Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Investor Presentation
November 2018
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
2
Forward Looking Statements
This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions and on
information currently available to management, including our current expectations with respect to revenues and Adjusted EBITDA for the fourth quarter and fiscal year
2018; our expectations for our offerings, partnerships, pricing strategies and platforms; our expectations regarding the future demand and behavior of consumers,
retailers and CPGs; and our expectations with respect to our future investments and growth and ability to leverage our investments and operating expenses. Forward-
looking statements are based on our current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual
results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which
include, without limitation, our ability to generate positive cash flow and become profitable; the amount and timing of digital promotions by CPGs, which are affected by
budget cycles, economic conditions and other factors; our ability to adapt to changing market conditions, including our ability to adapt to changes in consumer habits,
our ability to negotiate fee arrangements with CPGs and retailers; our ability to maintain and expand the use by consumers of digital promotions on our platforms; our
ability to execute our media strategy; our ability to effectively manage our growth; the performance of our various products; our ability to successfully integrate acquired
companies into our business; our ability to develop and launch new services and features; and other factors identified in our filings with the Securities and Exchange
Commission (the "SEC"), including our quarterly report on Form 10-Q filed with the SEC on August 3, 2018 and future filings and reports by us, including our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2018. We disclaim any obligation to update information contained in these forward-looking statements
whether as a result of new information, future events, or otherwise and does not assume responsibility for the accuracy and completeness of the forward-looking
statements. In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations as
analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under U.S. GAAP. There are a number of limitations
related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial
measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools
for comparison. We consider these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the
company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by our management
for that purpose. The use of non-GAAP measures is further discussed in the accompanying press release, which has been furnished to the SEC on Form 8-K and
posted on our website. The press release also defines our non-GAAP financial measure of Adjusted EBITDA. A reconciliation between GAAP and non-GAAP
measures can also be found in the accompanying press release and in the Appendix hereto. A reconciliation of Adjusted EB ITDA, a non-GAAP guidance measure, to
a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain (income)
expense items that are excluded in calculating Adjusted EBITDA.
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
CPGs and Retailers Shift
to Digital Strategies
• CPGs spend ~$225 Billion
annually in marketing
• Integrated, data-driven
solutions are key
• Competitive pressures serve
as catalyst for convergence
3
DIGITAL
E-COMMERCE
OMNI CHANNEL
MEASUREMENT
PROMOTIONS
MEDIA
DATA
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Consumer shift from offline to online, particularly
to mobile
Increased need for personalized and targeted
marketing messages
Retailers driving digital marketing activities due
to increased competitive landscape
CPGs need to drive sales through greater
efficiency and higher ROI
Market Drivers
4
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Large & Growing Market
5
Media Advertising~$9B estimated spend in 2018 on
digital advertising, and growing3
CPGs spend $225B+ in MarketingShifting dollars to digital channels brings efficiency and closed-loop measurement
Promotions~300B national offers distributed annually1
~$200B in Trade Promotions spent annually2
(1) Number of CPG coupons distributed based on NCH CPG Coupon Trends Year-End 2016 Report; (2) Trade Budget: Goldman Sachs November 2015 report: Trade Budgets at a Tipping Point; (3) eMarketer 2018: U.S. CPG and Consumer Products Industry StatPack 2018
