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Q4 2018 Corporate Presentation
SAFE HARBOR
Statements in this presentation that are not descriptions of historical facts are forward-looking
statements relating to future events, and as such all forward-looking statements are made
pursuant to the Securities Litigation Reform Act of 1995. Statements may contain certain
forward-looking statements pertaining to future anticipated or projected plans, performance
and developments, as well as other statements relating to future operations and results. Any
statements in this presentation that are not statements of historical fact may be considered to be
forward-looking statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,”
“intends,” “goal,” “objective,” “seek,” “attempt,” or variations of these or similar words, identify
forward-looking statements.
These forward-looking statements by their nature are estimates of future results only and
involve substantial risks and uncertainties, including but not limited to risks associated with
the uncertainty of future financial results, additional financing requirements, development of
new products, successful completion of the Company’s proposed restructuring, the impact
of competitive products or pricing, technological changes, the effect of economic conditions
and other uncertainties detailed from time to time in our reports filed with the Securities and
Exchange Commission.
There can be no assurance that our actual results will not differ materially from expectations
and other factors more fully described in our public filings with the U.S. Securities and Exchange
Commission, which can be reviewed at www.sec.gov.
Q4 2018 Corporate Presentation / Conversion Labs
CORPORATE HIGHLIGHTS
Conversion Labs is a technology driven online marketing company that creates and grows
innovative brands in the healthcare and technology sectors.
Growing Proven Scalable Proprietary
Transformational Attractive business Capital efficient, Robust portfolio of
sales and earnings model with strong global marketing IP, trade secrets, and
growth gross margins technology platform trademarks
Q4 2018 Corporate Presentation / Conversion Labs 1
OUR BUSINESS MODEL
Highly scalable online direct response business model
Create Brands Advertise Online Immediate Revenue
We license, acquire or create We advertise our products on social Consumers see our ads, click
proprietary products or media platforms, search engines, through to our website or Amazon,
technologies with large addressable Amazon, and 3rd party websites. and immediately purchase our
markets. products.
Q4 2018 Corporate Presentation / Conversion Labs 2
OUR BUSINESS MODEL CONTD.
Vertically Integrated Platform Marketing Partners Conversion
Product Development Direct-To-Consumer Remarket
• Build, Create Marketing • Other products
Technology Platform
• In-License • Monetize data
•CRM System
• Acquire
• Email Platform
• Media Buying
Branding • Retargeting Maximize LTV
• Products • Analytics • Continuity
• Websites • Creative • Remarketing
• Ads • Development
• Processing
• Call Center
Manufacturing • Fulfillment Proprietary, Data driven & Acquire Customer
• Supplements • Legal/Compliance Optimization; Customer • Immediate ROI
• Personal Care Acquisition Strategy • Data Captured
• OEM
Q4 2018 Corporate Presentation / Conversion Labs 3
HIGHLY FAVORABLE INDUSTRY DYNAMICS
E-commerce continues to devastate traditional brick-and-mortar retailers
•Traditional retailers are going bankrupt at record-high rates. RECENTLY BANKRUPTED
•In many categories, consumers prefer to shop online vs. in a RETAILERS
traditional retail store due to added convenience, pricing, and
better products.
•Studies indicate that consumers prefer to buy directly from
brands vs. traditional retailers.
•Technology gives online retailers a big competitive advantage
over traditional retailers. Online retailers have lower overhead,
better targeting ability, and can access extensive customer data
which allows for an improved relationship with the customer.
•Total U.S. Retail Sales in 2017 were $6 Trillion. Only 10% of retail
occurred online.
Q4 2018 Corporate Presentation / Conversion Labs 4
THE $5 TRILLION OPPORTUNITY
It’s not if, but rather “How Much” market share will e-commerce capture?
•Online retail still represents only a negligible part of total
retail sales both in the U.S. and Worldwide
•Online retail accounts for only 9.1% of total retail
•Amazon controls approximately 50% of online retail, or
approximately 5% of U.S. retail sales
•In Q1 2018, U.S. online retailers generated $114.42
billion on the web, compared with $98.29 billion in Q1
2017
•For 2017 as a whole, U.S. online sales rose 16.0% to
reach $453.46 billion compared with $390.99 billion in
2016
https://census.gov/retail/mrts/www/data/pdf/ec_current.pdf
Q4 2018 Corporate Presentation / Conversion Labs 5
STRONG CORPORATE REVENUE GROWTH
Accelerating Revenue Growth *
12m
10m
8m
6m
4m
2m
2013 2014 2015 2016 2017 2018
*We expect 2018 revenue to be in the $10M range. This is a projection and is not guaranteed.
