Snap Interactive designs applications for use in many social networking programs. This is a relatively new space and is continuing to grow rapidly as millions of people join the social networking sites of Myspace.com, hi5.com, Facebook, and Bebo. Snap’s applications for online dating entitled “Are You Interested”, “Meet New People” and “Flirt With Me” are already on the top social networking sites.
When combined, all the Snap Interactive applications have over sixteen million installs and well over one million visitors a day. The Company utilized the explosive growth of social networking websites and the mushrooming effect that comes with these applications to create a high-margin business model with plenty of upside potential. Each application is spread virally by asking each member to invite their friends to join. The Company then imbedded advertising into the applications and turned an application with little upfront cash into a money maker. In doing so, the growth has been exponential.
As of the first quarter of ‘08, the Company became profitable and has enjoyed five quarters of consecutive revenue growth. Revenues increased from $35,383 for the three months ended September 30, 2007 to $871,324 for the three months ended September 30, 2008, an increase of $835,941, or 2,300%. Net Income completely reversed from a loss of $79,538 during the same time period to a stunning $410,283 profit. Net Income increased to $745,654 for the nine months ended September 30, 2008. The Company has issued revenue guidance for Q3 of $870,000, a 63% quarterly increase over Q2.
Clifford Lerner, Chairman and CEO of SNAP Interactive was quoted as saying, “We have a total of 17 million installations and about 1.4 million visits a day to its applications. About 14-15 million of the 17 million users are currently on Facebook, so a major opportunity for growth exists on the other social networks. As the Company matures and the industry evolves we will increase our focus on monetization and aggressively pursue new monetization strategies as they are rolled out. We are also very excited about the expansion opportunity that mobile dating represents and are beginning development on several new projects that we anticipate will keep SNAP at the leading edge of the industry’s evolution.”
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