– The Company Continues to Grow its Subscription-Based Clients and Recurring Revenue –
Toronto, Ont. – April 15, 2015 – UpSnap Inc. (CSE: UP) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its fourth quarter (Q4) financial results for the three and twelve-month periods ended December 31, 2014.
“As a result of the new leadership direction at UpSnap, we have achieved three consecutive quarters of growth in our revenue and number of subscribers,” said Bruce Howard. “We continue to aggressively sell our mobile advertising services directly and through partnerships that we have established with over 20 resellers across the country. This strategy has proven to be highly effective, as we have already seen our subscriber base grow to over one thousand in less than one year. This growth has led to an increase in our overall revenues, but more importantly the recurring portion, which now makes up almost 20% of our revenue. We strongly believe that we have tapped into an underserved market by catering to small and medium size businesses that often do not get exposure to online and mobile advertising. As a result, our focus for 2015 is to continue expanding into this market, while continuing to leverage our growing reseller networks.”
Fourth Quarter Financial Highlights
- Total operating revenue grew by 49.0% to $1.26 million for Q4 2014, compared to $0.85 million for Q4 2013.
- Mobile advertising revenue grew by 82.2% to $1.00 million for Q4 2014, compared to $0.55 million in Q4 2013.
- As a percentage of total revenue, recurring revenue was 18% in Q4 2014 compared to 11.2% in Q3 2014.
- Total number of subscribers increased by 45% to 1,094 in Q4 2014 compared to 754 in Q3 2014.
- Total operating cost of $1.91 million for Q4 2014, compared to $1.92 million in Q4 2013.
- Loss from operations of $0.65 million for Q4 2014, compared to $1.07 million in Q4 2013.
- Net loss and comprehensive loss of $1.52 million for Q4 2014, compared to $1.13 million in Q4 2013.
- Basic and diluted loss per share of $0.01 in Q4 2014, compared to loss per share of $0.02 in Q4 2013.
Annual Financial Highlights
- Total operating revenue grew by 12.5% to $3.96 million for FY 2014, compared to $3.52 million in FY 2013.
- Mobile advertising revenue grew by 32.9% to $2.99 million for FY 2014, compared to $2.25 million in FY 2013.
- Total operating costs of $7.38 million for FY 2014, compared to $6.89 million in FY 2013.
- Net loss and comprehensive of $4.12 million for FY 2014, compared to $12.24 million in FY 2013.
- Basic and diluted loss per share of $0.03 in FY 2014, compared to loss per share of $0.48 in FY 2013.
- Total cash position of $0.67 million as at December 31, 2014, compared to $0.13 million as at December 31, 2013.
FY 2014 Operational Highlights
- UpSnap announced partnerships with Guarantee Digital and Mountaineer Yellow Pages to become resellers of UpSnap’s proprietary mobile advertising products to their clients across 33 markets on a subscription basis.
- The Company entered into an agreement with a major U.S. retailer to provide its proprietary mobile advertising product for a total contract value of $120,000.
- UpSnap announced a partnership with Valpak Canada to serve as a reseller of its mobile CPM product.
- The Company raised $4.8 million in the form of an equity private placement, which included a strategic investment by User Friendly Media (UFM), allowing further investment in technology and in expanding the sales team to actively facilitate broadening the Company’s subscription and performance-based list of clients.
- Bruce Howard, CEO of User Friendly Media (UFM), David Lambert, CFO of UFM, and Walter Andri joined the Company’s Board, and in March 2014, Bruce Howard was appointed by the Company’s Board as the new CEO of UpSnap.
This news release should be read in conjunction with UpSnap’s audited financial statements and the accompanying notes, as at and for the year ended December 31, 2014, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the UpSnap website at www.upsnap.com.
UpSnap provides highly-targeted, data-driven mobile advertising to attract the ideal audience for brands big and small. Combining first-party proprietary data and real-time analytics, UpSnap goes beyond location to deliver site agnostic and results-driven campaigns that produce qualified, engaged customers. UpSnap tailors each campaign to align with unique business goals, delivering the right customers for more meaningful exposure and better business results.
For further information, please contact:
Alex Pekurar, CPA, CA
Chief Financial Officer
email@example.com Babak Pedram
Virtus Advisory Group Inc.
Caution Regarding Forward Looking Information
Certain information set out in this News Release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “hope”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “scheduled”, “believe” and similar expressions. The forward- looking information set out in this News Release relates to future events or our future performance and includes: (i) information concerning the positive effect of new leadership on revenue growth; (ii) the effect of broadening the Company’s revenue streams on revenue growth and predictability; (iii) the Company’s ability to succeed in the mobile advertising market by focusing on the underserved small and medium sized business market.
Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Forward-looking statements involve substantial known and unknown risks, uncertainties and other factors which cause actual results to vary from those express or implied by such forward looking statements. These statements should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved.
The forward-looking statements contained in this press release are made as of the date hereof and based on what management of the company believes are reasonable assumptions. The Company disclaims any intention or obligation to update or publicly revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Furthermore, the Company does not assume responsibility for the accuracy and completeness of the forward looking statements set out in this news release. The Company’s forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements.
The CSE has not reviewed, approved or disapproved the content of this press release.