Snap Interactive Reports Positive Operating Cash Flow, Higher Revenues and Reduced Net Loss for the Quarter Ended September 30, 2014

NEW YORK, Nov. 10, 2014 /PRNewswire/ -- Snap Interactive, Inc. ("SNAP" or the "Company") (OTCQB: STVI), a leading online dating provider and owner of AYI.com, today announced the following financial and operational results for the quarter ended September 30, 2014:

• increased total revenues for the third quarter of 2014 by approximately 16.5% to $3.5 million as compared to the comparable period of 2013, and increased by approximately 1% sequentially over the second quarter of 2014;
• incurred a net loss of approximately $218 thousand, an improvement of approximately $1.5 million year over year, and $42 thousand sequentially;
• generated positive Adjusted EBITDA of approximately $155 thousand, an improvement of approximately $1.2 million year over year, and $93 thousand sequentially;
• achieved positive cash flow from operations of $377 thousand for the three months ended September 30, 2014, which reflected an improvement of approximately $1.5 million as compared to the comparable period in 2013 and an improvement of $679 thousand as compared to the three months ended June 30, 2014;
• increased active subscriber count by 30% in the first nine months of 2014 from approximately 77,700 as of December 31, 2013 to approximately 100,700 as of September 30, 2014; and
• new subscription transactions increased approximately 34% in the nine month period ended September 30, 2014 as compared to the same period in 2013.

Financial Highlights

Current period compared with same period in prior year:

Current period compared to prior period:

Management Commentary

During the quarter ended September 30, 2014, SNAP's management sustained the cost reductions put into effect in prior quarters while maintaining capital efficient growth.  These conditions enabled the Company to deliver positive cash flow from operations in the most recent quarter, and positive Adjusted EBITDA for the second consecutive quarter.

SNAP's Chief Executive Officer, Clifford Lerner, commented, "We are delighted to have successfully achieved the target we announced to the market in January 2014, that Snap would deliver positive cash flow in the quarter ended September 30, 2014.  The $377 thousand of cash generated from operations for the quarter ended September 30, 2014 contributed to an increase in cash of approximately 67% during the quarter ended September 30, 2014.  The business growth and discipline that got us here has also delivered two consecutive quarters of positive Adjusted EBITDA, with the quarter ended September 30, 2014 delivering sequential growth in Adjusted EBITDA of 151%."

SNAP's Chief Operating Officer, Alex Harrington, commented, "Snap also invested significantly in future growth in the most recent quarter.  Though the Company expects future gains in AYI subscription revenue, the vision for Snap includes growing from a single application to portfolio of applications.  The Company undertook several initiatives to position itself to scale the business across multiple dimensions."

These initiatives included:

• launching optional premium add-on features to generate transactional revenue and supplement the customer lifetime value derived from subscription revenue;
• diversifying the Company's marketing sources to broaden its reach, which increased the percentage of new users acquired through advertisements placed on sources other than Facebook media from 49% in December 2013 to 68% in September 2014;
• increasing the prominence of the Company's native mobile apps to consumers. For example, AYI secured the #1 spot in the U.S. Lifestyle Category in the Apple iTunes App Store in August 2014 and AYI has held the #1 or #2 spot in this category for a majority of days since August 2014;
• beginning development of a new, mobile-only dating app on iOS that focuses on a younger, complementary audience to AYI; and
• building internal resources in our product and business intelligence departments, with the intent to support a broader range of applications in the future.

Mr. Lerner concluded, "We are excited to hit our financial objectives and deliver on our promises to the market.  We have an exciting roadmap ahead of us for AYI, with the goal of improving retention and revenue generation.  And with the prospect of new application releases, the future is bright for Snap." 

IR Contact: 
[email protected] 

Stephen Hart 
Hayden IR 
[email protected]    
917-658-7878

PR Contact: 
Adam Handelsman
[email protected]
212-518-7721

About Snap Interactive, Inc.
Snap Interactive, Inc. develops, owns and operates an online dating application for social networking websites and mobile platforms.  SNAP's flagship brand, AYI.com is one of the largest online and mobile dating applications on the Internet and offers a completely integrated Facebook, iPhone, Android and Web dating application. AYI.com's mission is to improve the online dating experience of meeting new people by integrating a user's friends and interests to enable more meaningful connections.

For more information on SNAP, please visit http://www.snap-interactive.com/ or its online dating blog at http://www.ayi.com/dating-blog.

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. Android® is a registered trademark of Google Inc. AYI.com® is a registered trademark of Snap Interactive, 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 forward-looking statements.  Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to achieve break-even cash flow; or positive Adjusted EBITDA; the ability to increase or recognize revenue, decrease expenses and increase the number of active subscribers or new subscription transactions; the ability to enter into new advertising agreements; the ability to diversify new user acquisition channels or improve the conversion of users to paid subscribers; the ability to anticipate and respond to changing user and industry trends and preferences; the intense competition in the online dating marketplace; the ability to release new applications or derive revenue from new applications; and circumstances that could disrupt the functioning of the Company's application and websites.  In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Securities and Exchange Commission filings.

All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.

Non-GAAP Financial Measures

The Company has provided in this release non-GAAP financial information including bookings and overall liquidity to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these non-GAAP financial measures are useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. .

Some limitations of bookings and Adjusted EBITDA as financial measures include that:

• Bookings does not reflect that we defer and recognize revenue from subscription fees and micro-transactions over the length of the subscription term or a two-month period, respectively;
• Adjusted EBITDA does not (i) reflect cash capital expenditure requirements for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; (ii) the Company's working capital requirements; (iii) consider the potentially dilutive impact of stock-based compensation; (iv) reflect interest expense or interest payments on our outstanding indebtedness; and (v) reflect the change in fair value of warrants; and
• Other companies, including companies in our industry, may calculate bookings or Adjusted EBITDA differently or choose not to calculate bookings or Adjusted EBITDA at all, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider non-GAAP metrics along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

Photo - http://photos.prnewswire.com/prnh/20141109/157492

SOURCE Snap Interactive, Inc.

Related Links

http://www.snap-interactive.com