Snap Interactive Reports Results for the Quarter Ended March 31, 2013

    Snap Interactive Reports Results for the Quarter Ended March 31, 2013

PR Newswire

NEW YORK, May 1, 2013

NEW YORK, May 1, 2013 /PRNewswire/ --Snap Interactive, Inc. ("SNAP," the
"Company," "we," "our," or "us") (OTCBB: STVI), a leading social dating
developer, today announced financial results for the quarter ended March 31,
2013.

(Logo: http://photos.prnewswire.com/prnh/20111101/NY96955LOGO-b )

  oTotal revenues decreased 40% to $3.5 million for the first quarter of 2013
    compared to $5.7 million for the comparable period in 2012;
  oMonthly bookings increased in both February and March 2013 from a low
    point in January 2013;
  oMonthly bookings for March 2013 increased 22% from January 2013;
  oQuarterly bookings decreased 49% to $3.0 million for the first quarter of
    2013 compared to $5.9 million for the comparable period in 2012;
  oDeferred revenue decreased 40% to $2.1 million at March 31, 2013 compared
    to $3.4 million at March 31, 2012;
  oNet loss was $0.3 million, or $0.01 per basic and diluted common share for
    the first quarter of 2013, compared with a net loss of $3.0 million, or
    $0.08 per basic and diluted common share, for the comparable period in
    2012; and
  oSNAP's balance sheet position continues to be strong, with $4.5 million of
    available sources of liquidity (including cash and cash equivalents and
    restricted cash) at March 31, 2013.

"Our results for the first quarter of 2013 reflect a significant decrease in
advertising and marketing spend from the comparable period in 2012, which
primarily affects new user acquisition. We began to decrease our user
acquisition costs during the second quarter of 2012 as we focused on
redesigning and re-launching our AYI product. While total revenues for the
first quarter of 2013 were down 12% from the fourth quarter of 2012 and
bookings for the first quarter of 2013 were down only 5% from the fourth
quarter of 2012, monthly bookings are the highest since October 2012. As shown
by the financial highlights included in this release, bookings have increased
since we have begun to increase advertising and marketing spend behind the
redesigned AYI product. We launched significant new social features during the
first quarter of 2013 that are designed to integrate a user's interests and
social graphs into the online dating experience. We are excited about how the
product has performed during the first quarter of 2013 and we look forward to
growing the AYI brand during 2013," said Jon D. Pedersen, Sr., SNAP's Chief
Financial Officer.



Financial Highlights
                                       ThreeMonthsEnded
                                       March 31,
GAAP Results                          2013          2012            Change
Total revenues                         $ 3,469,560   $ 5,745,452       (40) %
Deferred revenue (at period end)       $ 2,067,853   $ 3,430,078       (40) %
Net loss                               $ (283,889)   $ (2,995,636)     (91) %
Net cash used in operating activities  $ (971,845)   $ (1,559,907)     (38) %
Non-GAAP Results
Bookings                               $ 2,971,515   $ 5,877,710       (49) %
Overall liquidity (at period end)      $ 4,469,497   $ 7,426,901       (40) %



(Photo:http://photos.prnewswire.com/prnh/20130501/NY05261-INFO )

"During 2012, we made a strategic decision to focus on investing in new hires
and talent to support the long-term growth of the new AYI, and we purposely
limited marketing spend as we went through the transitional period," said
SNAP's President and Chief Executive Officer Clifford Lerner. "While we began
to increase our marketing spend again during the first quarter of 2013,
overall spend continued to be substantially lower compared to the comparable
period in 2012, resulting in declines in revenues, bookings and subscribers.
Although a correlation exists between revenue and advertising spend, our
revenue for the first quarter of 2013 declined only 40% while our marketing
and advertising expense declined 75% versus the comparable period in
2012.This result highlights the fact that we are getting better results from
our marketing spend because AYI is having more success converting users into
paid subscribers."

