Snap Interactive has seen its revenue dip in the second quarter of 2016, as the company continues to see active subscriber figures dropping.
In its Q2 2016 financial statement, Snap reported total revenues of $2.6m, a decrease of $63,000 compared to the quarter before, and an 18% decrease compared to 2015.
This was the result of a 20% decrease in revenue from subscriptions, ending the second quarter with $2.5m in subscription revenue.
Since the end of 2015, the company has also seen a drop in active subscribers, numbers falling from 98,000 to 78,700.
Snap said this drop was due to a 15.4% decrease in ad spend on flagship brand FirstMet – the rebranded AreYouInterested.com.
On FirstMet, Snap is currently offering an upgrade to its premium service for a 75% discount in an effort to boost these falling subscriber numbers.
The New York company’s net loss also increased by 224%, from a loss of $258,986 in 2015 to $841,133 this year.
Speaking about the results, Snap CEO Alex Harrington said the poor results were explainable because of the company’s new approach in the quarter, saying: “In the second quarter of 2016 we focused on forward-looking strategic initiatives.
“Most prominently, we kicked-off development on a new product in the Snap portfolio, which we expect to launch commercially in the fourth quarter.
“This is the cornerstone of our internal growth strategy building upon Snap’s large user database. By cross selling users across our product array, we expect to increase the value we derive from each user acquired.
“We are also excited to announce that the new product will focus on users 50 years and older, which is an age group that has shown one of the fastest adoption rates of dating products in recent years.
“This niche is also a good fit for Snap’s portfolio since FirstMet has long targeted users 35 and older, and therefore users over 50 represent a significant portion of our database.”
The CEO also said it plans to open in new markets, and said the company had seen success with email winback programmes reengaging around 647,000 inactive users.
Read more about the results here.