Accelerize New Media, Inc. Reports SECOND Quarter 2014 Financial Results Second Quarter Revenues Increase 72.8% Year Over Year to Reach a Record $3.9MM as Company Expands Operations to Support Rapid Business Growth

NEWPORT BEACH, Calif., Aug. 14, 2014 /PRNewswire/ -- Accelerize New Media, Inc. (OTCQB: ACLZ), owner and operator of CAKE (www.getcake.com), a marketing technology SaaS company, today announced financial results for its fiscal second quarter ended June 30, 2014.

Company Highlights for Q2 2014

  • Broad-based SaaS revenue growth achieved across both U.S. and European business segments.
    • 52% increase in the number of customers when compared to the same period in 2013.
    • Average revenue per customer increased by 10% when compared to the same period in 2013.
  • The company added 157 new customers in the first six months of this year and now has over 450 customers driving more than 5 billion consumer actions monthly through the CAKE platform.
  • The company continues expansion efforts through the hiring of employees dedicated to marketing and customer support of growing CAKE customer base.
  • During the quarter, the company completed internal beta testing and development of a revolutionary new suite of enterprise software-as-a-service solutions designed specifically to satisfy the digital marketing needs of advertisers potentially opening a vast untapped market for the CAKE platform. Currently, advertisers struggle to properly track and optimize online advertising campaigns across multiple marketing channels (including, display, search, email, ecommerce, affiliate and more).

"We continue to see strong demand for the CAKE SaaS enterprise platform as evidenced in this quarter by our record revenue, growth in our customer base and increased revenue per customer. We have maintained minimal revenue churn enabling us to build a solid recurring revenue base for the future. As our platform gains further traction in the affiliate marketing space we anticipate achieving progressive revenue growth for the remainder of 2014 and into the future. We are expanding our sales and corporate staff while making significant investments in R&D to further accelerate our sales growth and extend our leadership position in performance-based marketing innovation," said Accelerize New Media, Inc. Chairman and CEO Brian Ross. "We are excited about moving upstream with our enterprise product portfolio to include real-time tracking, attribution and optimization specifically for advertisers to manage their digital advertising spend. Entering this space is a potential game changer for us as eMarketer estimates digital spending by advertisers will increase to $140 billion this year."

Financial Highlights for Q2 2014

  • Revenues: Total revenues for the second quarter reached a record $3.9MM, a 72.8% increase from $2.3MM recorded in Q2 2013, driven by a 52% increase in the number of clients on the CAKE platform and a 10% increase in the average usage fees earned per client when compared to Q2 2013. We expect future revenues from CAKE to continue to be driven by ongoing organic growth, new product innovation and international expansion.
  • Operating Income (Loss): Operating loss for the second quarter was $(720K), compared to operating income of $34K recorded in Q2 2013. This was mainly attributable to the company making significant investments in product development for the next generation of CAKE and an expansion of its sales, marketing, technology and corporate staff.
  • Cash Flow: Net cash used in continuing operations was $(844K), compared to net cash provided by continuing operations of $330.5K during the prior year period. The company invested $311K in ongoing research and development and total operating expenses increased 107.6% to $4.62MM to support our growth.
  • Our revenue model is based on a monthly license fee, a usage fee (based on volume of online events), and a training and implementation fee. Clients purchase annual subscriptions with an additional usage fee.
  • A majority of our revenue is derived from U.S. customers, but we have seen a 67% and 200% growth from our European and other segments, respectively, during Q2 2014 when compared to Q2 2013.
  • The company believes it has sufficient cash to fund operations for at least the next 12-months.

About Accelerize New Media Inc. (OTCQB: ACLZ)

Accelerize New Media, Inc. owns and operates CAKE, a marketing technology company that provides a SaaS-based solution to track, attribute and optimize the performance of digital marketing spend, in real-time. Bringing clarity to multi-channel marketing campaigns, CAKE empowers advertisers, publishers and networks with the insight to make intelligent marketing decisions. For more information visit http://www.accelerizenewmedia.com.

Use of Forward-looking Statements

This press release may contain forward-looking statements from Accelerize New Media, Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when we describe our growth prospects, our expansion efforts, our new enterprise software under development and its potential, our expectations for future revenues, and the potential market size in our industry, we are using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize New Media only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; unforeseen market and technological difficulties may develop with our products and services; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize New Media to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize New Media undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Accelerize New Media, reference is made to Accelerize New Media's reports filed from time to time with the Securities and Exchange Commission.

ACCELERIZE NEW MEDIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS



June 30,



December 31,


ASSETS


2014



2013




(Unaudited)






Current Assets:









Cash


$

1,421,163



$

1,157,315


Accounts receivable, net of allowance for bad debt of $38,444 and $59,072



1,587,710




1,041,671


Prepaid expenses and other assets



39,712




85,026


Total current assets



3,048,585




2,284,012











Property and equipment, net of accumulated depreciation of $416,801 and $171,856



1,009,855




756,696


Customer relationships, net of accumulated amortization of $370,371 and $37,037



629,629




962,963


Deferred financing costs, net of accumulated amortization of $3,750



43,317




-


Other assets



38,006




-


Total assets


$

4,769,392



$

4,003,671











LIABILITIES AND STOCKHOLDERS' EQUITY


















Current Liabilities:









