NASHUA, N.H., May 6, 2015 (GLOBE NEWSWIRE) -- SMTP, Inc. (Nasdaq:SMTP), a global provider of cloud-based marketing technologies, today announced that it has seen immediate success in its ability to reach new markets and larger customer accounts with more comprehensive solutions as the company's 2014 acquisition strategy begins to bear fruit. SMTP, Inc. acquired GraphicMail in Q4 2014 and SharpSpring in Q3 of that year and, and as a result, has recently closed several large sales with a combination of SMTP's email deliverability platform, GraphicMail's email marketing solution and SharpSpring's marketing automation systems for both new and existing customers. Closing these deals individually would not have been possible without the synergy created by the integrated companies in the wake of last year's acquisitions, and create an additional growth vector for the business, beyond SharpSpring's strong domestic and international growth with small businesses.
To date, the company sold high volume solutions to customers buying combined product solutions that are expected to represent over $250,000 in annualized recurring revenues (ARR). This total includes high volume GraphicMail accounts powered by SMTP's delivery platform, high volume SharpSpring accounts powered by SMTP, and customers buying a combination of all three products. These figures only include high-volume sales and do not include customers that could have been served by SharpSpring or GraphicMail without SMTP's robust email delivery platform. Notably, these high volume sales average over $25,000 in ARR per customer, which is far higher than SMTP's historic average customer size of $1,000, GraphicMail's historic average of $150 and SharpSpring's average of $7,000, with all figures shown in the form of annualized recurring revenues.
"Clearly, the full spectrum of solutions that SMTP now provides is compelling for large and fast-growing customers who seek a comprehensive digital marketing solution from a single vendor," said Jonathan Strimling, SMTP's Chief Executive Officer. "For the company, this means that we now have the ability to more easily sell to large accounts, higher retention rates for existing, fast-growth customers, and higher average annual recurring revenues when compared to the sales figures for each standalone product prior to their acquisition by SMTP."
Two recent cross-sell customers include French company e-Lostbag and South African company Daddy's Deals, both of whose needs could only be met by a combined solution. When e-Lostbag migrated its email-sending platform to a combined GraphicMail and SMTP's solution in Q1, it not only resulted in a customer of significant size but also allowed e-Lostbag to realize an increase in its email deliverability from 24% to 92%.
"With a subscriber base of over 400,000, it was crucial for DaddysDeals to find the right strategic partner for our Email Service Provider" commented Eric Edelstein, CEO of DaddysDeals, "GraphicMail's enthusiasm, professional manner and willingness to go the extra mile is backed up by SMTP's deep expertise in email delivery, which addresses today's critical challenge of effectively reaching our customers' inboxes. In addition, we plan to increasingly take advantage of SharpSpring's marketing automation solutions as we move forward.
Richer Functionality and Scalability for Fast-Growing Customers
Thanks to the new combined offerings, SMTP's customers are seeing higher performance in their digital marketing campaigns as they employ blended solutions that put enhanced deliverability, more compelling email content and world-class marketing automation, lead nurturing and call tracking at their command.
About SMTP, Inc.
SMTP, Inc. (Nasdaq:SMTP) is a global provider of cloud-based marketing solutions ranging from sophisticated marketing automation (via subsidiary SharpSpring) to comprehensive email and mobile marketing (via subsidiary GraphicMail) and scalable, cost-effective email deliverability services. The company's product family is hallmarked by its flexible architecture, ease-of-use and cost-effectiveness. SMTP augments its industry-leading technology with high-quality, multilingual customer service and support. SMTP, Inc. is headquartered in Nashua NH, and can be found on the web at www.smtp.com. SharpSpring, based in Gainesville, FL, can be found on the web at www.SharpSpring.com. GraphicMail, based in Geneva, Switzerland, can be found on the web at www.GraphicMail.com.
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