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SNAP Interactive Q1 2010 Gross Receipts Increase More Than 69% Year Over Year(April 08, 2010)
NEW YORK, NY -- (Marketwire) -- 04/08/10 -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading provider of online dating applications for social networking websites, today announced that it has experienced an increase of more than 69% in Q1 2010 gross receipts over Q1 2009 gross receipts based on preliminary results as it begins to see the financial benefits of the subscription model on its AreYouInterested.com application. SNAP transitioned its AreYouInterested dating application to a premium subscription model during the fourth quarter of 2009.
Operational highlights (unaudited):
- Q1 2010 gross receipts of more than $1,300,000, an increase of more than 69% compared to Q1 2009 gross receipts of $768,972.
- March 2010 gross receipts of more than $440,000, an increase of more than 23% over February 2010 gross receipts.
- Gross receipts from subscriptions and premium sales increased to approximately $1,154,000 in Q1 2010 from approximately $449,700 in Q4 2009.
- Average daily gross receipts from subscription and premium sales have increased each month since launch of our subscription model on AreYouInterested.
- Recurring revenue beginning to ramp up -- should produce further revenue growth as year progresses.
Due to GAAP accounting, revenues from multi month subscriptions are recognized over the length of the subscription rather than when purchased. Because the majority of our subscription sales occurred from subscriptions with a term longer than one month, we apportion that revenue over the duration of the subscription term even though it is collected upfront. As a result some of that subscription revenue may not be reflected in the quarter in which the subscription was purchased. The difference between the gross receipts collected and the recognized revenue from those sales during that reporting period per our financials will appear as deferred revenue. As of December 31, 2009 this deferred revenue amount was $281,049.
"We have seen a month-to-month increase in average daily gross receipts from premium and subscription sales in each month since we implemented the model," stated SNAP President and CEO Clifford Lerner. "One reason for this is that we are starting to see the benefits of recurring subscriptions which provide incremental revenue and are a core element to the subscription model as it ramps up. We expect further revenue growth as recurring revenue from our 3 and 6 month subscriptions kick in as we move toward the middle of 2010. We are very encouraged by the early results we have seen and we're excited to continue to fine-tune our business model."
About SNAP Interactive, Inc.
Incorporated in Delaware and headquartered in New York City, SNAP Interactive, Inc. is a leading provider of online dating applications for social networking websites and mobile platforms. SNAP has developed two dating applications built on Facebook Platform which have more than 19 million installations on Facebook. SNAP has also launched dating applications on MySpace Developer Platform, Bebo, and Hi5 Developer Platform. SNAP's portfolio also includes the AreYouInterested.com online dating site that utilizes Facebook Connect to share content with their Facebook friends and an iPhone dating application for mobile dating called 'Are You Interested?' For more information visit www.snap-interactive.com.
Facebook® is a registered trademark of Facebook Inc.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include our ability to: attract members; convert members into paying subscribers and retain our paying subscribers; our ability to successfully implement our current long-term growth strategy; as well as product demand, market competition, fluctuations in advertising payouts, delays in website & application development, technical issues beyond our control, reliance on the various platforms that we build applications on, and risks inherent in our operations. For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
SNAP Interactive, Inc.
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