Results of Operations for the years ended September 30, 2014 and 2013
The following table sets forth the summary income statement for the years ended September 30, 2014 and 2013:
For the Fiscal Year Ended
September 30,
2014 September 30,
2013
Revenues $ 4,927,374 $ 3,430,177
Gross Margin $ 2,745,805 $ 2,031,661
Operating Expenses $ (5,029,301 ) $ (2,989,210 )
Other Income (Expense), net $ 951,769 $ (1,003,290 )
Net Loss $ (1,331,727 ) $ (1,960,839 )
Revenues: Revenue increased by approximately 44% to $4,927,374 during the year ended September 30, 2014, from $3,430,177 during the corresponding year ended September 30, 2013. For the year ended September 30, 2014, the Company sold a total of 88,708 units, compared to 183,834 total units in the comparable period ended September 30, 2013. The decline in total units sold is due solely to the reduction in the number of Reputation Management Services units, of which none were sold during the year ended September 30, 2014, compared to 114,609 units during the year ended September 30, 2103. The Company effectively wound down its relationship with a reseller whose main purchases with the company consisted of Reputation Management services. The Company sold 88,708 Business Listing Services during the year ended September 30, 2014 compared to 69,225 during the year ended September 30, 2013. The ARPU during the year ended September 30, 2014 was $55.55 compared to $18.66 for comparable period ended September 30, 2013. The increased ARPU is attributable to our customers purchasing a larger percentage of higher priced products, including our Premium Services and Premium Services in our United Kingdom market.
Approximately 98% of the Company’s sales were made through its network of resellers and channel partners during the year ended September 30, 2014 compared to 93% for the year ended September 30, 2013. The Company had 3,337 resellers and channel partners at September 30, 2014 compared to 2,991 at September 30, 2013, an increase of 346.
Gross Margin: The gross profit margin was 56% during the year ended September 30, 2014 as compared to 59% during the year ended September 30, 2013. The decrease in the gross profit margin is primarily attributable to a decline in the margin in Business Listing Services, which represented 100% of the revenue of the company for the year ended September 30, 2014. The Business Listing Services margin was 56% for the period ending September 30, 2014 compared to 69% for the comparable period ended September 30, 2013. In the year ended September 30, 2013 Reputation Management Services had represented 18% of revenue or $646,000 and carried an 18% gross profit margin.
