For the three months to March 31, net income rose to $135,163 from a net loss of $697,959 in the prior year period. The company said the latest results were mainly due to a non-cash gain.
Before non-operating items, net loss was wider than a year ago at $398,235 versus $229,719 as the company dedicated more resources to sales and marketing as well as to investment in its platform.
And this investment paid off. Revenues jumped to $174,331 from $94,235 in the same quarter last year, attributable to new sales channels, additional sales contracts from existing customers, as well as new clients and the launch of new products like SnippCheck - a mobile receipt processing service - and SnippWine.
The company's newest product - SnippWine - provides a full suite of mobile-based marketing tools for wineries, including shipping alerts, a mobile site builder, social sharing functionality, the SnippCeck mobile receipt processing service to process rebate and coupon programs, as well as a contest engine.
Snipp is also working on the "soon to be released SnippShip" and other similar products, it said. The company's "Mobilize Me" platform includes three mobile specific solutions - response, infrastructure and validation - which collectively allow brands to interact with their customers through mobile across the entire purchase lifecycle.
Headquartered in Washington, D.C. and established in 2007, the company has provided its services to several Fortune 500 companies and other major brands, advertising agencies and publishers, including Wal-Mart (NYSE:WMT), Time Inc, Ford (NYSE:F), Nike (NYSE:NKE), Wendy's (NASDAQ:WEN) and Campbell Soup (NYSE:CPB). It also worked on new campaigns last year with Taco Bell & ESPN, Meredith Corp, Arm & Hammer, and James Hardie, and launched Snipp in Mexico and the Middle East, "executing successful campaigns in both markets for leading brands", it said.
"We are very pleased that our go-to-market strategy continues to be validated as our sales revenues continue to grow rapidly and propels us ever closer to being operationally cash flow positive," said CEO Atul Sabharwal in the release Friday.
"Our focus continues to be on growing new and recurring revenue with the aim of achieving cash flow profitability. The fact is that we are at the beginning of a mobile revolution that presents an unprecedented opportunity for companies like ours."
Indeed, the company figures that as an increasing number of people spend more time carrying out traditional web-based activities such as shopping and social interaction on their mobile devices, every company will need to start implementing a "mobile optimized layer" for their business to support this growing trend. This puts Snipp's mobile marketing platform in an ideal position.
In the first quarter, Snipp said its product teams finalized two new product offerings that will launch in the second quarter, which will be consumer-focused self service tools, allowing the company to expand into new market segments. Currently, the Mobilize Me platform is only available on a full-service basis to large brands.
In the release Friday, it said four key initiatives "are expected to bear fruit for the company", any one of which can drive significant revenue and profitability gains, but Snipp did not expand on this any further in the statement.
In the second quarter, Snipp will be integrating its SnippWine suite into eWinery's platform, and will launch the eWinery Mobile Marketing Solution. Customers of eWinery, which has more than 600 clients in the U.S. and major wine producing regions of the world, will therefore be able to launch and manage mobile programs through the eWinery interface.
eWinery currently controls over 70 per cent of the $600 million direct to consumer wine business in the USA, according to the statement.
The company also said that SnippCheck, its other new product, has more than ten million of potential transactions in the pipeline for the coming year.
Snipp, which ended the first quarter with current assets of $660,947 and liabilities of $228,940, will continue to ramp up international sales as well, with plans to launch a number of products and campaigns for the Middle East region in the coming months, and a big potential deal in the works in Mexico.
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