(4) Shopper Marketing: U.S. Brand Activation Marketing Forecast (2016-2020): Key Findings Report. Association of National Advertisers and PQ Media, April 2016
Shopper MarketingRetailer specific media + promotions~$19B4
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Source: eMarketer
CPG Digital Ad Spend
Digital
Ad Type
72%
Display 25%
Search
3%
Other
2 0 1 6 2 0 1 7 2 0 1 8 F 2 0 1 9 F
$6.3
$7 .9
$9 .4
$11
US CPG AND CONSUMER PRODUCTS
DIGITAL AD SPENDING(Billions)
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Digital Growth Drives Scale
7
Broad Retailer Reach
• National Coverage
• Representing ~$400B of CPG
retail sales
• Multi-channel: grocery, drug
dollar, mass and club retailers
• Rich demographic, shopper data
Deep CPG Relationships
• ~700 Customers
• ~2000 brands
Shopper Data Drives Engine
• 70M+ shoppers registered on
programs powered by Retailer iQ
• +20M monthly average visitors to
Coupons.com mobile web + app
• Represents ~50% of U.S
households
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Our Partners
8
CPGs Retailers
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Powerful Network Effect
9
Demandfor digital coupon
by consumers
Supplyof digital
coupons/budgets
from CPG’s
Demand Driven From:• RIQ implementations
• Retailer Marketing drives users to digital
coupon programs
• Coupons.com app & mobile web
Supply Driven From:• CPG budget shift from offline to digital
• Better ROI on marketing spend
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
QUOTIENT PROMOTIONS SOLUTIONS
QUOTIENT MEDIA SOLUTIONS
QUOTIENT DATA SOLUTIONS
QUOTIENT RETAILER
PERFORMANCE MEDIAQUOTIENT AD TECH
Quotient Ad Server
Quotient DSP
Quotient eCommerce
QUOTIENT MEDIA SERVICES
Quotient AOR
QUOTIENT PRIVATE MARKETPLACES (PMP)
QUOTIENT CONTENT SERVICES
Influencer
Creative; Dynamic - Targeted
Brand Pages
QUOTIENT ANALYTICS
QUOTIENT AUDIENCES
QUOTIENT PROMOTIONS NETWORK
QUOTIENT SOCIAL + INFLUENCER
Strategy Pillars
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Quotient Promotions - Retailer iQ
11
Real-time
Email/SMS
Engagement
Digital
Offers
Digital
Shopping List
Digital
Receipts
Digital
Circular
Targeted
Media
Reporting &
Analytics
Personalization… Personalization…
Data on Shoppers Transactions/Digital Use, Products, Promotions, Pricing
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
12
CRM Solution For CPG Brands
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Coupons.com
Display
Social
Display
Social
Influencer
Retailer.com
Display
Sponsored
Search &
Product Ads
Programmatic
DisplayAudience Data
Ad Tech
Media
Services
Private
Marketplace
Creative
Content
Measurement
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Performance Media Advantage:
Drives Sales in Mid-Low Funnel
Valuable Key Assets
Retailer Audience Data
Dynamic Mobile Creative
Retail Ad Inventory
Measurement
Technology
Coupons.com Audience
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
+2 More Retailers
Launching Soon
Quotient As Exclusive Retailer Media Partner
~ $150
Billion5 Retailer Partners’
Collective Annual
Sales
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Integrating Digital Promotions
and Media at Scale
Leading Influencer Marketing Platform
100M+ Verified Buyer Auduence for Media Targeting1
100% Guaranteed Audience Reach
Data Driven
Ideas
MuseTM
Custom Branded
Content
Brandables
Verified Audience
Guaranteed Reach
Source 1: BlueKai (2018)
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
17
Ecommerce Sales
Search and Sponsored Product
Media Technology
• Shoppers are initiating more of their trips
directly on retailer websites
• Brands shifting search budgets to a higher
performing medium tied to product sales
• Brands can optimize for sales performance
with proprietary algorithms, flexible bidding
models, and rich analytics
ice cream
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Quotient
Analytics
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Delivering
KPI-Driven
Programs
Up to $6Return on CPG ad spending1
Average 1.4X Lift
vs. Industry Norms2
Average 74%Coupons.com Viewability3
Viewability
Store Visits
ROAS
Source: 1 10 IRI Lift Analyses from 2017; 2 Quotient performance versus 186 Placed store visitation lift studies; 3 Moat (Jan-June 2018)
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
20
WhyQuotient?
ConsumersPlan, shop and save on favorite
brands at preferred stores
