RetailMeNot Conference Call Highlights

reported its third quarter earnings on Monday. Shares of the company are down 30 percent. Below are the key highlights from its conference call. • Total net revenues were $56.5 million, that's up 19% compared to the same period last year. • International net revenue increased 37% to $13.2 million versus last year and comprised 23% of total net revenue. • Mobile net revenue including our in-store platform rose to $11.7 million, that's up 101% for the same period a year ago. • Represent a record 21% of total net revenue and we delivered adjusted EBITDA of $16.7 million or adjusted EBITDA margins of 30%. • We continue to see very healthy trends in traffic and user engagement as evidenced by a 22% year-over-year growth in overall traffic. • Over 80% year-over-year growth in monthly mobile unique visitors. • We believe consumers find RetailMeNot to have the best content presented and delivered. • We believe the superior content and consumer experience positively affects our traffic from search engines, as they seek to deliver the best content for consumers on specific keyword searches. • We continue to see improvements in our search rankings as the search engine algorithms continue to evolve. • The strengthening of organic traffic is very much in line with our belief that higher quality content and a great consumer experience will produce strong traffic results over time despite short-term fluctuations. • With over 60% of our traffic coming to us from organic search, we're in a strong position to cost effectively expand our relationships with consumers by introducing more opportunities for them to engage directly with RetailMeNot. • In essence, we're building more ways to reach new users across all platforms. • Over time, this will enable us to capture data on a deeper set of consumer behaviors and continue to develop personalization and targeting capabilities to better engage our user base. • In doing so, we enable more relevant content delivery and consumer experiences further differentiating RetailMeNot in the minds of our consumers. • Effort resulted in a click-through rate, nearly 10 times our typical newsletter click-through rate and an open rate on the email above 50%. • As a result of this and our many other consumer engagement initiatives, we saw a record 30% of our traffic from consumers coming directly to our websites in the third quarter. • Growing our direct audience and engaging them with relevant personalized content makes for a stronger, more resilient RetailMeNot, and RetailMeNot less reliant on search traffic. • We see a tremendous opportunity to fuel our growth in 2015. • Strengthen our leadership position, and further differentiate RetailMeNot in the minds of consumers and retailers. • Diversify our revenue streams by improving monetization of our direct relationship with consumers by driving more repeat purchases. • Turning now to retailers, as we broaden our product offerings over the coming quarters, we will be increasing our investments. • We see a large and growing opportunity to help retailers connect with high purchase intent consumer audiences especially as consumers increasingly utilize a multi-screen approach to shopping. • Today we have solid relationships with our top cohort of retailers, which represent approximately 70% of net revenues.

• Our RetailMeNot app is consistently ranked in the top 10 in the lifestyle category of the Apple app store. • Consumer engagement most easily viewed as traffic is our most important metric. • We believe we are rapidly becoming the go-to destination for finding both offers on and offline to assist with consumer shopping needs. • Our total mobile revenues grew in excess of a 100% year-over-year. • Our in-store business, which is included in the mobile revenue line is growing approximately 200% year-over-year. • We're excited about the momentum we are seeing in this part of the business and are investing and expanding our product capabilities. • Plan on doubling the in-store sales team in the first half of 2015 to further scale the business. • That said, in the near-term, the growth in mobile does introduce complexity as consumer adoption on mobile far outpaces retailer budget and supplants existing business models. • Consumers' increasing use of mobile web and mobile apps while exciting has broken down the traditional model for tracking online transactions. • We recently ran a test with one retailer where 63% of the offers were found on our mobile app. • From a monetization perspective a mobile visit yield is substantially less than a desktop visit. • Lower relative monetization we see from mobile is the increased use of mobile for higher in the funnel discovery activities and a higher proportion of our mobile visits going to unpaid retailers. • We are working with our paid retailers on methods to close the loop on mobile and allow us and the retailer to tie multi-screen engagements.

• In the third quarter, we delivered net revenue growth and profitability at the high end of guidance and saw continued strong consumer engagement metrics. • In the third quarter monthly mobile unique visitors totaled 14.5 million, up 81% year-over-year. • We've now implemented processes that identify our development costs for internally developed software and have begun capitalizing these costs. • During the quarter, we capitalized $1.1 million in internal costs.

• We're seeing a continued rapid expansion of consumer use of mobile. • Today, our mobile web traffic, as a percentage of total traffic, is where we thought it would be in May 2015. • Our mobile traffic is 39% of total global traffic. • The shift to mobile is even more pronounced in the U.S. but we are forecasting mobile to be just below 50% of traffic during the fourth quarter. • The second trend affecting our outlook is some softness we're seeing in our international business. • While net revenues from our international businesses grew a solid 37% over last year, these results were below our expectations. • We currently expect net revenues in the range $84.7 million to $86.7 million or growth of 9% at the midpoint. • We expect adjusted EBITDA to range between $32.2 million and $35.2 million or adjusted EBITDA margins of 39% at the midpoint.