Q4 2018 Corporate Presentation / Conversion Labs 6
WE’VE PROVEN OUR MODEL CAN SCALE
Shapiro MD: from zero to $2.3M in quarterly revenue within first 12 months
$2.5m
$2.25m
$2m
$1.75m
$1.5m
$1.25m
$1m
$750k
$500k
$250k
0
Prior to Licensing
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Revenue growth
Q4 2018 Corporate Presentation / Conversion Labs 7
Our Brands
Patented triple action dht blocker for hair loss
Developed by distinguished dermatologists Dr. Steven Shapiro, M.D.,
and Dr. Michael Borenstein, M.D. PhD
2 U.S. Patents; 15 years of product development and formulation work
Contains 3 naturally occurring DHT blocking ingredients
35,000+ customers since launch; approaching $10M
in top-line revenue
www.shapiromd.com
Q4 2018 Corporate Presentation / Conversion Labs 8Beta glucan immune support supplement
Triple-action beta glucan supplement containing high quality yeast, oat
and mushroom glucans
Contains Conversion Labs’s proprietary Y,1-3-1,6 Yeast Beta Glucan
Attractive category; immune support is large market with minimal OTC
innovation
Product launched Q2 2018. Anticipate strong growth Q3 and
Q4 of 2018.
www.inrwellness.com
Q4 2018 Corporate Presentation / Conversion Labs 9Triple action scar healing solution
carology is a scar healing solution delivered through a simple, three
S
step day and night routine
Three essential ingredients work together to achieve dramatic results
in appearance and feel
Clinically proven and developed by scar therapy experts and
prominent Palm Beach based physicians Dr. Michael and Jeanmarie
Connor
Product launch Q3 2018. Anticipate strong growth Q3 and Q4 of 2018
Q4 2018 Corporate Presentation / Conversion Labs 10Clinically proven nutraceutical for bruising
First and only treatment for solar purpura, a common skin condition
which affects ~12% of individuals over the age of
50 worldwide
Unique nutraceutical formulation that has been clinically shown to
reduce the appearance and duration of solar purpura
Estimated worldwide sales are greater than $100 Million per year
Previously marketed by Galderma/Nestle
Product licensed in Q2 2018; launch slated for Q3 2018
Read the clinical study here
Q4 2018 Corporate Presentation / Conversion Labs 11Easily convert pdf or online files
PDF Simpli is a software product to easily convert and edit various
types of online documents
65M searches per month
Market opportunity estimated at $700M per year
www.pdfsimpli.com
Q4 2018 Corporate Presentation / Conversion Labs 12EXECUTIVE TEAM
Justin Schreiber Stefan Galluppi Sean Fitzpatrick Robert Kalkstein Juan Piniero Nicholas Alvarez
President & CEO CTOO CAO CFO Controller Head of Acquisition
• Founder of JLS Ventures • Former founding CTO at •F
ormer Head of •F
ormerly at Peerless • Former Equity Analyst at • Former SEM and Native
& Co-founder of national direct-response Customer Acquisition at Systems Corp., Jefferies UBS Securities Specialist at Internet
Conversion Labs marketing firm BOLD, a leading direct- & Co. and PWC Brands (KKR & Co.)
response advertiser in the • 5+ years of experience in
• Successful track record • Proven track record in • 10 years+ of experience finance, accounting and • Specializes in direct-
in small cap venture healthcare and consumer career space in finance, SEC response marketing
financial management
investing and banking product sector •S
pecializes in SEM/SEO compliance and across Facebook, Gemini,
with focus on legal, operations • Graduate of Inter Outbrain, Taboola, and
•L
argest private investor in • Strong industry American University of
CVLB relationships with lifestyle and software as a • Background in Googlel
Puerto Rico
publishers, agencies and service (SAAS) verticals biomedical engineering • Has managed over $100
advertisers and management million+ in media spend
Q4 2018 Corporate Presentation / Conversion Labs 13FINANCIALS
Conversion Labs is a technology driven online marketing company creating shareholder value
through responsible, long-term growth of our core online brands.
Upcoming Catalysts: Symbol CVLB
• Revenue growth Exchange OTCQB
Market Capitalization ~$10 Million*
• Licensing deals
Average Trading Volume 138,069 (3 mo.)*
• New product launches
52 Week Range $0.17-0.50*
• Product endorsements Corporate Headquarters New York, NY
• Uplisting to NYSE Amex or Nasdaq, Auditor BF Borgers CPA
subject to meeting requirements SEC Counsel Lucosky Brookman
*Financial metrics based on 10/19/18. This presentation will not be regularly updated by
Conversion Labs.
Q4 2018 Corporate Presentation / Conversion Labs 14INDUSTRY COMPS
Company Category EV/Sales 2yr CAGR
Hain Celestal Group (HAIN) Nutrition & Health 1.24 1%
USANA Health (USNA) Nutrition & Health 2.57 6%
Revlon (REV) Beauty Products 1.30 0%
Coty (COTY) Beauty Products 1.76 47%
Inter Parfums (IPAR) Fragrances 2.80 18%
QuinStreet (QNST) Digital Marketing 1.42 17%
ChannelAdvisor (ECOM) Digital Marketing 2.00 7%
Social Reality (SRAX) Digital Marketing 2.31 -26%
Average 1.93 9%
Conversion Labs Branded Products & 0.77x* 38%
Online Marketing
*Assume FY2018 annualized sales $10M
Q4 2018 Corporate Presentation / Conversion Labs 15INVESTMENT SUMMARY
Conversion labs is a rapidly growing ecommerce company with a
portfolio of online brands sold directly to consumers
150K Diversified Human Capital
Customers To-Date & Product Portfolio Talented, experienced team with big
Growing incentive to perform
250% Scalable Strong IP
Revenue Growth Over Prior 12 Highly scalable and global Products & strategy protected by IP
business model and trade secrets
Q4 2018 Corporate Presentation / Conversion Labs 16Investor Contacts: Justin Schreiber Stefan Galluppi Co-Founder & CEO Co-Founder & CTOO justin@conversionlabs.com stefan@conversionlabs.com
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