Toronto, Ont. – November 17, 2017 – UpSnap Inc. (CSE: UP) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its third quarter financial results for the three-month period September 30, 2017.
“We continue to maintain our profitability as we have now contained operating expenses to levels we believe are sustainable moving forward,” said Bruce Howard, CEO of UpSnap. “To facilitate growth in revenue we have added three new resellers that are actively out selling to clients. As well, we have recently established some unique partnerships that we anticipate will contribute to our recurring revenue base going forward.”
Third Quarter Financial Highlights
- Income from operations totaled $53,000 for Q3 2017, compared to ($55,000) in Q3 2016, a financial benefit of 208%. Income from operations for the nine months ended September 30, 2017 totaled ($23,000) as compared to a loss of ($634,000) for the nine months ended September 30, 2017, a financial improvement of 96%.
- Total operating revenue was $1.1 million in Q3 2017 as compared to $1.4 million in Q3 2016. Total operating revenue for the nine months ended September 30, 2017 was $3.3 million as compared to $4.0 million in the nine months ended September 30, 2016.
- Mobile advertising revenue was $924,000 in Q3 2017 as compared to $1.2 million in Q3 2016. Mobile advertising revenue for the nine months ended September 30, 2017 was $2.9 million as compared to $3.5 million in the nine months ended September 30, 2016.
- Monthly average revenue per subscriber of US $72.16 for Q3 2017 as compared to US $67.08 in Q3 2016, an increase of 8%.
- Recurring revenue was 25% of total revenue in Q3 2017 as compared to 27% in Q3 2016. Recurring revenue for the nine months ended September 30, 2017 was 30% as compared to 32% for the nine months ended September 30, 2016.
- Total operating cost of $1.0 million in Q3 2017 as compared to $1.5 million in Q3 2016, a decrease of 30%. Total operating costs for the nine months ended September 30, 2017 were $3.3 million as compared to $4.6 million for the nine months ended September 30, 2016 representing a decrease of 29%.
This news release should be read in conjunction with UpSnap’s audited financial statements and the accompanying notes, as at and for the quarter ended September 30, 2017, 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
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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) the continued growth of recurring subscription revenue; (ii) the continued reduction in operating expenses; (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.