VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/31/13 -- Snipp Interactive Inc. ("Snipp"), an international provider of mobile marketing solutions listed on the TSX Venture Exchange (TSX VENTURE: SPN), is pleased to announce its financial results for the quarter ended March 31, 2013. A copy of the complete unaudited financial statements and management's discussion and analysis are available on SEDAR at www.sedar.com.
The total sales revenues for the 1st quarter of 2013 grew 85% from the prior year.
Revenue for the quarter was approximately $174,331 compared to $94,235 from the prior years quarter. The increase in revenue is attributable to a multitude of factors including the creation of new sales channels, additional sales contracts from existing customers, the acquisition of new customers and the launch of innovative new products such as SnippCheck, Snipp's mobile receipt processing solution (www.snippcheck.com).
Net income for the period was $135,163 compared to a net loss of $697,959 for the same period last year.
The positive net income for the 1st quarter of 2013 was mainly due to the decrease in fair value of our derivative liabilities resulting in a non-cash gain. The net loss before other non-operating items was $398,235 in Q1 compared with $229,719 the year prior. The increase in net loss (before other non-operating items) is mainly due to additional resources being dedicated to sales and marketing and added investment in the Snipp Mobilize Me platform, with a view towards productizing several of the mobile solutions within Snipp's portfolio (e.g. SnippCheck, SnippWine, soon to be released SnippShip and other similar products).
At the end of the period, current assets were $660,947 and current liabilities $228,940.
"We are very pleased that our go-to-market strategy continues to be validated as our sales revenues continue to grow rapidly and propels us ever closer to being operationally cash flow positive," said Atul Sabharwal, Chief Executive Officer of Snipp. "Our focus continues to be on growing new and recurring revenue with the aim of achieving cash flow profitability. The fact is that we are at the beginning of a mobile revolution that presents an unprecedented opportunity for companies like ours. As a greater number of people spend larger amounts of time carrying out traditional web based activities such as shopping, comparison-shopping, information retrieval, search and discovery, social interaction, etc. on their mobile device, every company will need to start implementing a mobile optimized layer for their business to support these customer interactions, similar to what companies had to invest in when the internet first made an appearance two decades back. Snipp's Mobilize Me platform enables businesses to easily build that mobile layer and as we continue to add unique tools and technology to the platform, companies will be able to interact with their customers with an unmatched level of personalization, interactivity and monetization potential."
Q1 2013 Highlights include:
-- Launched innovative new products and campaigns expected to drive growth. However in many cases due to strict client non-disclosures and the innovative nature of campaigns executed, Snipp is unable to disclose a full list of customers and campaigns.-- Product teams have finalized two new product offerings that will launch in Q2. These products will be consumer-focused, self-service tools, thereby enabling the company to drive revenues from new market segments, while still continuing to provide its complete suite of marketing solutions to high-value clients on a full-service basis.
The company has set the foundation to continue to grow the company profitably in the coming quarters.
Four key initiatives are expected to bear fruit for the company, any one of which can drive significant revenue and profitability gains for the company. (More details can be found in the Management Discussion and Analysis section of the quarterly filings at www.sedar.com.)
1. Launch of the eWinery Mobile Marketing solution in Q2 which will be offered to the over 600 customers that currently use the eWinery solution. eWinery currently controls over 70% of the $600MM direct to consumer wine business in the USA and is the leading provider of point of sale solutions to the industry. Five pricing packages, ranging from $250 a month to $5000 a month, are available to wineries looking to take advantage of the Snipp Mobilize Me platform.2. Continued sales of the Mobilize Me platform that includes SnippCheck, Snipp's innovative mobile receipt processing solution, by leveraging distribution partners to resell the product to their existing clients. SnippCheck has submitted proposals directly or through potential partners for a pipeline opportunity of over ten million potential transactions at a price per transaction of between $0.30 and $0.60 for the coming year. The solution has attracted the attention of several marketing services providers, some of whom are exploring a formal strategic relationship with Snipp.3. Launch of new products on a hybrid self-service platform. Management expects the launch of new products such as SnippQR, SnippShip, Site Builder and other offerings over the course of the next two quarters will give the company access to a whole slew of new potential customers looking for tools to build out specific mobile functionality at scale. The company is in the process of productizing elements of its Mobilize Me platform, which is currently only available on a full-service basis to large brands.4. Continuing ramp-up of international sales. Snipp has made in-roads into the Middle East market and has recently won campaigns with leading banks and restaurant chains in the region. The company plans to launch a number of market-specific products and campaigns for the Middle East region in the coming months. In addition, Snipp has been approached by its exclusive partner in Mexico to grant an exclusive sub-license to Anuncios en Directorios, S.A. de C.V, the largest yellow pages publisher in Mexico owned by Grupo Carso, with whom Snipp executed multiple campaigns and prototypes last year. Management believes that if this exclusive sub-license is awarded it will result in multiple revenue opportunities for the company.
About Snipp Interactive Inc.
Snipp Interactive Inc. (www.snipp.com) builds mobile solutions for brands to engage and interact with their customers. Snipp provides print publishers, advertising agencies and corporate/consumer brands, including Fortune 500 companies, with three main solution sets:
-- Response: Mobile activations that make offline campaigns more interactive.-- Infrastructure: Tools to create scalable mobile destinations and experiences.-- Validation: Mobile workflows to validate purchases and other customer actions.
Snipp generates revenue by designing, constructing, implementing and managing these mobile solutions for its customers. Snipp is headquartered in Washington, D.C. with international operations in Canada, Mexico and India.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward- looking statements.
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Snipp Interactive Inc.
Snipp Interactive Inc.