SMTP, Inc. reports third quarter 2015 financial results

Screen Shot 2015-12-10 at 11.46.24 AM

Company to Change Name to ‘SharpSpring, Inc.’ to Align With Focused Growth Strategy

SMTP, Inc. (NASDAQ: SMTP), a global provider of
cloud-based email marketing technologies, today reported its financial results for the third
quarter ended September 30, 2015. Additionally, the company announced it will rename the
company “SharpSpring, Inc.” as of December 1 and will begin trading using the ticker “SHSP”
on the same date.

Third Quarter Financial Highlights

  • Revenues for the third quarter 2015 were $3.74 million, a 129% increase, compared to
    $1.63 million for the third quarter 2014;
  • Revenues for our SharpSpring product were $1.25 million during the third quarter 2015, showing strong sequential growth from $1.0 million reported in the second quarter;
  • Gross profit for the third quarter 2015 was $2.71 million, or 73% of revenue, compared to
    $1.29 million, or 79% of revenue, for the third quarter of 2014;
  •  Net loss for the third quarter 2015 was $1.29 million, compared to a net loss of $0.10 million
    for the same period last year;
  • The net loss in the third quarter of 2015 included acquisition-related charges of $0.27
    million, restructuring charges of $0.46 million, amortization of intangible assets of $0.38
    million, and stock compensation of $0.22 million, compared to acquisition-related charges of
    $0.37 million, amortization of intangible assets of $0.03 million, and stock compensation of
    $0.17 million in the third quarter of 2014;
  •  Adjusted EBITDA was a loss of $0.22 million during the third quarter of 2015; and
  • Core net loss was $0.26 million, or $0.04 core loss per share, for the third quarter of 2015.
    Core results exclude acquisition-related costs, stock compensation expenses and
    restructuring expenses, and are adjusted for taxes, as detailed in the reconciliation below.

Recent Operational Highlights

  • Named Rick Carlson as Chief Executive Officer, reflecting the company’s focus on driving
    growth of its SharpSpring product and focus on the marketing automation sector;
  • Added 188 new SharpSpring customers, representing over $1.3 million in new annual
    recurring revenue to the SharpSpring platform during Q3;
  • Launched the SharpSpring media center, allowing users to manage, send and track clickthroughs for marketing and sales materials in one convenient place;
  • Completed a financing raising $3.4 million, net of expenses, to provide growth capital and
    stability to the company’s balance sheet;
  • Achieved the initial target of having $5 million of revenue under contract for SharpSpring by
    the end of 2015, which is five times the level of revenue under contract at the time SharpSpring was acquired in August 2014;
  • Grew the SharpSpring agency customer base to over 580 agencies utilizing and reselling
    SharpSpring by the end of Q3; and
  • Announced the availability of SharpSpring mobile and the SharpSpring Social Assistant,
    allowing users to work with their pipeline, leads, opportunities, contacts and campaigns from
    anywhere, and see informative contact profiles instantly as they surf LinkedIn, Twitter, Gmail
    and Facebook.

“We continued to see strong revenue growth for our SharpSpring marketing automation solution during Q3 and we are excited to report that we exceeded the initial 2015 target we set for the business of having $5 million of annual revenues with more than a quarter to spare,” said Rick Carlson, CEO of SMTP. “While GraphicMail growth in the third quarter was tempered by headwinds from foreign exchange rate fluctuation and seasonality in both the US and Europe, we continue to be excited about the business and look forward to continued growth in Q4.”

Related posts