Toronto, Ont. – August 30, 2018 – UpSnap Inc. (CSE: UP) (“UpSnap” or the “Company”), a leading provider of mobile and intent based advertising solutions, today announced its second quarter (Q2) financial results for the three and six-month period ended June 30, 2018.
“We continue to see robust growth and demand for our proprietary IDM solution and are quickly onboarding resellers, advertisers and brands onto the platform,” said Bruce Howard, CEO of UpSnap. “Most importantly, our clients are experiencing tremendous results not often seen in digital advertising. Our legacy business, including our mobile DSP, provides a steady revenue base and a solid foundation to continue building our IDM platform to scale.”
Second Quarter Financial Highlights
- Recognized revenue from Intentional Direct Mail (“IDM”) was $192,000 in Q2 2018 compared to $78,000 in Q1 2018. Recognized revenue from IDM for the six months ended June 30, 2018 was $270,000 compared to $nil for the same period in 2017.
- IDM mailers sent increased by 247% from Q1 2018 to Q2 2018. Revenue from IDM is recognized upon mailers being sent.
- The average IDM Reseller order increased from USD $1,182 in Q1 2018 to USD $1,600 in Q2 2018, an increase of 35%.
- Total operating revenue was $977,000 for Q2 2018 compared to $1.2 million for Q2 2017. Total operating revenue was $1.8 million for six months ended June 30, 2018 compared to $2.2 million for six months ended June 30, 2017.
- Total operating cost of $1.1 million for Q2 2018 compared to $1.1 million for Q2 2017. Total operating cost for six months ended June 30, 2018 was $2.1 million compared to $2.3 million for six months ended June 30, 2017. Total operating cost of $286,000 for Q2 2018 and $382,000 for the first six months of the year were contributed to the development and launch of the IDM technology.
- 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%.
- Loss from operations was $148,000 for Q2 2018 compared to gain of $70,000 for Q2 2017. Loss from operations was $275,000 for six months ended June 30, 2018 compared to loss of $62,000 for six months ended June 30, 2017.
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 June 30, 2018, 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.
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