Snipp Interactive Inc. Reports Eighth Consecutive Quarter of
Revenue Growth and 70% Annual Revenue Growth for FY 2013; Reports
Positive Net Income for FY 2013
BETHESDA, MARYLAND--(Marketwired - May 1, 2014) - Snipp
Interactive Inc. ("Snipp"), an international provider of mobile
marketing solutions listed on the TSX Venture Exchange
(TSX-VENTURE:SPN), is pleased to announce its financial results for
the 2013 fiscal year, ended December 31, 2013. A copy of the
complete annual audited financial statements, management's
discussion and analysis are available on SEDAR (www.sedar.com).
The total annual sales revenues for 2013 grew 70% from the prior
year to $870,420 and the total sales revenues for the 4th quarter
of 2013 grew 55% from the prior year to $262,551.
Revenue for fiscal 2013 was $870,720 compared to $511,854 in
fiscal 2012. Revenue for the 4th quarter of 2013 was $262,551
compared to $169,839 in the 4th quarter of 2012. The increase in
revenue is attributable to a multitude of factors including the
creation of new sales channels, additional sales contracts from
existing customers, the acquisition of new customers and the launch
of innovative new products as part of Snipp's Mobilize Me
platform.
Net income for fiscal 2013 was $75,597 compared to a net loss of
$2,237,889 in fiscal 2012.
The net loss before other non-operating items was $830,879 for
fiscal 2013 compared to a net loss before other non-operating items
of $1,603,155 in fiscal 2012. The decrease in net loss (before
other non-operating items) was mainly due to increased sales
revenue as a result of the continued acquisition of new clients and
new mobile solutions within Snipp's portfolio (e.g. SnippAR,
SnippCheck and SnippWin), coupled with a focused paring down of
operational expenses. The company now has the infrastructure in
place to allow its revenues to scale without incurring any
significant additional infrastructure costs or investment.
For the year ended December 31, 2013, the Company reduced its
operating cash outflows by 52% compared to the year ended December
31, 2012, while at the same time increasing revenue by 70% as noted
above. The company is focused on continuing to increase revenue
while maintaining a similar operating cost structure.
At the end of fiscal 2013, current assets were $589,430 and
current liabilities $323,664.
2013 Highlights
include:
- 4 quarters of record revenue growth and cost reductions
- Completion of phase#1 of platform development that is enabling
accelerated and scalable revenue growth
- Launch of multiple components to the Mobilize Me platform that
allows for turnkey solutions for brand and agency marketers
- Penetration into new overseas markets
- Adoption of the Snipp platform by leading multi-national
companies and marketing and advertising agencies
Atul Sabharwal, CEO and Founder of Snipp commented, "We are very
pleased to announce our eighth consecutive quarter and our second
consecutive year over year of revenue growth. We have built a solid
foundation across all aspects of the organization since we first
raised capital in 2012 and we are extremely well poised to build on
this foundation for continued and sustained success. The team is
focused on making 2014 the year we generate positive EPS for our
shareholders and we hope to deliver that in the first half of the
year itself. Over the next few months we will be launching multiple
national campaigns for category defining brands in association with
a major sports league, national grocery chains and other big box
retailers across the US. For confidentiality reasons and the highly
competitive nature of the work we do, we are not at liberty to talk
about our clients and their campaigns, but we encourage everyone to
check our website frequently to learn about how we continue to
succeed in penetrating and building on our relationships with such
Fortune 500 brands and leading global marketing agencies."
Outlook:
The information in this section is forward-looking and
should be read in conjunction with the section below entitled
"CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS".
