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SITO Mobile Reports 65% Revenue Increase for the Second Quarter

JERSEY CITY, N.J., Sept. 05, 2019 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (SITO), an insights-driven Consumer Behavior and Location Sciences™ company, announced today its financial results for the second quarter ended June 30, 2019. 

Financial Summary

  • Total revenue increased 65% to $13.9 million;
  • SITO’s existing markets comprised $5.1 million of total revenue;
  • $8.8 million of total revenue was generated from new markets; and
  • Detailed financial results for the three- months and six-months ended June 30, 2019 is described in the financial summary sections below.

Second Quarter Financial Summary (Second Quarter of 2019 vs. Second Quarter of 2018)

Total revenue increased $5.5 million, or 65%, to $13.9 million, compared to total revenue of $8.4 million. This increase is primarily attributable to entering a new market in 2019, the first campaign of which was substantially carried out during the second quarter.

Gross profit was $4.5 million, or 32% of total revenue, compared to $4.0 million, or 48% of total revenue. The decrease in gross profit margin was due to aggressive initial pricing to penetrate new markets on which the Company is focusing.

Loss from operations was $3.7 million compared to a loss from operations of $6.1 million. This loss included one-time non-recurring impairment losses of $2.1 million comprised of write-downs of internally developed software and customer relationship long-lived assets acquired from the Hipcricket acquisition in 2015. The loss from operations would have been $1.6 million as compared to a loss from June 30, 2018 of $6.1 million, excluding the impairment losses.

Net loss was $3.4 million, or $0.13 per share, compared to a net loss of $5.7 million, or $0.23 per share.

Year-to-Date Financial Summary (First Six Months of 2019 vs. First Six Months of 2018)

Total revenue increased $2.7 million, or 14%, to $22.3 million, compared to total revenue of $19.6 million. Gross profit was $7.3 million, or 33% of total revenue, compared to $8.5 million, or 43% of total revenue. Loss from operations was $8.5 million compared to a loss from operations of $12.0 million. This loss from operations included one-time non-recurring losses of $2.1 million comprised of write-downs of internally developed software and customer relationship long-lived assets acquired from the Hipcricket acquisition in 2015. The loss from operations would have been $6.4 million as compared to a loss of $12.0 million, excluding the impairment losses.

Net loss was $8.5 million, or $0.33 per share, compared to a net loss of $11.0 million, or $0.45 per share.

Following is a reconciliation of the amounts of net loss from operations recognized and presented on the Unaudited Consolidated Statements of Operations and the resulting loss per share, in accordance with US GAAP to the amount of loss from operations and loss per share attributable to and before the effect of the aforementioned recognized non-recurring items:


                         
            For the Three-months ended   For the Six-months ended
            June 30,   June 30,
            2019     2018     2019     2018  
As reported on the Statement of Operations,
  in accordance with US GAAP:
               
  Loss from operations   $   3,704,789    $    6,081,577    $    8,435,264    $    12,030,240  
Less:                      
  Loss on impairment - capitalized software development costs     1,911,285       -        1,911,285       -   
  Loss on impairment - customer relationships     177,535       -        177,535       -   
                         
    Loss on impairment of long-lived assets     2,088,820       -        2,088,820       -   
                         
Loss from operations before non-recurring items     1,615,969       6,081,577       6,346,444       12,030,240  
                         
Other (income) expense       (305,624 )     (367,774 )     13,904       (1,099,043 )
Income tax expense         3,037       22,059       2,517       53,444  
                         
  Net loss before non-recurring items $   1,313,382   $   5,735,862   $   6,362,865   $   10,984,641  
                         
As reported on the Statement of Operations,
  in accordance with US GAAP:
               
  Basic and diluted net (loss) per share $   (0.13 ) $   (0.23 ) $   (0.33 ) $   (0.45 )
Less:                      
  Basic and diluted net (loss) per share,
  attributable to non-recurring items
    0.08       -        0.08       -   
                         
Basic and diluted net (loss) per share before non-recurring items $   (0.05 ) $   (0.23 ) $   (0.25 ) $   (0.45 )
                         
Basic and diluted weighted average shares outstanding     25,641,812       25,128,681       25,593,853       24,430,373  
                         


Balance Sheet

As of June 30, 2019, the Company had $0.8 million in cash and cash equivalents compared to $2.6 million at December 31, 2018.

About SITO Mobile, Ltd.

SITO turns the consumer journey into a powerful instrument for marketers, delivering actionable insights that influence behavior in real-time. Through Consumer Behavior and Location Sciences™, SITO develops customized, data-driven solutions for brands spanning strategic insights and media. Our science and products reveal a deeper, real-time understanding of customer interests, actions and experiences providing increased clarity for brands when it comes to navigating business decisions and delivering advertising. The Company is home to an internally developed, proprietary location-data technology stack, arming clients with a powerful resource for granular data, real-time insights and optimization, and delivery of successful media campaigns. Using in-store targeting, proximity targeting, geo-conquesting and attribution data, SITO creates audience profiles to develop measurable hyper-targeted campaigns for brands. For more information regarding SITO’s science, technology and customized solutions spanning media and research, visit www.sitomobile.com.

