Shares of SNAP Interactive (OTC:STVI) were on the buying block today with no news. As I write, volume has skyrocketed to well over 2.5 million shares compared to its average daily volume of only about 97,000 shares. The stock jumped as high as $3.20 per share earlier (a new 52-week high) before settling at its current price of $2.65 per share. SNAP Interactive has a market cap of $93 million and a 52-week range between $0.08 and $3.20 per share.Revenue increased from $2,354,334 for the nine months ended September 30, 2009 to $3,877,209 for the nine months ended September 30, 2010, an increase of $1,522,875. Revenues increased from $801,120 for the three months ended September 30, 2009 to $1,706,691 for the three months ended September 30, 2010, an increase of $905,571.
These revenues are primarily generated from subscription fees for subscriptions to AreYouInterested.com as well as access to premium features on its products. The increase in revenue for the nine months ended September 30, 2010 was primarily due to the implementation of subscriptions on SNAP’s AreYouInterested.com brand which took place in late 2009. In 2009 revenue was generated primarily from advertisements placed on the AreYouInterested.com Facebook application.
Net income increased to $87,289 for the three months ended September 30, 2010 from net income of $22,736 for the three months ended September 30, 2009, an increase of $64,553. Net income decreased to a net loss of $785,022 for the nine months ended September 30, 2010 from net income of $135,638 for the nine months ended September 30, 2009, a decrease of $920,660.
The decrease in net income for the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009 and shift to a net loss was primarily due to the revenue recognition impact of SNAP’s shift to a subscription model in which revenue is recognized on a deferred basis when subscriptions occur over more than a single month. In addition SNAP incurred increased advertising costs for user acquisition associated with the shift to a subscription model on the AreYouInterested.com brand.
SNAP Interactive is a leading provider of online dating applications for social networking websites and mobile platforms. SNAP has developed two social dating applications built on Facebook Platform which have more than 25 million installations on Facebook. SNAP's portfolio of applications for singles is highlighted by the AreYouInterested.com brand which consists of AreYouInterested.com, the AreYouInterested.com iPhone Dating Application, and the AreYouInterested.com Facebook Application.
For more information visit www.snap-interactive.com.
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