Personalized, relevant experience
CPGsMulti-channel, national shopper reach
Drives efficient marketing spend and
profitable sales
RetailersProvides digital platform to reach and
engage shoppers
Drives increased sales in competitive
retail environment
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Financial Highlights
21
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
22
Business
Model
CPG $$$
GROSS MARGIN
PROMOTIONS MEDIA
PARTNERO&O RETAILERO&O
DISPLAY &
IMPRESSIONSTRANSACTIONS
TAC / DIST FEEDIST FEE
TOTALTOTAL
GROSS PROFIT
OTHER COSTS
PAID REVENUE SHARE &
OTHER 3RD PARTY FEES
CONSUMER ENGAGEMENT
NETWORK DISTRIBUTION
PLATFORM SOLUTION
REVENUE
PUBLISHER
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Revenue $82.0 $93.1 $86.8 $89.5 $103.6
QoQ 10% 14% -7% 3% 16%
YoY 23% 23% 20% 20% 26%
$58.1 $63.4 $63.8 $60.9 $63.3
$23.9$29.7 $23.0 $28.6
$40.3
Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018
Quarterly Trend ($M)
Promotions Media
23
Revenue
9% y/y
69% y/y
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
24
Revenue Split
76% of Total Revenue Growing +39% over Q3’17
Total promotion revenue in Q3’18, excluding Specialty Retail, grew 12% over Q3’17
$M Q1'17 Q2'17 Q3'17 Q4'17 FY Y/Y %
% of
Total Q1'18 Q2'18 Q3'18 Y/Y %
% of
Total
Digital Print 15.4 17.2 16.6 17.3 66.5 -13% 21% 15.8 15.6 16.9 2% 16%
Retailer iQ 31.2 30.6 33.0 35.7 130.5 57% 41% 40.2 36.8 38.5 17% 37%
Others 2.0 2.4 2.2 2.2 8.7 1% 2% 1.7 2.3 2.5 11% 3%
Total Promo Revenue from CPGs 48.6 50.2 51.8 55.2 205.7 22% 64% 57.7 54.7 57.9 12% 56%
Specialty Retail 8.8 8.2 6.3 8.2 31.5 -28% 10% 6.1 6.2 5.4 -14% 5%
Total Promotion 57.4 58.4 58.1 63.4 237.2 12% 74% 63.8 60.9 63.3 9% 61%
Media 15.2 16.1 23.9 29.7 84.9 35% 26% 23.0 28.6 40.3 69% 39%
Total Revenues 72.6 74.5 82.0 93.1 322.1 17% 100% 86.8 89.5 103.6 26% 100%
20182017
Digital print revenue includes revenue from digital print and set up fees
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
25
Top 10 Retailer iQ Customers Continue To Grow
• Q3’18 Top 10 Retailer iQ customers
grew Retailer iQ revenue 18% y/y
Based on Q3 2018 Top Retailer iQ Customers
10%
23%
27%
0%
5%
10%
15%
20%
25%
30%
2016 YTD 2017 YTD 2018 YTD
Top 10 Retailer iQ customers as % of total promotion revenue
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
26
Growth In Top 10 Media Customers
• Q3’18 Top 10 customers grew
revenue 86% y/y
• Growth drivers include QMX,
Crisp, Retailer Performance
Marketing, and Ahalogy
Based on Q3 2018 Top Media Customers (U.S. revenue only)
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
27
Transactions
• Q3 YoY growth of 4%, driven by
9% growth in digital paperless,
offset by 20% decline in digital
• Volume of transactions drive
scale and demand on platform
987 971 1,027954
1,026
Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018
(M)
Digital Print Digital Paperless
Transactions Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018
QoQ 24% -2% 6% -7% 8%
YoY 45% 40% 29% 20% 4%
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
28
Operating Expenses
• QoQ improvement in Non-GAAP
OpEx expense due to continued
operating efficiencies and cost
management, with some expenses
getting pushed out to Q4
• Significant improvement YoY of Op
Ex as % of Revenue due to 26%
revenue growth, coupled with
continued cost management and
efficiencies
Non-GAAP operating expenses exclude stock-based compensation, net
change in fair value of escrowed shares and contingent consideration,
amortization of acquired intangible assets, enterprise resource planning
“ERP” software implementation costs, acquisition related costs, and
restructuring charges. A reconciliation table of the period presented can
be found in the Appendix section of this presentation.
Q3 FY18 GAAP Op Ex: $52.0M compared to $44.2M in Q2 FY18
Q3 FY18 Non-GAAP Op Ex: $37.3M compared to $35.4M in Q2 FY18
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
29
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, is net loss adjusted for
stock-based compensation, change in fair value of escrowed shares and
contingent consideration, net, interest expense, other (income) expense net,
provision for (benefit from) income taxes, depreciation, amortization and other,
which includes: enterprise resource planning ("ERP") software implementation
costs, certain acquisition related costs and restructuring charges. A
reconciliation table of the periods presented can be found in the Appendix
section of this presentation.
