SOURCE: SNAP Interactive, Inc.

SNAP Interactive, Inc.

March 31, 2011 16:01 ET

SNAP Interactive Reports Fourth Quarter and Fiscal Year 2010 Results

2010 Revenue Grows 110% Over 2009; Q4 Revenue Up 64% Over Prior Quarter

NEW YORK, NY--(Marketwire - March 31, 2011) - SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading social application provider with over 40,000,000 installs across its social dating applications, today announced its fourth quarter and fiscal year financial results for 2010. Our significant financial results follow:

Fourth Quarter Results (2010 vs. 2009):

  • Revenue increased 242% to $2,791,418 compared to $816,390;
  • Net loss increased to $382,048 compared to a net loss of $237,555;
  • Deferred revenue increased 589% to $1,937,915 compared to $281,049;
  • Diluted loss per share remained the same at $0.01 on 33,053,030 shares compared to $0.01 per diluted share on 32,479,746 shares; and
  • Cash increased 59% to $3,018,876 compared to $1,895,449.

Fourth Quarter 2010 Results vs. Third Quarter 2010 Results:

  • Revenue increased 64% to $2,791,418 compared to $1,706,691;
  • Cash increased 42% to 3,018,876 compared to $2,120,947; and
  • Deferred revenue increased 46% to $1,937,915 compared to $1,328,685.

Fiscal Year Results (2010 vs. 2009):

  • Revenue increased 110% to $6,668,627 compared to $3,170,725;
  • Net loss increased to $1,167,070 compared to a net loss of $101,919;
  • Deferred revenue increased 589% to $1,937,915 compared to $281,049;
  • Diluted loss per share increased to $0.04 on 33,053,030 shares compared to $0.00 per diluted share on 32,479,746 shares; and
  • Cash increased 59% to $3,018,876 compared to $1,895,449.

SNAP Interactive 2010 Revenue by Quarter:

 Fourth Quarter  $ 2,791,418
 Third Quarter  $ 1,706,691
 Second Quarter  $ 1,243,082
 First Quarter  $   927,436

"2010 was an exceptionally exciting year for SNAP," commented SNAP's Chief Executive Officer Clifford Lerner. "The first full year of a subscription-based business model for the brand produced a 110% increase in revenue over 2009, with revenue growing each quarter -- increasing from $927,436 in the first quarter to $2,791,418 in the fourth quarter. We saw more than 16 million new users install the Facebook application and experienced significant increases in traffic and usage over the course of the year. In addition, we were able to develop, a location-based service that we're very excited about and have put considerable resources behind. We believe that the foundation has been laid for further growth in 2011 and accordingly SNAP is pleased to report that the quarter ending March 31, 2011 will produce SNAP's highest revenue total ever and represent our eighth consecutive quarter of revenue growth. We look forward to updating investors with more details on first quarter results in the first half of May."

"Our primary focus for 2011 will be on seeking to grow and expand the business and significantly increasing our footprint in the mobile space. We are continuing to develop the subscription model on and optimize our traffic acquisition tools and models in order to acquire users as efficiently as possible and capture an even larger share of the online dating market. We're also continuing to increase the resources allocated to as we enhance its features with the goal of creating a best-in-class location-based product. In order to accomplish our objectives, and in conjunction with our $8,500,000 capital raise in January, we are putting additional capital behind increased user acquisition efforts and hiring more programming talent. Accordingly, we do not anticipate being profitable in the near-term while we aggressively focus on growing the business. We are making these investments in our future in order to capitalize on what we believe are unique opportunities for growth. As an example, in the case of, our objective is to gain market share in the location-based services space rather than focus on implementing a revenue model at this stage. Our recent funding provides us with far more capital resources than we've ever had in our history and positions us well to accelerate our business plan and capture greater market share in our two core markets."

SNAP's revenues are primarily generated from subscriptions and premium sales on its social dating application. Generally accepted accounting principles in the United States ("GAAP") require that revenues from multi-month subscriptions be recognized over the length of the subscription term rather than when the subscription is purchased. Because subscription revenues are collected in full at the time of purchase, a portion of the gross cash receipts from subscriptions with terms of three or six months may not fully be recognized in the quarter in which the subscriptions were actually purchased. The difference between the gross cash receipts collected and the revenue from those sales recognized during that reporting period will appear as deferred revenue in our financial statements. 

SNAP reported $2,791,418 in revenue for the quarter ended December 31, 2010 and $6,668,627 in revenue for the year ended December 31, 2010. This represents an increase of more than 242% compared to revenue of $816,390 for the quarter ended December 31, 2009 and an increase of more than 110% compared to revenue of $3,170,725 for the year ended December 31, 2009. The fourth fiscal quarter of 2010 represents SNAP's seventh consecutive quarter of revenue growth and the largest quarterly revenue in the Company's history. 

About SNAP Interactive, Inc.

SNAP Interactive, Inc. develops and operates online dating applications and a social networking application on various social networking websites as well as an online dating website and a location-based social networking application. SNAP has developed two social dating applications built on the Facebook® platform that collectively have more than 40,000,000 installations on Facebook. SNAP's portfolio of applications for singles is led by the online dating brand which consists of, the iPhone® Dating Application, and the Facebook Application. SNAP also has a location-based social application, For more information visit The reference to our corporate website is an inactive textual reference only and not a hyperlink. 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.

Forward-Looking Statements

This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to certain factors, including, without limitation, the following: the ability to successfully transition to a subscription-based online dating model; the ability to obtain additional financing to implement the Company's long-term growth strategy; the ability to anticipate and respond to changing consumer trends and preferences; reliance on the Company's sole officer and director and the Company's ability to attract and hire key personnel; the intense competition in the online dating marketplace; the ability to establish and maintain brand recognition; the ability to develop and market new technologies to respond to rapid technological changes; reliance on a very limited number of third party platforms to run the Company's applications and the ability of third party platforms to take action against these applications, including the sole ability to remove an application from the platform; the Company's protection of its intellectual property; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the ability to create and maintain secure websites and protect its technology from hackers; reliance upon credit card processors and related merchant account approvals; and other circumstances that could disrupt the functioning of the Company's applications and websites.

These risks and uncertainties, as well as other risks of which we are not aware or which we currently do not believe to be material, may cause actual future results to be materially different than those expressed by these forward-looking statements. In evaluating the statements, you should specifically consider various factors that may cause actual results to differ materially from those expressed in these forward looking statements. Readers should carefully review the risk factors under "Risk Factors" in the Company's Form 10-Ks, Form 10-Qs and other recent Securities and Exchange Commission filings.

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