SOURCE: SNAP Interactive, Inc.
SNAP Interactive Releases 2008 Operating Results
Grows Annual Revenue by Over 600% to More Than $3.0 MM
NEW YORK, NY--(Marketwire - April 2, 2009) - SNAP Interactive, Inc. ("SNAP" or the
"Company") (
Financial Highlights
-- Q4 2008 Revenue: $1,087,144, as compared to $871,324 in Q3 2008 -- a
25% increase
-- Full Year 2008 Revenue: $3,011,627, as compared to $424,564 in full
year 2007 -- a 609% increase
(A comprehensive description of results follows below.)
"SNAP has dedicated the last several months to new product development in order to diversify future revenue streams," stated SNAP President and CEO Clifford Lerner. "As evidenced by our recent iPhone™ application launch, we are making significant progress in enhancing our market footprint and product offering. As we have emphasized throughout the year our primary focus has not yet been on immediate revenue generation, though we did cap the year with strong sequential top line growth. We were profitable throughout 2008 which afforded us the comfort and flexibility to execute our business plan without significant financial constraints. We attempted to keep expenses as low as possible for most of the year, however expansion and hiring of new programmers became necessary as we continued to grow. Our net income was lower in Q4 than the previous quarter due to a variety of increased costs including compensation, income taxes, expenses associated with the expansion of our programming team and the development of our new products including our new iPhone application. Because we were profitable for all of 2008 and therefore able to finance our operations on our existing revenue, our recent focus has shifted toward new product development as we keep our eyes firmly planted on our long-term vision for SNAP to be a leader in the social dating and mobile dating spaces."
To be added to the SNAP investor email list, please email justin.davis@cirrusfc.com with STVI in the subject line.
Comprehensive Operational Results Description
Revenue increased from $389,181 for the three months ended December 31, 2007 to $1,087,144 for the three months ended December 31, 2008, a 179% increase.
Revenue increased from $424,564 for the full year ended December 31, 2007 to $3,011,627 for the full year ended December 31, 2008, a 609% increase.
These revenues are primarily generated from advertisements and premium features placed on our various applications. The increase in revenue was primarily due to the growth of our applications and the increased usage in 2008 compared to the same time period in 2007. This increased activity resulted in more traffic to our applications which produced more impressions and clicks on advertisements displayed on our applications. Secondarily, our premium features on our applications gained traction in 2008 as well.
Net Income increased to $796,960 for the year ended December 31, 2008 from a loss of $914,997 for the year ended December 31, 2007, an increase of $1,711,957. EBITDA for the fiscal year ended December 31, 2008 was $946,510.
Based on the weighted average number of shares outstanding during the period (basic) of 10,420,680, SNAP reported net income of approximately $0.08 per share for the full year ended December 31, 2008, as compared to a net loss of ($0.09) for the full year ended December 31, 2007. On an EBITDA basis, SNAP earned $0.09 per share for the fiscal year ended December 31, 2008.
About SNAP Interactive, Inc.
Incorporated in Delaware and headquartered in New York, SNAP Interactive, Inc. is a leading provider of online dating applications for social networking websites. SNAP has developed two popular dating applications built on Facebook® Platform and has also launched dating applications on MySpace Developer Platform, Hi5 Developer Platform and the iPhone™. In total, more than 18 MM people have installed our applications. Our applications are called 'Are You Interested,' 'Meet New People' and 'Flirt With Me.'
For more information visit www.snap-interactive.com.
Facebook® is a registered trademark of Facebook Inc.
iPhone™ is a trademark of Apple Inc.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include product demand, market competition, fluctuations in advertising payouts, delays in application development, technical issues beyond our control, reliance on the various platforms that we build applications on, and risks inherent in our operations. For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov. All traffic statistics are recent averages.
Snap Interactive, Inc. and Subsidiary
Consolidated Statements of Operations
For the Year Ended
December December
31, 2008 31, 2007
----------- -----------
Revenue $ 3,011,627 $ 424,564
Cost of Revenue 770,765 66,795
----------- -----------
Gross Profit 2,240,862 357,769
Operating Expenses
Depreciation and Amortization 12,631 9,054
Research and Development - 412,098
Compensation expense 772,853 465,705
Consulting Fees 29,334 52,000
Advertising expense 12,317 69,959
Professional Fees 89,559 -
General and administrative 390,289 265,266
----------- -----------
Total Operating Expenses 1,306,983 1,274,082
----------- -----------
Income/(Loss) from Operations 933,879 (916,313)
Other Income (Expense)
Interest Expense (6,103) (3,390)
Interest Income 9,284 6,081
----------- -----------
Total Other Expense, net 3,181 2,691
----------- -----------
Income/(Loss) Before Provision For Income Taxes 937,060 (913,622)
Provision for Income Taxes (140,100) (1,375)
----------- -----------
Net Income/(Loss) $ 796,960 $ (914,997)
=========== ===========
Net Income/(Loss) Per Share - Basic 0.08 (0.09)
=========== ===========
Net Income/(Loss) Per Share - Diluted 0.07 (0.09)
=========== ===========
Weighted average number of shares outstanding
during the period - Basic 10,420,680 9,660,466
=========== ===========
Weighted average number of shares outstanding
during the period - Diluted 11,295,865 9,660,466
=========== ===========
Snap Interactive, Inc. and Subsidiary
Consolidated Balance Sheets
ASSETS
December 31, 2008 December 31, 2007
----------------- -----------------
Current Assets
Cash $ 1,529,354 $ 318,143
Accounts receivable, net 386,507 248,902
Prepaid Expense 398 24,904
----------------- -----------------
Total Current Assets 1,916,259 591,949
----------------- -----------------
Property and Equipment, net 31,297 16,640
Other Assets
Security Deposit 18,750 1,210
----------------- -----------------
Total Other Assets 18,750 1,210
----------------- -----------------
Total Assets $ 1,966,306 $ 609,799
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
liabilities $ 332,731 $ 26,131
Settlement Payable 21,888 45,589
Convertible Notes Payable - Related
Party 35,348 35,348
Accrued interest 18,731 16,039
----------------- -----------------
Total Current Liabilities 408,698 123,107
----------------- -----------------
Long Term Liabilities
Settlement Payable 23,238 45,126
Convertible Notes Payable - Related
Party 10,138 10,138
----------------- -----------------
Total Liabilities 442,074 178,371
----------------- -----------------
Commitments and Contingencies - -
Stockholders' Equity
Preferred stock, $0.001 par value,
10,000,000 shares authorized, none
issued and outstanding - -
Common stock, $0.001 par value;
100,000,000 shares authorized,
10,700,395 and 10,333,895 shares
issued and outstanding,
respectively 10,700 10,334
Additional paid-in capital 2,368,397 2,048,525
Accumulated deficit (822,581) (1,619,541)
Less: deferred compensation (32,284) (7,890)
----------------- -----------------
Total Stockholders' Equity 1,524,232 431,428
----------------- -----------------
Total Liabilities and Stockholders'
Equity $ 1,966,306 $ 609,799
================= =================
Cirrus Financial Communications, LLC
Justin K. Davis
(877) 977-STVI (7884)
Email Contact
www.cirrusfc.com