NASHUA, N.H., March 4, 2015 (GLOBE NEWSWIRE) -- SMTP, Inc. (Nasdaq: SMTP ) (the "Company"), a global provider of cloud-based e-mail services and marketing automation solutions, today reported its financial results for the fourth quarter and year ended December 31, 2014.
Fourth Quarter and Year-End 2014 Financial Highlights
- Revenues for the fourth quarter 2014 were $2.9 million, a 91% increase, compared to $1.5 million for the fourth quarter 2013. Revenues for the year ended December 31, 2014 increased to a record $7.5 million, up 30% from $5.8 million in 2013;
- Gross profit for the fourth quarter 2014 was $2.2 million, a 68% increase, compared to $1.3 million for the fourth quarter of 2013. Gross Profit for the year 2014 was $5.8 million, up 23% from $4.7 million in 2013;
- Net loss for the fourth quarter 2014 was $1.1 million, compared to net income of $0.3 million for the same period last year. The Company posted a net loss of $0.8 million for the year ended December 31, 2014, compared to net income of $1.3 million in 2013;
- The net loss in the fourth quarter of 2014 included acquisition-related charges of $0.8 million, amortization of intangible assets of $0.3 million and stock compensation of $0.2 million, compared to stock compensation of $0.1 million in the fourth quarter of 2013.
Recent Operational Highlights
- Added approximately $700,000 in new annual recurring revenue to the SharpSpring platform during Q4, showing strong growth for a product that has been in the market less than a year;
- Accumulated more than 250 marketing agency partners using and distributing the SharpSpring product by November, within ten months of the product launch in early 2014;
- Completed the acquisition of GraphicMail on October 17, 2014, adding an international distribution network, a full service email campaign management solution product offering and strong international sales leadership to SMTP;
- SMTP's email delivery capabilities were successfully integrated into the GraphicMail and SharpSpring technology platforms, allowing it to target customers sending larger volumes of emails.
"During 2014, we successfully executed a number of strategic initiatives that have changed the complexion of SMTP and added long-term value to the Company. Specifically, the addition of GraphicMail and SharpSpring has proven to be highly complementary to our already capable email delivery platform," said Jonathan Strimling, CEO of SMTP. "Out of the gate, these acquisitions have had a positive impact on SMTP. In addition to greatly expanding our product offering, providing us with global distribution and strengthening our team, the unique combination of these companies has accelerated our growth and enabled SMTP to compete successfully head-to-head against Hubspot and Marketo."
Liquidity
As of December 31, 2014, the Company had cash of $2.8 million, up 65% from $1.7 million at the end of 2013.
Investor Conference Call
SMTP management will host its fourth quarter and full year 2014 earnings conference call tomorrow, March 5 th , at 8:30 a.m. ET. Investors interested in participating on the live call can dial (877) 407-8133 within the U.S. or (201) 689-8040 from abroad. Investors can also access the call online through a listen-only webcast on SMTP's website at http://investors.smtp.com/ .
The webcast will be archived on the SMTP investor relations website at http://investors.smtp.com/ for 90 days and a telephonic playback of the conference call will be available by calling (877) 660-6853 within the U.S. and (201) 612-7415 from abroad. The telephonic playback will be available beginning at 10:00 a.m. ET on, March 5, 2015, and continuing through 11:59 p.m. ET on Thursday, March 19, 2015. The replay passcode is 13602284.
About SMTP, Inc.
SMTP (Nasdaq: SMTP ) is a leading provider of cloud-based email services offering solutions ranging from sophisticated marketing automation systems to cost-effective SMTP relay services. All of our services are built on our robust platform for email delivery, capable of scaling individual senders to hundreds of millions of emails per month. While we have industry-leading technology, we differentiate our offerings with our dedicated service and multi-lingual support. SMTP, Inc. is headquartered in Nashua NH, and can be found on the web at http://www.smtp.com .
To download SMTP's investor relations app please visit Apple's App Store for the iPhone and iPad or Google Play for Android mobile devices.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1.A "Risk Factors" in our most recent Form 10-K and other risks to which our Company is subject, and various other factors beyond the Company's control.
Non-GAAP Financial Measures
Adjusted EBITDA is a "non-GAAP financial measure" presented as a supplemental measure of the Company's performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes this measure provides additional meaningful information in evaluating its performance over time. However, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is included for your reference in the financial section of this earnings press release.
