SoMedia Networks Files Financial Results for Q2 2015

VANCOUVER, British Columbia--()--SoMedia Networks (TSX-V:VID), the pioneer of globally scalable video production solutions, today announced that it has filed financial results for the three month period ended June 30, 2015.

The results for the three months ending June 30, 2015 reflect record quarterly sales of $408,938 an increase of 59% over the year ago quarter. Reseller Partner acquisition grew 69% over the prior quarter, and 239% over the year-ago quarter. Sales backlog increased to a record $1,491,863, growth of 21% over the prior quarter. Revenue grew 11% over the prior quarter, and 22% over the same quarter in the prior year. Complete financial results for the second quarter of 2015 are available at www.sedar.com.

Highlights:

  • Record sales posted in Q2 2015 with an increase of 59% over the previous year totaling $408,938
  • Revenue exceeds historical records up 11% over Q1 2015 and 22% year ago quarter to $139,101
  • Sales backlog continues to grow, now $1.49 million up $21% over the previous quarter and 145% over the same quarter in the previous year.
  • Reseller growth continued to strengthen, producing sales of $272,799 - a gain of 31% over the prior quarter and 27% over the year-ago quarter
  • Reseller Partner acquisition grew 69% over the prior quarter, and 239% over the year-ago quarter
  • Developed and launched SoMedia Ads and an integrated Facebook advertising program plus completed integrations with more than 10 major SaaS marketing platforms including Marketo (NASDAQ:MKTO), Oracle-Eloqua (NASDAQ:ORCL)
  • Deployed significant improvements to outbound sales processes through the development of a sophisticated Revenue Performance Management System (RPM)
         

Q2 2015 Key Performance Indicators

Quarter ended June
30, 2015

Quarter ended June
30, 2014

Quarter ended June
30, 2013

Value of Backlog (CAD) 1,491,863 609,720 261,701
Value of Sales (CAD) 408,938 257,252 110,414
Average Order Value – Repeat Sale (CAD) 4,713 3,703 1,652
Average Order Value – New Sale (CAD) 5,590 2,983 828
Time to Repeat Sale (Months) 1.14 3.25 6.43
 

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.

Selected Financial Information

         
In Canadian Dollars ($)    

Quarter ended June
30, 2015

 

Quarter ended June
30, 2014

 

Quarter ended June
30, 2013

Total Revenues 139,101 113,751 47,631
Employment expenses 722,163 791,966 708,955
Other operating expenses 1,072,942 483,738 814,819
Non-operating expenses 111,415 47,786 1,361,843
Comprehensive Loss for the Period 1,767,419 1,209,740 2,817,961
Loss per share (basic and diluted)1 (0.04) (0.04) (0.16)
 
     

As at June 30, 2015

 

As at June 30, 2014

 

As at June 30, 2013

Total Assets

864,584

586,046

2,701,105

Long term financial liabilities

808,097

-

633,780

 

Note: the foregoing is a summary of certain financial information relating to the Company and should be read in conjunction with the Company’s audited annual Financial Statements for the financial years ended December 31, 2014 and 2013 including the notes thereto.

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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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.

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding the closing of the Offering, the filing of a preliminary and final prospectus and the use of proceeds of the Offering. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this press release, see the section entitled "Risks and Uncertainties" in the Management's Discussion and Analysis of the Company for its most recent interim financial statements filed with the Canadian securities commissions. The forward-looking information set forth herein reflects the Company’s expectations as at the date of this press release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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.

The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contacts

Company:
SoMedia Networks
George Fleming, 604-683-5510
Founder, Co-CEO
gfleming@somedia.net
or
Media:
Hotwire PR
Annette Leach, 415-840-2790
somedia@hotwirepr.com
or
Investor Relations:
SoMedia Networks
Greg Werbowski, 604-683-5510 ext. 590
gwerbowski@somedia.net
or
The Howard Group Inc.
Dave Burwell and Brad Dryer
1-888-221-0915
403-221-0915
dave@howardgroupinc.com
brad@howardgroupinc.com

Release Summary

SoMedia Networks files 2015 Q2 financial results and posts record backlog and sales bookings.

Contacts

Company:
SoMedia Networks
George Fleming, 604-683-5510
Founder, Co-CEO
gfleming@somedia.net
or
Media:
Hotwire PR
Annette Leach, 415-840-2790
somedia@hotwirepr.com
or
Investor Relations:
SoMedia Networks
Greg Werbowski, 604-683-5510 ext. 590
gwerbowski@somedia.net
or
The Howard Group Inc.
Dave Burwell and Brad Dryer
1-888-221-0915
403-221-0915
dave@howardgroupinc.com
brad@howardgroupinc.com