Accounts payable and accrued expenses


$

1,687,167



$

1,703,007


Deferred revenues



45,304




83,311


Line of credit



1,000,000




-


Total current liabilities



2,732,471




1,786,318











Stockholders' Equity:









Common stock; $0.001 par value; 100,000,000 shares authorized; 60,620,256 and 58,394,975 shares issued and outstanding



60,618




58,394


Additional paid-in capital



18,797,324




17,908,278


Accumulated deficit



(16,823,420)




(15,749,319)


Accumulated other comprehensive gain



2,399




-











Total stockholders' equity



2,036,921




2,217,353











Total liabilities and stockholders' equity


$

4,769,392



$

4,003,671



ACCELERIZE NEW MEDIA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Three-month periods ended



Six-month periods ended




June 30,



June 30,




2014



2013



2014



2013




































Revenues:


$

3,906,409



$

2,259,395



$

7,333,606



$

4,422,802



















Operating expenses:

















Cost of revenue



1,108,112




491,212




1,897,211




961,695


Research and development



757,868




434,365




1,334,654




814,982


Sales and marketing



1,910,650




764,730




3,533,099




1,380,577


General and administrative



841,198




535,494




1,644,366




1,051,777


Total operating expenses



4,617,828




2,225,801




8,409,330




4,209,031



















Operating (loss) income



(711,419)




33,594




(1,075,724)




213,771



















Other income (expense):

















Interest income



7,044




1,078




7,044




14,745


Interest expense



(2,112)




(14,495)




(5,421)




(33,121)





4,932




(13,417)




1,623




(18,376)



















(Loss) income from continuing operations



(706,487)




20,177




(1,074,101)




195,395



















Discontinued operations

















Gain from the disposal of discontinued operations



-




38,611




-




100,361


Income from discontinued operations, net



-




38,611




-




100,361



















Net (loss) income


$

(706,487)



$

58,788



$

(1,074,101)



$

295,756



















Earnings per share:

















Basic

















Continuing operations


$

(0.01)



$

-



$

(0.02)



$

-


Discontinued operations


$

-



$

-



$

-



$

-


Net (loss) income per share


$

(0.01)



$

-



$

(0.02)



$

0.01



















Diluted

















Continuing operations


$

(0.01)



$

-



$

(0.02)



$

-


Discontinued operations


$

-



$

-



$

-



$

-


Net (loss) income per share


$

(0.01)



$

-



$

(0.02)



$

-




































Basic weighted average common shares outstanding



60,026,430




56,644,643




59,401,930




56,337,069


Diluted weighted average common shares outstanding



60,026,430




75,346,900




59,401,930




72,369,773



ACCELERIZE NEW MEDIA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



Three-month periods ended



Six-month periods ended




June 30,



June 30,




2014



2013



2014



2013



















Net (loss) income


$

(706,487)



$

58,788



$

(1,074,101)



$

295,756



















Foreign currency translation gain (loss)



1,069




86




2,399




(1,195)


Total other comprehensive gain (loss)



1,069




86




2,399




(1,195)



















Comprehensive (loss) income



(705,418)




58,874




(1,071,702)




294,561



ACCELERIZE NEW MEDIA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



Six-month periods ended




June 30




2014



2013


Cash flows from operating activities:









Net (loss) income from continuing operations


$

(1,074,101)



$

195,395


Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:









Depreciation and amortization



578,278




27,837


Amortization of debt discount



3,750




17,858


Provision for bad debt



(20,628)




7,186


Fair value of services in lieu of proceeds from note receivable



-




120,250


Fair value of options



287,985




251,235


Amortization of original issuance discount



-




(11,889)


Changes in operating assets and liabilities:









Accounts receivable



(525,412)




(202,508)


Other assets



(38,006)




(9,439)


Prepaid expenses



45,314




(49,674)


Accounts payable and accrued expenses



9,160




(42,361)


Deferred revenues



(38,007)




26,638


Net cash (used in) provided by continuing operations



(771,667)




330,528


Net cash provided by discontinued operations



-




-


Net cash (used in) provided by operating activities



(771,667)




330,528











Cash flows provided by (used in) investing activities:









Proceeds from sale of lead generation business



-




80,000


Capitalized software for internal use



(311,106)




-


Capital expenditures



(186,997)




(66,416)


Net cash (used in) provided by investing activities



(498,103)




13,584











Cash flows provided by (used in) financing activities:









Principal repayments on notes payable



-




(90,000)


Proceeds from line of credit, net



1,000,000




-


Payment of financing costs



(40,000)




-


Net proceeds from exercise of warrants



571,219




421,996


Net cash provided by financing activities



1,531,219




331,996











Effect of exchange rate changes on cash



2,399




(1,394)











Net increase in cash



263,848




674,714











Cash, beginning of period



1,157,315




231,926


Cash, end of period


$

1,421,163



$

906,640











Supplemental disclosures of cash flow information:









Cash paid for interest


$

-



$

22,205


Cash paid for income taxes


$

-



$

-











Non-cash investing and financing activities:









Fair value of warrants issued in connection with line of credit


$

32,067



$

19,889


Company Contact
Brian Ross
Chairman & CEO
brian@accelerize.com
+1-949-548-2253

Investor Contact
Ascendant Partners, LLC
Fred Sommer
fred@ascendantpartnersllc.com
+1-732-410-9810

SOURCE Accelerize New Media Inc.



RELATED LINKS
http://www.accelerizenewmedia.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.