SNAP Interactive Reports Results for the Quarter Ended December 31, 2012 and Business Highlights for 2013 - SNAP Launches Redesigned AreYouInterested.com as AYI - a Leading Social Dating Site

- Net Loss of $0.3 Million for Fourth Quarter of 2012, 80% Decrease from Fourth Quarter of 2011

- Overall liquidity level remains strong at $5.5 million

NEW YORK, March 14, 2013 /PRNewswire/ -- SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading social dating developer, today announced financial results for the quarter ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20111101/NY96955LOGO-b )

(Logo: http://photos.prnewswire.com/prnh/20130314/NY77617LOGO )

  • Total revenues decreased 28% to $4.0 million for the fourth quarter of 2012 compared to $5.5 million for the comparable period in 2011;
  • Bookings decreased 44% to $3.1 million for the fourth quarter of 2012 compared to $5.6 million for the comparable period in 2011;
  • Deferred revenue decreased 20% to $2.5 million at December 31, 2012 compared to $3.1 million at December 31, 2011;
  • Net loss was $0.3 million, or $0.01 per basic and diluted common share for the fourth quarter of 2012, compared with a net loss of $1.5 million, or $0.04 per basic and diluted common share, for the comparable period in 2011; and
  • SNAP's balance sheet position continues to be strong, with $5.5 million of available sources of liquidity (includes cash and cash equivalents and restricted cash) at December 31, 2012.

"The fourth quarter marked the end of our transitional period, as we focused on improving our feature set and conversion process for users of the redesigned AYI brand.  As anticipated due to the re-launch, revenue and bookings were lower in the fourth quarter of 2012 as compared to the comparable period in 2011. Having completed the re-launch, we believe that the AYI brand is poised to grow once again. During January 2013, we began to increase our marketing spend to drive new users to AYI. We are excited about how the product is performing and we look forward to growing the AYI brand during 2013. We closed the year with $5.5 million in available liquidity and believe we are well positioned to achieve our 2013 objectives," said Jon D. Pedersen, Sr., SNAP's Chief Financial Officer.

Financial Highlights



Three Months Ended






Year Ended







December 31,






December 31,





GAAP Results 


2012



2011



Change



2012



2011



Change


(Unaudited)

Total revenues


$

3,956,945



$

5,500,829




(28)

%


$

19,246,736



$

19,155,543




0

%

Deferred revenue (at period end)


$

2,524,229



$

3,138,406




(20)

%


$

2,524,229



$

3,138,406




(20)

%

Net loss


$

(303,088)



$

(1,542,845)




(80)

%


$

(4,030,641)



$

(1,593,173)




153

%

Net cash used in operating activities


$

(1,147,773)



$

(523,881)




119

%


$

(3,401,191)



$

(1,455,542)




134

%


























Non-GAAP Results 

























Bookings


$

3,114,800



$

5,592,450




(44)

%


$

18,295,893



$

19,981,859




(8)

%

Overall liquidity (at period end)


$

5,462,596



$

8,879,033




(38)

%


$

5,462,596



$

8,879,033




(38)

%

Business Highlights

SNAP has also had a number of positive developments during the quarter ending March 31, 2013, including the following:

  • SNAP acquired and transitioned to the 'AYI.com' domain in January 2013;
  • New subscription sales increased in both January and February 2013 from December 2012;
  • AYI launched new "social" features for AreYouInterested.com that are designed to integrate a user's interest and social graphs into the online dating experience; and
  • SNAP has begun to rebrand AreYouInterested.com as "AYI", a shorter and easier name for our users to remember.

Management Commentary

"2012 was a challenging year for SNAP," said SNAP's President and CEO Clifford Lerner. "We exited 2011 with a growing product in AreYouInterested.com, but one we felt could be improved and redesigned.  Early last year we announced that 2012 would be devoted to developing new architecture and redesigning AYI in order to reach our growth potential with a product focused on 'social' features that could leverage our significant scale of the interest and social graph.  While the overall process took longer than anticipated, we're pleased to report that the launch of the redesigned AYI is now complete and we have an exciting product roadmap that we are positioned to execute on."