Management is focused on achieving cash-based profitability in
2014 after sustaining 8 straight quarters of growth since the
public offering. In the first four months of 2014, the Company has
booked the equivalent of 91% of its 2013 revenues. Given the
continued development of the platform and its components,
Management believes it is in a strong position to further penetrate
the promotions marketing industry and achieve its goal. Management
believes that the promotions marketing industry is a large industry
(estimated to be worth $80 billion annually in North America) and
will represent a key focus area for the Company:
- US companies spent $76.9 billion on incentives and promotions
in 2012-2013. $22.7 billion is spent on incentive and loyalty gift
cards alone (Incentive Marketing Association:
http://www.incentivemarketing.org/)
- US businesses spend $80 billion on promotion marketing
annually, with almost $30 billion spent on consumer incentives
(Promo Magazine:
http://www.incentivecentral.org/consumers/consumers.1844.html,
Facts and Figures section)
- The US net revenues of the TOP 100 promotional agencies was
over $6 billion in 2012 (Chief Marketer: -
http://www.chiefmarketer.com/agencies/chief-marketers-promo-100-ranking-of-top-u-s-promotion-agencies-19062012)
- Mobile couponing itself is expected to be a $46 billion
industry by 2016. Last year over 305 billion coupons were
distributed in the US - and only 6% of the coupons redeemed were
digital or mobile. (Juniper, NCH:
http://bgr.com/2011/11/02/mobile-coupon-industry-will-be-worth-46-billion-by-2016-analysts-say/,
https://www2.nchmarketing.com/ResourceCenter/assets/0/22/459/535/075ecfb07df44902bb773158e59b9b8a.pdf)
- Marketers spent $6.7 billion across all forms of mobile
marketing in 2012 - and are projected to spend $19.8 billion by
2015 (Mobile Marketing Association:
http://www.scribd.com/doc/140270280/MMA-Mobile-Marketing-Economic-Impact-Study)
Management believes that the Company is well poised for rapid
growth for a variety of reasons:
- Continued product innovation to the platform
- Multiplier effect of its current organic business model
- Effect of recruiting a sales force and attendance in further
industry events
- Global deployments with and without regional partners
- Increasing requests for long term licensing and services
contract revenue
1. Continued Product Innovation to the Platform
The Company has developed components within its Mobilize Me
platform that span the entire purchase life-cycle. In particular,
the company is seeing significant traction with SnippCheck, its
mobile receipt processing solution that is a relatively unique
product offering in its customizability and flexibility in meeting
customer needs. Significant promotions activity is tied to
purchase, and SnippCheck enables brands to validate consumer
purchases for various promotions. SnippCheck also serves as an
effective engine around which to continue to add promotions-related
features and functionality requested by clients. The Company plans
to continually build on these components that allow for a
closed-loop, single-platform solution for marketers across the path
to purchase. The Company has solutions for each component of this
path and will continue to launch pieces to further enhance the
platforms capabilities:
A. Build Awareness:
- SnippSites SiteBuilder
- Apps
- Mobile video
- Mobile microsites
- Print to mobile activations (QR, SMS, Augmented Reality)
- Mobile Alerts
- Polls & Surveys
- Text/scan for info
B. Increase Engagement:
- SnippWin
- Contests & sweepstakes
- Sampling programs
- Mobile Alerts
- Geolocation targeting
- Mobile coupons
C. Drive Purchase
- SnippCheck
- Mobile receipt processing
- Purchase promotions
- Mobile Rebate
- Mobile coupons
D. Enhance Loyalty
- SnippWin & SnippRewards
- Punchcard loyalty programs
- Rewards programs
- Retargeting
- Mobile Alerts
Management believes significant opportunities exist in acquiring
point solutions that further add or enhance platform capabilities.
The Company is constantly evaluating companies that will be
complementary to its existing platform and/or allow it to acquire
new customer relationships. The promotion market space is highly
fragmented and management believes under the right circumstances an
opportunity exists to consolidate companies in different parts of
the promotion marketing eco-system.
2. Multiplier Effect of the Company's Current Organic Business
Model
The company sits at the intersection of three traditional
elements in the marketing world that will help it accelerate its
business.
- Promotion Windows: Large brands across industry categories
build their marketing plans around promotion windows. There are
over traditional 80 promotional windows in the year (e.g. New Years
Day, Valentines Day, Back to School, Thanksgiving, Christmas).
These do not include promotion tactics marketers have to take as a
response to competitive action or declines in sales. In a given
year a brand runs multiple promotions to take advantage of the
various promotion windows that exist, giving the Company multiple
opportunities to sell its promotions solutions.
- Multi-Brand Nature of Its Clients: The Company continues to
receive an increasing amount of interest from Fortune 500 clients
across industries as well as leading global marketing and
advertising agencies many of whom belong to the "Big Four" agency
holding groups. Snipp is currently executing a number of new and
repeat campaigns with such clients who invariably work with Snipp
across multiple brands as the relationship expands. Each of these
clients has a large portfolio of brands with their own P&L. For
confidentiality reasons specific client names, plans and campaigns
cannot be revealed due to the competitive nature of the mechanism
in which Snipp's platform is deployed by its clients to achieve
their business objectives. Snipp does however periodically update
its website with recent campaigns after they have been launched and
where the client has given the company permission to mention its
name and/or if the campaign is covered by industry journals that
track the space. You can read more about the types of clients and
the work done by the company at http://www.snipp.com/clients. Snipp
also works with leading global marketing and advertising agencies
that serve multiple large brand clients. A majority of the agencies
that Snipp currently works with belong to the "Big Four" agency
holding companies. Breaking into these multi-brand companies and
agencies leads to additional opportunities with multiple brands
within the parent company or in the agency portfolio.
