SNAP Interactive Reports Highest Ever Net Income In Q3 Report
Public online dating company SNAP Interactive has reported a mixture of results in its financial report for the penultimate quarter of 2015.
The company disclosed a total net income of approximately $0.5m for the three months ending on 30th September, celebrating the company’s highest ever net income.
This figure reflects an improvement of $0.7m, compared to a net loss of $0.2m for the comparable quarter of 2014.
It saw an improvement in its income from operations, taking just under $103,000 – an approximate $285,000 improvement compared to a loss of almost $183,000 for the same period last year.
And, its adjusted EBITDA increased to approximately $382,000, constituting a $227,000 improvement compared to the same period last year.
However, SNAP suffered a drop in its total revenue, decreasing 16 percent from the result in the same quarter of 2014.
It also recorded a 13.8 percent dip in year-on-year subscription revenues for Q3 of 2015.
Despite these unwanted statistics, the company accomplished some key milestones during the quarter, outlining them in the new report.
Firstly, SNAP Interactive recently appointed former CFO Alex Harrington as its Chief Executive, replacing co-founder Cliff Lerner as head of the company.
Lerner left the role to become the President of The Grade, SNAP’s new mobile product, which has so far reached a cumulative usage threshold of more than 30m swipes.
The company also commenced a strategic review process to outline ways to unlock shareholder value, and has developed a new company strategy built around the commercialisation of its user database.
Speaking about SNAP’s future plans, CEO Alex Harrington said: “In the short-term, we have been reserving cash and diverting resources to long-term portfolio growth opportunities, and this has resulted in a reduced marketing investment in AYI.
“Though we believe AYI can continue to grow, we believe increasing investment following the anticipated relaunch of AYI in the first quarter of 2016, when we anticipate our cost per new user acquisition will be lower, will result in a more efficient use of Company resources.
“We believe that the number of active subscribers is directly correlated to our spending on advertising and marketing.
“We believe that as a result of the diminished investment in advertising and marketing expense in the quarter ended September 30, 2015, which is down 23.0% compared to the prior year and 26.0% compared to the second quarter of 2015, the count of active subscribers and revenue decreased.
“We expect the lower advertising and marketing investment to continue into the fourth quarter, and the revenue weakness to continue for the next two quarters, at which point we anticipate the revenue from new initiatives will offset the lower investment in AYI.”
Read the full report here.
