Consecutive Quarters of Record-Setting New Sales Numbers Drive Accelerated Growth
GAINESVILLE, FL – March 6, 2018 – SharpSpring, Inc. (NASDAQ: SHSP), a leading cloud-based marketing automation platform, reported financial results for the fourth quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Operational Highlights
- Added a record 266 new SharpSpring customers. At quarter-end, SharpSpring had 1,428 agency customers reselling its solution to their respective clients.
- Surpassed 6,700 businesses using the SharpSpring platform to generate leads, convert more leads to sales and measure the ROI of their marketing campaigns.
- Launched powerful new social media tools, SharpSpring Social and a new Content Calendar, providing SharpSpring users with a comprehensive solution to centrally manage their entire digital marketing strategy.
Fourth Quarter 2017 Financial Results from Continuing Operations
- Flagship SharpSpring product revenue grew 36% to a record $3.6 million from $2.7 million in the same year-ago period.
- Total revenue (which includes legacy products) increased 32% to $3.8 million from $2.9 million in the same year-ago period.
- Gross profit increased to $2.5 million, or 68% of total revenue, compared to $1.7 million, or 59% of total revenue, in the same year-ago period.
- Net loss from continuing operations totaled $504,000, or $0.06 per share, compared to a net loss from continuing operations of $2.2 million, or $0.26 per share, in the fourth quarter of 2016.
- Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $1.3 million, compared to an adjusted EBITDA loss of $1.2 million in the same year-ago period.
- Core net loss from continuing operations (a non-GAAP metric reconciled below) totaled $386,000 million, or $0.05 per share, an improvement from core net loss from continuing operations of $851,000, or $0.10 per share, in the same year-ago period.
- At quarter-end, the company had $5.4 million in cash and no debt.
Full Year 2017 Financial Results from Continuing Operations
- Flagship SharpSpring product revenue grew 41% to a record $12.8 million from $9.1 million in 2016. As a percentage of total revenue, SharpSpring’s flagship product was 95%, compared to 79% in 2016.
- Total revenue (which includes legacy products) increased 17% to $13.4 million from $11.5 million in 2016.
- Gross profit increased to $8.5 million, or 63% of total revenue, from $7.1 million, or 61% of total revenue, in 2016.
- Net loss from continuing operations totaled $5.0 million, or $0.59 per share, compared to a net loss from continuing operations of $5.7 million, or $0.72 per share, in 2016.
- Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $5.6 million, compared to an adjusted EBITDA loss of $3.7 million in 2016.
- Core net loss from continuing operations (a non-GAAP metric reconciled below) totaled $4.0 million, or $0.48 per share, compared to core net loss from continuing operations of $2.5 million, or $0.31 per share, in 2016.
“We continued to execute against our plan and generated strong results in the fourth quarter,” said SharpSpring CEO Rick Carlson. “In Q4 specifically, we hit our second consecutive new sales record and grew our revenues by more than 30%, all while improving our margins throughout the year. These positive results for both the quarter and full year were driven by the continued strength of our flagship marketing automation platform, whose topline grew over 40% during the year, resulting in more than 1,400 agency customers and over 6,700 businesses now using our solution.
“From a product perspective, we continued to introduce powerful features over the course of 2017, such as our advanced visual workflow builder, integrations that extend the platform like Shutterstock and PieSync, and more recently, our new social media management tools. We are dedicated to making SharpSpring better, more functional and easier to use while remaining priced at a fraction of the cost of our competitors. We believe this commitment, combined with our ongoing initiative to accelerate sales with increased resources allocated toward sales and marketing, will lead to long-term growth and value for our shareholders.”
SharpSpring management will hold a conference call today (March 6, 2018) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
Company CEO Rick Carlson and CFO Edward Lawton will host the call, followed by a question and answer period.
U.S. dial-in number: 877-407-9124
International number: 201-689-8584
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through March 20, 2018.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay Passcode: 26372
About SharpSpring, Inc.
SharpSpring, Inc. (NASDAQ: SHSP) is a rapidly growing, highly-rated global provider of affordable marketing automation delivered via a cloud-based Software-as-a Service (SaaS) platform. Thousands of businesses around the world rely on SharpSpring to generate leads, improve conversions to sales, and drive higher returns on marketing investments. Known for its innovation, open architecture and free customer support, SharpSpring offers flexible monthly contracts at a fraction of the price of competitors making it an easy choice for growing businesses and digital marketing agencies. Learn more at www.sharpspring.com.
Non-GAAP Financial Measures
Adjusted EBITDA, core net loss and core net loss per share are “non-GAAP financial measures” presented as supplemental measures of the company’s performance. These metrics are not presented in accordance with United States generally accepted accounting principles, or GAAP. The company believes these measures provide additional meaningful information in evaluating its performance over time. However, the measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the company’s results as reported under GAAP. A reconciliation of net loss to these measures is included for your reference in the financial section of this earnings press release.
Important Cautions Regarding Forward-Looking Statements
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, our ability to successfully utilize our cash to develop current and future products, delays due to issues with outsourced service providers, those events and factors described by us in Item 1. A “Risk Factors” in our most recent Form 10-K and other risks to which our Company is subject, and various other factors beyond the Company’s control. Except to the extent required by law, the Company undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statements to reflect subsequent events, new information or future circumstances.