ACTIVE Network Investor FINAL

1. THIS IS ACTIVE NETWORK INVESTOR PRESENTATION ACTIVE Network Company Confidential SEPTEMBER 2012 1
2. SAFE HARBOR These slides and accompanying oral presentation contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Factors that could materially affect actual results, levels of activity, performance or achievements include those listed under the caption “Risk Factors” in Active Network’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in Active Network’s other filings with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measures This presentation may include references to non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate Active Network’s performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate Active Network’s management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, Active Network’s financial results presented in accordance withACTIVE GAAP. Active Network strongly encourages investors to review its financial statements in their entirety and to not rely on Network Company Confidential any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare Active Network’s results with other companies’ non-GAAP financial measures having the same or similar names. Please see the Adjusted EBITDA Reconciliation set forth in this presentation below and in Active Network’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in Active Network’s other filings with the Securities and Exchange Commission for a reconciliation of GAAP to non-GAAP financial measures. 2
3. ACTIVE Network Company Confidential 3
4. ACTIVE Network Company Confidential 4
5. ACTIVITY IS EVERYWHERE ACTIVE Network Company Confidential 5
6. THE ACTIVE OPPORTUNITY 1.7 BILLION REGISTRATIONS 800,000 ORGANIZATIONS $110 Billion in activity fees paid each year = $10 Billion in North America alone Assuming a 9% Technology Fee ACTIVE Network Company Confidential We are leading an “industry” ripe for transformation. 6
7. ACTIVITY & PARTICIPANT MANAGEMENT As category creators, we’ve developed a technology model that delivers value to activity organizers and scale to our business. 1 Best Vertical Applications: Service the specific needs of every type of activity organizer. 3 Marketing + Distribution: Grow organizations by getting participants and growing access. ACTIVE Network Company Confidential 2 7 Scalable, Horizontal Cloud Platform: Provide services and infrastructure to organizers of any size.
8. LEADERSHIP IN THE CATEGORY We have created and grown the industry while building a model for the future. 350 300 Revenue (in millions) 250 200 150 100 ACTIVE Network Company Confidential 50 0 2000 8 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
9. VALUE TO ACTIVITY ORGANIZERS We transform & grow our customers business so they create great experiences for participants. Register Manual Processes Online Registration, Payment Processing, Reservation & Ticketing, Permitting and Licensing Manage Multiple Systems Event, Membership, Facility, People, Staff, and Finance Management & Reporting ACTIVE Network Company Confidential Limited Resources Market + Distribute Marketing & Advertising, Mobile Applications, Website Development, Social Media, Partner Distribution 9
10. BROAD 50,000+ CUSTOMER BASE Private Sector Non-Profits & Associations Federal, State, Local ACTIVE Network Company Confidential Activity Organizers 10
11. A CUSTOMER BUSINESS CASE Our value extends beyond business operations as we drive participation. 3 Year Reduction in Costs • Reduced Staff Costs • Print Advertising Key Highlights: • Online Media ― No upfront cash outlay 3 Year Increase in Revenue ― Deep business integration • Event Growth ― Recurring revenue • Sponsorships • Merchandise ― Increased participation ACTIVE Network Company Confidential Impact to NYC Triathlon Fees to ACTIVE 11 $435,000 $480,000 $915,000 ($195,000)
12. SIGNIFICANT RUNWAY FOR GROWTH As the category creator, our focus is on increased market penetration. Our First Vertical: Triathlon North American Market 1,900 US Triathlons 800,000+ Organizations 26% 26% 74% 74% 6% 94% ACTIVE Network Company Confidential 1,400 Triathlons Using ACTIVE 12 51,000+ Organizations Used ACTIVE in 2011
13. COMPOUNDING GROWTH DRIVERS There are multiple drivers to our recurring, highly-predictable SaaS revenues. Y/Y GROWTH Grow Customers Grow Customers Acquire Customers 1) Drive Offline Online Revenue + Margin per Transaction 2) More Events Online 1) Add Organizations Domestic + International 2) EnterACTIVE NewNetwork Markets Company Confidential Adjacencies + Acquisitions 13 Penetration per Customer 3) Distribute Activities Open Distribution Channels
14. TECHNOLOGY BUILT TO SCALE We have invested in a horizontal platform that services activity organizers of any type and any size. ― Common services are leveraged across verticals ― Data is captured across services ― Technology infrastructure is delivered more efficiently to more customers ― Our platform grows as common needs grow ACTIVE Network Company Confidential 14
15. WE POWER SWIMMING Here’s how the model worked at U.S. Olympic Swim Trials in Omaha, NE. ACTIVE Network Company Confidential 15
16. WE POWER SWIMMING MEET MANAGER organizes every aspect of thousands of swim meets. Seeding / Scheduling Time Management Athlete / Heat Management ACTIVE Network Company Confidential 16
17. WE POWER SWIMMING MEET MANAGER leverages services within the ACTIVE Works platform. ACTIVE Network Company Confidential 17
18. WE POWER SWIMMING MEET MOBILE transforms the participant experience by distributing real time results and cataloging swimmer times across meets. ACTIVE Network Company Confidential 18 19