• 32% increase in Q3 FY18 Y/Y due to
26% revenue growth and continued
leverage in operating expenses,
offset by decline in gross margins
due to product mix
$12.5$13.9
$11.9$12.9
$16.4
Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018
Margin 15% 15% 14% 14% 16%
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Guidance
FY2018
Q4 Full Year
Low High Low High
Revenue ($M) $115.0 $120.0 $395.0 $400.0
YoY Growth 24% 29% 23% 24%
Q4 Full Year
Adjusted EBITDA ($M) $18.0 $20.0 $59.0 $61.0
Margin 16% 17% 15% 15%
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Thank You
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
AppendixScreen Shot Examples & Reconciliation Tables
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
33
Coupons.com
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
34
Digital Coupons
in Retailers’
Marketing and
Merchandising
Programs
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
35
Personalized Email
Marketing
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
36
Personalized Digital
Circular
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
37
Use screen shots from Risa
Shopper Marketing
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
| Influencer Marketing on Social
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Digital Drives Efficiency in Trade Spend
Offline Non-Targeted Digital & Targeted
Customer Type $ Spent# of Boxes
Sold$ Spent
# of Boxes
Sold
Always buys Flakes $1 1 $0 1
Sometimes buys Flakes $1 1 $0.50 1
Sometimes buys Flakes $1 1 $0.50 1
Never buys Flakes $0 0 $2 1
Total $3 3 $3 4
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
40
Reconciliation of Non-GAAP Operating Expense
* Non-GAAP operating expenses excludes changes in fair value of escrowed
shares and contingent consideration, stock-based compensation,
amortization of acquired intangible assets, restructuring charges, acquisition
related costs, and enterprise resource planning ("ERP") software
implementation costs
Q3 FY 17 Q2 FY 18 Q3 FY 18
Revenues 81,950$ 89,545$ 103,591$
Sales and marketing expenses 22,002 20,530 22,782
(less) Stock-based compensation (1,832) (1,735) (1,689)
(less) Amortization of acquired intangible assets (101) (200) (438)
(less) Restructuring charges — (64) (204)
Non-GAAP Sales and marketing expenses 20,069$ 18,531$ 20,451$
Non-GAAP Sales and marketing percentage 24% 21% 20%
Research and development 12,255 12,122 11,974
(less) Stock-based compensation (1,894) (1,862) (1,908)
(less) Restructuring charges — (151) (379)
Non-GAAP Research and development expenses 10,361$ 10,109$ 9,687$
Non-GAAP Research and development percentage 13% 11% 9%
General and administrative expenses 11,702 11,528 12,574
(less) Stock-based compensation (4,233) (4,063) (4,252)
(less) Restructuring charges - (33) (289)
(less) Acquisiton related costs (419) (693) (824)
(less) ERP software implementation costs (473) — —
Non-GAAP General and administrative expenses 6,577$ 6,739$ 7,209$
Non-GAAP General and administrative percentage 8% 8% 7%
Non-GAAP Operating expenses* 37,007$ 35,379$ 37,347$
Non-GAAP Operating expense percentage 45% 40% 36%
QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient
Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
41
Reconciliation of Net Loss to Adjusted EBITDA
QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND TRANSACTION DATA
(Unaudited, in thousands)
Q3 FY 17 Q4 FY 17 Q1 FY 18 Q2 FY 18 Q3 FY 18
Net income (loss) $ (10,827) $ 4,182 $ (11,357) $ (4,660) $ (7,805)
Adjustments:
Stock-based compensation 8,480 7,950 7,796 8,239 8,420
Depreciation, amortization and other (1) 5,496 6,883 5,619 7,033 8,801
Change in fair value of escrowed shares and
contingent consideration, net 9,700 (5,500) 7,350 — 4,692
Interest expense — 1,589 3,308 3,326 3,373
Other (income) expense, net (276) (391) (938) (1,270) (1,267)
Provision for (benefit from) income taxes (107) (768) 102 200 195
Total adjustments $ 23,293 $ 9,763 $ 23,237 $ 17,528 $ 24,214
Adjusted EBITDA (1) $ 12,466 $ 13,945 $ 11,880 $ 12,868 $ 16,409
Adjusted EBITDA Margin (2) 15% 15% 14% 14% 16%
(1) Adjusted EBITDA, a non-GAAP financial measure, is net income (loss) adjusted for stock-based compensation, change in fair value of escrowed shares and contingent
consideration, net, interest expense, other (income) expense, net, provision for (benefit from) income taxes, and depreciation, amortization and other, which includes: enterprise
resource planning ("ERP") software implementation costs and certain acquisition related costs of $0.5 million and $0.4 million, respectively, during Q3 FY 17; ERP software
implementation costs and restructuring charges of $0.2 million and $2.1 million, respectively, during Q4 FY 17; ERP software implementation costs and restructuring charges of
$0.05 million and $1.2 million, respectively, during Q1 FY 18; certain acquisition related costs and restructuring charges of $0.7 million and $0.2 million, respectively, during Q2
FY 18; and certain acquisition related costs and restructuring charges of $0.8 million and $1.3 million, respectively, during Q3 FY 18.
(2) Adjusted EBITDA margin is the ratio of Adjusted EBITDA and Revenues.
Copyright © 2018 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, Coupons.com logo, Quotient Retailer iQ, QMX, Ahalogy and Elevaate are trademarks or registered trademarks of Quotient Technology
Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
Making Sales Happen.