UpSnap Announces Full Year and Q4 2016 Financial Results

TORONTO, ONTARIO--(Marketwired - April 24, 2017) - UpSnap Inc. (CSE:UP) (CSE:UP.CN) ("UpSnap" or the "Company"), a leading provider of mobile advertising solutions, today announced its fourth quarter (Q4) financial results for the three and twelve-month periods ended December 31, 2016.

"Introducing Facebook advertising into our product mix is allowing our clients another effective mobile advertising solution. As a result, we are seeing growth in our average spend among our SMB clients," said Bruce Howard, CEO of UpSnap. "As we move our focus into 2017, we have expanded our sales team in the US as well as in Canada in an effort to grow our market presence."

Annual Financial Highlights

• Total operating revenue remained flat at $5.06 million for FY 2016, compared to $5.07 million in FY 2015.
• Mobile advertising revenue grew by 4% to $4.36 million for FY 2016, compared to $4.18 million in FY 2015.
• Total operating costs decreased 5% to $6.00 million for FY 2016, compared to $6.26 million in FY 2015.
• Net loss and comprehensive loss for the year decreased 29% to $0.92 million for FY 2016, compared to $1.30 million in FY 2015.

Fourth Quarter Financial Highlights

• Total operating revenue for the fourth quarter of 2016 was $1.04 million compared to $1.24 in the fourth quarter of 2015.
• Mobile advertising revenue remained steady at $0.9M in Q4 2016 as compared to $1.0 million in Q4 2015.
• Monthly average revenue per subscriber of US$73.97 for Q4 2016 as compared to US$65.19 in Q4 2015, an increase of 14%.
• Recurring revenue was 34% of total revenue in Q4 2016, compared to 30% in Q4 2015.
• Total operating cost of $1.36 million for Q4 2016, compared to $1.57 million in Q4 2015, a decrease of 13%.
• Loss from operations decreased 3% to $0.32 million for Q4 2016, compared to $0.33 million in Q4 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 December 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.