UpSnap Announces First Quarter 2016 Financial Results

TORONTO, ONTARIO--(Marketwired - May 30, 2016) - UpSnap Inc. (CSE:UP) ("UpSnap" or the "Company"), a leading provider of mobile advertising solutions, today announced its first quarter (Q1) financial results for the three-month period ended March 31, 2016.

"While total revenue remained relatively steady compared to Q1 of last year, we are pleased with the growth in our subscription revenue as well as the 64% growth in total subscribers," said Bruce Howard, CEO of UpSnap Inc. "We are confident in the groundwork we have laid in order to move forward by continuing to capture market share and grow our organization. Our strategy remains focused on continuing to grow our revenue base and reach profitability."

First Quarter Financial Highlights

• Total operating revenue was $1.25 million for Q1 2016, compared to $1.39 million in Q1 2015.
• Total subscriber revenue of $0.51 million in Q1 2016 totaling 41% of revenue compared to $0.32 million of subscriber revenue totaling 23% of revenue in Q1 2015
• Mobile advertising revenue was $1.02 million for Q1 2016, compared to $1.18 million in Q1 2015.
• Total operating costs were $1.56 million for Q1 2016, compared to $1.72 million in Q1 2015.
• Net loss and comprehensive loss for the quarter was $0.31 million, compared to $0.36 million in Q1 2015.
• Basic and diluted loss per share of $0.00 in Q1 2016, compared to loss per share of $0.00 in Q1 2015.
• Total cash position of $0.56 million as at March 31, 2016, compared to $1.04 million as at December 31, 2015.

Operational Highlights

• Recurring revenue comprised 41% of total revenue in Q1 2016, compared to 23% in Q1 2015
• Total subscribers rose 64% year over year from 1,143 in Q1 2015 to 1,876 in Q1 2016
• The Company reduced net and comprehensive loss 14% to $0.31 million in Q1 2016 compared to a loss of $0.36 million in Q1 2015.
• The Company reduced operating costs 9.3% to $1.56 million in Q1 2016, compared to operating costs of $1.72 million in Q1 2015.

This news release should be read in conjunction with UpSnap's audited financial statements and the accompanying notes, as at and for the year ended March 31, 2016, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the UpSnap website at www.upsnap.com.