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SNAP Interactive Sees Continued Increases in Revenue and Traffic on 'Are You Interested?'(June 15, 2010)
NEW YORK, NY -- (Marketwire) -- 06/15/10 -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading provider of online dating applications for social networking websites, today announced continued growth in average daily gross cash receipts based upon preliminary results through June 13, 2010. SNAP transitioned its 'Are You Interested?' dating application to a premium subscription model during the fourth quarter of 2009.
Operational Highlights (Unaudited):
- June 2010 average daily gross cash receipts up more than 20% to date over year-to-date average
- June 2010 average daily gross cash receipts up more than 8% to date vs. May 2010 average daily gross cash receipts
- May 2010 gross cash receipts of more than $481,000, an increase of nearly 10% over April 2010 gross cash receipts
- Month-to-month increases in average daily gross cash receipts from premium and subscription sales in each month since launch of our subscription model on 'Are You Interested?'
- More than 400,000 new installs in May 2010 on the 'Are You Interested?' Facebook
Application -- an increase of more than 145% vs. April 2010
"We have seen a monthly increase in average daily gross cash receipts from premium and subscription sales in each month since we introduced the subscription service," stated SNAP president and CEO Clifford Lerner. "The trend has continued through the first half of June thus far and we believe that the additional growth is due in part to the benefits of recurring subscriptions which are a core element to the subscription model. As three and six month recurring subscriptions are now kicking in and recurring revenue continues to increase, the results are very exciting and we will continue to fine tune our business model in order to best optimize its growth."
"We're also very pleased with the increase in new users and traffic growth that we've experienced over the past couple of months. With our subscription model fully implemented we have turned our attention back toward user acquisition and viral growth and I believe that the results speak for themselves."
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. As of March 31, 2010 this deferred revenue amount was $604,531.
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 Facebook® Platform which have more than 20 million installations on Facebook. SNAP's portfolio is highlighted by the AreYouInterested? 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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