EDIETS COM INC - FORM 8-K - EX-99.1 - POWERPOINT PRESENTATION OF EDIETS.COM, INC.

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CONFIDENTIAL

Investor Presentation

October 2011

It all starts here with a promise for a future that can be

healthier, better and stronger than today.

Exhibit 99.1

CONFIDENTIAL

Forward-Looking Statements

This presentation contains “forward-looking statements”

within the meaning of the federal securities laws and is

intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995,

including statements and assumptions regarding (i) the size and outlook of the market for our products, (ii) our need

for additional financial support, (iii) our expectation that our

total gross margins and our advertising efficiency will

improve in the future,

(iv) our assumption that we will acquire new customers at an acceptable cost, (v) our

expectation regarding the effectiveness of our advertising and our call center conversion strategies, (vi) our

assumption that we are well-positioned to compete and capture market share, (vii) our expectation regarding our

ability to comply with regulatory requirements, (viii) our assumptions regarding market size, projected results and the

demand for our products and services. These statements and assumptions are based on management’s estimates

and projections with respect to future events and financial performance and are believed to be reasonable, although

they are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a

result of certain factors, including (i) our ability to raise additional capital, (ii) our ability to maintain compliance with

regulatory requirements, (iii) our ability to maintain our listing on The Nasdaq Capital Market, (iv) our ability to maintain

or improve meal delivery margins and their effect on total gross

margins, (v) our ability to improve advertising

efficiency, (vi) our ability to manage fluctuations in advertising costs, (vii) our ability to sufficiently increase revenues

and maintain expenses and cash capital expenditures at appropriate levels, (viii) the state of the credit and capital

markets, including the level of volatility, illiquidity and interest rates and (ix) our ability to rapidly secure alternate

technology infrastructure vendors if we experience call center or Web site service interruption.

A discussion of factors that could cause results to vary is included in the Company’s filings with the Securities and

Exchange Commission. All forward-looking statements in this presentation speak only as of the date of this

presentation. The Company expressly disclaims any obligation or

undertaking to update or revise any forward-looking

statements.

This presentation also contains non-GAAP financial measures. For a reconciliation of the non-GAAP measures to the

most comparable GAAP measure, please refer to the eDiets.com website at www.ediets.com, under the Events and

Presentation section of the Investor Relations page.

CONFIDENTIAL

Company Overview

$1.0

billion

market

annually

for

home

delivery

diet

food

across all price segments

$350

million

market

our

price

segment

fragmented

market

with

approximately

850

competitors

we’re number two in the market with less than 10% market share

opportunity to consolidate our segment through aggressive advertising

•

State of the art, online diet membership program including

menus, recipes, shopping lists and tools

Estimated

market

size:

$250

million

annually

•

Website hosting for white label corporate wellness sites

focused on diets and diet-related tools

Estimated

market

size:

$50-$100

million

annually

Market size and competitor estimates made by eDiets management based on data from MarketData January 2011 Survey

Market size estimates made by eDiets management

HOME MEAL DELIVERY BUSINESS

Other Businesses

CONFIDENTIAL

Management Team

Name

Title

Previous Experience

Kevin McGrath

CEO

DIRECTV, Co-Founder

DIRECTV Latin America, Chairman & CEO

Digital Angel, President & CEO

General Motors/Electronic Data Systems/Hughes Comm.

Dartmouth, MBA

Princeton, BA

Thomas Hoyer

CFO

Digital Angel, CFO

Nationsrent Companies, CFO

GLOBEquip, CFO

Fluor Corporation

Clemson, MBA, BS

Joseph Leonardo

VP, Meal

Delivery

EPI Breads, VP Operations

Meyers Bakeries, VP Operations & Logistics

Schwan’s Bakery, VP Group Operations

Quaker Oats

Cornell, BS

Jennifer Hartnett

CMO

Parisian Slim, VP Marketing

Nutrisystem, Creative Director

Bon-Ton Stores, David’s Bridal, Macy’s

Bucknell, BA

CONFIDENTIAL

Key Facts

Symbol

DIET

Stock Price 11/11/11 || 52-week Range

$1.01 || $1.01 -

$3.95

Shares Outstanding 11/04/11

13,274,751

Market Capitalization 11/04/11

$13,407,499

Volume (daily 30 day average at 11/04/11)

9,000

Insider Ownership

10.7%

1. The stock split 1-for-5 on June 1, 2011

CONFIDENTIAL

Meal Delivery -

Overview

•

Healthy, delicious meals delivered to your door

•

Offers both 5-day ($23.60/day) and 7-day plans ($21.14/day)

•

Over 100 different meals freshly

prepared by our chefs

Meal Delivery

TTM 6/30/11

Revenue

$20.0 Million

Shipments Per Week

3,000

Gross Margin

1,2

43%

Excludes depreciation and revenue share ² The reconciliation for these non-GAAP measures are on our website

Est. $350M Meal

Delivery Market at

our Price Level

Significant Market Opportunity

CONFIDENTIAL

Meal Delivery Model Illustration

Target

Average Weekly Selling Price

$131

Average Length of Stay -

# of Weeks

6.9

Average Revenue per Customer

$904

Cost of Goods Sold

$470

Gross Margin

$434

Gross Margin %

48%

Customer Acquisition Cost

$154

Advertising Efficiency (CAC/Revenue)

