moko big upside from the land down under

7/21/2019 MOKO Big Upside From the Land Down Under

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MOKO Social Media (MOKO): Big Upside From Th

Land Down Under

ormally based in Sydney, Australia, MOKO Social Media has moved their chief operation

he U.S. and is rapidly gaining market share in key, high groth social media niches.

MOKO Social Media Limited !"AS#A$% MOKO& !AS'% MK(& is a high groth so

media company ith multiple drivers e believe ill take shares much higher as the U

market discovers the company.

MOKO shares closed at )*.+* on -+-*.

hese drivers are%

http://mokosocialmedia.com/

http://mokosocialmedia.com/



• Ultra0fast groth in Monthly Active Users !1MAU2& from .* million in 3uly +4 to 5

million by March +4*

• /argeted niche focus that increases user retention rates and competitive position

• Superb management team hich includes the recent addition of 6eo 7indery, former

8resident and 9:O of A/;/ (roadband to the board

• #espite high groth in both users and revenues, MOKO shares are trading at a discou

to the )<.*4-share U.S. =8O in 3une +4

• >evenue increasing from ).? million US# in fy +4 to )<.5 million in fy +4, ith a

continuation in strong revenue groth e@pected

• MOKO shares are trading at a !very& significant discount to recent corporate buyouts

social media space

• /he best time to buy a stock is before the market discovers it, not after. hile MOKO

still relatively unknon to U.S. investors, this ill change as the company is Buickly

capturing US market share in key, high groth social media niches. /he maCority of

MOKODs staff are no American and are headBuartered in the companyDs ne

Ale@andria, EA office !including 9:O, =an >odell&

lease be advised that U.S. listed shares of MOKO are tightly held and (at the moment) thiraded, which could lead to volatility.

MOKO is a multi0media platform providing tailored content for high value, niche user grou

ith mobile devices accounting for greater than 4G of user engagement. /he company targ

udents, political supporters, and active lifestyle participants. /hese communities share

ommon interests and engage regularly and efficiently. MOKO aims to capture these audien

y becoming their destination of choice for information and interaction. /he company creatighly relevant and e@clusive content, and provides platforms enabling communities to

onsume and share content seamlessly across devices.

o address these target markets and sectors, MOKODs portfolio includes seven standalone

latforms and apps dedicated to these targeted audiences%

http://finance.yahoo.com/news/moko-appoints-mr-leo-hindery-113000724.html


http://finance.yahoo.com/news/moko-social-media-announces-pricing-034900432.html


http://finance.yahoo.com/news/moko-social-media-announces-pricing-034900432.html



n April +4*, >:9J=/ had +44,444 app donloads up from *4,444 at the end of #ecembe4.

ith >:9J=/ no accounting for roughly half of the universities and *G of the high schoolmarket, >:9J=/ is the largest player in the market by a ide distance. /he cost of design,

roduct improvements, and customer acBuisition are upfront, fi@ed costs meaning >:9J=/

pend much more than peers to ensure it has the best product.

peakiesy is a social app focused on the college market. /he design and rationale for the appresult of student focus group data received during the initial development and pilot phase:9J=/. Speakiesy is school specific. /he only ay a student ill be able to Coin their specifi

ollegeDs community is ith an official university email account !.edu&, thus preventingutsiders from access to the appDs content.

he deliberate design of a 1closed circuit2 app means that users can only engage ithin thein college community ithout interference from unanted non0student body interactionshe app ill also feature the ability to follo and post content anonymously, as ell as fromstablished profiles. /he app ill be closely monitored ith all visual content being screenea the MOKO moderation system as a failsafe to protect students and schools fromndesirable content.

peakiesy is currently in beta on nine campuses. /he main competitor is Lik Lak, hich is amore general community app ithout the closed community feature Speakiesy offers and isocused specifically on university students so Speakiesy has a clear advantage. =f Speakiesy cake hold on campuses, it ill have a very strong competitive position, as it is a multi0sidedlatform here the level of users increases the value for all users. /his netork effect oftenads to natural monopolies.

http://speakiesy.com/

http://speakiesy.com/



he graph belo illustrates >:9J=/, Speakiesy and competitors ith the @0a@is illustrating vel of focus or targeting and the value on the y0a@is. >:9J=/ and Speakiesy are the most

arget apps and should better serve their target market.

