Snap Interactive Reports Results for the Quarter Ended June 30, 2015

NEW YORK, NY--(Marketwired - Aug 13, 2015) -  Snap Interactive, Inc. ("SNAP," the "Company," "we," "our" or "us") (OTCQB: STVI), a leading online dating provider, today announced financial and operational results for the quarter ended June 30, 2015.

Highlights:

• Total revenues decreased 7.6% and subscription revenue decreased 2.4% for the second quarter of 2015 relative to the comparable period in 2014, however, total revenues slightly increased by approximately $2.0 thousand as compared to the first quarter of 2015;
• SNAP incurred an operating loss of approximately $0.2 million, reflecting an improvement as compared to an operating loss of approximately $0.3 million for the comparable period in 2014;
• Cash and cash equivalents totaled approximately $1.9 million as of June 30, 2015, representing an increase of approximately $0.8 million from December 31, 2014;
• Generated positive Adjusted EBITDA of approximately $73.0 thousand, an improvement of approximately $11.0 thousand relative to the comparable period in 2014, and an improvement of approximately $685.0 thousand compared to the first quarter of 2015;
• Active subscriber count was 98.0 thousand as of June 30, 2015 which was relatively flat compared to the same period in 2014; and
• Increased user activity on The Grade, our new mobile dating application, reaching a cumulative usage milestone of more than 20.0 million swipes, as compared to cumulative usage of more than 8.0 million swipes as of March 31, 2015.
  
  

Financial Highlights

Current period compared with same period in prior year (unaudited):
		Three Months Ended
		June 30,
Statement of Operations and Cash Flow Results		2015				2014				% Change
Total revenue		$	3,188,539			$	3,450,010			(7.6	)%
Subscription revenue		$	3,075,868			$	3,151,002			(2.4	)%
Advertising and marketing expense		$	1,338,070			$	1,110,726			20.5	%
Net loss		$	(258,986	)		$	(259,678	)		(0.3	)%
Net cash used in operating activities		$	(393,872	)		$	(301,174	)		30.8	%
Non-GAAP Results
Active subscribers (at period end)			98,000				98,000			0.0	%
Bookings		$	2,918,409			$	3,021,860			(3.4	)%
Adjusted EBITDA		$	73,405			$	61,746			18.9	%

Current period compared to prior period (unaudited):
		Three Months Ended
Statement of Operations and Cash Flow Results		June 30, 2015				March 31, 2015				% Change
Total revenue		$	3,188,539			$	3,186,083			0.1	%
Subscription revenue		$	3,075,868			$	3,129,310			(1.7	)%
Advertising and marketing expense		$	1,338,070			$	1,726,097			(22.5	)%
Net loss		$	(258,986	)		$	(1,219,179	)		(78.8	)%
Net cash used in operating activities		$	(393,872	)		$	(1,052,770	)		(62.6	)%
Non-GAAP Results
Active subscribers (at period end)			98,000				102,700			(4.6	)%
Bookings		$	2,918,409			$	3,157,566			(7.6	)%
Adjusted EBITDA		$	73,405			$	(612,465	)		N/A

Balance Sheet Results:		June 30, 2015			December 31, 2014			% Change
Cash and cash equivalents		$	1,914,728		$	1,138,385		68.2	%
Deferred subscription revenue		$	1,822,872		$	1,952,075		(6.6	)%

Management Commentary 

Growth and New Initiatives

In the second quarter of 2015 we achieved important milestones in growth and new initiatives, including:

• Board of Directors - Appointed an independent director to our Board of Directors;
• Reengaged Users - Reactivated 1.2 million users from the AYI database via targeted email campaigns; and
• The Grade User Activity - As of June 30, 2015, cumulative usage of The Grade mobile application exceeded 20 million swipes.

