Toronto, Ont. – May 22, 2014 – UpSnap Inc. (CSE: VVX) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its first quarter (Q1) financial results for the three months period ended March 31, 2014.
“We made a number of strategic investments during the past few months, which included expanding our sales team and broadening our revenue streams, and we are delighted to see another quarter of revenue growth as the result of these important initiatives,” said Bruce Howard, CEO of UpSnap. “We are more confident than ever in the future of our company. Our superior technology, accompanied by our broad revenue model and strong balance sheet, positions us favourably to further accelerate our growth and create significant shareholder value in upcoming quarters.”
First Quarter Financial Highlights
• Total operating revenue grew by 36% to $1.04 million for Q1 2014, compared to $0.77 million for Q1 2013.
• Mobile advertising revenue grew by 72% to $0.71 million for Q1 2014, compared to $0.41 million in Q1 2013.
• Loss from operations of $0.92 million for Q1 2014, compared to $0.98 million in Q1 2013.
• Net loss and comprehensive loss of $0.68 million for Q1 2014, compared to $1.71 million in Q1 2013.
• Basic and diluted loss per share of $0.01 in Q1 2014, compared to loss per share of $0.40 in Q1 2013.
• Total cash position of $2.50 million as at March 31, 2014, compared to $0.14 million as at December 31, 2013.
• During the quarter, the Company raised $4.9 million by form of private placement, which included a strategic investment by User Friendly Media (UFM).
• During the quarter, the Company expanded its mobile advertising sales team to actively facilitate broadening of the Company’s subscription and performance-based list of clients.
• During the quarter, Bruce Howard, CEO of UFM, David Lambert, CFO of UFM, and Walter Andri joined the Company’s Board.
• During the quarter, 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 interim financial statements and the accompanying notes, as at and for the quarter ended March 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 is a leader in mobile advertising processing billions of transactions for a marquee list of global clients, agencies, advertisers and publishers. Our full service mobile ad network and campaign management platform drives precision-targeted local and national ad campaigns for brand promotion, brand engagement and lead-generation. Additionally, UpSnap provides platform services for ad serving, analytics, call tracking, and hyper local campaign targeting to a growing list of mobile ecosystem partners. Visit www.UpSnap.com for more information.
For further information, please contact:
Alex Pekurar, CPA, CA
Chief Financial Officer
Virtus Advisory Group Inc.
Forward-Looking Cautionary Statement
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 the effect that investing in software development, expanding the Company’s sales team and broadening its revenue streams will have on future performance.
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.