SoMedia Networks (TSX-V:VID), the pioneer of globally scalable
video production solutions, today announced it has filed financial
results for the three month period ended March 31, 2015.
The Company posted quarterly sales of $384,503, a record for the
Company with sales 15% higher than the previous best month. These
results compare to sales of $173,764 up 121% over the previous over
the year ago quarter and 37% over the previous quarter. Sales
backlog also increased to a record $1,235,713 up 25% over the
previous quarter while revenue grew by more than 37% over the prior
year revenue achieving a record of $124,816 up 47% over Q4 of
2014.
Highlights:
- Record sales posted in Q1 2015 with an
increase of 121% over the previous year totaling $384,503
- Revenue exceeds historical records up
46% over Q4 2014 and 37% year ago quarter
- Sales backlog exceeds $1.2 million up
25% over the previous quarter
- Growth in initial sales grew by 96%
over the year ago quarter reaching $112,843
- Average order value grew to $5,013 an
increase of 73% over the year ago quarter, building on the
year-over-year growth of 351% achieved in the prior quarter.
- Re-developed and launched an integrated
news and branded content platform
- Completed integrations with more than
20 major SaaS marketing platforms including Marketo (NASDAQ:MKTO),
Oracle-Eloqua (NASDAQ:ORCL), Salesforce-ExactTarget
(NASDAQ:CRM)
- Appointed Derek Sather as Consulting
Chief Revenue Officer
Q1 2015 Key Performance
Indicators
For the quarter endedMarch 31,
2015
For the quarter endedMarch 31,
2014
For the quarter endedMarch 31,
2013
Value of Backlog (CAD) 1,235,713 482,642 198,918
Value of Sales (CAD) 384,503 173,764 76,228
Average Order Value – RepeatSale (CAD)
4,766 2,800 1,811
Average Order Value – New Sale(CAD)
5,728 2,960 1,177 Time to Repeat Sale (Months) 2.13 4.38
6.00
Definitions
Sales: The dollar value of videos sold during the period. A
video is considered sold when a client makes an order and provides
a deposit. Revenue is not recognized until the video is completed
and approved by the client.
Average Order Value - Repeat Sales: The total of all orders
received from repeat clients in the quarter, divided by the number
of unique orders made by these clients.
Average Order Value - New Sales: The total orders received from
new clients in the quarter, divided by the number of unique orders
made by these clients.
Backlog – the value of videos sold to date but still to be
completed.
Selected Financial Information
In Canadian Dollars ($)
Quarter ended March31,
2015
Quarter endedMarch 31,
2014
Quarter ended March31,
2013
Total Revenues 124,816 91,209 40,947 Employment
expenses 655,174 584,695 744,343 Other operating expenses
380,587 388,340 449,817 Non-operating expenses 108,383
50,156 236,041 Comprehensive Loss for the Period 1,019,329
931,982 1,389,255 Loss per share (basic and diluted)1 (0.02)
(0.03) (0.12)
As at March 31, 2015
As at March 31, 2014
As at March 31, 2013
Total Assets
752,785
910,908
492,234
Long term financial liabilities
1,401,131
-
3,208,292
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.
Management Changes
The Company also announces that Ben Pickering has resigned as
President, co-CEO and a director effective immediately. Mr. George
Fleming, the Company’s founder will take over the role of President
and CEO of the Company. As well Colin Osing has resigned as Vice
President of Marketing effective immediately.
In addition, Mr. Derek Sather has joined the Company as
consulting Chief Revenue Officer and will assist the Company in the
development of content marketing and demand generation programs
plus the implementation of advanced CRM and sales management
systems and processes. Mr. Sather has over 15 years of senior sales
leadership experience. Most recently he was the Chief Revenue
Officer at Mobify, an enterprise SaaS platform that provides
Internet Retailers with mobile shopping solutions. While at Mobify
he provided global leadership of the sales and marketing teams and
architected an advanced content marketing, demand generation and
sales automation program. Prior to that he was Chief Revenue
Officer at Recombo, a SaaS platform that provides rapid customer on
boarding.
Financing
In addition, the Company is pleased to announce a non-brokered
private placement of 1,577,000 special warrants (the “Special
Warrants”) at a price of C$0.26 per Special Warrant, representing
aggregate gross proceeds of $410,000 (the “Offering”). Each Special
Warrant entitles the holder thereof to acquire at any time after
the closing date of the Offering (the “Closing Date”), for no
additional consideration, one unit of the Company (a “Unit”), with
each Unit comprised of one common share of SoMedia (a “Common
Share”) and one-half of one common share purchase warrant of
SoMedia (each whole common share purchase warrant, a “Warrant”).
Each Warrant will entitle the holder thereof to purchase one Common
Share at an exercise price of C$0.35 per Common Share for a period
of 24 months following the Closing Date. The Offering is fully
subscribed and will close upon receipt of TSX Venture Exchange
approval.
All unexercised Special Warrants will be deemed to be exercised,
without payment of additional consideration or further action, on
the earlier of: (i) the third business day following the day upon
which SoMedia obtains a receipt for a final prospectus (the “Final
Prospectus”) qualifying the underlying Common Shares, the
underlying Warrants, and the common shares of the Company
underlying the Warrants (collectively the “Underlying Securities”)
from the securities regulatory authority in each jurisdiction where
the Final Prospectus is filed; and (ii) the date that is four
months and one day following the Closing Date. It is intended that
the Final Prospectus will be filed in Ontario, Alberta, British
Columbia (the “Qualifying Jurisdiction”) and such other
jurisdictions as SoMedia may decide.
The Company may pay finder's fees in connection with the
Offering, subject to compliance with the policies of the regulatory
authorities. SoMedia plans to use the net proceeds from the
Offering for working capital and general corporate purposes.
From the date of issue, subject to obtaining a receipt for the
Final Prospectus in the Qualifying Jurisdictions, the Underlying
Securities will be subject to a four-month and one day hold period
as required by Canadian securities laws.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150529006175/en/
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