GAINESVILLE, FL – August 9, 2017 – SharpSpring, Inc. (NASDAQ: SHSP), a global provider of cloud-based marketing technologies, reported financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Operational Highlights
- Added 208 new SharpSpring customers and finished the quarter with 1,252 agency customers and 6,090 businesses using the flagship platform.
- Reported net revenue attrition of 1.3% across all customers and just 0.2% for agency partners, showing that attrition was largely offset by expansion revenue.
- Strengthened board of directors with appointments of former Microsoft executive Marietta Davis and ARI Network Services CEO Roy W. Olivier.
- Launched feature enhancements to integrate Shutterstock’s massive image library into our email and landing page designers, update the email designer and create a “traffic source” report to provide insight into the origin of web traffic.
- Joined the Russell Microcap® Index.
Second Quarter 2017 Financial Results from Continuing Operations
- Flagship SharpSpring product revenues grew 48% from $2.1 million in Q2 last year to $3.1 million this year, and now comprises 95% of total revenues. Overall revenue increased 12% to $3.25 million from $2.9 million in the same year-ago period, which includes legacy products.
- Gross profit increased 4% to $2.0 million from $1.9 million in the second quarter of 2016.
- Net loss from continuing operations totaled $1.3 million or $0.16 per share, compared to a net loss from continuing operations of $0.7 million or $0.09 per share in the second quarter of 2016.
- Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $1.3 million, compared to an adjusted EBITDA loss of $0.7 million in the same year-ago period.
- Core net loss from continuing operations (a non-GAAP metric reconciled below) totaled $1.1 million or $0.13 per share, compared to core net loss from continuing operations of $315,000 or $0.04 per share in the same year-ago period.
- At quarter-end, cash totaled $7.2 million, compared to $7.7 million at the end of the first quarter.
“Our second quarter results were consistent with our plan, helping to establish a solid foundation for SharpSpring in building momentum for the second half of the year,” said company CEO Rick Carlson. “In addition to achieving nearly 50% growth for our flagship marketing automation platform, we now have over 1,250 agency partners and nearly 6,100 businesses using our platform. And as we continue to accelerate our sales and marketing initiatives, our lead flow has been increasingly strengthened, the results of which we expect to materialize in the coming quarters.
“In addition to providing steady growth in our core product, this quarter was also about further solidifying our leadership through the appointments of technology veterans Marietta Davis and Roy W. Olivier to our board of directors and the recent appointment of Steve Huey as our new chairman. Looking ahead, we are increasingly optimistic about our growth prospects for the second half of 2017 and longer term.”
SharpSpring management will hold a conference call today (August 9, 2017) 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: 877-451-6152
International number: 201-389-0879
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 August 30, 2017.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13666537
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.
Chief Financial Officer
Liolios Group, Inc.
Matt Glover or Najim Mostamand