Snipp Interactive, Inc.
TSX VENTURE : SPN

Snipp Interactive, Inc.

November 17, 2014 07:00 ET

Snipp Interactive Inc. Reports 252% Growth in Q3 Revenue

Logs Its First Quarter of Positive Net Income From Operations (Before Certain Non-Cash Items) and Its Eleventh Consecutive Quarter of Revenue Growth

BETHESDA, MARYLAND--(Marketwired - Nov. 17, 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 quarter ended September 30, 2014. A copy of the complete unaudited financial statements, management's discussion and analysis are available on SEDAR (www.sedar.com).

  • Sales revenues for the three months ending September 30, 2014 grew 252% compared to Q3 2013.

  • The Company recognized its first quarter of operations with positive net income before certain non-operating items ("net income before interest income, foreign exchange, change in fair value of derivative liability").

  • Sales revenues for the nine months ending September 30, 2014 grew 156%, while operating costs only increased by 39% compared to the same period last year. In the first nine months of 2014, the company recognized 179% of its 2013 full fiscal year audited revenue of $870,420.

Revenue for the third quarter of 2014 was $796,194 compared to $226,342 for the third quarter of 2013, representing 252% year-on-year growth. Compared to the previous quarter, revenue grew 93% from $413,358 in Q2, 2014. The increase in revenue is attributable to a slew of new and repeat customers and campaigns launched utilizing Snipp's collection of mobile-based promotion marketing solutions (including SnippCheck, its unique receipt-processing solution and SnippWin, its contests and promotions platform). The Company recognized "net income before interest income, foreign exchange, change in fair value of derivative liability" of $4,741, which represents the Company's first quarter of operations with positive net income before certain non-operating items (interest income, foreign exchange and change in fair value of derivative liability).

Snipp had revenues of $1,558,634 during the nine months ending September 30, 2014 compared to $607,869 during the nine months ending September 30, 2013. Operating costs of $1,945,480 were incurred during the nine months ending September 30, 2014 compared to $1,395,401 incurred during the nine months ended September 30, 2013.

The company reported a 51% decrease in net loss before other non-operating items of $386,846 for the nine months ended September 30, 2014 compared to a net loss before other non-operating items of $787,532 for the nine months ended September 30, 2013. The decrease in net loss (before other non-operating items) was mainly due to the significant increase in revenues as the company grew its client base and its repeat business from existing customers. At the end of Q3 2014, current assets were $2,289,003 and current liabilities $573,193. The company has no long-term debt and continues to maintain a very healthy balance sheet.

2014 Highlights:

  • Snipp recognized ~180% of its 2013 full fiscal year audited revenues in the first three quarters of 2014 with potential to continue to grow further in the remaining three months.
  • The company continues to increase its average campaign size and its revenue per employee as it leverages its investments in infrastructure over the last two years to scale effectively.
  • The company has continued to strengthen its management team and board of directors with the hiring of a new Chief Client Officer, a new MD for its Canada operations and a new Board member.
  • The company has established itself in the US market as a premier promotions marketing company with an increasing number of Fortune 500 companies and leading advertising agencies directly reaching out to the company to solicit its services for 2015
  • The company's balance sheet reflects its increasing market strength with no long-term debt and a strong cash position, and puts it in a strong position to seek out acquisitions or mergers with firms with complementary solutions.
  • The company intends to purse a strategy in Canada that reflects its success in the US market, having recently focused two full-time resources to break into the Canadian market. The company also plans to continue growing its international business, expanding beyond its current customers in Mexico, Brazil, the United Kingdom, India and the Middle East.

Atul Sabharwal, CEO and Founder of Snipp commented, "We are very pleased with our Q3 performance and look forward to sharing our full 2014 fiscal year results. The company is extremely well poised to take advantage of growth opportunities on multiple fronts and we expect to end the 2014 fiscal year with 150%+ organic growth in revenue in comparison to the 70% growth that was achieved in the last fiscal year. While we continue to pursue organic customer growth and geographic expansion, we are now also increasingly focused on exploiting strategic opportunities to merge with and/or acquire private companies in our space. The company also intends to take advantage of its increasingly strong balance sheet to make strategic investments to balance its growth with the required need for operational excellence to build on the opportunities it has in 2015 and beyond. Most importantly none of this would have been possible without the incredible team we have in place and that we continue to build on. Our recent hire of David Hargreaves as Chief Client Officer and Ram Ramkumar to our board is testament to the company's increasing ability to attract leading industry professionals to the Snipp team. I would like to take this opportunity to thank our team for staying focused on flawlessly executing our plan, servicing our customers and achieving the key milestone of positive operational net income."

About Snipp:

Snipp Interactive Inc. (www.snipp.com) builds cross-device shopper marketing solutions for brands to engage and interact with their customers. We provide a full spectrum of services including campaign conceptualization, rules and legal, design, execution, rewards provisioning and fulfillment. We have four main solution sets:

• Mobile Promotions and Contests: A turnkey contesting platform that provides a full range of mobile-based contests, from simple sweepstakes to instant win programs to tiered, multi-level games.

• Purchase Promotions / Receipt Processing: Snipp's unique SnippCheck mobile receipt processing solution allows brands to execute customized purchase-based promotions. We support any qualification criteria, work across all retailers and all devices.

• Loyalty Programs: Snipp's white-label loyalty engine allows clients to deploy anything from simple punch-card programs to sophisticated, full-fledged points-based loyalty programs with rewards stores attached.

• Augmented Reality and Apps: Snipp produces cutting edge augmented reality campaigns and apps for leading brands around the world.

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.

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