SoMedia Networks (TSX-V:VID), the pioneer of globally scalable
video production solutions, today announced it has filed financial
results for the year ended December 31, 2014.
SoMedia reported record sales growth with sales volumes reaching
$970,654, an increase of 125% over the previous year, while revenue
grew by more than 71% over the prior year. This growth was
characterized by strong performance in three key areas: expansion
of the corporate sales channel, increased order values and
increased price per video.
Highlights:
- Sales increased 125% over the previous
year totaling $970,654
- Sales backlog at year end was $990,
694, up 145% compared to the prior year
- Growth in average order size of 237%
year over year and 32% over the previous quarter
- Sales to repeat partners increased by
64% over the same quarter in the prior year and by 127% year over
year
- Total operating costs decreased by 10%
over the prior quarter and for the full year costs were 24 % lower
than 2013
- Completed integrations with more than
20 major SaaS marketing platforms including Marketo (NASDAQ:MKTO),
Oracle-Eloqua (NASDAQ:ORCL), Salesforce-ExactTarget
(NASDAQ:CRM)
“I am extremely pleased with what SoMedia accomplished in 2014
and even more excited about the momentum we carry in to 2015,” said
George Fleming, the Company’s co Chief Executive Officer. “Improved
sales and marketing performance has enabled us to add higher value
partners, increase order size, and drive more repeat business.
Furthermore, in the fourth quarter we completed our 20th
integration with a major online marketing platform, establishing
SoMedia as the only provider of integrated video production,
players and analytics to tens of thousands of customers of these
platforms.”
Selected Financial Information
In Canadian Dollars ($) Year ended
December 31, 2014
(audited)
Year ended December 31, 2013
(audited)
Year endedDecember 31, 2012
(audited)
Total Revenues 368,752 215,723 113,374 Employment expenses
2,752,325 3,082,868 2,142,833 Other operating expenses 1,446,227
2,196,597 861,430 Non-operating expenses 569,391 1,719,658
1,133,218 Comprehensive Loss for the Period 4,399,191 6,783,395
4,024,107 Loss per share (basic and diluted)1 (0.12) (0.36) (0.37)
As at December 31, 2014 As at
December 31, 2013 As at December 31, 2012 Total Assets 432,648
658,460 563,595 Long term financial liabilities 563,508 - 2,767,726
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, 2013 and 2012
including the notes thereto.
Sales Indicators
2014 2013
2012 Full Year Q4 2014 Full
Year Q4 2013 Full Year
Q4 2012 Value of Orders $970,654 $252,383 $431,722
$117,366 $233,823 $49,167 Average Order Value – Repeat Sale 3,456
4,276 1,654 1,589 1,288 943 Average Order Value – Initial Sale
3,494 4,869 787 851 1,172 1,057
Note: 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.
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.
Company:SoMedia NetworksGeorge Fleming,
604-683-5510Founder,
Co-CEOgfleming@somedia.netorMedia:Hotwire PRAnnette Leach,
415-840-2790somedia@hotwirepr.comorInvestor
Relations:SoMedia NetworksGreg Werbowski, 604-683-5510 ext.
590gwerbowski@somedia.net