Investor Presentation August 2023 Safe Harbor Disclaimer for Forward-Looking Statements Forward-Looking Statements Such risks, uncertainties and assumptions include, but are not limited to: (1) our ability to grow and manage growth profitably, and retain its key employees; (2) our ability to acquire businesses on acceptable terms and to successfully integrate and recognize anticipated synergies from acquired businesses; (3) use of cash and other available liquidity to grow and invest in our businesses; (4) ...

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $147 million, a 33% decrease year-over-year from $220 million [32] - Adjusted gross profit was $53 million, down 21% year-over-year [13] - Adjusted EBITDA was $14.6 million, down 57% year-over-year, representing a 27% margin on gross profit [41] - Cash on the balance sheet at the end of the quarter was $26.2 million, with gross debt at $430 million [15] Business Line Data and Key Metrics Changes - Owned and operated advertising revenue decreased by 51% year-over-year, while network advertising revenue increased by 3% [32] - Subscription revenue was up 18% year-over-year, with billings increasing 17% to $54.2 million [33] - The number of subscribers increased to almost 2.8 million, reflecting a 21% year-over-year increase [14] Market Data and Key Metrics Changes - Advertising spend was $49.7 million, down 35% sequentially [6] - Revenue per session (RPS) was down $0.01 sequentially to $0.09, while cost per session (CPS) was also down $0.01 to $0.06 [33] - The company generated over 800 million sessions with a spread of $0.03 per session [6] Company Strategy and Development Direction - The company is focused on cost structure and generating operating cash flow in the short term, having reduced headcount by approximately 15% [10] - Plans to spend over $70 million in customer acquisition in the second half of the year, up from $48 million last year [36] - The company aims to continue delivering adjusted EBITDA and operating cash flow while managing liquidity needs [37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a rebound in digital marketing, noting volatility in performance marketing [4] - The company expects gross profit for the second half of 2023 to be between $100 million and $105 million, reflecting a 16% decline year-over-year at the midpoint [17] - Management remains bullish on the ability to operate through an uncertain macro outlook, emphasizing alignment with shareholders [30] Other Important Information - The company faced a $3.3 million charge to adjusted EBITDA due to the termination of a network partner by an advertising partner [34] - The network advertising business saw a 30% sequential increase in revenue and gross profit, despite the challenges faced [27] Q&A Session Summary Question: What are the expectations for the advertising market? - Management noted that while recent financial performance has been negatively impacted by market conditions, they believe they are poised for a rebound in advertising marketplaces [39] Question: How are operating expenses expected to trend? - Operating expenses were up 17% year-over-year due to increased accounting and consulting costs, but are expected to revert to previous levels starting in Q3 [41] Question: What is the outlook for the network advertising business? - The network advertising business is expected to continue delivering significant growth, with over 60% growth year-over-year anticipated in the second half [43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from __________ to __________ (State or other jurisdiction of incorporation or organization) 4235 Redwood Avenue Marina Del Rey, CA (Address of Principal Executive Offi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from __________ to __________ Commission file number 001-39331 System1, Inc. (Exact name of registrant as specified in its charter) Delaware 98-1531250 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from __________ to __________ Commission file number 001-39331 System1, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from __________ to __________ Commission file number 001-39331 System1, Inc. (Exact name of registrant as specified in its charter) Delaware 98-1531250 (State or o ...

System1, Inc. (NYSE:SST) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Michael Blend – Co-founder and Chief Executive Officer Tridivesh Kidambi – Chief Financial Officer Conference Call Participants Tom Forte – D.A. Davidson Shweta Khajuria – Evercore ISI Dan Kurnos – Benchmark Operator Thank you for standing by, and welcome to the Third Quarter 2022 Conference Call and Webcast for System1. Joining me today to discuss System1’s business and financial results are our Co-f ...

Investor Presentation Q4 2022 Disclaimer 1 Safe Harbor Disclaimer for Forward-Looking Statements This presentation has been prepared by management of System1, Inc. (together with its subsidiaries, collectively "System1") and does not constitute a prospectus, and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from __________ to __________ Commission file number 001-39331 System1, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...

System1, Inc. (NYSE:SST) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Michael Blend - Co-Founder and CEO Tridivesh Kidambi - CFO Conference Call Participants Shweta Khajuria - Evercore ISI Victoria James - DA Davidson Nat Schindler - BOA Dan Kurnos - Benchmark Operator Thank you for standing by. And welcome to the Second Quarter 2022 Earnings Call and Webcast for System1. Joining me today to discuss System1’s operational financial results, are our Co-founder and CEO Micha ...