SNAP Interactive Gives Post-Merger Picture With 2016 Financials

Snap Interactive

SNAP Interactive has given a picture of its post-merger status with the release of its 2016 financial report this week.

Having closed the Paltalk merger on 7th October, the financial report looks at both its pre and post-merger performance.

The merger created a 51.1% revenue increase in Q4 2016, compared to the same period in 2015.

Total revenue for the full year increased by just 4.3% compared to 2015, however, increasing to $20.9m.

Subscription revenue also saw a boost, jumping 6.4% to $18.6m by year end.

SNAP’s adjusted EBITDA decreased by 98% to $11,800, but this did include $1.1m of “one-time merger expenses”.

The October merger came after SNAP posted falling results in Q3 of 2016, revenues decreasing by 16.1% for the nine months ending 30th September.

Speaking about its financial position after the merger, Judy Krandel, Chief Financial Officer, said: “SNAP is in the strongest financial condition it has been in for many years. We have a solid cash position with positive cash flow from operations in 2016 before one-time Merger expenses.”

In terms of its post-merger plans, CEO Alex Harrington spoke about the company’s strategy of diversifying its offerings and moving into areas like live video.

Harrington said: “Live video remains one of the hottest segments of the consumer internet, and SNAP is strategically well-positioned as a recognized incumbent, with proven technology and an established customer base, to disproportionately benefit as this segment continues to grow.

“As a result of the Merger, we diversified our product array from a single revenue generating product to five, across both video chat as well as interactive dating.”

The company also launched a new dating service for over-50 singles called 50more in the first quarter of 2016, and is working on a new live video chat app.

As of 12th March 2017, SNAP’s CEO also revealed the company had 183,000 active subscribers, and that subscription and virtual gift revenue made up 89% of the company’s total revenue in 2016.

Check out the full report here.

Simon Edmunds

Simon is the former editor of Global Dating Insights. Born in Newcastle, he has an English degree from Queen Mary, London and after working for the NHS, trained as a journalist with the Press Association. Passionate about music, journalism and Newcastle United.

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