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Snap Interactive Reports Results for the Quarter Ended June 30, 2015

NEW YORK, NY — (Marketwired) — 08/13/15 — Snap Interactive, Inc. (“SNAP,” the “Company,” “we,” “our” or “us”) (OTCQB: STVI), a leading online dating provider, today announced financial and operational results for the quarter ended June 30, 2015.

Total revenues decreased 7.6% and subscription revenue decreased 2.4% for the second quarter of 2015 relative to the comparable period in 2014, however, total revenues slightly increased by approximately $2.0 thousand as compared to the first quarter of 2015;

SNAP incurred an operating loss of approximately $0.2 million, reflecting an improvement as compared to an operating loss of approximately $0.3 million for the comparable period in 2014;

Cash and cash equivalents totaled approximately $1.9 million as of June 30, 2015, representing an increase of approximately $0.8 million from December 31, 2014;

Generated positive Adjusted EBITDA of approximately $73.0 thousand, an improvement of approximately $11.0 thousand relative to the comparable period in 2014, and an improvement of approximately $685.0 thousand compared to the first quarter of 2015;

Active subscriber count was 98.0 thousand as of June 30, 2015 which was relatively flat compared to the same period in 2014; and

Increased user activity on The Grade, our new mobile dating application, reaching a cumulative usage milestone of more than 20.0 million swipes, as compared to cumulative usage of more than 8.0 million swipes as of March 31, 2015.

Growth and New Initiatives

In the second quarter of 2015 we achieved important milestones in growth and new initiatives, including:

Board of Directors – Appointed an independent director to our Board of Directors;

Reengaged Users – Reactivated 1.2 million users from the AYI database via targeted email campaigns; and

The Grade User Activity – As of June 30, 2015, cumulative usage of The Grade mobile application exceeded 20 million swipes.

SNAP–s Chief Executive Officer, Clifford Lerner, said, “Q2 was a significant quarter for SNAP, during which we achieved several milestones, with the highlight being the appointment of our first independent director, Dr. Steven Fox, to our Board of Directors. We continue to seek two other independent board members to help us achieve our strategic objective to build a portfolio of mobile and Internet dating applications and brands. In addition, SNAP has developed a valuable asset in its database of over 30.0 million users. SNAP–s campaign in the second quarter to reactivate inactive users by presenting AYI and third party offers was successful, engaging approximately 1.2 million users that had formerly been inactive. SNAP–s infrastructure is highly scalable and our team is capable of supporting significant future growth and profitability as we seek to grow our portfolio.”

Mr. Lerner continued, “The Grade, our unique female-friendly dating app and first addition to our portfolio, saw record usage in Q2, highlighted by an 81% increase in swipes in the second quarter of 2015 as compared to the first quarter of 2015, as seen in the chart below. Furthermore, The Grade also appeared in the nationally televised reality show Leah Remini: It–s All Relative in the July 22nd episode –Leah and Chelsea Handler–s Dating Tips–, in which The Grade is used by a cast member to help find a date. We–re excited to see The Grade receive a high level of exposure to a national audience.”

To view the chart on Total Swipe Count click the following link:

SNAP–s Chief Operating Officer, Alex Harrington, said, “Looking at our business overall, SNAP faced revenue headwinds in the second quarter of 2015 relative to the second quarter of 2014. This was primarily due to unfavorable international exchange rates and the termination of a large, exclusive advertising contract in 2014 in favor of more flexible, non-exclusive advertising relationships in 2015. Relative to the first quarter of 2015, revenues increased slightly as our smaller advertising relationships continue to grow. AYI has delivered stable results, with subscription revenues decreasing nominally and active subscribers flat compared to the same period last year. In the near future, we expect that the focus for AYI will be on cash efficiency, rather than growth to support other investment initiatives in our portfolio.”

Liquidity and Cash Flow

Cash Balance – We ended the second quarter of 2015 with approximately $1.9 million of cash and cash equivalents on our balance sheet; and

Reduction in Cash Used in Operating Activities: We reduced our consumption of cash from operating activities from nearly $1.1 million in the first quarter of 2015 to approximately $0.4 million in the second quarter of 2015.

Mr. Harrington added, “We were pleased to reduce expenses and cash burn during the second quarter of 2015 relative to the first quarter of 2015, in which we sustained a number of one-time, non-recurring items such as a repayment of an advance under an advertising agreement, expenses associated with the relocation of our corporate headquarters and a legal settlement and related legal fees. With our current liquidity position on a solid footing, we continue to manage cash conservatively and expect still more cash-efficiency in operations going forward, while continuing to explore new avenues for growth.”

Snap Interactive, Inc. develops, owns and operates online dating applications for social networking websites and mobile platforms. The Grade is a mobile dating application catering to high quality singles. SNAP–s flagship brand, AYI.com is a multi-platform online dating site with over one million monthly active users.

For more information on SNAP, 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.

Facebook® is a registered trademark of Facebook, Inc. iPhone® is a registered trademark of Apple Inc. Android is a 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 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; potential acquisitions of dating and social networking companies; the ability to use indebtedness to grow our business or increase the number of active subscribers and revenue; 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.

The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, plus non-cash stock-based compensation and the non-cash change in fair value of derivative liabilities. The Company has provided in this release certain non-GAAP financial information including bookings and Adjusted EBITDA to supplement the condensed 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 recognize subscription revenue from subscription fees over the length of the subscription term and subscription revenue from 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


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