SNAP Interactive Reports Results for the Quarter Ended December 31, 2012 and Business Highlights for 2013

NEW YORKMarch 14, 2013 /PRNewswire/ -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading social dating developer, today announced financial results for the quarter ended December 31, 2012.

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  • Total revenues decreased 28% to $4.0 million for the fourth quarter of 2012 compared to $5.5 million for the comparable period in 2011;
  • Bookings decreased 44% to $3.1 million for the fourth quarter of 2012 compared to $5.6 million for the comparable period in 2011;
  • Deferred revenue decreased 20% to $2.5 million at December 31, 2012 compared to $3.1 million at December 31, 2011;
  • Net loss was $0.3 million, or $0.01 per basic and diluted common share for the fourth quarter of 2012, compared with a net loss of $1.5 million, or $0.04 per basic and diluted common share, for the comparable period in 2011; and
  • SNAP's balance sheet position continues to be strong, with $5.5 million of available sources of liquidity (includes cash and cash equivalents and restricted cash) at December 31, 2012.

"The fourth quarter marked the end of our transitional period, as we focused on improving our feature set and conversion process for users of the redesigned AYI brand.  As anticipated due to the re-launch, revenue and bookings were lower in the fourth quarter of 2012 as compared to the comparable period in 2011. Having completed the re-launch, we believe that the AYI brand is poised to grow once again. During January 2013, we began to increase our marketing spend to drive new users to AYI. We are excited about how the product is performing and we look forward to growing the AYI brand during 2013. We closed the year with $5.5 million in available liquidity and believe we are well positioned to achieve our 2013 objectives," said Jon D. Pedersen, Sr., SNAP's Chief Financial Officer.

Financial Highlights

   

Three Months Ended

         

Year Ended

       
   

December 31,

         

December 31,

       

GAAP Results 

 

2012

   

2011

   

Change

   

2012

   

2011

   

Change

 

(Unaudited)

Total revenues

 

$

3,956,945

   

$

5,500,829

     

(28)

%

 

$

19,246,736

   

$

19,155,543

     

0

%

Deferred revenue (at period end)

 

$

2,524,229

   

$

3,138,406

     

(20)

%

 

$

2,524,229

   

$

3,138,406

     

(20)

%

Net loss

 

$

(303,088)

   

$

(1,542,845)

     

(80)

%

 

$

(4,030,641)

   

$

(1,593,173)

     

153

%

Net cash used in operating activities

 

$

(1,147,773)

   

$

(523,881)

     

119

%

 

$

(3,401,191)

   

$

(1,455,542)

     

134

%

                                                 

Non-GAAP Results 

                                               

Bookings

 

$

3,114,800

   

$

5,592,450

     

(44)

%

 

$

18,295,893

   

$

19,981,859

     

(8)

%

Overall liquidity (at period end)

 

$

5,462,596

   

$

8,879,033

     

(38)

%

 

$

5,462,596

   

$

8,879,033

     

(38)

%

 

 

 

Business Highlights

SNAP has also had a number of positive developments during the quarter ending March 31, 2013, including the following:

  • SNAP acquired and transitioned to the 'AYI.com' domain in January 2013;
  • New subscription sales increased in both January and February 2013 from December 2012;
  • AYI launched new "social" features for AreYouInterested.com that are designed to integrate a user's interest and social graphs into the online dating experience; and
  • SNAP has begun to rebrand AreYouInterested.com as "AYI", a shorter and easier name for our users to remember.

 

Management Commentary

"2012 was a challenging year for SNAP," said SNAP's President and CEO Clifford Lerner. "We exited 2011 with a growing product in AreYouInterested.com, but one we felt could be improved and redesigned.  Early last year we announced that 2012 would be devoted to developing new architecture and redesigning AYI in order to reach our growth potential with a product focused on 'social' features that could leverage our significant scale of the interest and social graph.  While the overall process took longer than anticipated, we're pleased to report that the launch of the redesigned AYI is now complete and we have an exciting product roadmap that we are positioned to execute on."

"As a result of the launch of the redesigned AYI, key engagement and monthly revenue metrics have increased in 2013 and we are excited to report that the AYI brand is growing." Lerner continued, "New subscription sales increased in both January and February 2013 from December 2012. We have also benefitted from higher conversion rates, the rates at which users are converted to paying subscribers, since the launch and we have expanded our user acquisition campaigns. Additionally, key to our 2013 objectives is a focus on building a recognizable brand based on a unique and top quality product. AYI's success to date has been accomplished without establishing any meaningful brand identity and we firmly believe that building a unique and quality brand for AYI is key to driving potential upside in 2013. We believe that our recent launch of 'social features' to leverage our scale of the Facebook social and interest graph differentiates AYI in the dating space.  With millions of Facebook connected profiles and over 1 billion interest data points, we are now positioned to leverage this data and scale to create compelling experiences for our users. Furthermore, we're excited to announce we have acquired the AYI.com domain in conjunction with our branding initiatives. 'AYI' is a shorter and easier name for our users to remember and we have already transitioned our users to the new AYI.com domain."

 

 

About SNAP Interactive, Inc.

SNAP Interactive, Inc. develops, owns and operates a social dating application for social networking websites and mobile platforms.  SNAP's flagship brand, AYI is one of the largest social dating applications on the Internet with millions of monthly active users on the Facebook platform, and offers a completely integrated FacebookiPhoneAndroid and Webapplication. SNAP was recently ranked the 36th Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500™. For more information, please visit http://www.snap-interactive.com/, its blog at http://devblog.snap-interactive.com, on Facebook at facebook.com/SnapInteractiveInc and on Twitter at @SNAPInteractive.

The contents of our websites are not part of this press release, and you should not consider the contents of these websites in making an investment decision with respect to our common stock.

Facebook® is a registered trademark of Facebook Inc. iPhone® is a registered trademark of Apple Inc.  Are You Interested?® is a registered trademark of SNAP Interactive, Inc.