SNAP's Chief Executive Officer, Clifford Lerner, said, "Q2 was a significant quarter for SNAP, during which we achieved several milestones, with the highlight being the appointment of our first independent director, Dr. Steven Fox, to our Board of Directors. We continue to seek two other independent board members to help us achieve our strategic objective to build a portfolio of mobile and Internet dating applications and brands. In addition, SNAP has developed a valuable asset in its database of over 30.0 million users. SNAP's campaign in the second quarter to reactivate inactive users by presenting AYI and third party offers was successful, engaging approximately 1.2 million users that had formerly been inactive. SNAP's infrastructure is highly scalable and our team is capable of supporting significant future growth and profitability as we seek to grow our portfolio."

Mr. Lerner continued, "The Grade, our unique female-friendly dating app and first addition to our portfolio, saw record usage in Q2, highlighted by an 81% increase in swipes in the second quarter of 2015 as compared to the first quarter of 2015, as seen in the chart below. Furthermore, The Grade also appeared in the nationally televised reality show Leah Remini: It's All Relative in the July 22nd episode 'Leah and Chelsea Handler's Dating Tips', in which The Grade is used by a cast member to help find a date. We're excited to see The Grade receive a high level of exposure to a national audience."

To view the chart on Total Swipe Count click the following link: https://www.accesswire.com/uploads/total swipe count.jpg

SNAP's Chief Operating Officer, Alex Harrington, said, "Looking at our business overall, SNAP faced revenue headwinds in the second quarter of 2015 relative to the second quarter of 2014. This was primarily due to unfavorable international exchange rates and the termination of a large, exclusive advertising contract in 2014 in favor of more flexible, non-exclusive advertising relationships in 2015. Relative to the first quarter of 2015, revenues increased slightly as our smaller advertising relationships continue to grow. AYI has delivered stable results, with subscription revenues decreasing nominally and active subscribers flat compared to the same period last year. In the near future, we expect that the focus for AYI will be on cash efficiency, rather than growth to support other investment initiatives in our portfolio."

Liquidity and Cash Flow

• Cash Balance - We ended the second quarter of 2015 with approximately $1.9 million of cash and cash equivalents on our balance sheet; and
• Reduction in Cash Used in Operating Activities: We reduced our consumption of cash from operating activities from nearly $1.1 million in the first quarter of 2015 to approximately $0.4 million in the second quarter of 2015.

Mr. Harrington added, "We were pleased to reduce expenses and cash burn during the second quarter of 2015 relative to the first quarter of 2015, in which we sustained a number of one-time, non-recurring items such as a repayment of an advance under an advertising agreement, expenses associated with the relocation of our corporate headquarters and a legal settlement and related legal fees. With our current liquidity position on a solid footing, we continue to manage cash conservatively and expect still more cash-efficiency in operations going forward, while continuing to explore new avenues for growth."

About Snap Interactive, Inc.

Snap Interactive, Inc. develops, owns and operates online dating applications for social networking websites and mobile platforms. The Grade is a mobile dating application catering to high quality singles. SNAP's flagship brand, AYI.com is a multi-platform online dating site with over one million monthly active users.

For more information on SNAP, please visit http://www.snap-interactive.com.

The contents of our websites are not part of this press release, and you should not consider the contents of these websites in making an investment decision with respect to our common stock.

Facebook® is a registered trademark of Facebook, Inc. iPhone® is a registered trademark of Apple Inc. Android™ is a trademark of Google Inc. AYI.com® is a registered trademark of Snap Interactive, Inc.

Forward-Looking Statements

This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to achieve break-even cash flow or positive Adjusted EBITDA; the ability to increase or recognize revenue, decrease expenses and increase the number of active subscribers or new subscription transactions; the ability to enter into new advertising agreements; the ability to diversify new user acquisition channels or improve the conversion of users to paid subscribers; the ability to anticipate and respond to changing user and industry trends and preferences; the intense competition in the online dating marketplace; the ability to release new applications or derive revenue from new applications; potential acquisitions of dating and social networking companies; the ability to use indebtedness to grow our business or increase the number of active subscribers and revenue; and circumstances that could disrupt the functioning of the Company's application and websites. In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Securities and Exchange Commission filings.

All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.

