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SNAP Interactive Reports Largest Quarterly Revenue Ever in Q2 2010 -- Up 34% Over Q1 2010(August 04, 2010)
NEW YORK, NY -- (Marketwire) -- 08/04/10 -- 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 continued revenue growth highlighted by revenue of more than $1,243,000 for the quarter ending June 30, 2010. This represents an increase of 34% over the previous quarter and a 58% year over year increase from Q2 2009 revenue of $784,242. This also marks the biggest quarterly revenue in the Company's history.
Additionally, SNAP is pleased to announce that Q3 has gotten off to a strong start with July 2010 gross cash receipts totaling more than $564,000. This represents an increase of nearly 20% over the average monthly gross cash receipts in Q2 2010.
Financial Highlights (Unaudited):
- Q2 2010 GAAP revenue of more than $1,243,000 -- an increase of more than 34% over Q1 2010 and SNAP's highest quarterly revenue since inception.
- July 2010 gross cash receipts of more than $564,000 -- an increase of nearly 15% over June 2010 gross cash receipts.
- $ 6.7 million annual run rate based on July 2010 gross cash receipts.
"We have continued to experience month-to-month increases in average daily gross cash receipts from premium and subscription sales in each month since the launch of our subscription model on 'Are You Interested?,'" stated SNAP president and CEO Clifford Lerner. "This is highlighted by a particularly strong month in July 2010 in which gross cash receipts for the month grew by nearly 15% over the previous month and comes on top of recording our biggest quarterly revenue ever in Q2 2010. We have recently introduced several new and exciting features, which our users are clearly embracing, and we believe this is a key driver to our revenue growth. The $6.7 million annual run rate for gross cash receipts is based on our July 2010 gross cash receipts, which represents approximately double our 2009 gross cash receipts and demonstrates that we have significantly elevated our revenue trajectory since transitioning to a subscription model."
Due to GAAP accounting, revenues from multi month subscriptions are recognized over the length of the subscription term rather than when purchased. Because the majority 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.
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 dating applications built on the Facebook® Platform which have more than 25 million installations on Facebook. SNAP's portfolio is highlighted by the 'Are You Interested?' brand which consists of AreYouInterested.com, the AreYouInterested? iPhone Dating Application, and the AreYouInterested? 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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