GAINESVILLE, FL — May 11, 2017 – SharpSpring, Inc. (NASDAQ: SHSP), a global provider of cloud-based marketing technologies, reported financial results for the first quarter ended March 31, 2017.
First Quarter 2017 Operational Highlights
- Added 211 new SharpSpring customers and finished the quarter with 1,200 agency customers and more than 5,650 businesses using the flagship platform.
- Partnered with Shutterstock to allow SharpSpring customers to access Shutterstock’s full collection of more than 125 million images directly within its marketing automation platform.
- Launched an integration with Enthusem by Prospect Smarter that allows customers to leverage information SharpSpring captures about prospects to dynamically deliver hyper-personalized mailers from Enthusem.
First Quarter 2017 Financial Results from Continuing Operations
- Revenue increased 8% to $3.0 million from $2.8 million in the same year-ago period. The increase was due to continued growth in the company’s flagship marketing automation solution, offset by a decrease in non-core product revenues.
- Gross profit increased 2% to $1.8 million from $1.7 million in the first quarter of 2016.
- Net loss from continuing operations totaled $1.5 million or $0.18 per share, compared to a net loss from continuing operations of $1.2 million or $0.16 per share in the first quarter of 2016.
- Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $1.7 million, compared to an adjusted EBITDA loss of $0.9 million in the same year-ago period.
- Core net loss from continuing operations (a non-GAAP metric reconciled below) totaled $1.2 million or $0.15 per share, compared to core net loss from continuing operations of $0.7 million or $0.09 per share in the same year-ago period.
- At quarter-end, cash totaled $7.7 million, compared to $8.7 million at year end.
“The first quarter of 2017 provided encouraging results for SharpSpring,” said company CEO Rick Carlson. “We continue to grow the business to new levels, and now have more than 1,200 agency partners and 5,650 businesses using our platform. More importantly though, is that we are understanding our customer base more and more as each month passes. Based on our historical customer patterns, we now have more reliable lifetime value (LTV) data than ever before, which is justifying our increased sales and marketing investment.
“Q1 was the first step forward in our plan for long-term success as a leaner, more capable, and more unified company. We have established incredibly solid footing within a multi-billion-dollar industry, and we’re poised to take additional steps forward as we leverage our more recent successes to accelerate future sales and build on our formidable market share.”
SharpSpring management will hold a conference call today (May 11, 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 June 1, 2017.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13660005
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.