"As a result of the launch of the redesigned AYI, key engagement and monthly revenue metrics have increased in 2013 and we are excited to report that the AYI brand is growing." Lerner continued, "New subscription sales increased in both January and February 2013 from December 2012. We have also benefitted from higher conversion rates, the rates at which users are converted to paying subscribers, since the launch and we have expanded our user acquisition campaigns. Additionally, key to our 2013 objectives is a focus on building a recognizable brand based on a unique and top quality product. AYI's success to date has been accomplished without establishing any meaningful brand identity and we firmly believe that building a unique and quality brand for AYI is key to driving potential upside in 2013. We believe that our recent launch of 'social features' to leverage our scale of the Facebook social and interest graph differentiates AYI in the dating space.  With millions of Facebook connected profiles and over 1 billion interest data points, we are now positioned to leverage this data and scale to create compelling experiences for our users. Furthermore, we're excited to announce we have acquired the AYI.com domain in conjunction with our branding initiatives. 'AYI' is a shorter and easier name for our users to remember and we have already transitioned our users to the new AYI.com domain."

About SNAP Interactive, Inc.

SNAP Interactive, Inc. develops, owns and operates a social dating application for social networking websites and mobile platforms.  SNAP's flagship brand, AYI is one of the largest social dating applications on the Internet with millions of monthly active users on the Facebook platform, and offers a completely integrated FacebookiPhoneAndroid and Web application. SNAP was recently ranked the 36th Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500™. For more information, please visit http://www.snap-interactive.com/, its blog at http://devblog.snap-interactive.com, on Facebook at facebook.com/SnapInteractiveInc and on Twitter at @SNAPInteractive.

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.  Are You Interested?® is a registered trademark of SNAP Interactive, Inc.

PR Contact:
Kayla Inserra
Kayla@specopscomm.com
919-601-2247

IR Contact:
Denise Garcia
IR@snap-interactive.com

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 effectively manage the Company's growth; the ability to anticipate and respond to changing consumer trends and preferences; 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; the intense competition in the online dating marketplace; the ability to establish and maintain brand recognition; the ability to develop and support successful applications for mobile platforms; the success of the redesigned AYI brand and product; and circumstances that could disrupt the functioning of the Company's applications 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.

SNAP INTERACTIVE, INC.

CONSOLIDATED BALANCE SHEETS










December 31,



December 31,




2012



2011


ASSETS







Current assets:







Cash and cash equivalents


$

5,357,596



$

2,397,828


Restricted cash



105,000




-


Credit card holdback receivable



287,293




441,840


Accounts receivable, net of allowances and reserves of $36,129 and $184,964, respectively



320,019




480,190


Accrued interest receivable



-




5,907


Investments



-




6,481,205


Prepaid expense and other current assets



204,824




96,815


Total current assets



6,274,732




9,903,785


Fixed assets and intangible assets, net     



548,549




578,463


Notes receivable



165,716




138,803


Security deposits



-




19,520


Total assets


$

6,988,997



$

10,640,571











LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:









Accounts payable


$

799,183



$

1,027,841


Accrued expenses and other current liabilities



240,049




864,983


Deferred revenue



2,524,229




3,138,406


Total current liabilities



3,563,461




5,031,230


Long term deferred rent



48,340




61,640


Warrant liability



1,616,325




937,000


Commitments









Total liabilities



5,228,126




6,029,870


Stockholders' equity:









Preferred Stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding



-




-


Common Stock, $0.001 par value, 100,000,000 shares authorized, 44,007,826 and 38,580,261 shares issued, respectively, and 38,832,826 and 38,580,261 shares outstanding, respectively



38,833




38,580


Additional paid-in capital



9,437,422




8,256,864


Accumulated deficit



(7,715,384)




(3,684,743)


Total stockholders' equity



1,760,871




4,610,701


Total liabilities and stockholders' equity


$

6,988,997



$

10,640,571


 

SNAP INTERACTIVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS







For the Years Ended




December 31,




2012



2011


Revenues:







Subscription revenue


$

18,910,070



$

18,781,368


Advertising revenue



336,666




374,175


Total revenues



19,246,736




19,155,543


Costs and expenses:









Programming, hosting and technology



4,444,550




2,587,822


Compensation



3,625,117




1,976,384


Professional fees



703,125




558,136


Advertising and marketing



9,876,097




14,626,963


General and administrative



3,953,795




3,070,178


Total costs and expenses



22,602,684




22,819,483


Loss from operations



(3,355,948)