Note: Financial Schedules Attached
| SMTP, Inc. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months Ended | Year Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue | $ 2,897,429 | $ 1,520,382 | $ 7,499,497 | $ 5,753,929 |
| Cost of services | 696,581 | 210,179 | 1,715,613 | 1,049,325 |
| Gross profit | 2,200,848 | 1,310,203 | 5,783,884 | 4,704,604 |
| Operating expenses: | ||||
| Sales and marketing | 1,056,481 | 140,605 | 1,832,966 | 817,971 |
| Research and development | 441,495 | 48,385 | 803,427 | 234,581 |
| General and administrative | 1,115,996 | 607,746 | 3,136,613 | 1,710,934 |
| Change in earn out liability | 682,000 | -- | 682,000 | -- |
| Intangible asset amortization | 259,404 | -- | 285,071 | -- |
| Total operating expenses | 3,555,376 | 796,736 | 6,740,077 | 2,763,486 |
| Operating income (loss) | (1,354,528) | 513,467 | (956,193) | 1,941,118 |
| Total other income (expense) | (6,627) | -- | (16,278) | -- |
| Income (loss) before income taxes | (1,361,155) | 513,467 | (972,471) | 1,941,118 |
| Provision (benefit) for income tax | (243,230) | 171,097 | (131,258) | 668,155 |
| Net income (loss) | $ (1,117,925) | $ 342,370 | $ (841,213) | $ 1,272,963 |
| Net income (loss) per share | ||||
| Basic | $ (0.21) | $ 0.11 | $ (0.17) | $ 0.42 |
| Diluted | $ (0.21) | $ 0.11 | $ (0.17) | $ 0.41 |
| Weighted average common shares outstanding | ||||
| Basic | 5,370,813 | 3,097,017 | 4,913,903 | 3,004,541 |
| Diluted | 5,370,813 | 3,168,748 | 4,913,903 | 3,069,274 |
| SMTP, Inc. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| December 31, | ||
| 2014 | 2013 | |
| Assets | ||
| Cash and cash equivalents | $ 2,825,520 | $ 1,731,243 |
| Accounts receivable | 393,922 | 25,024 |
| Deferred income taxes | -- | 183,435 |
| Income taxes receivable | 628,889 | -- |
| Other current assets | 197,745 | 116,522 |
| Total current assets | 4,046,076 | 2,056,224 |
| Property and equipment, net | 281,555 | 327,342 |
| Goodwill | 8,901,106 | -- |
| Intangibles, net | 7,895,238 | -- |
| Deferred income taxes | 612,941 | 50,099 |
| Deposits | 30,172 | 29,995 |
| Total assets | $ 21,767,088 | $ 2,463,660 |
| Liabilities and Shareholders' Equity | ||
| Accounts payable | $ 397,263 | $ 79,574 |
| Accrued expenses and other current liabilities | 355,796 | 30,139 |
| Deferred revenue | 1,006,031 | 334,328 |
| Income taxes payable | 14,622 | 144,280 |
| Deferred income taxes | 61,578 | -- |
| Total current liabilities | 1,835,290 | 588,321 |
| Earn out liabilities | 7,679,311 | -- |
| Total liabilities | 9,514,601 | 588,321 |
| Shareholders' equity: | ||
| Preferred stock, $0.001 par value | -- | -- |
| Common stock, $0.001 par value | 5,447 | 3,126 |
| Additional paid in capital | 13,248,992 | 2,241,749 |
| Accumulated other comprehensive income (loss) | (177,767) | -- |
| Accumulated deficit | (824,185) | (369,536) |
| Total shareholders' equity | 12,252,487 | 1,875,339 |
| Total liabilities and shareholders' equity | $ 21,767,088 | $ 2,463,660 |
| SMTP, Inc. | ||||
| RECONCILIATION TO ADJUSTED EBITDA | ||||
| (Unaudited, in Thousands) | ||||
| Three Months Ended December 31, | Year Ended December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Net income (loss) | $ (1,118) | $ 342 | $ (841) | $ 1,273 |
| Provision (benefit) for income tax | (243) | 171 | (131) | 668 |
| Other (income) expense | 7 | -- | 16 | -- |
| Depreciation & amortization | 307 | 46 | 424 | 102 |
| Non-cash stock compensation | 197 | 87 | 650 | 577 |
| Acquisition related charges | 762 | -- | 1,172 | -- |
| Restructuring charges | 36 | -- | 36 | -- |
| Adjusted EBITDA | $ (52) | $ 646 | $ 1,326 | $ 2,620 |
Investor Contacts: Jeffrey Goldberger / Chris Harrison KCSA Strategic Communications 212-896-1249 / 212-896-1206