19. WE POWER OUTDOORS Here’s how the model works for South Carolina State Parks. ACTIVE Network Company Confidential 19 20
20. WE POWER OUTDOORS FIELD MANAGER handles park status, inventory and connects with the back office. ACTIVE Network Company Confidential 20 21
21. WE POWER OUTDOORS All reservations are available through our Reserve America website and mobile app. ACTIVE Network Company Confidential 21 22
22. WE POWER OUTDOORS The same platform powers Recreation.gov, one of our largest customers. ACTIVE Network Company Confidential 22 23
23. WE POWER COMMUNITIES Here’s how the model works for Minneapolis Park & Recreation. ACTIVE Network Company Confidential 23 24
24. WE POWER COMMUNITIES Registration, facility scheduling, POS and payment processing are handled through a single system. ACTIVE Network Company Confidential 24 25
25. WE POWER COMMUNITIES Registration is available to citizens via web and mobile (available anywhere). ACTIVE Network Company Confidential 25 26
26. WE POWER BUSINESS EVENTS Here’s how the model worked for Cisco Live. ACTIVE Network Company Confidential 26 27
27. WE POWER BUSINESS EVENTS All registrations, financial management and participant data are handled centrally. ACTIVE Network Company Confidential 27 28
28. WE POWER BUSINESS EVENTS All registrations are connected to on-site check-in technology that tracks engagement. ACTIVE Network Company Confidential 28 29
29. WE POWER BUSINESS EVENTS Engagement metrics are distributed through participant & organizer mobile apps. Organizer App Participant App ACTIVE Network Company Confidential 29 30
30. WE POWER BUSINESS EVENTS Experiences are heightened as we allow seamless communication between the organizer and participants in real-time. ACTIVE Network Company Confidential 30 31
31. SIGNIFICANT BARRIERS TO ENTRY ADVANTAGES Market Leadership 51,000+ Organizations Scale 80,000,000 Transactions Deep Domain Expertise Vertically-Specific Solutions Technology 1,000+ R&D Staff ACTIVE Network Company Confidential 31 Exclusive Customer Relationships Multi-Year Contracts Marketing + Distribution Channels to Increase Participation
32. EXPERIENCED TEAM ACTIVE Network Company Confidential 32
33. ACTIVE Network Company Confidential 33
34. PREDICTABLE SAAS+ REVENUE MODEL MONETIZATION TECHNOLOGY REVENUE • % of registration paid by the organization or participant • Advertising to brand & organizations Commerce 85% MARKETING SERVICES REVENUE 15% • DRIVERS KEY METRICS • • • • # of organizations Online conversion Breadth of products Distribution of products / activities • • • Organizations Registrations Revenue/ Registration • Access to participants during registration Channel growth • • • Registrations Channel size Engagement • (mobile, social, partner) ACTIVE Network Company Confidential ~ 15% 85% Highly Predictable Revenue (1) Annual Churn % based on analysis of 75% of our registration revenue 34 Less than 5% Annual Registration Revenue Churn (1) Standard Technology Contract = 3 Years
35. KEY BUSINESS METRICS Organizations up 8% in 2011. Registrations up 14%. Total Organizations Total Registrations (in millions) 52,000 100 39,000 75 26,000 50 13,000 25 ACTIVE Network Company Confidential 0 0 2008 2009 2010 2011 2008 2009 2010 2011 $4.08 $2.66 $2.82 $2.85 $ REGISTRATION REVENUE / REGISTRATION 35
36. STRONG REVENUE AND EBITDA GROWTH Revenue Adjusted EBITDA ($ in millions) ($ in millions) 500 70 PRO FORMA 440 428 375 PRO FORMA 50 47 337 280 250 60 36 30 243 25 173 125 0 ACTIVE Network Company Confidential 0 16 10 2008 2009 2010 2011 2012E -10 -3 2008 2009 2010 2011 2012E 1) Adjusted EBITDA is a non-GAAP financial measure. For more information and reconciliation of adjusted EBITDA to net income, please consult the adjusted EBITDA reconciliation set forth in the presentation below and in ACTIVE Network’s annual and quarterly reports on forms 10-K and 10-Q and in ACTIVE Network’s other filings with the securities and exchange 36
37. 2012 REVENUE Strong year to date revenue growth +26% Revenue ($ in millions) Strong fundamental metrics 216.0 200 171.7 150 ⁃ Technology Revenue up 29% ⁃ Registrations up 17% ⁃ Rev/Registration up 4% Solid growth across all verticals 100 95%+ retention rates 50 ACTIVE Network Company Confidential 0 1H 2011 37 1H 2012
38. LONG TERM FINANCIAL OBJECTIVES Business scale continues to drive improved margins while allowing for technology investment. 2012E Pro Forma Long Term Financial Goals 31% 15-20% 2009 2010 2011 40% 15% 21% Gross Margin 55.9% 56.6% 55.3% 61-63% Sales & Marketing 20.5% 20.9% 20.4% 19-21% Research & Development 23.9% 21.8% 19.5% 16-18% ACTIVE Network Company Confidential General & Administrative 12.2% 13.6% 13.6% 10-11% Revenue Growth Adjusted EBITDA 6.5% 9% 10.7% 13.6% 23-27% Note: Stock based compensation excluded from the above line items. 2012E based upon Company guidance at midpoint further adjusted for the deferred revenue impact of the StarCite and RTP acquisitions of $12.5 million. These objectives are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the "Risk Factors" section of our form 10-K for the period ended December 31, 2011. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the Company undertakes no duty to update its goals. 38
39. INVESTMENT SUMMARY Market Highlights ― Leader in Activity & Participant Management ― $10B highly fragmented available market in North America Technology Highlights ― Best Vertical Technology Applications ― Scalable, Horizontal Cloud Platform ― Marketing and Distribution Capabilities Financial Highlights ACTIVE Network Company Confidential ― Predictable, recurring revenue stream ― Accelerating growth with compounding drivers ― Proven scalability with strong revenue and EBITDA growth 39
40. THANK YOU. ACTIVE Network Company Confidential 40