Company to Change Name to ‘SharpSpring, Inc.’ to Align With Focused Growth Strategy
GAINESVILLE, FL, November 4, 2015 – SMTP, Inc. (NASDAQ: SMTP), a global provider of
cloud-based email marketing technologies, today reported its financial results for the third
quarter ended September 30, 2015. Additionally, the company announced it will rename the
company “SharpSpring, Inc.” as of December 1 and will begin trading using the ticker “SHSP”
on the same date.
Third Quarter Financial Highlights
- Revenues for the third quarter 2015 were $3.74 million, a 129% increase, compared to
$1.63 million for the third quarter 2014;
- Revenues for our SharpSpring product were $1.25 million during the third quarter 2015, showing strong sequential growth from $1.0 million reported in the second quarter;
- Gross profit for the third quarter 2015 was $2.71 million, or 73% of revenue, compared to
$1.29 million, or 79% of revenue, for the third quarter of 2014;
- Net loss for the third quarter 2015 was $1.29 million, compared to a net loss of $0.10 million
for the same period last year;
- The net loss in the third quarter of 2015 included acquisition-related charges of $0.27
million, restructuring charges of $0.46 million, amortization of intangible assets of $0.38
million, and stock compensation of $0.22 million, compared to acquisition-related charges of
$0.37 million, amortization of intangible assets of $0.03 million, and stock compensation of
$0.17 million in the third quarter of 2014;
- Adjusted EBITDA was a loss of $0.22 million during the third quarter of 2015; and
- Core net loss was $0.26 million, or $0.04 core loss per share, for the third quarter of 2015.
Core results exclude acquisition-related costs, stock compensation expenses and
restructuring expenses, and are adjusted for taxes, as detailed in the reconciliation below.
Recent Operational Highlights
- Named Rick Carlson as Chief Executive Officer, reflecting the company’s focus on driving
growth of its SharpSpring product and focus on the marketing automation sector;
- Added 188 new SharpSpring customers, representing over $1.3 million in new annual
recurring revenue to the SharpSpring platform during Q3;
- Launched the SharpSpring media center, allowing users to manage, send and track clickthroughs for marketing and sales materials in one convenient place;
- Completed a financing raising $3.4 million, net of expenses, to provide growth capital and
stability to the company’s balance sheet;
- Achieved the initial target of having $5 million of revenue under contract for SharpSpring by
the end of 2015, which is five times the level of revenue under contract at the time SharpSpring was acquired in August 2014;
- Grew the SharpSpring agency customer base to over 580 agencies utilizing and reselling
SharpSpring by the end of Q3; and
- Announced the availability of SharpSpring mobile and the SharpSpring Social Assistant,
allowing users to work with their pipeline, leads, opportunities, contacts and campaigns from
anywhere, and see informative contact profiles instantly as they surf LinkedIn, Twitter, Gmail
“We continued to see strong revenue growth for our SharpSpring marketing automation solution during Q3 and we are excited to report that we exceeded the initial 2015 target we set for the business of having $5 million of annual revenues with more than a quarter to spare,” said Rick Carlson, CEO of SMTP. “While GraphicMail growth in the third quarter was tempered by headwinds from foreign exchange rate fluctuation and seasonality in both the US and Europe, we continue to be excited about the business and look forward to continued growth in Q4.”
Investor Conference Call
SMTP CEO Rick Carlson and CFO Edward Lawton will host the conference call, followed by a
question and answer period.
Date: Wednesday, November 4
Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)
Toll-free dial-in number: 1-888-438-5525
International dial-in number: 1-719-325-2281
Conference ID: 4530810
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 1-949-574-3860.
The conference call will be broadcast live and available for replay at
http://public.viavid.com/index.php?id=116944 and via the investor relations section of the
company’s website at www.smtp.com.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through November 25. Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4530810
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 Gainesville, FL, and
can be found on the web at 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. Forwardlooking 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.
Chief Financial Officer
Liolios Group, Inc.