- Channel Specific Promotions: Brands and agencies plan
promotions specifically for different retail channels across their
promotion windows. There are numerous retail channels (e.g.,
Walmart, Target, CVS, Walgreens) and each channel typically has a
brand-funded "channel budget". Many large brands run the same
promotion across multiple channels at the same time or at different
points to maintain the illusion of exclusivity. The Company's
promotion solutions are unique in their ability to target any
specific combination of channels, thereby making them very
attractive to brands looking to run channel-specific
promotions.
The combination of Promotion Windows, Multi-brand
Clients/Agencies, and Channel Specific Promotions create
significant opportunities for the Company's continued revenue
growth.
3. Effect of Recruiting a Sales Force and Attendance in Further
Industry Events
To date, a majority of the Company's revenue has been as a
result of clients calling the company based on the reputation of
the work done and the relevance of the solutions it has launched
over the past two years. The Company's management is frequently
quoted in industry journals and called upon to provide opinions on
the effectiveness of various tactics. The Company has undertaken
very little outbound marketing and until late in 2013 had only
participated in one industry conference. Management believes that
the opportunity to generate business by building a direct sales
force is significant, particularly now that it has a core set of
campaigns under its belt. This will be further enhanced over the
next few months as the company launches a season-long significant
promotion for a leading Consumer Product company in partnership
with a major sports league.
4. Global deployments (with and without regional partners)
In 2013, Snipp attracted a partner in Brazil. Previously the
company had attracted partners in Mexico and had its own presence
in the Middle East. Management believes that this trend will
continue. While the path to monetization is longer with overseas
partners, Management believes that a significant opportunity exists
in these areas and other parts of the world. Operations in the
Middle East continue to grow rapidly and we believe opportunities
are now arising in Brazil and Mexico that will add to 2014
revenues.
5. Increasing requests for long term licensing and services
contract revenue
Management is currently engaged in conversations with multiple
agencies and large promotions companies who are interested in
licensing components of the Snipp platform in longer-term contracts
for their existing and new clients. Significant opportunities exist
to consummate such licensing & service deals with these
companies over the course of 2014.
About Snipp Interactive Inc.
Snipp Interactive Inc. (www.snipp.com) builds mobile solutions
for brands to engage and interact with their customers. Snipp
provides print publishers, advertising agencies and
corporate/consumer brands, including Fortune 500 companies, with
three main solution sets:
- Response: Mobile activations that make offline campaigns more
interactive.
- Infrastructure: Tools to create scalable mobile destinations
and experiences.
- Validation: Mobile workflows to validate purchases and other
customer actions.
Snipp generates revenue by designing, constructing, implementing
and managing these mobile solutions for its customers. Snipp is
headquartered in Bethesda, MD with international operations in
Canada, Mexico and India.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, which may cause actual results to
differ materially from the statements made. When used in this
document, the words "may", "would", "could", "will", "intend",
"plan", "anticipate", "believe", "estimate", "expect" and similar
expressions are intended to identify forward-looking statements.
Such statements reflect our current views with respect to future
events and are subject to such risks and uncertainties. Many
factors could cause our actual results to differ materially from
the statements made, including those factors discussed in filings
made by us with the Canadian securities regulatory authorities.
Should one or more of these risks and uncertainties, such as
changes in demand for and prices for the products of the company or
the materials required to produce those products, labour relations
problems, currency and interest rate fluctuations, increased
competition and general economic and market factors, occur or
should assumptions underlying the forward looking statements prove
incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated, or expected. We do not
intend and do not assume any obligation to update these
forward-looking statements, except as required by law. The reader
is cautioned not to put undue reliance on such forward-looking
statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Copyright Snipp Interactive Inc. All rights reserved. All other
trademarks and trade names are the property of their respective
owners.
Press Enquiries: Snipp Interactive Inc.Atul
SabharwalCEO415-595-7151atul@snipp.comInvestor Relations: Snipp
Interactive Inc.Jaisun
GarchaCFO1-888-99-SNIPPinvestors@snipp.comjaisun@snipp.com
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