"We have also taken other steps to improve our internal analytics and user
engagement," Lerner continued, "We completed several new initiatives during
the first quarter, including a deeper integration of Splunk (NASDAQ: SPLK)
softwareto enable more real-time and granular analytics around user
engagement and conversion. In addition, we made a number of organizational
changes that enabled us to focus on improving specific user engagement metrics
and prepared us for future growth. The full impact of these changes was only
partially realized during the first quarter of 2013 but is expected to have a
positive impact throughout the remainder of the year. Although the ability to
acquire traffic through existing channels is challenging, we are excited about
our unique feature set, our scale on Facebook Platform, and the user reaction
to our social feature set."

Conference Call

The Company has scheduled a conference call on Wednesday, May 1, 2013 at 4:30
p.m. Eastern Time to discuss its financial results for the quarter ended March
31, 2013.

The conference call will be accessible by telephone at 800-857-5233, passcode:
SNAP and presentation materials will be available at
http://investors.snap-interactive.com/presentationsshortly before the
conference call.

A replay of this conference call will be available on the Company's website
under the Investor Presentation tab within 24 hours after completion of the
call and will remain available for sixty days.

About Snap Interactive, Inc.

SNAP Interactive, Inc. develops, owns and operates a social dating application
for social networking websites and mobile platforms. SNAP's flagship brand,
AYI is one of the largest social dating applications on the Internet with
millions of monthly active users on the Facebook platform, and offers a
completely integrated Facebook, iPhone, Android and Web and mobile dating
application. With 51% of singles reporting 'bad' experiences when meeting
people online, AYI's mission is to improve the experience of meeting new
people by integrating a user's friends and interests to enable more meaningful
connections. For more information, please visit
http://www.snap-interactive.com/, its blog at
http://devblog.snap-interactive.com, on Facebook at
facebook.com/SnapInteractiveInc and on Twitter at @SNAPInteractive.

The contents of our websites are not part of this press release, and you
should not consider the contents of these websites in making an investment
decision with respect to our common stock.

Facebook® is a registered trademark of Facebook, Inc. iPhone® is a registered
trademark of Apple Inc.AYI® is a registered trademark of Snap Interactive,
Inc.

PR Contact:
Kayla Inserra
Kayla@specopscomm.com
919-601-2247

IR Contact:
Denise Garcia
IR@snap-interactive.com

Non-GAAP Financial Measures

This press release includes the following financial measures defined as
"non-GAAP financial measures" under Securities and Exchange Commission rules:
bookings and overall liquidity. These measures may be different from non-GAAP
financial measures used by other companies.The presentation of this
financial information, which is not prepared under any comprehensive set of
accounting rules or principles, is not intended to be considered in isolation
or as a substitute for the financial information prepared and presented in
accordance with generally accepted accounting principles in the United States
("GAAP"). For a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP measures, see "Reconciliation of GAAP to
non-GAAP Results" included in this press release.

Forward-Looking Statements

This press release contains "forward-looking statements" made under the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995
that are based on current expectations, estimates, forecasts and assumptions
and are subject to risks and uncertainties. Words such as "anticipate,"
"assume," "believe," "estimate," "expect," "goal," "intend," "plan,"
"project," "seek," "target," and variations of such words and similar
expressions are intended to identify forward-looking statements.Such
forward-looking statements are subject to certain risks, uncertainties and
assumptions that may cause actual results to differ materially from those
expressed by the forward-looking statements, including, but not limited to,
the following: general economic, industry and market sector conditions; the
Company's future growth and the ability to obtain additional financing to
implement the Company's growth strategy; the ability to effectively manage the
Company's growth; the ability to anticipate and respond to changing consumer
trends and preferences; reliance on a very limited number of third party
platforms to run the Company's applications and the ability of third party
platforms to take action against these applications; the intense competition
in the online dating marketplace; the ability to establish and maintain brand
recognition; the ability to develop and support successful applications for
mobile platforms; the success of the redesigned AYI brand and product; the
success of new features on AYI; the effect of new features and branding on
user engagement and conversion; and circumstances that could disrupt the
functioning of the Company's applications and websites.In evaluating these
statements, you should carefully consider these risks and uncertainties and
those described under the headings "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Risk Factors" in the
Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and other Securities and Exchange Commission filings.

