SNAP Interactive Nearly Triples Quarterly Net Income, Grows Quarterly Revenue 63%
Monday November 17, 9:15 am ET
NEW YORK, NY--(MARKET WIRE)--Nov 17, 2008 -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTC BB:STVI.OB - News), a leading provider of online dating applications for social networking websites, today announced record operating results for the quarter ended September 30, 2008.
Financial Highlights, as Compared to Last Quarter (the Quarter ended June 30, 2008)
-- Revenue: $871,324, as compared to $533,257 -- a 63% increase
-- Net Income: $410,283, as compared to $144,862 -- a 183% increase
-- Earnings per Share (EPS): $0.04, as compared to $0.01
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(A comprehensive description of results follows below.)
"To put it simply, SNAP is already profitable and we have grown our revenue for 5 consecutive quarters -- despite an early focus on growth ahead of monetization. We nearly tripled quarterly net income in the third quarter by virtue of increasing traffic to our existing applications and the advertising programs built within," stated SNAP President and CEO Clifford Lerner. "We also began offering paid premium features through our applications and look forward to expanding that revenue driver in the future. We have long believed that developing a critical mass user base was Priority #1 for a dating application; having now accomplished that with more than 16 Million total users we can turn our attention to new and inventive revenue driving strategies, evolving not only our own business model but the entire Social Network Application industry landscape. We are particularly excited about the expansion potential of the mobile device opportunity.
"We are very proud of the significant milestones we have achieved to date, and we believe that the next twelve months will offer new and exciting opportunities, both for SNAP and the greater space we are helping to define."
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 $35,383 for the three months ended September 30, 2007 to $871,324 for the three months ended September 30, 2008, an increase of $835,941.
Revenue increased from $35,669 for the nine months ended September 30, 2007 to $1,924,483 for the nine months ended September 30, 2008, an increase of $1,888,814.
These revenues are primarily generated from advertisements placed on our 'Are You Interested' & 'Meet New People' applications as well as premium features on our 'Are You Interested' applications. The increase in revenue was primarily due to the growth of our applications and the increased usage in the third quarter of 2008 compared to the same time period in 2007, which resulted in more traffic to our applications which produced more impressions and clicks on advertisements displayed on our applications as well as use of our premium features.
Net Income increased to $410,283 for the three months ended September 30, 2008 from a loss of $79,538 for the three months ended September 30, 2007, an increase of $489,821.
Net Income increased to $745,654 for the nine months ended September 30, 2008 from a loss of $357,537 for the nine months ended September 30, 2007, an increase of $1,103,491.
The increase in net income was primarily due to the increased revenue from the growth of our applications and the increased usage in the third quarter of 2008 compared to the same time period in 2007, which resulted in more traffic to our applications which produced more impressions and clicks on advertisements displayed on our applications and use of our premium features.
Based on shares outstanding (basic) of 10,359,560 as of September 30, 2008, SNAP had net income of approximately $0.04 per share for the quarter ended September 30, 2008, as compared to a net loss of approximately $0.01 per share for the quarter ended June 30, 2007. SNAP reported net income of approximately $0.07 per share for the nine months ended September 30, 2008, as compared to a net loss of $0.04 for the nine months ended June 30, 2007.
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 dating applications built on Facebook® Platform which have in excess of 15 million installations, and has also launched dating applications on MySpace Developer Platform & Hi5 Developer Platform. 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.
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, 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
(f/k/a eTwine Holdings, Inc. and Subsidiary)
Condensed Consolidated Statements of Operations
(Unaudited)
For the Three Months
Ended For the Nine Months Ended
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
------------ ------------ ------------ ------------
Revenue $ 871,324 $ 35,383 $ 1,924,483 $ 35,669
Operating Expenses
Depreciation and
Amortization 3,570 2,428 8,931 6,741
Research and
Development - 29,900 - 137,200
Compensation expense 213,118 15,000 581,548 15,000
Consulting Fees 13,209 - 28,396 -
Advertising expense - - 10,470 -
Professional Fees 17,500 4,568 54,255 15,789
Hosting expense 57,676 - 145,188 -
General and
administrative 118,594 65,062 312,228 219,862
------------ ------------ ------------ ------------
Total Operating
Expenses 423,667 116,958 1,141,016 394,592
------------ ------------ ------------ ------------
Income/(Loss) from
Operations 447,657 (81,575) 783,467 (358,923)
Other Income (Expense)
Interest Expense (1,481) (672) (4,700) (2,717)
Interest Income 1,708 2,709 4,488 4,103
------------ ------------ ------------ ------------
Total Other Expense,
net 227 2,037 (212) 1,386
------------ ------------ ------------ ------------
Income/(Loss) Before
Provision For Income
Taxes 447,884 (79,538) 783,255 (357,537)
Provision for Income
Taxes (37,601) - (37,601) -
------------ ------------ ------------ ------------
Net Income/(Loss) $ 410,283 $ (79,538)$ 745,654 $ (357,537)
============ ============ ============ ============
Net Income/(Loss) Per
Share - Basic 0.04 (0.01) 0.07 (0.04)
============ ============ ============ ============
Net Income/(Loss) Per
Share - Diluted 0.04 (0.01) 0.07 (0.04)
============ ============ ============ ============
Weighted average number
of shares outstanding
during the period -
Basic 10,359,560 10,047,355 10,343,824 9,475,672
============ ============ ============ ============
Weighted average number
of shares outstanding
during the period -
Diluted 11,437,686 10,047,355 11,421,950 9,475,672
============ ============ ============ ============
In filing see notes to condensed consolidated unaudited financial
statements.
SNAP Interactive, Inc. and Subsidiary
(f/k/a eTwine Holdings, Inc. and Subsidiary)
Condensed Consolidated Balance Sheets
ASSETS
9/30/2008
(Unaudited) 12/31/2007
----------- -----------
Current Assets
Cash $ 1,045,487 $ 318,143
Accounts receivable, net 421,686 248,902
Prepaid Expense 2,683 24,904
----------- -----------
Total Current Assets 1,469,856 591,949
----------- -----------
Property and Equipment, net 27,044 16,640
Other Assets
Security Deposit 18,750 1,210
----------- -----------
Total Other Assets 18,750 1,210
----------- -----------
Total Assets $ 1,515,650 $ 609,799
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
=========== ===========
Current Liabilities
Accounts payable and accrued liabilities $ 69,932 $ 26,131
Settlement Payable 21,563 45,589
Convertible Notes Payable - Related Party 35,348 35,348
Accrued interest 18,058 16,039
----------- -----------
Total Current Liabilities 144,901 123,107
----------- -----------
Long Term Liabilities
Settlement Payable 28,833 45,126
Convertible Notes Payable - Related Party 10,138 10,138
----------- -----------
Total Liabilities 183,872 178,371
----------- -----------
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, 10,412,395 and 10,333,895
shares issued and outstanding, respectively 10,413 10,334
Additional paid-in capital 2,240,142 2,048,525
Accumulated deficit (873,887) (1,619,541)
Less: deferred compensation (44,890) (7,890)
----------- -----------
Total Stockholders' Equity 1,331,778 431,428
----------- -----------
Total Liabilities and Stockholders' Equity $ 1,515,650 $ 609,799
=========== ===========
In filing see notes to condensed consolidated unaudited financial
statements.
Contact:
CONTACT:
Cirrus Financial Communications, LLC
Justin K. Davis
(877) 977-STVI (7884)
Email Contact
http://www.cirrusfc.com
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Source: SNAP Interactive, Inc.
