Welcome!

News Feed Item

SNAP Interactive Announces Business Highlights For The Quarter Ended December 31, 2013

Fourth Quarter Revenues Grow 2% Sequentially

NEW YORK, Jan. 6, 2014 /PRNewswire/ -- Snap Interactive, Inc. ("SNAP" or the "Company") (OTCQB: STVI), a leading social dating developer and owner of AYI.com, today announced business highlights for the quarter ended December 31, 2013.

(Logo:  http://photos.prnewswire.com/prnh/20140106/NY40492LOGO )

  • On a sequential basis, total revenues for the fourth quarter of 2013 increased 2% to $3.0 million from the third quarter of 2013, marking the first quarterly increase in revenues since the first quarter of 2012;
  • New subscription transactions in December 2013 were at their highest level since September 2012;
  • As of December 31, 2013, AYI.com had approximately 78,000 active subscribers, denoting the first fiscal quarterly increase in active subscribers since the first quarter of 2012;
  • During the fourth quarter of 2013, new subscription transactions for AYI.com increased 3% on a sequential basis compared to the third quarter of 2013, even though advertising and marketing expense was reduced by approximately 11% over the same time period.
  • Available sources of liquidity (including cash and cash equivalents of $0.97 million and restricted cash of $0.38 million) totaled approximately $1.35 million at December 31, 2013, a reduction of $0.5 million from September 30, 2013;
  • We have continued to reduce operating expenses and are targeting break-even cash flow for the third quarter of 2014; and
  • Since its launch, our "The Data of Dating" blog has generated posts that have been picked up in several top-tier publications, including USA Today, Glamour, Cosmo.com, Buzzfeed and the NY Post.

Management Commentary

We are focused on managing the AYI.com brand around two main categories: growth and liquidity.

Growth

AYI.com showed growth in key areas during the fourth quarter of 2013, including:

  • Revenues - On a sequential basis, total revenues for the fourth quarter of 2013 increased 2% to $3.0 million from the third quarter of 2013, marking the first quarterly increase in revenues since the first quarter of 2012;
  • Active subscribers - Active subscribers increased 0.5% during the fourth quarter of 2013, which was the first fiscal quarterly increase in active subscribers since the first quarter of 2012; and
  • New subscription transactions - New subscription transactions in December 2013 were at their highest level since September 2012;

SNAP's Chief Executive Officer, Clifford Lerner, commented, "In the third quarter of 2013 we had three main objectives: reduce expenses, improve user conversion rates, and increase brand awareness in order to drive subscriber growth. We believe we have continued to successfully execute on these objectives and are now seeing meaningful results. During the fourth quarter of 2013 we were able to grow revenues for the first time in nearly two years. In addition, AYI.com and its "The Data of Dating" blog were mentioned in several top tier media publications which will increase brand-awareness and drive organic growth."

Mr. Lerner continued, "We have tremendous momentum heading into 2014 as December was AYI.com's best month in well over a year. What is most exciting is that December had the most new subscription transactions in over 15 months, up 32% over December 2012. We believe we can sustain this growth, and coupled with our expense management efforts, we expect to reach break-even cash flow during the third quarter of 2014."

Liquidity and Cash Flow

  • Increased efficiency in marketing expense – We have continued to improve our return on advertising and marketing expense. Improving the yield on marketing will allow us to grow revenue at better margins. During the fourth quarter of 2013, new subscription transactions for AYI.com increased 3% on a sequential basis compared to the third quarter of 2013, even though advertising and marketing expense was reduced by approximately 11% over the same time period.
  • Expense management – We have fully achieved our prior cost savings targets, and we will continue to look for ways to manage expenses as we grow our business.
  • Additional sources of revenue – as previously announced, we have entered into a partnership which will allow us to monetize our user base and bring in advertising revenue.
  • Break-even cash flow – We are targeting break-even cash flow for the third quarter of 2014.

SNAP's Chief Financial Officer Jon Pedersen added "Our fourth quarter operating metrics show improvement across the board. We were able to grow revenues and active subscribers on a sequential basis while decreasing advertising and marketing expense by approximately 11%. We now feel that our margins and our return on advertising and marketing expense are at a level where we believe we can achieve sustainable and efficient growth. We have been working towards this point for some time and we anticipate that we will be able to profitably grow our active subscriber base during 2014 and beyond. With the improving business metrics and continued expense management, we believe we can manage our growth and we intend to grow the business while moving towards break-even cash flow in 2014."

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.com is one of the largest social 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/, its online dating blog at http://www.ayi.com/dating-blog, on Facebook at http://www.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. Android® is a registered trademark of Google Inc. AYI.com® is a registered trademark of Snap Interactive, Inc.

PR Contact:
Kayla Inserra
[email protected]
919-601-2247

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

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; the ability to grow revenue, decrease expenses and increase the number of active subscribers; the ability to anticipate and respond to changing user and industry trends and preferences; the intense competition in the social dating marketplace; 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.

SOURCE SNAP Interactive, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...
Containers, microservices and DevOps are all the rage lately. You can read about how great they are and how they’ll change your life and the industry everywhere. So naturally when we started a new company and were deciding how to architect our app, we went with microservices, containers and DevOps. About now you’re expecting a story of how everything went so smoothly, we’re now pushing out code ten times a day, but the reality is quite different.
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee A...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.