NASHUA, N.H., August 3, 2015 – SMTP, Inc. (NASDAQ: SMTP), a global provider of cloud-based email marketing technologies, today reported its financial results for the second quarter ended June 30, 2015.
Second Quarter Financial Highlights
- Revenues for the second quarter 2015 were $3.6 million, a 143% increase, compared to $1.5 million for the second quarter 2014;
- Revenues for our SharpSpring product were $1.0 million during the second quarter 2015;
- Gross profit for the second quarter 2015 was $2.7 million, or 74% of revenue, compared to $1.1 million, or 76% of revenue, for the second quarter of 2014;
- Net loss for the second quarter 2015 was $1.9 million, compared to net income of $0.2 million for the same period last year;
- The net loss in the second quarter of 2015 included acquisition-related charges of $1.7 million, amortization of intangible assets of $0.4 million and stock compensation of $0.2 million, compared to stock compensation of $0.1 million in the second quarter of 2014;
- Adjusted EBITDA was $36,000 during the second quarter of 2015; and
- Core net loss was $20,000, or $0.00 core loss per share for the second quarter of 2015. Core results exclude acquisition-related costs, stock compensation expenses and restructuring expenses, adjusted for taxes, as detailed in the reconciliation below.
Recent Operational Highlights
- Added $1.3 million in new annual recurring revenue to the SharpSpring platform during Q2;
- Improved the company’s fast growing SharpSpring marketing automation platform by adding SharpSpring Social Assistant (a competitive feature with HubSpot Signals), a mobile CRM application, and multi-lingual capabilities, rolling out the product in eight additional languages during Q2 (giving SharpSpring broader local language capabilities than HubSpot, Act-On or Marketo);
- Executed a $5 million financing with the company’s two largest institutional shareholders, key executives, and the former owners of SharpSpring, allowing the company to reduce its cash-based earn out liability by $5 million and strengthen its balance sheet;
- Increased international sales of the versatile SharpSpring marketing automation platform through the company’s network of direct international sales and foreign resellers; and
- Announced we are on track to exceed the target of having $5 million of revenue under contract for SharpSpring by the end of 2015, which would be five times the level of revenue under contract at the time SharpSpring was acquired in August 2014.
“We are excited about the progress we are making this year. With the latest language, social and mobile capabilities recently announced for SharpSpring, we feel our marketing automation offering is more compelling than ever,” said Jonathan Strimling, CEO of SMTP. “With our track record of rapidly launching new product features and our unique agency partnership features, it is no wonder why more and more companies and competitors are taking notice of SharpSpring.”
Investor Conference Call
SMTP management will host its second quarter 2015 earnings conference call today, August 3, 2015, at 9 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 12:00 p.m. ET on, August 3, 2015, and continuing through 11:59 p.m. ET on August 17, 2015. The replay passcode is 13615727.
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 accounting principles generally accepted in the United States, 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 income (loss) to these measures is included for your reference in the financial section of this earnings press release.
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 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.
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 our most recent Form 10-K and other risks to which our Company is subject, and various other factors beyond the Company’s control.
Investor Relations Contact:
Chief Financial Officer