BETHESDA, MARYLAND--(Marketwired - Sep 2, 2014) - Snipp Interactive Inc. ("Snipp"), an international provider of mobile marketing solutions listed on the TSX Venture Exchange (TSX VENTURE:SPN), is pleased to announce its financial results for the quarter ended June 30, 2014. A copy of the complete unaudited financial statements, management's discussion and analysis are available on SEDAR (www.sedar.com).
Sales revenues for the six months ending June 30, 2014 grew 100%, while operating costs only increased by 14% compared to the same period last year. In the first six months of 2014, the company generated 150% of its 2013 full fiscal year audited revenue of $870,420.
Snipp had revenues of $762,440 during the six months ending June 30, 2014 compared to $381,527 during the six months ending June 30, 2013. Operating costs of $1,154,027 were incurred during the six months ending June 30, 2014 compared to $1,012,255 incurred during the six months ended June 30, 2013.
Revenue for the second quarter of 2014 was $413,358 compared to $207,196 for the second quarter of 2013, representing 100% year-on-year growth. Compared to the previous quarter, revenue grew 18% from $349,082 in Q1, 2014. The increase in revenue is attributable to a slew of new and repeat customers and campaigns launched utilizing Snipp's collection of mobile-based promotion marketing solutions (including SnippCheck, its unique receipt-processing solution and SnippWin, its contests and promotions platform).
The company reported a 38% decrease in net loss before other non-operating items of $391,587 for the six months ended June 30, 2014 compared to a net loss before other non-operating items of $630,728 for the six months ended June 30, 2013. The decrease in net loss (before other non-operating items) was mainly due to the benefit accruing from infrastructure investments made in prior quarters. The company believes it has the infrastructure in place to allow its revenues to scale without incurring significant additional infrastructure costs and is focused on continuing to increase revenue while maintaining a similar operating cost structure. At the end of Q2 2014, current assets were $828,968 and current liabilities $444,494. The company has no long-term debt and continues to maintain a very healthy balance sheet. As of the date of this news release, the company has current assets of $2,094,258 comprised of $1,383,470 in cash, $696,698 of accounts receivable and $14,090 of other current assets.
Subsequent to the end of Q2 2014, on July 14, 2014, the company closed an oversubscribed non-brokered private placement financing (the "Financing") with insider participation. The Financing was for gross proceeds of Cdn.$1,560,000 comprised of 10.4 million units ("Units") at a price of Cdn.$0.15 per Unit. For additional details on the Financing please refer to our prior news release dated July 15, 2014.
- Snipp continues to grow its revenues at a 100% rate with potential to accelerate this trend for the second half of 2014
- The company continues to leverage its investments in infrastructure over the last two years to run its operations at an increasingly lower cost
- The company's balance sheet reflects its increasing market strength with no long-term debt and a strong cash position making it attractive to potential suitors and/or to private companies attracted to the public company vehicle
- The company has established itself in the US market as a premier promotions marketing company with an increasing number of Fortune 500 companies and leading advertising agencies directly reaching out to the company to solicit its services for 2014 and 2015
- The company intends to purse a strategy in Canada that reflects its success in the US market having recently focused two full-time resources to break into the Canadian market. The company also plans to continue growing its international business, expanding beyond its current customers in Mexico, Brazil, the United Kingdom, India and the Middle East.
Atul Sabharwal, CEO and Founder of Snipp commented, "We are very pleased with our Q2 results and look forward to further sharing results for the remaining 2014 fiscal year. The company is extremely well poised to take advantage of growth opportunities on multiple fronts. While we continue to pursue organic customer growth and geographic expansion, we are now increasingly focusing on (and in some cases are the target of) strategic opportunities to merge with and/or acquire private companies. Our team intends to leverage the second half of 2014 to analyze and aggressively pursue opportunities that will enable us to add another layer to our growth strategy in 2015. With no long-term debt on our balance sheet and an increasing cash position, we have a unique opportunity to make a large impact in the $80 billion dollar US promotion marketing industry. Over the last 10 quarters we have built a fundamentally strong company on all fronts and I would like to thank our patient investors who have rewarded us with a 60% appreciation in stock value over this time period. We believe that similar growth in our value will be achieved in a far shorter period going forward given the strength of our business today."
Snipp Interactive Inc. (www.snipp.com) builds cross-device shopper marketing solutions for brands to engage and interact with their customers. We provide a full spectrum of services including campaign conceptualization, rules and legal, design, execution, rewards provisioning and fulfillment. We have four main solution sets:
- Mobile Promotions and Contests: A turnkey contesting platform that provides a full range of mobile-based contests, from simple sweepstakes to instant win programs to tiered, multi-level games.
- Purchase Promotions / Receipt Processing: Snipp's unique SnippCheck mobile receipt processing solution allows brands to execute customized purchase-based promotions. We support any qualification criteria, work across all retailers and all devices.
- Loyalty Programs: Snipp's white-label loyalty engine allows clients to deploy anything from simple punch-card programs to sophisticated, full-fledged points-based loyalty programs with rewards stores attached.
- Augmented Reality and Apps: Snipp produces cutting edge augmented reality campaigns and apps for leading brands around the world.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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