Snap Interactive Reports Positive Operating Cash Flow, Higher Revenues and Reduced Net Loss for the Quarter Ended September 30, 2014
-- Positive Operating Cash Flow of $0.4 million for the Third Quarter
-- Third Quarter Revenues Increased by 16.5% and Bookings by 16.7% over Comparable 2013 Period, Reflecting a Fourth Consecutive Quarter of Revenue Growth
-- Positive Adjusted EBITDA for the Second Consecutive Quarter
-- Net Loss of $218 Thousand; an Improvement of $1.5 Million Year over Year and an Improvement of $42 Thousand Sequentially
-- Commenced Development of a New Mobile-Only App on iOS, Heralding a New Portfolio Strategy for Snap Interactive
NEW YORK, Nov. 10, 2014 /PRNewswire/ -- Snap Interactive, Inc. ("SNAP" or the "Company") (OTCQB: STVI), a leading online dating provider and owner of AYI.com, today announced the following financial and operational results for the quarter ended September 30, 2014:
- increased total revenues for the third quarter of 2014 by approximately 16.5% to $3.5 million as compared to the comparable period of 2013, and increased by approximately 1% sequentially over the second quarter of 2014;
- incurred a net loss of approximately $218 thousand, an improvement of approximately $1.5 million year over year, and $42 thousand sequentially;
- generated positive Adjusted EBITDA of approximately $155 thousand, an improvement of approximately $1.2 million year over year, and $93 thousand sequentially;
- achieved positive cash flow from operations of $377 thousand for the three months ended September 30, 2014, which reflected an improvement of approximately $1.5 million as compared to the comparable period in 2013 and an improvement of $679 thousand as compared to the three months ended June 30, 2014;
- increased active subscriber count by 30% in the first nine months of 2014 from approximately 77,700 as of December 31, 2013 to approximately 100,700 as of September 30, 2014; and
- new subscription transactions increased approximately 34% in the nine month period ended September 30, 2014 as compared to the same period in 2013.
Financial Highlights
Current period compared with same period in prior year:
| Three Months Ended September 30, |
|||||||||
| GAAP Results |
2014 |
2013 |
Change |
||||||
| Total revenues |
$ |
3,484,500 |
$ |
2,989,978 |
16.5% |
||||
| Subscription revenue |
$ |
3,240,317 |
$ |
2,988,151 |
8.4% |
||||
| Advertising and marketing expense |
$ |
1,285,889 |
$ |
1,125,181 |
14.3% |
||||
| Deferred subscription revenue (at period end) |
$ |
2,101,089 |
$ |
1,942,766 |
8.1% |
||||
| Net loss |
$ |
(217,549) |
$ |
(1,718,747) |
(87.3)% |
||||
| Net cash provided by (used in) operating activities |
$ |
377,461 |
$ |
(1,098,318) |
N/A |
||||
| Non-GAAP Results |
|||||||||
| Bookings |
$ |
3,382,639 |
$ |
2,899,215 |
16.7% |
||||
| Adjusted EBITDA |
$ |
154,950 |
$ |
(1,084,781) |
N/A |
||||
Current period compared to prior period:
| Three Months Ended |
|||||||
| GAAP Results |
September 30, |
June 30, |
Change |
||||
| 2014 |
2014 |
||||||
| Total revenues |
$ |
3,484,500 |
$ |
3,450,010 |
1.0% |
||
| Subscription revenue |
$ |
3,240,317 |
$ |
3,151,002 |
2.8% |
||
| Advertising and marketing expense |
$ |
1,285,889 |
$ |
1,110,726 |
15.8% |
||
| Deferred subscription revenue (at period end) |
$ |
2,101,089 |
$ |
1,958,767 |
7.3% |
||
| Net loss |
$ |
(217,549) |
$ |
(259,678) |
(16.2)% |
||
| Net cash provided by (used in) operating activities |
$ |
377,461 |
$ |
(301,174) |
N/A |
||
| Non-GAAP Results |
|||||||
| Bookings |
$ |
3,382,639 |
$ |
3,021,860 |
11.9% |
||
| Adjusted EBITDA |
$ |
154,950 |
$ |
61,746 |
150.9% |
||
Management Commentary
During the quarter ended September 30, 2014, SNAP's management sustained the cost reductions put into effect in prior quarters while maintaining capital efficient growth. These conditions enabled the Company to deliver positive cash flow from operations in the most recent quarter, and positive Adjusted EBITDA for the second consecutive quarter.