17%

Call Center Cost

$68

Cash Contribution to Overhead & Profit

$212

Four

Key

Factors

Success

Key Comparative Metrics

Meal Delivery Gross Margin 9-Months 2011: 44%

Meal Delivery Advertising Efficiency 9-Months 2011: 29%

CONFIDENTIAL

Major 2011/2012 Meal Delivery Initiatives

•

Upgrading

direct

marketing

and

call

center

capabilities

–

Hired creative director from highly successful competitor to be our chief marketing officer

(February 2011)

–

Added the ex-chief marketing officer from a highly successful competitor to our Board of

Directors (May 2011)

–

Hired call center director from highly successful competitor to be our call center director

(August 2011)

–

Hired media buyer with experience in direct response, including a tenure at a highly

successful competitor (November 2011)

•

Improving

call

center

efficiency:

–

Implemented commission-only compensation structure for sales associates (September

2011)

–

Continually

modifying

call

scripts

insistent

getting

“yes”

(Aug-Nov

2011)

–

Upgraded training to include more situational training (Aug-Nov 2011)

–

Changed hiring criteria for sales associates to incorporate a focus on finding staff that can

successfully confront the answer “no”

CONFIDENTIAL

Major 2011/2012 Meal Delivery Initiatives

•

Improving

advertising

content:

–

Re-energized testimonial campaign with a casting call for overweight actresses and

models (September 2011)

–

Continually testing television, print and online advertising channels and content to find

optimal mix for driving customers to the call center economically

–

Refreshed existing television commercials (September/October 2011)

•

Improving

meal

delivery

margins

–

Increased price to allow for stronger promotions while maintaining margin (Oct 2011)

–

Expect to achieve large volume discounts as business grows

–

Expect to initiate bi-coastal production, which will reduce shipping costs, as business

grows

CONFIDENTIAL

Meal Delivery Advertising Efficiency

Advertising

efficiency

meal

delivery

advertising

expense

meal

delivery

revenue

Advertising efficiency has

been improving (percentage

declining) due to better cost

per call and call center

conversion

CONFIDENTIAL

Customer Retention

Meal Delivery

Average Number of Shipments For Active

Pool of Customers

Measures changes in current customer base

Meal Delivery

Average Number of Shipments For Active

& Canceled Pool of Customers

Measures changes for all customers on a rolling

12-month period

CONFIDENTIAL

Meal Delivery Gross Margin Before

Depreciation and CAC

(Excludes Revenue Share)

Improved Gross Margins

•

Raised price of meal delivery service

•

Moved to lower-cost manufacturer

•

Negotiated lower shipping rates

30%

35%

37%

35%

40%

39%

41%

40%

46%

44%

42%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Q1-09

Q2-09

Q3-09

Q4-09

Q1-10

Q2-10

Q3-10

Q4-10

Q1-11

Q2-11

Q3-11

46.5%

CONFIDENTIAL

Financial Overview

CONFIDENTIAL

Capitalization

The Company completed a 1-for-5 reverse stock split on June 1, 2011

30-Sep-11

Equity (50,000,000 authorized)

Issued Shares

Weighted Avg

Strike Price

Fully Diluted

Common Stock

13,310,534

Warrants

$3.76

719,058

Options

$8.21

1,344,000

Restricted Stock Units

99,800

Total

15,473,392

Debt

Promissory Notes -

Related Party

$ 1,000,000

CONFIDENTIAL

Quarterly Revenue and EBITDA

CONFIDENTIAL

Revenue By Segment

Online

Diet Plans

28%

Home

Meal

Delivery

43%

Corporate

Services

22%

Other

2010

Actual

2009

Actual

Focus is on growing home meal delivery business

CONFIDENTIAL

Meal Delivery Revenue By Quarter

Meal delivery revenue declining as a function of less ad spend as

we focus on maintaining customer acquisition costs at levels that

generate positive EBITDA

CONFIDENTIAL

$3.0 Million Investment in Advertising

(assume advertising investment turns 8X annually)

Meal Delivery Business Model Illustration

$ Millions

Cash Investment in Advertising

$3.0

Ad Spend Turns (recover cash spent on

advertising in 6.5 weeks)

8X/Year

Leveraged Ad Spend

$24.0

Revenue/Ad Spend Ratio (revenue / advertising)

2.50

3.00

4.00

5.00

Implied Revenue

60.0

72.0

96.0

120.0

Variable Cost of Food and Fulfillment

52.0%

(31.2)

(37.4)

(49.9)

(62.4)

Variable Cost of Acquisition

Call Center, Promotions

7.5%

(4.5)

(5.4)

(7.2)

(9.0)

Advertising Expense

(24.0)

Advertising Efficiency

40.0%

33.3%

25.0%

20.0%

Fixed Cost of Staff and Other Expense

(0.6)

EBITDA

($0.3)

$4.6

$14.3

$24.0

EBITDA Margin

-0.5%

6.3%

14.9%

20.0%

CONFIDENTIAL

Investment Highlights

•

Large target market

–

$60

billion

weight

loss

market

–

eDiets targeting $350 million of that total

•

Focus on meal delivery

–

Low capital requirements and a relatively quick cash conversion cycle

equals positive ROIC

•

Biggest Loser licensing deal provides exposure

•

Continued improvement in operations will enhance returns

–

Expect meal delivery gross margin to continue increasing due to volume

discounts and shipping cost reductions

–

Expect improved advertising efficiency

1. Source: MarketData January 2011 Survey

EDIETS COM INC - FORM 8-K - EX-99.1 - POWERPOINT PRESENTATION OF EDIETS.COM, INC. - November 15, 2011

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