Cautionary Statement Regarding Certain Forward-Looking Information  

This press release contains forward-looking statements. These statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements concerning the following: SITO’s plans and initiatives; our possible or assumed future results of operations; our ability to attract and retain customers; our ability to sell additional products and services to customers; our competitive position; our industry environment; and our potential growth opportunities. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” in our Annual Report on Form 10-K, for the year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, and the reports we file with the SEC. Actual events or results may vary significantly from those implied or projected by the forward-looking statements due to these risk factors. No forward-looking statement is a guarantee of future performance. You should read our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q and the documents that we reference in our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q and have filed as exhibits thereto with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results and circumstances may be materially different from what we expect. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  

Contact:

Investor Relations
Brett Maas
Hayden IR
Phone: 480.861.2425
Email: SITO@haydenir.com

Source: SITO Mobile, Ltd.


SITO Mobile, Ltd.  
CONSOLIDATED BALANCE SHEETS  
               
        June 30, 2019
(Unaudited)
  December 31, 2018  
Assets          
  Current assets          
    Cash and cash equivalents $   789,528   $   2,597,246    
    Accounts receivable, net     15,674,306       10,206,664    
    Other assets, current     194,935       469,041    
               
    Total current assets     16,658,769       13,272,951    
               
  Property and equipment, net     250,363       331,635    
               
  Other assets          
    Capitalized software development costs, net     -        861,699    
    Intangible assets:          
    Patents     583,681       630,857    
    Other intangible assets, net     583,971       897,007    
    Goodwill     6,444,225       6,444,225    
    Other assets      123,722       125,543    
    Operating Lease ROU Assets, net     172,404       311,717    
               
    Total other assets     7,908,003       9,271,048    
               
    Total assets $   24,817,135   $   22,875,634    
               
Liabilities and Stockholders' Equity           
  Current liabilities          
    Accounts payable  $   13,102,216   $   4,377,805    
    Accrued expenses     2,936,196       4,610,146    
    Other current liabilities     658,434       3,571    
    Deferred revenue     100,000       264,493    
    Operating lease liabilities     184,724       307,536    
    Note payable, net of discount     1,154,614       -     
    Warrant liability     145,564       174,684    
               
    Total current liabilities     18,281,748       9,738,235    
               
  Long-term liabilities          
    Operating lease liabilities     -        27,062    
    Other liabilities     5,850       7,644    
               
    Total long-term liabilities     5,850       34,706    
               
    Total liabilities     18,287,598       9,772,941    
               
  Commitments and contingencies          
               
  Stockholders' Equity           
    Common stock, $.001 par value; 100,000,000 shares authorized,      
    25,641,812 shares issued and outstanding as of June 30, 2019; and      
    25,529,078 December 31, 2018, respectively     25,642       25,529    
    Additional paid-in capital     187,862,312       185,983,896    
    Accumulated deficit     (181,358,417 )     (172,906,732 )  
               
    Total stockholders' equity      6,529,537       13,102,693    
               
    Total liabilities and stockholders' equity  $   24,817,135   $   22,875,634    
               


SITO Mobile, Ltd.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
                       
        For the Three-months ended   For the Six-months ended  
        June 30,   June 30,  
        2019     2018     2019     2018    
Revenue                  
  Media placement $   13,892,216   $   8,428,564   $   22,322,592   $   19,573,216    
  Total revenue     13,892,216       8,428,564       22,322,592       19,573,216    
                       
Cost of Revenue                  
  Cost of revenue     9,414,674       4,402,154       14,987,411       11,100,030    
  Gross profit     4,477,542       4,026,410       7,335,181       8,473,186    
                       
Operating Expenses                  
  Sales and marketing     3,355,001       5,512,821       7,393,117       10,781,989    
  General and administrative     2,564,711       4,423,630       5,965,883       9,364,096    
  Depreciation and amortization     173,799       171,536       322,625       357,341    
  Loss on impairment of long-lived assets     2,088,820       -        2,088,820       -     
  Total operating expenses     8,182,331       10,107,987       15,770,445       20,503,426    
                       
    Loss from operations     (3,704,789 )     (6,081,577 )     (8,435,264 )     (12,030,240 )  
                       
Other Income (Expense)                  
  Gain on revaluation of warrant liability     348,881       334,304       29,120       975,520    
  Other income     16,894       31,551       17,282       117,630    
  Interest (expense) income, net     (60,151 )     1,919       (60,306 )     5,893    
                       
    Loss before income taxes     (3,399,165 )     (5,713,803 )     (8,449,168 )     (10,931,197 )  
                       
    Income tax expense     (3,037 )     (22,059 )     (2,517 )     (53,444 )  
                       
    Net loss $   (3,402,202 )     (5,735,862 )     (8,451,685 ) $   (10,984,641 )  
                       
  Basic and diluted net (loss) per share $   (0.13 )     (0.23 )     (0.33 ) $   (0.45 )  
                       
  Basic and diluted weighted average shares outstanding   25,641,812       25,128,681       25,593,853       24,430,373