SoMedia Releases Results for the Second Quarter of 2013
SoMedia Releases Results for the Second Quarter of 2013
VANCOUVER, British Columbia--(BUSINESS WIRE)-- SoMedia Networks (TSX-V:VID) ("SoMedia," "the Company"), a pioneer of globally scalable cloud-based video production solutions, is pleased to announced results for its interim financial period ended June 30, 2013 (the "second quarter"), which demonstrates the Company's continuing trend of improvement.
HIGHLIGHTS
Signed up 1,370 resellers during the second quarter, more than three times the total number of signups in all of 2012
During the first half of the year, recorded more new activations and active resellers than in all of 2012
Successfully completed an Initial Public Offering in June of 2013
Subsequent to the conclusion of the second quarter, introduced the SoMedia Enterprise Platform, expanding the Company's service offerings to facilitate large media and agency partners
A summary of the results are as follows:
FINANCIAL PERFORMANCE
2013 | 2012 | |||||||
Second Quarter | First Half | Second Quarter | First Half | |||||
Revenues | $47,631 | $88,578 | $34,923 | $47,016 | ||||
Employment Expenses | $796,417 | $1,540,760 | $668,965 | $1,183,896 | ||||
Operating Expenses | $814,767 | $1,264,523 | $155,048 | $293,339 | ||||
Non-Operating Expenses | $231,913 | $467,954 | $236,509 | $420,265 | ||||
Comprehensive Earnings | -$1,795,466 | -$3,184,480 | -$1,025,598 | -$1,850,483 | ||||
Earnings Per Share (Basic & Diluted)1 | -$0.16 | -$0.28 | -$0.10 | -$0.18 | ||||
as at June 30, 2013 | as at December 31, 2012 | |||||||
Total Assets | $2,701,750 | $563,596 | ||||||
Long-Term Financial Liabilities | $633,780 | $2,635,721 | ||||||
1Updated to reflect the share consolidation that took effect on May 6, 2013. | ||||||||
For more complete information and detailed information, the June 30, 2013 financial statements and corresponding management's discussion and analysis can be found at www.sedar.com.
KEY PERFORMANCE INDICATORS
First Six Months 2013 | Full Year 2012 | |||
Total Reseller Signups | 2,079 | 668 | ||
New Activations in Period | 105 | 96 | ||
Total Activated Resellers | 237 | 132 | ||
Resellers Active in Period | 147 | 132 | ||
Total Number of Video Orders with Deposits | 436 | 605 |
The measures described in this table are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. They are provided to assist investors in determining the Company's ability to generate profitability from its operations and to evaluate its financial performance. For further descriptions of these terms, please refer to either the Company's Management's Discussion and Analysis for the period or to the 'Definition of Key Performance Indicators' below.
DEFINITION OF KEY PERFORMANCE INDICATORS
Reseller Signups: Refers to a reseller that has accepted the terms and conditions of the reseller relationship through an online digital acceptance form. The reseller agreement includes terms related to payment, scope of offerings, confidentiality, dispute resolution and corporate conduct.
New Activations: A reseller is considered active upon the completion of their initial video purchase.
Resellers Active: A reseller is considered active during a period if that reseller has purchased at least one video during that period.
COMMENTARY
During the second quarter, SoMedia continued to build upon the momentum developed over both 2012 and the first quarter of 2013 by executing on its core sales and market development strategy.
The key aspects of the strategy are:
Optimize each stage of the partner acquisition, activation and sales scale up process
Implement and optimize segmented automated marketing programs
Expand services and product offerings through continual product development
Continue to develop, improve and expand its technology infrastructure
During the second quarter, the Company focused on:
Increasing total partner signups and signup rates through improvements in sales process
Reducing partner acquisition costs
Developing and launching segmented automated email marketing programs
Beta testing the Automated Video platform and improving user experience
Development of SoMedia Enterprise, an Enterprise client platform and gateway
Expanding and improving partner support and implementation processes and tools
"We're very pleased with the pace at which SoMedia's business continued to develop during the second quarter," stated George Fleming, the Company's President and CEO. "Our principal objective at this time is to increase both our market penetration and revenue by rapidly expanding our base of resellers. As our second quarter demonstrates, we've been successful in this regard and our cost per acquisition has improved as a result. Reseller signups have been climbing at an impressive pace. In the year ending 2012, SoMedia completed a total of 668 reseller signups. We exceeded that number during the first quarter alone, when we signed 709 new resellers. We then more than doubled this number during the second quarter, signing 1,370 new resellers. In early July, we were proud to announce that our total reseller count had exceeded 3,000, and our growth has continued at this pace since that point
"At the end of July, we were pleased to introduce our SoMedia Enterprise Platform, which provides us with the opportunity to offer our proven video production technology and processes to a new market - large media and agency partners. This offering will allow us to continue to rapidly grow our reseller roster over the balance of 2013. While this growth remains our focus, we are also turning our attention to the activation of these resellers, and the revenue these activations will produce."
ABOUT SOMEDIA NETWORKS
SoMedia Networks is a pioneer of cloud-based video content production platforms, advanced crowdsourced workforce management, and scalable video production services. SoMedia provides resale, white-label, and on demand video production services across North America to web marketers, digital agencies, corporate brands and media.
With a technology first approach and North American-wide crowd sourced workforce, SoMedia offers a range of ground breaking video production services and products which break down the traditional barriers of cost, volume and reach; making it easy for partners to deliver online video products to their clients simply and affordably, anywhere, at scale.
For more information visit: www.somedia.net
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SoMedia Networks
George Fleming, 604-683-5510
President, CEO and Director
gfleming@somedia.net
or
Investor Relations, 604-683-5510 ext.5 01
investors@somedia.net
or
Nadia Gillies, 604-558-1656
Media Relations
nadia@yulupr.com
KEYWORDS: North America Canada
INDUSTRY KEYWORDS:
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