SNAP's Chief Executive Officer, Clifford Lerner, commented, "We are delighted to have successfully achieved the target we announced to the market in January 2014, that Snap would deliver positive cash flow in the quarter ended September 30, 2014. The $377 thousand of cash generated from operations for the quarter ended September 30, 2014 contributed to an increase in cash of approximately 67% during the quarter ended September 30, 2014. The business growth and discipline that got us here has also delivered two consecutive quarters of positive Adjusted EBITDA, with the quarter ended September 30, 2014 delivering sequential growth in Adjusted EBITDA of 151%."
SNAP's Chief Operating Officer, Alex Harrington, commented, "Snap also invested significantly in future growth in the most recent quarter. Though the Company expects future gains in AYI subscription revenue, the vision for Snap includes growing from a single application to portfolio of applications. The Company undertook several initiatives to position itself to scale the business across multiple dimensions."
These initiatives included:
- launching optional premium add-on features to generate transactional revenue and supplement the customer lifetime value derived from subscription revenue;
- diversifying the Company's marketing sources to broaden its reach, which increased the percentage of new users acquired through advertisements placed on sources other than Facebook media from 49% in December 2013 to 68% in September 2014;
- increasing the prominence of the Company's native mobile apps to consumers. For example, AYI secured the #1 spot in the U.S. Lifestyle Category in the Apple iTunes App Store in August 2014 and AYI has held the #1 or #2 spot in this category for a majority of days since August 2014;
- beginning development of a new, mobile-only dating app on iOS that focuses on a younger, complementary audience to AYI; and
- building internal resources in our product and business intelligence departments, with the intent to support a broader range of applications in the future.
Mr. Lerner concluded, "We are excited to hit our financial objectives and deliver on our promises to the market. We have an exciting roadmap ahead of us for AYI, with the goal of improving retention and revenue generation. And with the prospect of new application releases, the future is bright for Snap."
IR Contact:
[email protected]
Stephen Hart
Hayden IR
[email protected]
917-658-7878
PR Contact:
Adam Handelsman
[email protected]
212-518-7721
About Snap Interactive, Inc.
Snap Interactive, Inc. develops, owns and operates an online dating application for social networking websites and mobile platforms. SNAP's flagship brand, AYI.com is one of the largest online and mobile dating applications on the Internet and offers a completely integrated Facebook, iPhone, Android and Web dating application. AYI.com's mission is to improve the online dating experience of meeting new people by integrating a user's friends and interests to enable more meaningful connections.
For more information on SNAP, please visit http://www.snap-interactive.com/ or its online dating blog at http://www.ayi.com/dating-blog.
The contents of our websites are not part of this press release, and you should not consider the contents of these websites in making an investment decision with respect to our common stock.
Facebook® is a registered trademark of Facebook, Inc. iPhone® is a registered trademark of Apple Inc. Android® is a registered trademark of Google Inc. AYI.com® is a registered trademark of Snap Interactive, Inc.
Forward-Looking Statements
This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to achieve break-even cash flow; or positive Adjusted EBITDA; the ability to increase or recognize revenue, decrease expenses and increase the number of active subscribers or new subscription transactions; the ability to enter into new advertising agreements; the ability to diversify new user acquisition channels or improve the conversion of users to paid subscribers; the ability to anticipate and respond to changing user and industry trends and preferences; the intense competition in the online dating marketplace; the ability to release new applications or derive revenue from new applications; and circumstances that could disrupt the functioning of the Company's application and websites. In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Securities and Exchange Commission filings.