(3,663,940)


Interest income, net



21,517




28,858


Mark-to-market adjustment on warrant liability



(679,325)




2,038,000


Other income (expense)



(16,885)




3,909


Net loss before income taxes:



(4,030,641)




(1,593,173)


Provision for income taxes



-




-


Net loss


$

(4,030,641)



$

(1,593,173)











Net loss per common share:









Basic and diluted


$

(0.10)



$

(0.04)











Weighted average number of common shares used in calculating net loss per common share:









Basic and diluted



38,611,758




37,619,208


 

SNAP INTERACTIVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS







Year Ended




December 31,




2012



2011


Cash flows from operating activities:









Net loss


$

(4,030,641)



$

(1,593,173)


Adjustments to reconcile net loss to net cash used in operating activities:









Depreciation and amortization



151,007




51,180


Amortization of investment premium



6,205




8,734


Stock-based compensation expense



1,129,960




438,395


Mark-to-market adjustment on warrant liability



679,325




(2,038,000)


Loss on disposal of fixed assets



16,885




453


Changes in operating assets and liabilities:









Restricted cash



(105,000)




-


Credit card holdback receivable



154,547




(202,388)


Accounts receivable



160,171




(356,177)


Accrued interest paid



5,907




(5,907)


Prepaid expense and other current assets



(108,009)




(22,554)


Security deposit



19,520




(1,335)


Accounts payable and accrued expenses and other current liabilities



(843,470)




960,266


Deferred rent



(23,421)




102,115


Deferred revenue



(614,177)




1,200,491


Accrued interest payable - related party



-




2,358


Net cash used in operating activities



(3,401,191)




(1,455,542)











Cash flows from investing activities:









Purchase of fixed assets



(137,978)




(540,591)


Redemption (purchase) of short-term investments



6,475,000




(6,489,937)


Repayment of notes receivable issued to employees



11,320




-


Issuance of notes receivable issued to employees and accrued interest



(38,233)




(138,803)


Net cash provided by (used in) investing activities



6,310,109




(7,169,331)











Cash flows from financing activities:









Proceeds from issuance of common stock and warrants



-




7,915,700


Proceeds from exercise of common stock warrants



-




88,125


Proceeds from exercise of stock options



50,850




-


Net cash provided by financing activities



50,850




8,003,825











Net increase (decrease) in cash and cash equivalents



2,959,768




(621,048)











Cash and cash equivalents at beginning of year



2,397,828




3,018,876











Cash and cash equivalents at end of period


$

5,357,596



$

2,397,828











Supplemental disclosure of cash flow information:


















Cash paid for taxes and related interest


$

15,640



$

4,500











Supplemental disclosure of non-cash investing and financing activities:


















Conversion of notes and accrued interest to common stock


$

-



$

71,959


 

SNAP INTERACTIVE, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

 (Unaudited)










Three Months Ended



Year Ended




December 31,



December 31,




2012



2011



2012



2011


Reconciliation of Subscription Revenue to Bookings

















Subscription revenue


$

3,908,361



$

5,279,888



$

18,910,070



$

18,781,368


Change in deferred revenue



(793,561)




312,562




(614,177)




1,200,491


Bookings


$

3,114,800



$

5,592,450



$

18,295,893



$

19,981,859



December 31,



December 31,



2012



2011


Reconciliation of Cash and Cash Equivalents to Overall Liquidity






Cash and cash equivalents

$

5,357,596



$

2,397,828


Restricted cash



105,000




-


Investments



-




6,481,205


Overall liquidity

$

5,462,596



$

8,879,033


Non-GAAP Financial Measures

We have 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 our financial results to assess operational performance and to determine our 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. We believe 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. We believe these non-GAAP financial measures are useful to investors because it allows for greater transparency with respect to key financial metrics we use in making operating decisions and because our investors and analysts use such information to help assess the health of our business.

Some limitations of bookings and overall liquidity 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;
  • Other companies, including companies in our industry, may calculate bookings and overall liquidity differently or choose not to calculate bookings and overall liquidity at all, which reduces their usefulness as comparative measures; and
  • Overall liquidity does not reflect the Company's ability to convert restricted cash and investments into cash and cash equivalents.

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

SOURCE SNAP Interactive, Inc.



RELATED LINKS
http://www.snap-interactive.com

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.