SharpSpring Reports Record Fourth Quarter and Full Year 2015 Results
GAINESVILLE, FL — February 17, 2016 – SharpSpring, Inc. (NASDAQ: SHSP), a global provider of cloudbased marketing technologies, reported its financial results for the fourth quarter and full year ended December 31, 2015.
Fourth Quarter 2015 Operational Highlights
- Secured 206 new SharpSpring customers, up 100% from last year.
- Finalized plan for the migration of GraphicMail customers onto the SharpSpring platform, which is on track to begin in late Q1 or early Q2 2016.
- Changed company name to “SharpSpring” to better align with its focus on marketing automation.
Fourth Quarter 2015 Financial Results
- Revenue increased 37% to a record $4.0 million from $2.9 million in the same year-ago period, driven by the company’s flagship SharpSpring marketing automation platform.
- Gross profit increased 25% to a record $2.8 million from $2.2 million in the fourth quarter of 2014.
- Including non-cash charges, net loss totaled $3.9 million or $(0.54) per share, compared to net loss of $1.1 million or $(0.21) per share in the fourth quarter of 2014.
- Adjusted EBITDA (a non-GAAP metric reconciled below) totaled a loss of $218,000, compared to an adjusted EBITDA loss of $52,000 in the same year-ago period.
- Core net loss (a non-GAAP metric reconciled below) totaled $331,000 or $(0.05) core net loss per share. This compares to a core net loss of $88,000 or $(0.02) core net loss per share in the same year-ago period.
- As of December 31, 2015, cash totaled $4.2 million, compared to $4.5 million at the end of the prior quarter.
2015 Financial Results
Revenue increased 95% to a record $14.6 million from $7.5 million in 2014.
Gross profit was a record $10.6 million in 2015, an increase of 84% from $5.8 million in 2014.
Including non-cash charges, net loss totaled $8.2 million or $(1.30) per share, compared to a net loss of $0.8 million or $(0.17) per share in 2014.
Adjusted EBITDA loss in 2015 totaled $511,000, compared to adjusted EBITDA income of $1.3 million in 2014.
Core net loss in 2015 was $0.8 million or $(0.12) core net loss per share, compared to core net income of $618,000 or $0.12 core net income per share in 2014.
“2015 marked a transformational year in the operational and financial development of SharpSpring,” said company CEO Rick Carlson. “Our progress was highlighted by continued strong growth in the number of customers on our marketing automation platform, which was up 169% from last year to a record 806 customers.
“In order to further accelerate our growth and market presence, we plan to expand our marketing programs during 2016. Although the majority of our focus will continue to be on agencies, we plan to initiate some marketing campaigns targeting end users as direct customers. This important shift will expand our market size and opportunity exponentially.
“We believe we are in an ideal position to capture significant opportunities in the high-growth and largely untapped marketing automation space. Our success will be measured by our ability to sign new customers and retain and upsell our existing customers. In turn, this will help us achieve our financial goals for 2016, which include doubling our SharpSpring revenue and tripling the number of businesses using our platform.”
SharpSpring management will hold a conference call today (February 17, 2016) 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.
Date: Wednesday, February 17, 2016
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in number: 1-877-407-4018
International dial-in number: 1-201-689-8471
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 here, as well as in the investor relations section of the company’s website at investors.sharpspring.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time through March 9, 2016.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 13629575
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 loss to these measures is included for your reference in the financial section of this earnings press release.
About SharpSpring, Inc.
SharpSpring, Inc. (NASDAQ: SHSP) is a rapidly growing, global provider of cloud-based marketing and email software solutions, ranging from marketing automation to scalable transactional email, email marketing, and mobile marketing services. The company’s product lines, which include SharpSpring, SMTP and GraphicMail, are known for their innovation, flexible architecture, ease of use, and cost- effectiveness — all backed by high-quality, multilingual customer support. Learn more at www.sharpspring.com, www.smtp.com, and www.graphicmail.com. (SharpSpring, Inc. was formerly known as SMTP, Inc., and traded under the symbol NASDAQ: SMTP.)
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, 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.