SNAP Interactive, makers of Are You Interested, released financial results for the first quarter of 2013.
Top line: Numbers down across the board. Revenue down 40% from same time last year, in part due to reduced ad spend. Bookings, which I don’t see on a lot of dating site financials, is when a customer commits to spend money with your company, are down 49% YOY.
Time to crank up that ad spend.
— Total revenues decreased 40% to $3.5 million for the first quarter of 2013 compared to $5.7 million for the comparable period in 2012;
— Monthly bookings increased in both February and March 2013 from a low
point in January 2013;
— Monthly bookings for March 2013 increased 22% from January 2013;
— Quarterly bookings decreased 49% to $3.0 million for the first quarter
of 2013 compared to $5.9 million for the comparable period in 2012;
— Deferred revenue decreased 40% to $2.1 million at March 31, 2013
compared to $3.4 million at March 31, 2012;
— Net loss was $0.3 million, or $0.01 per basic and diluted common share
for the first quarter of 2013, compared with a net loss of $3.0 million,
or $0.08 per basic and diluted common share, for the comparable period
in 2012; and
— SNAP’s balance sheet position continues to be strong, with $4.5 million
of available sources of liquidity (including cash and cash equivalents
and restricted cash) at March 31, 2013.
“Our results for the first quarter of 2013 reflect a significant decrease in advertising and marketing spend from the comparable period in 2012, which primarily affects new user acquisition. We began to decrease our user acquisition costs during the second quarter of 2012 as we focused on redesigning and re-launching our AYI product. While total revenues for the first quarter of 2013 were down 12% from the fourth quarter of 2012 and bookings for the first quarter of 2013 were down only 5% from the fourth quarter of 2012, monthly bookings are the highest since October 2012. As shown by the financial highlights included in this release, bookings have increased since we have begun to increase advertising and marketing spend behind the redesigned AYI product. We launched significant new social features during the first quarter of 2013 that are designed to integrate a user’s interests and social graphs into the online dating experience. We are excited about how the product has performed during the first quarter of 2013 and we look forward to growing the AYI brand during 2013,” said Jon D. Pedersen, Sr., SNAP’s Chief Financial Officer.
More at SNAP IR.