SNAP INTERACTIVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
			June 30, 2015				December 31, 2014
			(Unaudited)
Assets
Current assets:
	Cash and cash equivalents		$	1,914,728			$	1,138,385
	Credit card holdback receivable			229,160				648,759
	Accounts receivable, net of allowances and reserves of $59,038 and $42,533, respectively			264,341				221,128
	Short term security deposits			-				115,104
	Prepaid expense and other current assets			114,961				93,542
Total current assets				2,523,190				2,216,918
Fixed assets and intangible assets, net				418,494				563,123
Notes receivable				79,800				78,520
Long term security deposits				335,659				135,000
Investments				200,000				200,000
Total assets			$	3,557,143			$	3,193,561
Liabilities and stockholders' equity (deficit)
Current liabilities:
	Accounts payable		$	896,914			$	1,074,345
	Accrued expenses and other current liabilities			360,644				1,062,836
	Notes payable			-				400,000
	Deferred subscription revenue			1,822,872				1,952,075
	Deferred advertising revenue			-				13,427
Total current liabilities				3,080,430				4,502,683
Deferred rent, net of current portion				59,904				-
Convertible note payable, net of discount				1,023,020				-
Derivative liabilities				1,703,425				23,425
Capital lease obligations, net of current portion				113,676				149,055
Total liabilities				5,980,455				4,675,163
Commitments and Contingencies
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding				-				-
Common stock, $0.001 par value, 100,000,000 shares authorized, 50,007,826 and 49,507,826 shares issued, respectively, and 39,682,826 and 39,182,826 shares outstanding, respectively				39,683				39,183
Additional paid-in capital				12,394,444				11,858,489
Accumulated deficit				(14,857,439	)			(13,379,274	)
Total stockholders' equity (deficit)				(2,423,312	)			(1,481,602	)
Total liabilities and stockholders' equity (deficit)			$	3,557,143			$	3,193,561

SNAP INTERACTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
			2015				2014				2015				2014
Revenues:
	Subscription revenue		$	3,075,868			$	3,151,002			$	6,205,178			$	6,290,022
	Advertising revenue			112,671				299,008				169,444				452,341
Total revenues				3,188,539				3,450,010				6,374,622				6,742,363
Costs and expenses:
	Programming, hosting and technology expense			477,486				669,795				1,004,433				1,612,206
	Compensation expense			777,116				864,859				1,513,696				1,634,262
	Professional fees			176,728				262,876				411,361				513,031
	Advertising and marketing expense			1,338,070				1,110,726				3,064,167				2,582,937
	General and administrative expense			657,514				795,854				1,602,115				1,659,272
Total costs and expenses				3,426,914				3,704,110				7,595,772				8,001,708
Loss from operations				(238,375	)			(254,100	)			(1,221,150	)			(1,259,345	)
	Interest expense, net			(430,611	)			(5,578	)			(667,015	)			(3,705	)
	Change in fair value of derivative liabilities			410,000				-				410,000				70,275
Loss before provision for income taxes				(258,986	)			(259,678	)			(1,478,165	)			(1,192,775	)
Provision for income taxes				-				-				-				-
Net loss			$	(258,986	)		$	(259,678	)		$	(1,478,165	)		$	(1,192,775	)
Net loss per share of common stock:
Basic and diluted			$	(0.01	)		$	(0.01	)		$	(0.04	)		$	(0.03	)
Weighted average number of shares of common stock used in calculating net loss per share of common stock:
Basic and diluted				39,682,826				39,152,713				39,550,411				39,155,340