MOKO developed >un7aven to address the general endurance sports, health and fitnessategory, hich is an underserved market opportunity in the US. 9urrently, there are morehan ?4,444 running races or events in the US each year, hich dra over *4 millionarticipants.

un7aven is set to be the go0to online and mobile destination for users passionate aboutunning. /he app is designed to be a complete one0stop destination for all things running gnificant digital touch points dedicated to >eading, >acing, Shopping, and Sharing.

un7aven currently delivers daily content produced by ?+ contributing runners representin States in the US, 9anada and Australia. MOKO is collaborating ith 8acers >unning Storith the goal of creating a dedicated >un7aven online Store !Shop&. /his ill enable our

ommunity to get all of their running products ithout ever leaving our site. /he ne sites nclude a Forum and 8hoto Albums !Share& to allo runners to interact ith one another asommunity.

http://runhaven.com/

http://runhaven.com/



un7aven is one of the fastest0groing online media brands for health and fitness enthusiand the ?rd largest running community on Facebook and has .+ million monthly uniBuesitors.

n addition to >un7aven, MOKO ill roll out a ne sister app called >aceAdviHor.

aceAdviHor is e@pected to become the countryDs largest online databases ith over ?4,444vents. /hrough >aceAdviHor, runners ill be able to search and choose their ne@t race,hether it is across ton or across the country. >unners ill also be able to read-rite race

evies and vie-share race photos.

lue "ation >evie is one of MOKODs political platforms encompassing both a ebsite and pp. At the end of March +4*, the ebsite has ?.* million monthly active users and the appas been donloaded over *44,444 times since its launch in September +4. ("> is alsoeing Buickly recogniHed by key political groups and operatives as a hub for relevant media

he go to community representing todayDs progressive agenda. =n September +4, (">Ds@ecutive :ditor 3immy illiams as invited to participate in the important #emocratic evthe 17arken Steak0Fry2 N in =oa, here 7illary and (ill 9linton headlined.

OL9=/ !launch pending& ill be a non0partisan political group and community app that grut of the groth of (">. /he launch of the app is perfectly timed for the height of the +4*olitical cycle. MOKO designed EOL9=/ to be a non0partisan, user0generated content appmpoering users to create and-or choose to follo groups devoted to specific issues,andidates or causes. Active office holders and aspiring candidates can create customiHedontent channels ithin the EOL9=/ platform enabling them to engage and interact ith ot

members-users. =n addition to message propagation, the app can dramatically impact localnd national fundraising, petition aareness, the establishment of localiHed activist groupsnd-or the organiHing of local protests and rallies.

http://bluenationreview.com/

http://bluenationreview.com/



n October , +4, MOKO acBuired 54G of /agroom, a nes and entertainment service.agroom publishes popular leisure content from across the internet such as viral and trendies, product discoveries and engaging videos. /he beta launch has generated upards of *

million monthly page vies. According to [email protected] !an AmaHon company that measuresobal internet traffic and user engagement&, /agroom.com is also e@periencing e@ceptionalser engagement average daily users spend more than minutes on the site. At the end of

March +4*, /agroom had over ? million monthly uniBue visitors.

he addition of /agroom.com to MOKODs portfolio is synergistic ith the companyDs overalludience profile providing marketers and brands ith direct access to the coveted hard toeach audiences. (rands and agencies seeking to engage ith young adults ill find /agroomomplete ith a host of native advertising offerings.

MOKO is in the process of developing a dedicated native mobile app for /agroom ith thentention of cross promoting it across its other properties. /he acBuisition of /agroom alsorings ith it three ne senior team members e@perienced in the creation of viral media anhareable entertainment content for the important 50?4 year0old demographic.

%"&' FO"US

s illustrated by MOKODs products, the company has a niche focus. /his niche focus allos

ompany to truly understand its customer and produce a product for that customer. /his cae seen ith >:9J=/Ds partnerships ith imleagues, and =nnoSoft significantly enhancing th:9J=/ by addressing customersD concerns. =f MOKO as not so focused and tried to cater l different customer segments, it ould end up creating a product that met no customereeds.

he focus also leads to a much greater competitive position and profitability. >:9J=/ has@clusive agreements and caters to over *4G of universities through imleagues and *G of hchools through (ig/eams, despite Cust launching the product in September +4. /hese are

oth leading positions and it is don to the ability to cater directly to the specific customerather than being a generalist alloing the company to outspend any competitors ithin theegment on upfront fi@ed costs that are so prominent in the softare industry. /he e@clusivf >:9J=/Ds agreements and MOKODs focus makes it very difficult for any competitor tootentially compete.

ocus also leads to high retention and a much more engaged and therefore valuable customor e@ample, after the first ?4 days, >:9J=/Ds user base had a 5G retention rate comparedn average app retention rate of +.?G. >:9J=/Ds engagement per session as *.* minutes ongagement compared to the average app engagement per session of under + minutes. Mos

http://tagroom.com/

http://andrewchen.co/mobile-retention-benchmarks-for-2014-vs-2013-show-a-50-drop-in-d1-retention-guest-post/

http://tagroom.com/

http://andrewchen.co/mobile-retention-benchmarks-for-2014-vs-2013-show-a-50-drop-in-d1-retention-guest-post/



mportantly, the average click through rate of >:9J=/ users as *.++G ell above all otherverage click through rates.

MOKO is almost e@clusively focused on the US. /his makes the companyDs user base even maluable as US social netork users have the highest ad spend.

he US social netork user ad spending is double its closest competitor in estern :urope most < times any other region making these users many times more valuable than anyhese in the orld.