All forward-looking statements speak only as of the date on which they are
made. The Company undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after the date on
which such statement was made, except to the extent required by applicable
securities laws.



SNAP INTERACTIVE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                March 31,       December 31,
                                                2013            2012
ASSETS                                          (Unaudited)
Current assets:
Cash and cash equivalents                       $ 4,364,286     $ 5,357,596
Restricted cash                                   105,211         105,000
Credit card holdback receivable                   243,926         287,293
Accounts receivable, net of allowances and
reserves of$36,895 and $36,129,                  307,310         320,019

respectively
Prepaid expense and other current assets          278,501         204,824
Total current assets                              5,299,234       6,274,732
Fixed assets and intangible assets, net           626,812         548,549
Notes receivable                                  166,885         165,716
Total assets                                    $ 6,092,931     $ 6,988,997
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                $ 1,294,281     $ 799,183
Accrued expenses and other current liabilities    395,423         240,049
Deferred revenue                                  2,067,853       2,524,229
Total current liabilities                         3,757,557       3,563,461
Long term deferred rent                           39,277          48,340
Warrant liability                                 515,350         1,616,325
Commitments
Total liabilities                                 4,312,184       5,228,126
Stockholders' equity:
Preferred Stock, $0.001 par value, 10,000,000
shares authorized,none issued                    -               -

and outstanding
Common Stock, $0.001 par value, 100,000,000
shares authorized,

44,257,826 and 44,007,826 shares issued,          38,933          38,833
respectively, and 38,932,826 and

38,832,826 shares outstanding, respectively
Additional paid-in capital                        9,741,087       9,437,422
Accumulated deficit                               (7,999,273)     (7,715,384)
Total stockholders' equity                        1,780,747       1,760,871
Total liabilities and stockholders' equity      $ 6,092,931     $ 6,988,997



SNAP INTERACTIVE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                                For the Three Months Ended
                                                March 31,
                                                2013            2012
Revenues:
Subscription revenue                            $ 3,427,891     $ 5,586,038
Advertising revenue                               41,669          159,414
Total revenues                                    3,469,560       5,745,452
Costs and expenses:
Programming, hosting and technology               1,447,487       1,156,328
Compensation                                      863,792         652,140
Professional fees                                 267,104         148,317
Advertising and marketing                         1,131,680       4,520,241
General and administrative                        1,146,026       984,220
Total costs and expenses                          4,856,089       7,461,246
Loss from operations:                             (1,386,529)     (1,715,794)
Interest income, net                              1,665           8,533
Mark-to-market adjustment on warrant liability    1,100,975       (1,288,375)
Net lossbefore income taxes:                     (283,889)       (2,995,636)
Provision for income taxes                        -               -
Net loss                                        $ (283,889)     $ (2,995,636)
Net loss per common share:
Basic and diluted                               $ (0.01)        $ (0.08)
Weighted average number of common shares used
in calculating net loss per

common share:
Basic and diluted                                 38,908,382      38,580,261



