, retailer discontinued, seasonal
items

OEM


source
products with established brands on OEM
basis

Core deal events include luxury merchandise in home
furnishings and décor, with
new apparel launch in
March, and strategic
initiatives
for
product
expansion

Furniture

Accessories

Bedding

Consumer Goods

Consumables

Lifestyles

Leather Seating

Decorative Pieces

Mattresses

Watches

Wine

Vacations

Chaise

Lamps

Sheets

Kitchenware

Premium Olive Oil

Resorts

Chairs

Decorative Pillows

Sheet Set

Paper & Papyrus

Coffee/ Espresso

Events

Occasional

Tote Bags

Down Comforter

Branded Pens

Chocolate

Gift

Certificates

Desks

Candle Holders

Blankets

Leather Planner

Gift Baskets

Bedroom

Branded

Art

Down

Pillows

Tools

Steak/

Meals

Dining Room

Mirror

Bed Skirts

Electronics

Recliners

Area Rugs

Shams

Jewelry

Potential expansion categories (examples)

VIII.
Financial Perspective

11

E
xceeded
business plan
targets
for revenue, gross
profit,
and membership

Successful companies
in sector experienced 25%
-
30% monthly revenue
growth

Attractive gross
margin during the first year, with
projected enhancements

Minimal (or negative) working capital requirements


credit card
settlement,
no AR, little or no inventory, and favorable cash conversion cycle

Initial infrastructural investments


but minimal maintenance
CapEx


Basic business
model involves
attractive
gross margin,
favorable cash conversion cycle, and
low
operating
cost for an internet
-
based specialized retailer

Selected operating metrics:
Membership at 12/31/2011 (post-beta launch)
150,000


Membership at 1/31/2012 (post-formal launch)
200,000


Membership at 2/29/2012
390,000


Membership at 3/14/2012
425,000


Member growth (January - February 2012)
95%
Average transaction value - February 2012 LTD
$192
Website Rank (Alexa) - at 2/29/2012
13,317


Website Page Rank (Google) - latest at 3/13/2012
5


Facebook Fans - at 2/29/2012
12,600


% New website visits - at 2/29/2012
58%
Innovative proposition

Daily

flash sales


events featuring
luxury
products

New industry standard
for
consumer
inter
-
activeness

Customer
self
-
interest promotes the product

Win proposition for vendors, consumers, and
LuxeYard

Efficiency in operations:

Recruited and secured top industry management

Superior
logistics and supply chain expertise

Superior on
-
line presence and marketing strategy

425,000
members; on track for 1 million by end Q2

Favorable financial outlook:

Significant monthly revenue growth
among
comparables

Minimal working
capital and
favorable cash
conversion

IX.
Conclusion and Q&A

12

Appendix A

13

Appendix A


Management Team

Braden Richter
-

CEO

Successful, serial entrepreneur and CEO for 19 years, starting companies from the ground up

Previously, CEO or founder of high
-
growth companies
ArcheType

Design and Development, Richter
Designs (DBA Robinson & Robinson), Richter Studios, and
Jaxon

International

Led significant profitability, top brand client relationships, and expansion of associated businesses


14

Steve Beauregard, COO

Previously, founder and President of REGARD Solutions Corp., a successful mobile, social and e
-
commerce development firm for multi
-
channel retailers and venture
-
backed
start
-
ups

Formed s
oftware
incubator REGARD Ventures Solutions
helping
early
-
stage
entrepreneurs

Frequent
guest speaker on
entrepreneurship; quoted in trade magazines

Margot
Ritcher

-

CFO

Previously with Arcadian Management Company, responsible for financial reporting, tax and
regulatory compliance;
preparation
for IPO or public company sale

L
ed an
executive management consulting practice for clients including USA Broadband, CBRE
Richard Ellis, People Support,
SpotRunner

and others

VP of Business for DirecTV International division of
DirectTV

CPA for Coopers and Lybrand and Deloitte Haskins and
Sells


Appendix A


Management Team
(continued)

15

Jerry Wilkerson


CTO

For the past 15 years, Mr. Wilkerson has been heavily involved in myriad aspects of web
technology and e
-
commerce, including programming, graphic design, website architecture, sales
conversion, content, and online marketing

Founded
LeatherGroup.com in 2002, a pioneering e
-
commerce business in online home
furnishings. Added Home LOFT in 2006, a boutique home furnishings retail showroom concept

Previously with
WorkNet

Communications,
and AT&T

Joshua Thompson
-

CMO

Extensive experience in brand development, marketing, sales and operations management

Previously with LegalMatch.com (10 years),
establishing company as
preeminent
online attorney
client matching
service and significantly
growing
the company

s online exposure and
reach

E
xperience
growing internet based start
-
ups through mail, viral and
traditional
outreach channels

Tony Winders


EVP Revenue

Previously with
ValueClick
, Inc., where he served as vice president of
marketing

Helped
establish the company as one of the largest and most respected display advertising and
lead generation networks in the world

Previously with Search 123, and
InterActive

Agency (founder and president)

B
egan career
in public relations
as account
executive at
Paladino

& Associates in
Hollywood and
then as director of client programs
at Murphy/O’Brien
Communications in Beverly Hills

Appendix A


Management Team
(continued)

16

Jack Guerrero, VP Finance and Investor Relations

Distinguished career in finance (approximately 12 years), across variety of financial planning,
investment banking, audit, and corporate development roles

Previously, investment banker with William & Henry Associates, focused on middle
-
market

Big 4 public accounting background with Ernst & Young and KPMG LLP

Corporate Development Manager with American Express Company in New York