SNAP Interactive has just released its financial and operational results for 2015, reporting a significant drop in revenue for the year, as it sets a new strategic plan to grow.
Last year, the company celebrated its highest ever total net income, after reporting $0.5m for the three months ending 30th September.
However, regardless of this strong result, SNAP saw a drop in total year-on-year revenue to $12,021,030 for the whole of 2015 – an 11.3% decrease from its $13,558,690 profit in 2014.
The company associated this drop to a 5.7% decrease in investment in sales and marketing, which led to a lower subscription revenue, and a decrease in weighted average currency exchange rates in 2015, which according to the company, resulted in a 5.6% decrease in bookings.
Its adjusted EBITDA was also down for the year, seeing a loss of approximately $66,000 for 2015.
Yet despite its lack of promising financial results for the year, SNAP’s report says it is confident of growth this year, thanks to important changes made to its operations over the past few months.
SNAP Interactive Plan For Success
In 2015, the online dating market witnessed many of its old, successful players make changes to their product portfolios, to ensure their continued success against innovative rival brands.
SNAP is no exception to this movement, with its recently-appointed CEO Alex Harrington launching a management and strategic transition for the company, in an effort to re-engage inactive members of its database and reposition its brands in the market.
As part of this, SNAP recently brought in two new board members, Neil J. Foster and small cap investment expert Judy F. Krandel.
And earlier this month, the company also breathed new life into AYI.com, relaunching it as a new brand called FirstMet.
According to SNAP, this relaunch has revived its commitment to mobile, whilst reducing the cost of innovation of its mobile platforms and working to refresh old users’ interests in its products.
Alex Harrington, SNAP’s CEO said: “I am pleased to say that the first order objectives we set forth in the management transition have all been accomplished.
“On March 3, 2016, we successfully rebranded AYI as FirstMet, a new, stronger brand designed to reengage inactive users and lower our cost of acquiring new users.
“Along with the debut of FirstMet, we rebuilt and relaunched the former AYI iPhone and Android apps using a more streamlined technology that will make it easier for us to continuously improve them.”
He added: “In addition, expense reductions of approximately $1.9 million for the year 2015 as compared to 2014 made it possible to increase cash balances over the latter half of 2015.
“In addition, Q3 and Q4 2015 contributed significantly higher Adjusted EBITDA relative to the same periods in 2014, even in the context of a managed decline in revenues.”
In terms of growth throughout the next year, SNAP said it will continue to drive growth in bookings by launching new products, growing and improving its mobile platforms – such as The Grade and FirstMet, and re-engaging more inactive users in its 30m-strong user database.
Harrington concluded: “2015 was a year of reinvention for SNAP. We appointed a new CEO, added three new members to the Board of Directors, grew our new product The Grade, rebranded the core product AYI as FirstMet, raised new capital and rebuilt and relaunched our mobile apps.
“We believe we have started the year auspiciously with two consecutive months and a projected third month of growth in bookings.
“We are proud of our accomplishments this year and expect that the foundations set in 2015 will lead to a strong 2016.”
You can read the full report here.