NASHUA, N.H., Nov. 12, 2014 (GLOBE NEWSWIRE) -- SMTP, Inc. (Nasdaq:SMTP), a global provider of marketing technologies and email delivery services, today reported its financial results for the third quarter ended September 30, 2014.
- Third quarter revenues of $1.63 million, up 11% from $1.47 million in the third quarter of 2013
- Completed acquisitions of SharpSpring and GraphicMail
- SharpSpring launched the first marketing automation solution featuring fully integrated call tracking, web tracking and CRM capabilities
- Appointed Edward Lawton as Chief Financial Officer
"During the third quarter, we made significant progress in our plan to expand beyond our core email delivery capabilities. By acquiring SharpSpring and GraphicMail we've transformed ourselves into an integrated marketing solutions provider for campaign management, automation, delivery and analytics," said Jonathan Strimling, CEO of SMTP, Inc. "The ability to offer a robust suite of products represents a real game-changer for SMTP, allowing us to address a much larger segment of the market and to effectively challenge the largest competitors in the industry.
"Over the coming months we will complete the integration of these acquisitions. During this time we will accelerate our investment in product development, sales and marketing. At the same time, we expect to eliminate certain operational redundancies, such as consolidating the delivery infrastructure of all three companies onto a unified platform. Overall, we are excited about the direction of the business and believe we are well-positioned to accelerate growth," concluded Mr. Strimling.
For the third quarter ended September 30, 2014, revenues were $1.63 million, up 11% from $1.47 million in the third quarter of 2013. Net loss for the third quarter of 2014 was $98,000 or $0.02 per fully diluted share, compared to net income of $320,000, or $0.10 per fully diluted share, for the same period last year. The decline was primarily due to increases in operating expenses related to corporate development and the acquisitions of SharpSpring and GraphicMail. In addition, the Company also strengthened its management team and invested in new resources to support the future growth of the business.
Gross profit in the third quarter of 2014 was $1.29 million, compared to $1.21 million in the same period last year.
Adjusted EBITDA for the third quarter of 2014 was $360,000, compared to $708,000 in the third quarter of 2013.
Cash at the end of the third quarter of 2014 was $5.9 million compared to $11.5 million at the end of the second quarter of 2014. The decrease in cash was due primarily to the acquisition of SharpSpring during the quarter.
Investor Conference Call
SMTP management will host its third quarter 2014 earnings conference call tomorrow, November 13th at 8:30 a.m. ET. Investors interested in participating on the live call can dial (877) 407-8133 within the U.S. or (201) 689-8040 from abroad. Investors can also access the call online through a listen-only webcast on SMTP's website at http://investors.smtp.com/.
The webcast will be archived on the SMTP investor relations website at http://investors.smtp.com/ for 90 days and a telephonic playback of the conference call will be available by calling (877) 660-6853 within the U.S. and (201) 612-7415 from abroad. The telephonic playback will be available beginning at 10:00 a.m. ET on Thursday, November 13, 2014, and continuing through 11:59 p.m. ET on Thursday, November 27, 2014. The replay passcode is 13594609.
About SMTP, Inc.
SMTP (Nasdaq:SMTP) is a leading provider of cloud-based email services offering solutions ranging from sophisticated marketing automation systems to cost-effective SMTP relay services. All of our services are built on our robust platform for email delivery, capable of scaling individual senders to hundreds of millions of emails per month. While we have industry-leading technology, we differentiate our offerings with our dedicated service and multi-lingual support. SMTP, Inc. is headquartered in Nashua NH, and can be found on the web at http://www.smtp.com.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1.A "Risk Factors" in the Company's most recent Form 10-K; other risks to which the Company is subject; other factors beyond the Company's control.
Non-GAAP Financial Measures
Adjusted EBITDA is a "non-GAAP financial measure" presented as a supplemental measure of the Company's performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes this measure provides additional meaningful information in evaluating its performance over time. However, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is included for your reference in the financial section of this earnings press release.
|CONSOLIDATED BALANCE SHEETS|
|September 30,||December 31,|
|Cash and cash equivalents||$ 5,875,325||$ 1,731,243|
|Deferred income taxes||340,681||183,435|
|Income taxes receivable||453,446||--|
|Other current assets||174,319||116,522|
|Total current assets||6,918,332||2,056,224|
|Property and equipment, net of accumulated depreciation of $220,945 and $145,261||282,455||327,342|
|Other intangible assets, net of accumulated amortization of $25,667 and $9,000||3,544,333||--|
|Deferred income taxes||60,598||50,099|
|Total assets||$ 19,251,590||$ 2,463,660|
|Liabilities and Shareholders' Equity|
|Deferred revenue||$ 478,883||$ 334,328|
|Income taxes payable||--||144,280|
|Allowance for refunds and chargebacks||2,799||2,965|
|Accrued expenses and other current liabilities||164,096||27,174|
|Total current liabilities||908,212||588,321|
|Earn out liability||$ 6,963,000||--|
|Total liabilities||$ 7,871,212||$ 588,321|
|Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at September 30, 2014 and December 31, 2013||--||--|
|Common stock, $0.001 par value, 50,000,000 shares authorized, 5,022,599 and 3,127,598 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively||5,022||3,126|
|Additional paid in capital||11,375,356||2,241,749|
|Total shareholders' equity||11,380,378||1,875,339|
|Total liabilities and shareholders' equity||$ 19,251,590||$ 2,463,660|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Net revenue||$ 1,631,244||$ 1,468,962||$ 4,602,068||$ 4,233,547|
|Cost of services||340,649||255,095||1,019,032||782,849|
|Sales and marketing||380,172||295,005||776,485||677,365|
|Research and development||141,923||81,226||361,932||186,196|
|General and administrative||973,016||358,788||2,020,617||1,159,254|
|Total operating expenses||1,520,778||735,019||3,184,701||2,023,047|
|Operating income (loss):||(230,183)||478,848||398,335||1,427,651|
|Other income (expense):|
|Loss on disposal of fixed assets||(10,172)||--||(10,172)||--|
|Total other income (expense)||(9,805)||--||(9,651)||--|
|Income (loss) before income taxes||(239,988)||478,848||388,684||1,427,651|
|Provision (benefit) for income tax||(142,160)||159,261||111,972||497,058|
|Net income (loss)||$ (97,828)||$ 319,587||$ 276,712||$ 930,593|
|Net income per share:|
|Basic||$ (0.02)||$ 0.11||$ 0.06||$ 0.31|
|Diluted||$ (0.02)||$ 0.10||$ 0.06||$ 0.30|
|Weighted average common shares outstanding:|
|RECONCILIATION TO ADJUSTED EBITDA|
|Three Months Ended|
|Net income (loss)||$ (98)||$ 320|
|Provision (benefit) for income tax||(142)||159|
|Other (income) expense||10||--|
|Depreciation & amortization||57||20|
|Non-cash stock compensation||166||209|
|Acquisition related charges||367||--|
|Adjusted EBITDA||$ 360||$ 708|
CONTACT: Investor Contacts: Jeffrey Goldberger / Christopher Harrison KCSA Strategic Communications 212-896-1249 / 212-896-1267 firstname.lastname@example.orgSource:SMTP, Inc.