SNAP INTERACTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
			Six Months Ended June 30,
			2015				2014
Cash flows from operating activities:
Net loss			$	(1,478,165	)		$	(1,192,775	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization				96,007				86,873
Stock-based compensation expense				506,455				494,712
Loss on disposal of fixed assets				79,628				-
Amortization of debt issuance cost				60,198				-
Amortization of debt discount				397,863				-
Change in fair value of derivative liabilities				(410,000	)			(70,275	)
Changes in operating assets and liabilities:
	Restricted cash			-				104,893
	Credit card holdback receivable			419,599				(453,752	)
	Accounts receivable			(43,213	)			108,489
	Security deposits			(85,555	)			-
	Prepaid expenses and other current assets			(22,210	)			(13,303	)
	Accounts payable, accrued expenses and other current liabilities			(873,646	)			(89,913	)
	Deferred rent			49,027				(19,306	)
	Deferred subscription revenue			(129,203	)			131,996
	Deferred advertising revenue			(13,427	)			146,667
	Net cash used in operating activities			(1,446,642	)			(765,694	)
Cash flows from investing activities:
Purchase of property and equipment				(37,007	)			(3,731	)
Proceeds from sale of fixed assets				6,000				-
Purchase of non-marketable equity securities				-				(50,000	)
Issuance to employees of note receivable and accrued interest				(1,280	)			-
Notes receivable				-				47,818
Net cash used in investing activities				(32,287	)			(5,913	)
Cash flows from financing activities:
Payments of capital lease obligations				(30,479	)			-
(Repayment of) proceeds from promissory notes				(400,000	)			400,000
Payment of financing costs				(314,249	)			-
Proceeds from issuance of promissory notes				3,000,000				-
Net cash provided by financing activities				2,255,272				400,000
Net increase (decrease) in cash and cash equivalents				776,343				(371,607	)
Balance of cash and cash equivalents at beginning of period				1,138,385				927,352
Balance of cash and cash equivalents at end of period			$	1,914,728			$	555,745
Supplemental disclosure of cash flow information:
Cash paid in interest and taxes			$	90,000			$	-
Non-cash investing and financing activities:
Compound embedded derivative under the Note and Securities Purchase Agreement recorded as derivative liabilities			$	1,748,000			$	-
Warrants issued under the Advisory Services Agreement as additional consideration for the Note and recorded as derivative liabilities			$	342,000			$	-
Warrants issued for debt issuance costs			$	-			$	4,750
Common stock issued under the Advisory Services Agreement as additional consideration for the Note			$	30,000			$	-

SNAP INTERACTIVE, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
			Three Months Ended
			June 30, 2015				March 31, 2015			June, 30 2014
Reconciliation of Subscription Revenue to Bookings
	Subscription revenue		$	3,075,868			$	3,129,310		$	3,151,002
	Change in deferred subscription revenue			(157,459	)			28,256			(129,142	)
Bookings			$	2,918,409			$	3,157,566		$	3,021,860

			Three Months Ended
Reconciliation of net loss to Adjusted EBITDA:			June 30, 2015				March 31, 2015				June 30, 2014
Net loss			$	(258,986	)		$	(1,219,179	)		$	(259,678	)
	Interest expense, net			430,611				236,404				5,578
	Depreciation and amortization expense			35,188				60,819				43,610
	Loss on disposal of fixed assets			-				79,628				-
	Change in fair value of derivative liabilities			(410,000	)			-				-
	Stock-based compensation expense			276,592				229,863				272,236
Adjusted EBITDA			$	73,405			$	(612,465	)		$	61,746

Non-GAAP Financial Measures

The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, plus non-cash stock-based compensation and the non-cash change in fair value of derivative liabilities. The Company has provided in this release certain non-GAAP financial information including bookings and Adjusted EBITDA to supplement the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these non-GAAP financial measures are useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors.

Some limitations of bookings and Adjusted EBITDA as financial measures include that:

• Bookings does not reflect that we recognize subscription revenue from subscription fees over the length of the subscription term and subscription revenue from micro-transactions over a two-month period;
• Adjusted EBITDA does not (i) reflect cash capital expenditure requirements for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; (ii) the Company's working capital requirements; (iii) consider the potentially dilutive impact of stock-based compensation; (iv) reflect interest expense or interest payments on our outstanding indebtedness; and (v) reflect the change in fair value of warrants; and
• Other companies, including companies in our industry, may calculate bookings or Adjusted EBITDA differently or choose not to calculate bookings or Adjusted EBITDA at all, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider this non-GAAP financial information along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

IR Contacts:
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PR Contact:
Adam Handelsman
[e-mail]
212-518-7721