NEW YORK, NY — (Marketwired) — 03/06/15 — Snap Interactive, Inc. (“SNAP,” the “Company,” “we,” “our” or “us”) (OTCQB: STVI), a leading online dating developer and owner of and The Grade, has filed its Annual Report on Form 10-K for the year ended December 31, 2014, which announced the following financial and operational results and highlights for 2014, as well as insights into the Company–s business strategy.
Highlights:
Achieved positive cash flow from operations of $221 thousand for the three months ended December 31, 2014, which reflected an improvement of approximately $760 thousand as compared to the comparable period in 2013;
Increased active subscriber count by 33% from approximately 77,700 as of December 31, 2013 to approximately 103,000 as of March 2, 2015;
New subscription transactions increased approximately 30% for the year ended December 31, 2014 as compared to the year ended December 31, 2013;
Increased total revenues for the fourth quarter of 2014 by approximately 11.1% to $3.3 million as compared to the comparable period in 2013, and recorded an increase in total revenues of approximately 7.5% for the year ended December 31, 2014 as compared to 2013; and
Launched “The Grade,” our new mobile dating application which has been featured in top-tier media outlets such as Washington Post, USA Today, Fortune, and Vogue.
During the quarter ended December 31, 2014, SNAP–s management maintained 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 for a second consecutive quarter.
Clifford Lerner, SNAP–s Chief Executive Officer, commented, “During 2014 SNAP focused on becoming a cash flow positive business that could grow revenue even in the context of constrained liquidity. Accordingly, we focused on making highly efficient marketing investments and cost controls to reduce our overhead. It was gratifying to see our financial results respond to these efforts, delivering two quarters of positive cash flow from operating activities, and three quarters of positive EBITDA. In addition, in spite of limited resources dedicated to marketing expenditures, we increased our subscriber base during 2014, and had approximately 8% revenue growth as compared to 2013.”
“We are also excited to be on track with our new strategic direction for the Company,” Lerner continued. “We intend for the Company to develop a portfolio of dating and social applications in the future, addressing a diversified set of end user markets and geographies. A portfolio approach leverages SNAP managerial expertise, technical infrastructure and user community across a broader range of offerings. The Grade, a mobile dating app available for iPhone®, was the first new introduction to the portfolio. We believe that mobile is a major area of growth for the industry, so a mobile-first application was the right place to start. We intend to expand our product array and geographic reach further, both to monetize our existing audience and to broaden our reach to untapped user communities.”
Additionally, the Company announced in February that it had raised gross proceeds of $3 million through the issuance of a $3 million 12% Senior Secured Convertible Note to Sigma Opportunity Fund II, LLC (“Sigma”), with a plan to use the proceeds to fund general corporate purposes, including increased user acquisition. Alexander Harrington, SNAP–s Chief Operating Officer, commented, “We are pleased to receive the investment, which recognized our recent positive financial results and growth potential. The additional liquidity builds a strong foundation for the business, and unlocks future growth opportunities.”
Snap Interactive, Inc. develops, owns and operates dating applications for social networking websites and mobile platforms. SNAP–s flagship brand, AYI.com is a multi-platform online dating site with over one million monthly active users. The Grade is a mobile dating application catering to high quality singles. For more information, please visit .
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 or warrants.
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.
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; the ability to increase or recognize revenue, decrease expenses and increase the number of active subscribers or new subscription transactions; the ability to anticipate and respond to changing user and industry trends and preferences; the ability to implement new applications in the Company–s portfolio strategy or derive revenue from new applications; the intense competition in the online dating marketplace; and circumstances that could disrupt the functioning of the Company–s applications 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.
The Company has provided in this release certain non-GAAP financial information, including bookings and Adjusted EBITDA 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 over the length of the subscription term and micro-transactions over a two-month period;
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 this non-GAAP financial information 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.
Adam Handelsman
212-518-7721
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