SOURCE: Symbid

Symbid

May 12, 2016 17:00 ET

Symbid Announces 21% Revenue Growth in Q1 2016

Financial Technology Brand Reports 21% Increase in Revenue Versus Same Period 2015

ROTTERDAM, THE NETHERLANDS and NEW YORK, NY--(Marketwired - May 12, 2016) - Symbid Corp. (OTCQB: SBID) www.symbidcorp.com -

Key Business Highlights of First Quarter 2016:

  • Total revenue of approximately $89,000 for three month period ending March 31, up 21% versus the prior year period in 2015;
  • Over 82% of first quarter revenue is attributable to the Company's core crowdfunding business, as the Company reported its strongest quarter to date in businesses funded via crowdfunding;
  • The Company reported continued growth in the total number of businesses funded via crowdfunding and other means, plus the number of registered investors;
  • Total transaction volume of The Funding Network™ for three month period ending March 31 was $130 million, which the Company expects to result in increased monthly recurring revenue streams;
  • The Company concluded a successful media pilot with RTL Nederland, a leading European entertainment company, whereby the Company received an investment in media value and was promoted on national television and online;
  • Due to the status of the Company's capital raise strategy and a change in strategic direction, the Company undertook a cost reduction program that will increase focus on its core, revenue-generating activities in order to ensure value for its shareholders;
  • The main goal of this cost reduction program is a significant reduction in the Company's operating losses over the next 6 months, thereby shortening the time until a cash-flow breakeven point is achieved;
  • The Company is continuing its capital raise strategy and search for strategic partnerships in 2016 in order to ensure continuity and further growth.

"We are pleased to report continued revenue growth in what has been our most successful quarter to date in terms of our core crowdfunding business. These results come at a time when the Company, following a refocusing of its strategic direction subsequent to the financial period, has shown a commitment to refocusing on its core revenue-generating activities," said Korstiaan Zandvliet, co-founder and CEO of Symbid Corp. The positive results reported today provide a solid foundation from which the Company expects to continue growing while significantly reducing costs. The serious measures taken by the Company in this regard should help to ensure that we continue to create long-term shareholder value."

Three-Month Period Ended March 31, 2015 and 2016

       
    Three months ended March 31,  
    2016     2015  
             
Net Revenues                
  Crowdfunding   $ 72,806     $ 54,394  
  The Funding Network     12,049       -  
  Other     4,412       19,472  
      89,267       73,866  
Operating expenses                
  Selling general and administrative     514,911       393,868  
  Professional fees     137,035       186,670  
  Research and development costs     17,118       22,242  
  Depreciation and amortization     36,819       36,938  
  Bad debt expense (recoveries)     (19,591 )     15,485  
      686,292       655,203  
                 
Operating loss     (597,025 )     (581,337 )
                 
Other income (expenses)                
Fair value adjustment derivative liability - warrants     -       (7,274 )
Interest expenses and amortization of debt discount     (73,266 )     (2,714 )
Government subsidy     -       -  
Gain on sale of investment in Gambitious B.V.     -       11,504  
Losses from equity investments     -       -  
Other income and expense     -       -  
  Total other income (expense)     (73,266 )     1,516  
                 
Net loss     (670,291 )     (579,821 )
                 

Summary of First Quarter 2016 Financial Performance:

  • Total revenue increased by 21% compared to prior year period to $89,267, due to the Company reporting its best quarter to date in terms of its core crowdfunding business;
  • 82% of revenue attributable to transaction-based model of core crowdfunding business, compared to 74% prior year period;
  • Selling, general and administrative expenses increased by 31% from same period 2015 to $514,911.
  • Total operating expenses increased by 5% from prior year period to $686,292;
  • Net losses increased by 16% from prior year period to $670,291.

2016 Commercial Outlook:

  • The Company's cost reduction program will result in a refocusing on its core revenue-generating activities. Therefore -- in line with the change in the Company's strategic direction -- the Company is in the process of transferring its product development team to other employers, revised its internationalization strategy and cancelled several non-essential partnerships;
  • The Company's cost reduction program will result in the Company's headcount being reduced by 50% over the current financial reporting period, with two of the Company's office locations also closing;
  • Under the current cost reduction measures the Company expects to reach cash-flow breakeven sooner than had otherwise been projected;
  • The Company expects to continue the development of The Funding Network™, a data-driven capital market for start-ups and small businesses connecting various types of finance that has reported an average monthly transaction volume of $40 million since its launch in March 2015;
  • The ongoing release and integration of new products and services within The Funding Network™ is expected to result in increased transaction-based revenues and new monthly recurring revenues, through the growth of the Company's loan crowdfunding product and the monetization of its funding volume, respectively;
  • The Company's continued growth and the development of The Funding Network™ are both subject to the successful conclusion of the Company's capital raise strategy in the current financial reporting period. The Company's change in strategic direction towards a more cost-efficient future reflects the seriousness with which the Company takes its obligations to shareholders and the creation of long-term value.

Disclaimer
This press release is for information purposes only and is not intended to constitute, and should not be construed as, an offer to sell or a solicitation of any offer to buy securities of Symbid Corp. (the "Company") in the United States, Australia, Canada or Japan or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction.

About Symbid Corp.
Founded in April 2011 as one of the first investment crowdfunding platforms worldwide, Symbid is The Funding Network™, where companies get funded and grow. As a leading online funding portal for small- and medium-sized enterprises, Symbid gives entrepreneurs direct access to traditional and alternative forms of finance, while offering investors full transparency on the potential risks and returns of their portfolio. Advanced investing, monitoring and data tools ensure companies connecting to The Funding Network™ are financed in the most efficient way possible. Built around cutting-edge technology and expert financial advice, The Funding Network™ by Symbid is the go-to platform for entrepreneurs in search of funding and investors in search of exciting opportunities. In 2015, Symbid (www.symbid.com) successfully delivered $520 million in funding to approximately 2400 small businesses from over 50 connected funding partners including banks, venture capital firms, angel investors and 37,000 private (crowdfunding) investors. Symbid Corp. is a U.S. publicly listed company (OTCQB: SBID). For investor relations, please visit www.symbidcorp.com.

Safe Harbor Statement
This release may include predictions, estimates or other information that might be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgement on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. The predictions discussed in this release are based on the personal opinions of certain individuals and are supported by a consensus within the crowdfunding industry and alternative finance world generally. For a more complete discussion of these predictions and certain risk factors which may affect our future business operations, please review our most recent Form 10-K, particularly under the heading "Risk Factors." PDF copies of these forms can be viewed and downloaded on the Symbid Corp. Investor Relations website at www.symbidcorp.com.

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