– UpSnap Continues to Significantly Grow its Subscription-Based Clients –

UpSnap, Inc. (CSE: UP) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its third quarter (Q3) financial results for the three and nine month periods ended September 30, 2014.

“Our total revenue and mobile advertising revenue increased compared to our previous quarter and comparative quarter last year, and we believe that this is only the beginning of what we are expecting from the growth strategy that is being implemented into the Company,” said Bruce Howard CEO of UpSnap. “As indicated in our previous quarterly press release, we are dedicated in bringing significant level of confidence to our cash flow by increasing the number of subscribers to our local mobile product, hence growing the recurring portion of our revenue. We are delighted to announce that during the quarter we grew the number of our subscription clients and recurring portion of our revenue by 77% and 148% respectively, compared to our previous quarter. We also grew the number of our reseller partners to 15, and we expect to continue signing new partners in upcoming months.”

Third Quarter Financial Highlights

  • Total operating revenue increased by 8.4% to $0.95 million for Q3 2014, compared to $0.87 million for Q3 2013.
  • Mobile advertising revenue increased by 31% to $0.73 million for Q3 2014, compared to $0.56 million in Q3 2013, and increased by 34% compared to Q2 2014.
  • As a percentage of total revenue, recurring revenue was 11.2% in Q3 2014 compared to 4.6% in Q2 2014.
  • Loss from operations of $0.73 million for Q3 2014, compared to $0.61 million in Q3 2013.
  • Net loss and comprehensive loss of $0.79 million for Q3 2014, compared to $8.1 million in Q3 2013.
  • Basic and diluted loss per share of $0.00 in Q3 2014, compared to loss per share of $0.33 in Q3 2013.
  • Total cash position of $1.18 million as at September 30, 2014, compared to $0.14 million as at December 31, 2013.

Operational Highlights

  • During the quarter, the Company acquired 605 new local and national clients, of which 581 are on the new subscription model, compared to 341 new clients in Q2 2014, of which 329 were on the subscription model.
  • During the quarter, UpSnap secured 4 additional resellers for its subscription services.
  • To date, UpSnap has secured agreements with 15 resellers, leveraging their sales forces and customer relationships.