M%'M'%T

s illustrated by the focused strategy and the recent partnerships, MOKO has a very strong

management team and board of directors.



an >odell is the companyDs Founder and 9:O. Mr. >odell has over +4 years e@periencemultimedia, corporate and consumer design and has successfully managed multi0million do

roCects across the globe for McKinsey, (M, Unilever and M/E.

hripal Shah recently Coined MOKO as the 9hief Operating Officer from the ashingtonedskins here he as the 9hief Strategy Office. Mr. Shah has more than years of@perience in digital strategy, development and e@ecution. 8rior to the >edskins, he as it

atalyst 8ublic >elations here he as the social media architect of multiple aard0inninigital marketing programs. 7e has also held stints at several eb development agencies,eveloping strategies for Kenneth 9ole, SeagramDs, (ank of "e Lork, and Morgan Stanley,mong others.

Mr. 6eo 7indery is Managing 8artner of =nterMedia 8artners, a "e Lork0based mediandustry private eBuity fund. From +44 until October +44, he as the founding 9hairmannd 9:O of /he L:S "etork, the regional television home of the "e Lork Lankees, heron five e@ecutive producer :mmys for outstanding programming. Mr. 7indery as 8residnd 9hief :@ecutive Officer of A/;/ (roadband, hich as formed out of the March

merger of /ele09ommunications, =nc. !/9=& into A/;/. Mr. 7indery as elected 8resident o9= and all of its affiliated companies, then the orlds largest cable television system operand programming entity, in February <.

Mr. 7indery, a member of the 9able =ndustry 7all of Fame, has been recognised asnternational 9able :@ecutive of the Lear, 9able /elevision Operator of the Lear, and one ofable industrys P+* Most =nfluential :@ecutives Over the 8ast +* Lears.P Mr. 7indery, a

member of the 9ouncil on Foreign >elations, has a Master of (usiness Administration degrom Stanford Universitys Qraduate School of (usiness and is an undergraduate of Seattleniversity.

US'$ $O*T&

espite MOKO recently launching or acBuiring the vast maCority of its products, the compaas been able to gro its user base from .* million in 3uly +4 to 5 million at the end of

March +4*. /he 5 million users is further broken don to +44,444 to >:9J=/, .+ million un7aven, ?.* million to (">, *44,444 to the ("> app, and ? million to /agroom.



he company is targeting at least 4 million users by the end of +4*. Qiven the companyDsurrent user base and groth, management seems to be very conservative ith its targets.

he company is still at the phase of groing its user base. As it gros its user base and startmonetiHing its user base it ill lead to greater revenue opportunities at higher rates.

:9J=/ has a monopoly in the *4 universities it currently serves. Assuming over the ne@t fears !typical student life in college and high school&, MOKO can acBuire *4G of the otherchools it has not yet signed up it ould have <*G of the overall market or .+* million use

n high schools, given the siHe advantage and ability to outspend competitors on its productevelopment and marketing, assume it doubles its market share over the ne@t four years to 4G of the overall market or ? million users.

un7aven currently has .+ million users. Qiven its fast groth, e believe >un7aven andaceAdviHor can capture at least 4G of all runners combined, or * million combined usersver the ne@t four years.

"> ebsite and app already have ?.* million users. Over the ne@t four years, this figurehould double to < million users.

agroom has ? million users and should reach * million users over the ne@t four years.

verall, this leads to an end of +4* user base of 4 million based on management proCectio

nd +<.* million users over the ne@t three years ithout taking into account Speakiesy or ane product launches.

+LUTO%

ecent acBuisitions provide an understanding of hat industry e@perts believe is fair value ocial media companies. Of particular interest are their thoughts on the value per user.



s illustrated above, the average value per user is )*.*+ based on recent transactions.Management believes the company ill reach 4 million users by the end of +4*, hich e

elieve is conservative given current user base and groth rates. Qiven the 4 million user

arget and an average value per user of )*.*+, MOKO !as compared to recent transactions&hould be valued at )** million or )??.o per share representing *?4G above the current

million valuation.

sing a much more conser,ati,e ,aluation of )++-user, 4 million users proCects amarket capitaliHation of )++4 million, or )+.++-share.

e believe as the US market discovers MOKO, the companyDs strong revenue and MAUroth, orld class management team, and discount valuation to recent transactions, shareill appreciate over the ne@t 0+ months to the )+.440)+.*4 range.

O%"LUSO%

MOKO shares are trading at a discount to the U.S. =8O last year and at a steep discount toecent transactions in the social media space.

MOKO has a compelling, multiple0niche strategy and a strong competitive position. /heompany is attracting users that are e@tremely valuable to advertisers due to their higheretention, engagement, and click through rates. Additionally, a very strong management tea

making all the right moves to continue groing the companyDs user base, improve theompanyDs competitive position, and drive future profitability via partnerships, acBuisitionsnd product enhancements.

ary Anderson



isclosure% /he publishers of Microcap>esearch.com on shares of MOKO bought in the opmarket and received compensation of )5,444 from an unrelated third party.

moko big upside from the land down under

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