Company Achieves Full Year Profitability With Triple Digit Revenue Growth in FY 2012
NEWPORT BEACH, CA–(Marketwire – Mar 7, 2013) – Accelerize New Media Inc. ( OTCBB : ACLZ ), owner and operator of Cake Marketing(www.cakemarketing.com), a highly scalable SaaS (Software-as-a-Service) platform providing a comprehensive and complete online tracking solution for advertisers — from acquisition through conversion, today announced financial results for its fiscal year ended December 31, 2012.
“Growing industry demand for our innovative SaaS platform and capitalizing on the true power of our recurring revenue business model enabled Accelerize to achieve its first full year of profitability, with record revenues that grew 146% year over year,” said Accelerize New Media Inc. Chairman and CEO Brian Ross. “Given the increased number of new clients and greater usage among existing clients, we fully expect this momentum to continue through 2013 as we continue to scale our business both domestically and internationally.”
“Reaching profitability was an important milestone, providing validation for our business model and enabling us to prudently reinvest in R&D and build shareholder value,” added Mr. Ross. “With advertisers demanding a measurable return on investment for their marketing initiatives, we are confident that the R&D investments we have made and continue to make will result in ongoing and significant market share gains as the industry embraces performance-based marketing.”
Financial Highlights for FY 2012
Revenues: Total revenues increased 146% from $2,363,073 to $5,800,622 year over year, driven organically by a 117% increase in the average number of clients and a 13% increase in the average usage fees charged per client. We expect future revenues to be driven by ongoing organic growth, international expansion, and increased sales efforts.
Operating Income: Operating income reached $380,937, compared to an operating loss of $(853,881) year-over-year, due to higher revenues and contained expenses. We plan to continue managing our costs and scaling revenues to improve operating margins.
Net Income: Net income increased to $492,948, compared to a loss of $(1,177,095), during the prior year period, due to revenues that grew faster than expenses.
Cash Flow: Cash provided by operations increased to $166,059 compared to cash used in operations of $(648,137) a year ago. Approximately $933,034 was invested in research and development. We continued to increase our expenditures to support our additional customers and the scope of our activities, which increased our total operating expenses from $3,216,954 in 2011 to $5,419,685 in 2012. Free cash flow, which amounts to cash flows from operations less capital expenditures, totaled $124,289 for 2012.
About Accelerize New Media, Inc.
Accelerize New Media, Inc. owns and operates Cake Marketing, a highly scalable SaaS (Software-as-a-Service) platform providing a comprehensive and complete online tracking solution for advertisers — from acquisition through conversion. Easy-to-use wizards and real-time reporting guide users through every step of managing and optimizing campaigns. From traffic providers to advertisers, tracking to data distribution, Cake Marketing offers the most robust platform to manage your business and analyze the performance of your marketing relationships. Seamless integration with other services through a developed API eliminates bottlenecks while increasing ROI for advertisers.
Use of Forward-looking Statements
This press release may contain forward-looking statements from Accelerize New Media, Inc. within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when we describe our momentum moving into 2013, industry demand for the Cake Marketing platform, our ongoing and significant market share gains, and our future revenues, we are using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize New Media only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; unforeseen market and technological difficulties may develop with our products and services; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize New Media to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize New Media undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Accelerize New Media, reference is made to Accelerize New Media’s reports filed from time to time with the Securities and Exchange Commission.