SoMedia Networks Files Financial Results for Q3 2014

VANCOUVER, British Columbia--()--SoMedia Networks (TSX-V:VID), the pioneer of globally scalable video production solutions, reported record results for the three month period ended September 30, 2014.

The results for the three months ending September 30, 2014 reflect record quarterly sales of $306,563, an increase of 136% over the year ago quarter and 22% over the previous quarter; the third consecutive quarterly increase in sales. Sales backlog also increased to a record $843,107. The Company experienced its strongest month to date during the quarter with September sales 81% higher than the previous best month. Complete financial results for the third quarter of 2014 are available at www.sedar.com.

Q3 2014 Highlights

  • Sales totaled $306,653, an increase of 22% over the previous quarter and 136% over the same year-ago period.
  • September sales were a record 81% higher than the Company’s previous best month
  • Sales backlog is up 134% to $843,107 as compared to the same period last year
  • Growth in new partner sales increased by 150% over the prior quarter, an increase of 43% year over year
  • Completed direct and app integrations with 13 SaaS marketing and business services platforms during the three months ending September 30, including Oracle, Marketo, Yahoo! and Google Chrome
  • Total operating costs decreased by 20% over the prior quarter and 31% over the year ago quarter

Q3 2014 Key Performance Indicators

   

For the
quarter ended
September 30,
2014

 

 

For the
quarter ended
June 30,
2014

 

 

For the
quarter ended
March 31,
2014

 

For the
quarter ended
December 31,
2013

 

 

For the
quarter ended
September 30,
2013

 

For the
quarter ended
June 30,
2013

Average Headcount   30   25   20   33   40   40
Value of Orders ($)   306,653   251,702   160,341   117,366   130,623   107,518

Average Order Value
– Repeat Sale ($)

  3,613   3,842   2,107   1,223   1,729   1,593

Average Order Value –
Initial Sale ($)

  3,319   2,848   2,033   764   739   796
           

“As we continue to evolve to meet the needs of our partners’ business models and the growing demand for video production services our unique focus on scale, volume and reach is allowing us to stand out as the first mover in a new category,” said George Fleming, Founder & Co-CEO of SoMedia Networks. "Our sales and marketing initiatives have resulted in the Company's best quarter to date and best month to date in terms of order volume. Our success in growing both the Corporate and Reseller channels is directly attributable to the lead nurturing and qualification programs introduced earlier this year and we're particularly proud of the growth in new partner sales of 150% we've seen during the quarter.

“The opportunity to be the first video production company to integrate with large SaaS marketing and business services platforms is a game changer for SoMedia. We see direct channel integrations as the future of online video production."

     

Q3 2014 Financial Tables

Q3-2014   Q2-2014   Q3-2013
Revenues $78,013 $113,751 $49,567
Employment expenses $744,069 $791,966 $867,430
Other operating expenses $284,733 $480,738 $545,915
Non-operating expenses $97,788 $47,883 $68,182
Comprehensive loss for the period $929,104 $1,206,837 $1,431,932
Loss per share (basic and diluted) $(0.03) $(0.04) $(0.09)
 
   
September 30, 2014   June 30, 2014
Total assets $638,781 $587,869
Long-term financial liabilities $549,641 $0
 

Definitions

Sales: The dollar value of videos sold during the period. A video is considered sold when a client makes an order and provides a deposit. Revenue is not recognized until the video is completed and approved by the client.

Average Order Value - Repeat Sales: The total of all orders received from repeat clients in the quarter, divided by the number of unique orders made by these clients.

Average Order Value - New Sales: The total orders received from new clients in the quarter, divided by the number of unique orders made by these clients.

Backlog – the value of videos sold to date but still to be completed.

Further, the Company has received approval from the TSX Venture Exchange of a share based compensation arrangement whereby the Company will compensate its independent directors for their services during the quarter ended September 30, 2014 by way of 50% cash base and 50% shares in lieu of cash. Accordingly, the Company will issue a total of 18,750 shares to its independent directors as at October 7, 2014. All shares are being issued at $0.16 per share, being the closing price of the Company's shares on September 30, 2014 and the shares will be subject to a four month hold period expiring February 8, 2015.

About SoMedia Networks

SoMedia Networks, the creator of Scalable Video, has reengineered how businesses access video content creation, production and deployment. The cloud-based SoMedia Platform allows businesses, brands and media to easily order the production of custom video content at scale and volume, anywhere, on demand, with rapid turnaround, and at a fraction of current costs.

SoMedia provides Scalable Video as an integrated solution to corporate partners, as a resale solution through thousands of web marketing firms and directly to digital agencies and millions of SMBs across North America. To learn more, 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. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The measures described in the Key Performance Indicators table above 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’ section at the conclusion of this document.

Contacts

Company:
SoMedia Networks
George Fleming, 604-683-5510
Founder, Co-CEO
gfleming@somedia.net
or
U.S. Investors:
Liolios Group
Michael Koehler or Matt Glover, 949-574-3860
VID@liolios.com
or
Media:
Hotwire PR
Annette Leach, 415-840-2790
somedia@hotwirepr.com
or
Canadian Investors:
SoMedia Networks
Greg Werbowski, 604-683-5510 ext. 590
gwerbowski@somedia.net

Release Summary

SoMedia announces third straight quarter of record sales growth, reflecting record quarterly sales of $306,563, an increase of 136% over the year ago quarter and 22% over the previous quarter.

Contacts

Company:
SoMedia Networks
George Fleming, 604-683-5510
Founder, Co-CEO
gfleming@somedia.net
or
U.S. Investors:
Liolios Group
Michael Koehler or Matt Glover, 949-574-3860
VID@liolios.com
or
Media:
Hotwire PR
Annette Leach, 415-840-2790
somedia@hotwirepr.com
or
Canadian Investors:
SoMedia Networks
Greg Werbowski, 604-683-5510 ext. 590
gwerbowski@somedia.net