SOURCE: rVue Holdings, Inc.

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February 12, 2015 16:05 ET

rVue Reports 231.5% Increase in Core Revenue for Fourth Quarter and 124.4% for Full-Year 2014

Core Revenue Reaches New Record High With Fifth Straight Quarter of Growth

CHICAGO, IL--(Marketwired - February 12, 2015) - rVue Holdings, Inc., (OTCQB: RVUE), a premier advertising technology platform for digital place-based media, announced its financial results for the fourth quarter and full year periods ended December 31, 2014.

Fourth Quarter Highlights

  • Fourth quarter core revenue increased 231.5% to its highest level to date -- $499,900 compared to $150,800 in the year-ago quarter due to larger campaigns from both existing and new customers. Core revenue increased 100.8% sequentially compared to the $248,900 in the third quarter of 2014.
  • Total revenue increased 184.6% to its highest level to date -- $531,400 from $186,700 in the prior-year fourth quarter. Sequentially, total revenue increased 89.5% compared to the $280,400 in the third quarter of 2014.
  • SG&A expenses increased 21.7% to $405,700 from $333,400 in the year-ago quarter. This increase was a result of non-recurring charges related to investor relations, patent exploration, legal and marketing. The monthly burn remained below $90,000. Total expenses increased 79.5% year over year to $816,500 from $454,800 due to higher network costs, which grew in parallel to revenue. Sequentially, SG&A expenses increased 15.5% and total expenses increased 43.1% compared to the $351,200 and $570,500, respectively for the third quarter of 2014.
  • Net loss for the fourth quarter was $(35,600), or less than one cent per share, an improvement of 86.7% compared to a net loss of $(268,100), or less than one cent per share, in the fourth quarter last year. The fourth quarter included a $249,500 gain from an insurance settlement.

Full-Year Highlights

  • Core revenue was $1.14 million for the full year 2014, up 124.4% from $508,500 last year.
  • Total revenue was $1.27 million for the 12 months ended December 31, 2014, up 88.5% from $674,400 in 2013.
  • SG&A expenses decreased 39.3% to $1.47 million from $2.42 million, while total expenses were $2.44 million year-to-date, down 12.9%, compared to $2.8 million a year ago.
  • Net loss for the full year 2014 was $(921,600), or less than one cent per share, an improvement of 56.7% compared to a net loss of $(2.1) million, or less than one cent per share in 2013.

Mark Pacchini, President and CEO of rVue Holdings, Inc., commented, "Today's results demonstrate the progress we're making and the energy behind our efforts to expand our pipeline by placing proposals in front of the right decision-makers and then delivering on our commitments. Throughout the year, quarter after quarter, we delivered improved levels of core revenue, as we continue to expand and diversify our customer footprint."

Mr. Pacchini continued, "The demand for Digital Place-Based Media (DPB Media) continues to grow and we are looking to capitalize on this trend to elevate our business and expand our presence within the category. Google recently stated that 56% of the online or internet ads served are never seen, due to viewability issues and the influence of bots, and Kraft added that it rejects 75% to 85% of online ad impressions due to quality concerns. In fact, the Association of National Advertisers recently estimated that advertisers will lose $6.3 billion globally in advertising to bots in 2015. These alarming statistics are forcing agencies and brand managers to seek alternatives to online or internet ads, and DPBM and rVue are well positioned to benefit from this accelerating trend. Equally important, DPB Media helps brands connect with on-the-go consumers, closer to the decision point, and provides proven ways to influence hard-to-reach consumers with better metrics, an increasing array of engagement tools, and higher levels of validation than online and other media options. And DPBM ads can't be skipped."

Steve Schildwachter, Executive Vice President and Chief Marketing Officer, added, "During the fourth quarter, three clients exceeded 5% of total revenue, up from two in prior quarters, and we have continued to expand our client base. The growth has come from small- and medium-sized agencies, which are typically more innovative than large agencies in adopting new, emerging media, and directly from advertisers who are looking for new ways to connect with their current and prospective consumers. During December we had more active campaigns for a larger group of clients than we've ever had, and our goal is to continue the expansion of our customer base as well as the size of existing campaigns."

Eric Kristoff, Chief Technology Officer and Executive Vice President Operations, added, "Technology in 2014 was focused on delivering strategic media expertise at scale. We've worked to better align the technology platform with agency needs and best practices, enhancing automation, while retaining flexibility for industry evolution. In 2014, the rVue platform demonstrated the technical scale to handle hundreds of millions of dollars' worth of transaction flow. On the operations side, the story has been all about productivity and efficiency. rVue has developed technologies, processes and personnel that allow us to incorporate virtually any DPBM network, not just a select few. Equally important, when a network partners with rVue, we don't interfere with their existing internal operations. Over the course of 2014, rVue improved network data processing efficiency by over 95%. The business impact is that partner networks have improved client visibility, and clients enjoy more possibilities." 

Conference Call

Management will host a conference call to discuss its financial results at 4:30 p.m. ET today, February 12, 2015. Details are as follows:

About rVue

rVue Holdings, Inc. is an advertising technology company providing the digital distribution platform for the Digital Place-Based Advertising industry. The Company connects approximately one million digital screens across 190 networks delivering access to 250 million daily impressions in one simple platform. Backed by the industry's most intuitive and intelligent platform, rVue has the technology, data and expertise to connect brands and targeted consumers where and when it matters most. For more information, please visit http://www.rvue.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. The Company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Important factors that could cause such differences include, but are not limited to, the Risk Factors and other information set forth in the Company's Quarterly Report on Form 10-Q to be filed today and in our other filings with the Securities and Exchange Commission.

Contact Information

  • Company Contacts

    Mark Pacchini
    President and CEO
    312-361-3368