SNAP INTERACTIVE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
                                                Three Months Ended
                                                March 31,
                                                2013            2012
Cash flows from operating activities:
Net loss                                        $ (283,889)     $ (2,995,636)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization                     42,033          32,740
Amortization of investment premium                -               3,212
Stock-based compensation expense                  203,765         285,283
Mark-to-market adjustment on warrant liability    (1,100,975)     1,288,375
Loss on disposal of fixed assets                  -               -
Changes in operating assets and liabilities:
Restricted cash                                   (211)           (105,000)
Credit card holdback receivable                   43,367          (14,642)
Accounts receivable                               12,709          (607,861)
Accrued interest paid                             -               -
Prepaid expense and other current assets          (73,677)        (83,716)
Security deposit                                  -               19,520
Accounts payable and accrued expenses and         648,702         331,713
other current liabilities
Deferred rent                                     (7,293)         (5,567)
Deferred revenue                                  (456,376)       291,672
Net cash used in operating activities             (971,845)       (1,559,907)
Cash flows from investing activities:
Purchase of fixed assets                          (20,296)        (2,677)
Redemption (purchase) of short-term               -               3,003,850
investments
Repayment (issuance) of notes receivable and      (1,169)         8,664
accrued interest
Net cash provided by (used in) investing          (21,465)        3,009,837
activities
Cash flows from financing activities:
Net cash provided by financing activities         -               -
Netincrease (decrease) in cash and cash          (993,310)       1,449,930
equivalents
Cash and cash equivalents at beginning of year    5,357,596       2,397,828
Cash and cash equivalents at end of period      $ 4,364,286     $ 3,847,758



SNAP INTERACTIVE, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(Unaudited)
                                                    ThreeMonthsEnded
                                                    March 31,
                                                    2013          2012
Reconciliation of Subscription Revenue to Bookings
Subscription revenue                                $ 3,427,891   $ 5,586,038
Change in deferred revenue                            (456,376)     291,672
Bookings                                            $ 2,971,515   $ 5,877,710



              March         February      January       December      November      October

              2013          2013          2013          2012          2012          2012
Subscription  $ 1,104,791   $ 1,131,027   $ 1,192,073   $ 1,263,304   $ 1,294,304   $ 1,350,754
revenue
Change in
deferred        (96)          (171,390)     (284,890)     (284,291)     (273,362)     (235,907)

revenue
Bookings      $ 1,104,695   $ 959,637     $ 907,183     $ 979,013     $ 1,020,942   $ 1,114,847



                                                    March 31,     March 31,
                                                    2013          2012
Reconciliation of Cash and Cash Equivalents
toOverall Liquidity
Cash and cash equivalents                           $ 4,364,286   $ 3,847,758
Restricted cash                                       105,211       105,000
Investments                                           -             3,474,143
Overall liquidity                                   $ 4,469,497   $ 7,426,901



Non-GAAP Financial Measures

We have provided in this release non-GAAP financial information including
bookings and overall liquidity to supplement the consolidated financial
statements, which are prepared in accordance with GAAP. Management uses these
non-GAAP financial measures internally in analyzing our financial results to
assess operational performance and to determine our future capital
requirements. The presentation of this financial information, which is not
prepared under any comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for the financial
information prepared in accordance with GAAP. We believe that both management
and investors benefit from referring to these non-GAAP financial measures in
assessing our performance and when planning, forecasting and analyzing future
periods. We believe these non-GAAP financial measures are useful to investors
because they allow for greater transparency with respect to certain key
financial metrics we use in making operating decisions and because our
investors use such information to help assess the health of our business.

Some limitations of bookings and overall liquidity as financial measures
include that:

  oBookings does not reflect that we defer and recognize revenue from
    subscription fees and micro-transactions over the length of the
    subscription term;
  oOther companies, including companies in our industry, may calculate
    bookings and overall liquidity differently or choose not to calculate
    bookings and overall liquidity at all, which reduces their usefulness as
    comparative measures; and
  oOverall liquidity does not reflect the Company's ability to convert
    restricted cash and investments into cash and cash equivalents.

Because of these limitations, you should consider bookings and overall
liquidity along with other financial performance measures, including total
revenues, deferred revenue, net income (loss), cash and cash equivalents,
restricted cash, investments, net cash used in operating activities and our
financial results presented in accordance with GAAP.



SOURCE Snap Interactive, Inc.

Website: http://www.snap-interactive.com