ACTIVE Network Reports First Quarter 2013 Financial Results

ACTIVE Network Reports First Quarter 2013 Financial Results

• First Quarter Revenue Increases 12% to $106.0 Million

• Record First Quarter Adjusted EBITDA of $6.1 Million

• Operating Cash Flow of $60.2 Million for the Quarter

SAN DIEGO--(BUSINESS WIRE)-- ACTIVE Network (NYSE: ACTV) , the leader in cloud-based activity and participant management™ solutions, today announced its financial results for the first quarter ended March 31, 2013.

Q1 2013 Financial Highlights:

(All comparisons are made to the first quarter of 2012)

• Total net revenue up 12% to $106.0 million.

• Technology revenue increased 13% and constituted 90%, or $95.0 million, of total net revenue.

• Net registration revenue increased 11% to $70.5 million - number of registrations flat; revenue per registration up 11%.

• Marketing services revenue constituted 10%, or $11.0 million, of total net revenue.

• Gross margins increased 230 basis points as a % of revenue to 52.6%.

• Net loss was $15.2 million compared to net loss of $20.3 million.

• Adjusted EBITDA, a non-GAAP financial measure, was $6.1 million.

"Our strong first quarter 2013 revenues and bottom line results demonstrate the Company's ability to scale our infrastructure and deliver gross margin accretion," said Scott Mendel, CFO of ACTIVE Network. "Cash flow for the quarter was very strong, reflecting our top line growth and following typical seasonal patterns. We remain focused on driving operational efficiency to capitalize on our large market opportunity and generate long-term growth."

Q1 2013 Key Business Highlights

• Marquee customer highlights included wins from YMCA Los Angeles, New Jersey Department of Environmental Protection, Two Cities Marathon, and Woodlands Marathon.

• ACTIVE Network renewed exclusive multi-year contracts with well-known clients including Gartner, World Triathlon Corporation (Ironman), Georgia State Parks and Recreation.Gov, which services the National Park Service, the National Forest Service, Bureau of Land Management, and the Army Corps of Engineers.

• ACTIVE Network announced that the YMCA of Greater San Antonio, has extended their relationship and is migrating from Class® software to ACTIVE Net™, a cloud-based solution that can help improve operational efficiency, engage members and drive participation by offering better online access to activities.

• ACTIVE Network launched ACTIVE On-Site, a mobile app and branded credit card reader to help race directors simplify and speed up the on-site check-in, registration and payment process.

Financial Outlook

Second Quarter 2013 - For the second quarter of 2013, ACTIVE Network expects total revenue to be in the range of $128 million to $133 million. Registrations are expected to grow approximately 3% to 8% and revenue per registration is expected to grow approximately 3% to 5% compared to the same period in the prior year. The Company expects a net loss of $10 million to $3 million and Adjusted EBITDA in the range of $18 million to $21 million. Second quarter guidance includes the estimated impact of one-time charges associated with the recent management changes.

Full Year 2013 - Due to the recent management changes, ACTIVE Network is prioritizing and accelerating its strategic and financial goals for the remainder of the year. Accordingly, the Company will not be providing full year 2013 guidance at this time, but expects to do so once it has had an opportunity to align its financial projections with its go-forward strategy.

Conference Call Information

ACTIVE Network will host a conference call to discuss first quarter 2013 results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number is (877) 546-5019 for domestic participants and (857) 244-7551 for international participants. A live webcast of the conference call will also be available and can be accessed within the investor relations section of the ACTIVE Network corporate website at: http://investors.ACTIVEnetwork.com.

A replay of the call will be available starting at 6:30 p.m. Eastern Time (3:30 p.m. Pacific Time) on May 2, 2013 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on May 9, 2013. To listen to the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United States and use the passcode 41574038. The replay will also be available via webcast at:

http://investors.activenetwork.com/.

About ACTIVE Network

ACTIVE Network (NYSE: ACTV) is on a mission to make the world a more active place. With deep expertise in activity and participant management™, our ACTIVE Works® cloud technology helps organizations transform and grow their businesses. We do this through technology solutions that power the world's activities, as well as online destinations such as ACTIVE.com® that connect people with the things they love to do. Serving over 50,000 global business customers and driving over 80 million transactions annually, we help organizations get participants, manage their events and build communities. ACTIVE Network is headquartered in San Diego, California and has over 30 offices worldwide. Learn more at ACTIVEnetwork.com or ACTIVE.comand engage with us on Twitter @ACTIVEnetwork, @ACTIVEand on Facebook.

Note With Respect to Non-GAAP Financial Measures

In addition to using GAAP financial results, the Company's management measures and reports non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate the Company's performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate the Company's management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, the Company's financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company's results with other companies' non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.

Forward-Looking Statements

The Active Network, Inc. cautions you that the statements included in this press release that are not a description of historical facts are forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to substantial risks and uncertainties, including the Company's ability to generate revenue and control expenses in order to achieve and maintain profitability, the Company's ability to maintain an adequate rate of growth and improve its operations, including growing its registrations and revenue from registrations, the Company's ability to successfully manage its acquisitions and investments in businesses, applications and technologies, the effects of the Company's recent management change and the final terms of the separation agreements, if any, with the Company's former officers and the associated impact on our financial results, as well as the other risks described more fully in Item 1A in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which are expressly incorporated herein by reference, and other factors as may periodically be described from time to time in the reports it files with the Securities and Exchange Commission. As a result of these risks and uncertainties, the Company's actual results may differ materially from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

© 2013 The Active Network, Inc. All rights reserved. ACTIVE.com, ACTIVE Works and StarCite are registered trademarks of The Active Network, Inc. ACTIVE Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.