All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
| SNAP INTERACTIVE, INC. |
|||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
| September 30, |
December 31, |
||||
| 2014 |
2013 |
||||
| (Unaudited) |
|||||
| Assets |
|||||
| Current assets: |
|||||
| Cash and cash equivalents |
$ |
928,077 |
$ |
927,352 |
|
| Restricted cash |
170,468 |
490,315 |
|||
| Credit card holdback receivable |
746,960 |
232,264 |
|||
| Accounts receivable, net of allowances and reserves of $43,152 |
277,640 |
385,370 |
|||
| Security Deposits |
115,104 |
- |
|||
| Prepaid expense and other current assets |
130,397 |
114,863 |
|||
| Total current assets |
2,368,646 |
2,150,164 |
|||
| Fixed assets and intangible assets, net |
396,052 |
522,462 |
|||
| Notes receivable |
77,877 |
170,566 |
|||
| Investments |
200,000 |
100,000 |
|||
| Total assets |
$ |
3,042,575 |
$ |
2,943,192 |
|
| Liabilities and stockholders' equity (deficit) |
|||||
| Current liabilities: |
|||||
| Accounts payable |
986,987 |
861,730 |
|||
| Accrued expenses and other current liabilities |
542,717 |
671,142 |
|||
| Promissory notes |
400,000 |
- |
|||
| Deferred subscription revenue |
2,101,089 |
1,826,771 |
|||
| Deferred advertising revenue |
403,630 |
300,000 |
|||
| Total current liabilities |
4,434,423 |
3,659,643 |
|||
| Long term deferred rent |
- |
12,058 |
|||
| Warrant liability |
93,700 |
140,550 |
|||
| Total liabilities |
4,528,123 |
3,812,251 |
|||
| Stockholders' equity (deficit): |
|||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, none |
- |
- |
|||
| Common stock, $0.001 par value, 100,000,000 shares authorized, |
39,183 |
39,133 |
|||
| Additional paid-in capital |
11,606,990 |
10,813,205 |
|||
| Accumulated deficit |
(13,131,721) |
(11,721,397) |
|||
| Total stockholders' equity (deficit) |
(1,485,548) |
(869,059) |
|||
| Total liabilities and stockholders' equity (deficit) |
$ |
3,042,575 |
$ |
2,943,192 |
|
| SNAP INTERACTIVE, INC. |
||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
| (Unaudited) |
||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, |
September 30, |
|||||||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||||||
| Revenues: |
||||||||||||||||
| Subscription revenue |
$ |
3,240,317 |
$ |
2,988,151 |
$ |
9,529,346 |
$ |
9,566,361 |
||||||||
| Advertising revenue |
244,183 |
1,827 |
697,516 |
45,167 |
||||||||||||
| Total revenues |
3,484,500 |
2,989,978 |
10,226,862 |
9,611,528 |
||||||||||||
| Costs and expenses: |
||||||||||||||||
| Programming, hosting and technology expense |
687,162 |
1,225,129 |
2,299,768 |
3,993,704 |
||||||||||||
| Compensation expense |
820,872 |
1,223,555 |
2,455,134 |
3,123,161 |
||||||||||||
| Professional fees |
151,806 |
200,619 |
664,837 |
674,426 |
||||||||||||
| Advertising and marketing expense |
1,285,889 |
1,125,181 |
3,875,148 |
3,209,110 |
||||||||||||
| General and administrative expense |
721,462 |
774,632 |
2,374,012 |
2,972,104 |
||||||||||||
| Total costs and expenses |
3,667,191 |
4,549,116 |
11,668,899 |
13,972,505 |
||||||||||||
| Loss from operations |
(182,691) |
(1,559,138) |
(1,442,037) |
(4,360,977) |
||||||||||||
| Interest income (expense), net |
(11,433) |
1,405 |
(15,137) |
4,510 |
||||||||||||
| Gain (loss) on change in fair value of warrants |
(23,425) |
(163,975) |
46,850 |
1,007,275 |
||||||||||||
| Other income |
- |
2,961 |
- |
2,961 |
||||||||||||
| Loss before provision for income taxes |
(217,549) |
(1,718,747) |
(1,410,324) |
(3,346,231) |
||||||||||||
| Provision for income taxes |
- |
- |
- |
- |
||||||||||||
| Net loss |
$ |
(217,549) |
$ |
(1,718,747) |
$ |
(1,410,324) |
$ |
(3,346,231) |
||||||||
| Net loss per common share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.01) |
$ |
(0.04) |
$ |
(0.04) |
$ |
(0.09) |
||||||||
| Weighted average number of common shares used in |
||||||||||||||||
| Basic and diluted |
39,152,713 |
38,932,826 |
39,164,603 |
38,924,767 |
||||||||||||
| SNAP INTERACTIVE, INC. |
||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
| (Unaudited) |
||||||||
| Nine Months Ended September 30, |
||||||||
| 2014 |
2013 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ |
(1,410,324) |
$ |
(3,346,231) |
||||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation and amortization |
130,141 |
130,020 |
||||||
| Stock-based compensation expense |
789,085 |
874,969 |
||||||
| Amortization of debt issuance cost |
1,583 |
- |
||||||
| Gain on change in fair value of warrants |
(46,850) |
