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SNAP Interactive Releases Q3 2010 Operating ResultsQuarterly Revenue of More Than $1.7 Million -- Largest in SNAP's History (November 17, 2010)
NEW YORK, NY -- (Marketwire) -- 11/17/10 -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading social dating application provider with more than 25 million installs across its social dating applications, today announced operating results for the quarter ended September 30, 2010.
- Revenue increased 113% to $1,706,691 for the three months ended September 30, 2010 from $801,120 for the three months ended September 30, 2009, an increase of $905,571.
- Q3 2010 Revenue of $1,706,691 increased 37% over Q2 2010 revenue of $1,243,082 -- representing sequential revenue growth for the sixth consecutive quarter.
(A description of results follows below.)
"We are extremely pleased with the continued revenue growth from the subscription model on the AreYouInterested.com online dating brand as well the return to GAAP profitability this quarter," stated SNAP President and CEO Clifford Lerner. "Our Q3 revenues of more than $1.7 Million represent our largest revenue ever in a quarter. We continue to experience month-to-month increases in gross cash receipts and we're happy to report that the trend has continued into the first half of Q4 2010. Our margins continued to improve in the Q3 2010 as recurring revenue grew and our user acquisition models became more optimized. Due to our revenue recognition policy, which requires us to recognize revenue over the term of a user's subscription period, our gross cash receipts once again exceeded our reported revenue during the quarter, which caused an increase in deferred revenue as we continue to ramp up our subscriptions. In Q3 2010 our gross cash receipts totaled more than $2,300,000."
Due to GAAP accounting, revenues from multi month subscriptions are recognized over the length of the subscription term rather than when purchased. Because a significant amount of our subscription sales occurred from subscriptions with a term of three or six months, we apportion that revenue over the duration of the subscription term even though it is collected in full at the time of purchase. As a result, a portion of the gross cash receipts from subscription purchases may not be recognized in the quarter in which the subscription was actually purchased. The difference between the gross cash receipts collected and the recognized revenue from those sales during that reporting period per our financials will appear as deferred revenue. As of September 30, 2010 this deferred revenue amount was $1,328,686.
Operational Results Description
Revenue increased from $2,354,334 for the nine months ended September 30, 2009 to $3,877,209 for the nine months ended September 30, 2010, an increase of $1,522,875. Revenues increased from $801,120 for the three months ended September 30, 2009 to $1,706,691 for the three months ended September 30, 2010, an increase of $905,571.
These revenues are primarily generated from subscription fees for subscriptions to AreYouInterested.com as well as access to premium features on our products. The increase in revenue for the nine months ended September 30, 2010 was primarily due to the implementation of subscriptions on our AreYouInterested.com brand which took place in late 2009. In 2009 our revenue was generated primarily from advertisements placed on our AreYouInterested.com Facebook application.
Net income increased to $87,289 for the three months ended September 30, 2010 from net income of $22,736 for the three months ended September 30, 2009, an increase of $64,553. Net income decreased to a net loss of $785,022 for the nine months ended September 30, 2010 from net income of $135,638 for the nine months ended September 30, 2009, a decrease of $920,660.
The decrease in net income for the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009 and shift to a net loss was primarily due to the revenue recognition impact of our shift to a subscription model in which revenue is recognized on a deferred basis when subscriptions occur over more than a single month. In addition we incurred increased advertising costs for user acquisition associated with the shift to a subscription model on the AreYouInterested.com brand.
To view the entire 10-Q filing please visit:
About SNAP Interactive, Inc.
SNAP Interactive, Inc. is a leading provider of online dating applications for social networking websites and mobile platforms. SNAP has developed two social dating applications built on Facebook® Platform which have more than 25 million installations on Facebook. SNAP's portfolio of applications for singles is highlighted by the AreYouInterested.com brand which consists of AreYouInterested.com, the AreYouInterested.com iPhone Dating Application, and the AreYouInterested.com Facebook Application. For more information visit www.snap-interactive.com.
Facebook® is a registered trademark of Facebook Inc. iPhone is a trademark of Apple 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, reliance on credit card processors and related necessary merchant account approvals, 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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