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Wednesday, 1 May 2013
Snipp Interactive continues build-out towards profitability this year; revenues rise 35% in 2012
Mobile marketing services firm Snipp Interactive (CVE:SPN) has revealed its 2012 financial results, with sales rising 35 per cent from a year earlier, including a 53 per cent boost in the fourth quarter as the company grows its sales channels.
Total revenue in 2012 increased to $511,854 from $379,222 in 2011. In the fourth quarter, the company's sales rose 53 per cent from the prior year to around $169,839.
Snipp said in a statement late Tuesday the increase is the result of a "growing sales channel" associated with new contracts from recurring customers such as magazine publisher Meredith Corp (NYSE:MDP), and new programs from brands such as Arm & Hammer as well as the launch of new products like SnippCheck - a mobile receipt processing service - and SnippWine.
The company's newest product - SnippWine - provides a full suite of mobile-based marketing tools for wineries, including shipping alerts, a mobile site builder, social sharing functionality, the SnippCeck mobile receipt processing service to process rebate and coupon programs, as well as a contest engine.
Snipp is integrating its SnippWine suite into eWinery's platform. Customers of eWinery, which has more than 600 clients in the U.S. and major wine producing regions of the world, will therefore be able to launch and manage mobile programs through the eWinery interface.
Snipp's "Mobilize Me" platform includes three mobile specific solutions - response, infrastructure and validation - which collectively allow brands to interact with their customers through mobile across the entire purchase lifecycle.
Headquartered in Washington, D.C. and established in 2007, the company has provided its services to several Fortune 500 companies and other major brands, advertising agencies and publishers, including Wal-Mart (NYSE:WMT), Time Inc, Ford (NYSE:F), Nike (NYSE:NKE), Wendy's (NASDAQ:WEN) and Campbell Soup (NYSE:CPB).
It also worked on new campaigns last year with Taco Bell & ESPN, Meredith Corp, Arm & Hammer, and James Hardie, and launched Snipp in Mexico and the Middle East, "executing successful campaigns in both markets for leading brands", it said.
In 2012, the company recorded a net loss before other non-operating items of $1.6 million, higher than the $15,738 in 2011, mainly due to one-time listing charges tied to the company's IPO in March last year.
The bigger loss was also the result of added investment in the Snipp platform to handle larger volumes, as well as one-time employee costs, the company said in its release.
At year-end, it had current assets of almost $1 million, and liabilities of $252,521.
Snipp said in its statement Tuesday that the company has set the foundation to grow to profitability in the coming quarters, with preliminary first quarter results to be announced next week.
Four key initiatives were outlined, including completion of the eWinery integaration, SnippCheck's "Pay Per Snipp" pricing model, the launch of new products on a hybrid self-service platform and the ramp up of international sales, with an exclusive sub-license deal brewing in Mexico, according to the release.
"The positive trend we see in the mobile space is unquestionable and we will continue our march towards profitability in 2013," said CEO Atul Sabharwal.
"The new solutions we have launched in 2012, are truly unique in the marketplace and are getting excellent traction in the market. Put together, we have a holistic mobile solution incorporating Mobile Response, Infrastructure and Validation, and are best positioned to help our clients engage and interact with their customers on a turnkey basis in the mobile arena."