OPW -- Apr 18 -- Just two weeks after announcing the launch of their application “Are You Interested” on the iPhone, SNAP released their 2008 operating results showing a YOY 25% increase from Q3 2008, and 609% from Q4 2007.
Despite the tough times some companies are facing right now, SNAP seems to have their act together. Not only did the company close the year with $3 million in revenues (as opposed to their 2007 close of $425k), they have begun making great strides towards increasing their available product. President and CEO Clifford Lerner stated, “As evidenced by our recent iPhone™ application launch, we are making significant progress in enhancing our market footprint and product offering.” And though their main focus was not getting their new product ready, steadily increasing revenues throughout 2008 gave them one less thing to worry about.
SNAP ended Q1 with revenue of $520,000 and net income just short of $200,000. Their Facebook applications “Are You Interested”, “Meet New People” and “Flirt With Me” had installations in excess of 12 million by that time. Q2 revenue was fairly consistent with Q1 at $533,000 and net income of $144,000. Lerner expressed the company’s excitement at their being able to “demonstrate a level of financial consistency” during this time. Q1 and Q2 reports did not provide comparative number for the same time in 2007. Q3 revenue was $871k, a 63% increase from 2007, with net income showing a 183% increase at $410k.
Efforts to keep costs down during 2008 were made, though it was noted that “expansion and hiring of new programmers became necessary as we continued to grow.” Cost of Revenue was $770k, up 1053% from $67k in 2007. Total operating costs were only up 2.5% from $1.27 million to $1.30 million, and included research and development, compensation and advertising expenses. Net income was noted to be approximately $0.08 per share, compared to a loss of ($0.09) per share in 2007.
When all was said and done, SNAP had a good 2008 with gross profits up 526% from 2007, at $2.24 million compared to $425,000. Lerner stated, “our recent focus has shifted toward new product development as we keep our eyes firmly planted on our long-term vision for SNAP to be a leader in the social dating and mobile dating spaces.” They are already well on their way, and looking forward to a bright 2009!