(1,007,275) |
||||||
| Changes in operating assets and liabilities: |
||||||||
| Decrease (increase) in restricted cash |
319,847 |
(270,211) |
||||||
| Decrease (increase) in credit card holdback receivable |
(514,696) |
36,414 |
||||||
| Decrease (increase) in accounts receivable |
107,730 |
(27,282) |
||||||
| Increase in security deposits |
(115,104) |
- |
||||||
| Decrease (increase) in prepaid expenses and other current assets |
(12,367) |
89,762 |
||||||
| Increase in accounts payable, accrued expenses and other current liabilities |
13,145 |
372,929 |
||||||
| Decrease in deferred rent |
(28,371) |
(21,881) |
||||||
| Increase (decrease) in deferred subscription revenue |
274,318 |
(581,463) |
||||||
| Increase in deferred advertising revenue |
103,630 |
- |
||||||
| Net cash used in operating activities |
(388,233) |
(3,750,249) |
||||||
| Cash flows from investing activities: |
||||||||
| Purchase of fixed assets |
(3,731) |
(48,553) |
||||||
| Purchase of non-marketable equity securities |
(100,000) |
(75,000) |
||||||
| Repayment of notes receivable issued to employees and accrued interest |
92,689 |
(3,611) |
||||||
| Net cash used in investing activities |
(11,042) |
(127,164) |
||||||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of promissory notes |
400,000 |
- |
||||||
| Net cash provided by financing activities |
400,000 |
- |
||||||
| Net increase (decrease) in cash and cash equivalents |
725 |
(3,877,413) |
||||||
| Balance of cash and cash equivalents at beginning of period |
927,352 |
5,357,596 |
||||||
| Balance of cash and cash equivalents at end of period |
$ |
928,077 |
$ |
1,480,183 |
||||
| Supplemental disclosure of cash flow information |
||||||||
| AYI.com domain name purchase in exchange for 100,000 shares of common stock |
$ |
- |
$ |
100,000 |
||||
| Warrants issued for debt issuance costs |
$ |
4,750 |
- |
|||||
| SNAP INTERACTIVE, INC |
||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
||||||||
| (unaudited) |
||||||||
| Three Months Ended |
||||||||
| September 30, 2014 |
June 30, 2014 |
September, 30 2013 |
||||||
| Reconciliation of Subscription Revenue to Bookings |
||||||||
| Subscription revenue |
$ |
3,240,317 |
$ |
3,151,002 |
$ |
2,988,151 |
||
| Change in deferred subscription revenue |
142,322 |
(129,142) |
(88,936) |
|||||
| Bookings |
$ |
3,382,639 |
$ |
3,021,860 |
$ |
2,899,215 |
||
| Three Months Ended |
||||||||
| Reconciliation of net loss to Adjusted EBITDA: |
September 30, |
June 30, |
September 30, |
|||||
| 2014 |
2014 |
2013 |
||||||
| Net loss |
$ |
(217,549) |
$ |
(259,678) |
$ |
(1,718,747) |
||
| Interest expense (income) |
11,433 |
5,578 |
(4,366) |
|||||
| Depreciation and amortization expense |
43,268 |
43,610 |
44,457 |
|||||
| Loss (gain) on change in fair value of warrants |
23,425 |
- |
163,975 |
|||||
| Stock compensation expense |
294,373 |
272,236 |
429,900 |
|||||
| Adjusted EBITDA |
$ |
154,950 |
$ |
61,746 |
$ |
(1,084,781) |
||
Non-GAAP Financial Measures
The Company has provided in this release non-GAAP financial information including bookings and overall liquidity to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these non-GAAP financial measures are useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. .
Some limitations of bookings and Adjusted EBITDA as financial measures include that:
- Bookings does not reflect that we defer and recognize revenue from subscription fees and micro-transactions over the length of the subscription term or a two-month period, respectively;
- Adjusted EBITDA does not (i) reflect cash capital expenditure requirements for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; (ii) the Company's working capital requirements; (iii) consider the potentially dilutive impact of stock-based compensation; (iv) reflect interest expense or interest payments on our outstanding indebtedness; and (v) reflect the change in fair value of warrants; and
- Other companies, including companies in our industry, may calculate bookings or Adjusted EBITDA differently or choose not to calculate bookings or Adjusted EBITDA at all, which reduces their usefulness as comparative measures.
Because of these limitations, you should consider non-GAAP metrics along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.
Photo - http://photos.prnewswire.com/prnh/20141109/157492
SOURCE Snap Interactive, Inc.
Related Links
http://www.snap-interactive.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article