UpSnap Continues to Significantly Grow its Subscription-Based Clients
Toronto, Ont. – November 17, 2014 – UpSnap, Inc. (CSE: UP) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its third quarter (Q3) financial results for the three and nine month periods ended September 30, 2014.
“Our total revenue and mobile advertising revenue increased compared to our previous quarter and comparative quarter last year, and we believe that this is only the beginning of what we are expecting from the growth strategy that is being implemented into the Company,” said Bruce Howard CEO of UpSnap. “As indicated in our previous quarterly press release, we are dedicated in bringing significant level of confidence to our cash flow by increasing the number of subscribers to our local mobile product, hence growing the recurring portion of our revenue. We are delighted to announce that during the quarter we grew the number of our subscription clients and recurring portion of our revenue by 77% and 148% respectively, compared to our previous quarter. We also grew the number of our reseller partners to 15, and we expect to continue signing new partners in upcoming months.”
Third Quarter Financial Highlights
- Total operating revenue increased by 8.4% to $0.95 million for Q3 2014, compared to $0.87 million for Q3 2013.
- Mobile advertising revenue increased by 31% to $0.73 million for Q3 2014, compared to $0.56 million in Q3 2013, and increased by 34% compared to Q2 2014.
- As a percentage of total revenue, recurring revenue was 11.2% in Q3 2014 compared to 4.6% in Q2 2014.
- Loss from operations of $0.73 million for Q3 2014, compared to $0.61 million in Q3 2013.
- Net loss and comprehensive loss of $0.79 million for Q3 2014, compared to $8.1 million in Q3 2013.
- Basic and diluted loss per share of $0.00 in Q3 2014, compared to loss per share of $0.33 in Q3 2013.
- Total cash position of $1.18 million as at September 30, 2014, compared to $0.14 million as at December 31, 2013.
- During the quarter, the Company acquired 605 new local and national clients, of which 581 are on the new subscription model, compared to 341 new clients in Q2 2014, of which 329 were on the subscription model.
- During the quarter, UpSnap secured 4 additional resellers for its subscription services.
- To date, UpSnap has secured agreements with 15 resellers, leveraging their sales forces and customer relationships.
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 September 30, 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
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.
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For Immediate Release