· Q2 2016 adjusted EBITDA reaches $519K, up $1.3MM year over year and 54% sequentially; Q2 2016 operating loss narrows to $(123K), a $1.6MM improvement over Q2 2015
· Company sees continued growth in revenue, operating profit and adjusted EBITDA for the remainder of 2016
NEWPORT BEACH, Calif. – August 9, 2016 – Accelerize Inc. (OTCQB: ACLZ) (OTCBB: ACLZ), a leader in marketing technology solutions, today announced financial results for its fiscal second quarter ended June 30, 2016.
- Monthly Recurring License Fees grew at a record pace: Contractual license fee revenues increased to $4.6MM in Q2 2016, up 32% year over year. The Company intends to continue to focus its sales efforts on recurring revenue opportunities.
- Growth in Revenue per Customer continues as customers increase adoption and usage: Total revenue per customer increased 7% in Q2 2016 as compared with the same period in 2015. Customers have shown increased adoption of the Company’s SaaS platform through broader usage and higher transaction volumes. Additionally, from a customer concentration perspective, no single customer represented more than 3% of overall revenue in the quarter.
- Operating Loss narrows significantly:Operating loss in Q2 2016 narrowed to $(123K), compared to an operating loss of $(1.7MM) in Q2 2015. These improvements were a direct result of continued strong revenue growth fostered by global expansion coupled with streamlining initiatives implemented in the second half of 2015.
- Company achieves strong positive Adjusted EBITDA growth: Q2 2016 adjusted EBITDA rose to $519K representing a 54% sequential increase and an improvement of $1.3MM compared to an adjusted EBITDA loss of ($823K) recorded in Q2 2015. Adjusted EBITDA is a non-GAAP measure management believes provides important insight into the Company’s operating results (see reconciliation of non-GAAP measures below).
- International Sales Expansion: The Company achieved further global diversification with 33% of overall revenue being derived outside the U.S. in Q2 2016, up from 28% in Q2 2015. During the second quarter of 2016, the Company continued to add new clients from virtually all regions of the world.
- Appointment of Senior Vice President of Product: In Q2 2016 the Company appointed Paul Dumais to the position of Senior Vice President of Product. Paul brings more than 20 years of executive management and software development experience to Accelerize with a focus on developing and implementing the over-arching product vision and communicating the product roadmap both internally and externally.
“As we move into the second half of 2016 we continue to build momentum in all aspects of our business,” said Brian Ross, CEO and Chairman of Accelerize Inc. “With our streamlining initiatives yielding strong bottom line results coupled with continued sales expansion, we are well positioned to focus our efforts on building our rapidly growing recurring revenue base. Our global expansion efforts have yielded substantial international sales growth and we see further positive trends in our business in the coming quarters. We will continue to prudently invest in product innovation to maintain our leading position in the market and slowly add strategic personnel to accelerate our revenue growth. Our expanded credit facility provides us with significant resources to implement our strategic business plans for the foreseeable future and we look forward to achieving further growth in our top and bottom line results throughout 2016 and into 2017.”
Financial Highlights for Q2 2016
- Revenues: Total revenues for Q2 2016 reached a record $6.0MM, a 10% increase from $5.5MM recorded in Q2 2015. Moreover, monthly recurring license fee revenue increased 32% year over year to a total of $4.6MM for Q2 2016. The revenue increase was driven by a further 7% year over year increase in average revenue per customer, reflecting the Company’s continuing success in adding larger customer opportunities that progressively grow in overall usage. Geographically, the Company continued to successfully implement its international expansion efforts with 33% of revenues in Q2 2016 derived from outside the U.S. compared to 28% in Q2 2015. The Company expects future revenues to be driven by ongoing international expansion, organic growth, up-selling existing customers, product innovation, as well as streamlined sales and marketing efforts.
- Operating Income (Loss):Operating loss in Q2 2016 narrowed significantly to $(123K), compared to an operating loss of $(1.7MM) in Q2 2015. The improvement in operating results was largely attributable to a 27% reduction in operating expenses, enabling the Company to achieve a $1.0MM reduction in sales and marketing expenditures year over year while revenue expanded, and also reduce G&A expenses by $104K. Research and Development expenses decreased by $352K year over year while the Company continued to invest in product innovation.
- Adjusted EBITDA: Adjusted EBITDA in Q2 2016 improved significantly, reaching $519K compared to $(823K) in Q2 2015. Adjusted EBITDA is a non-GAAP financial measure that excludes stock option and warrant expense and is defined below.
- Revenue Model: The Company’s revenue model is fundamentally a monthly recurring license fee structure with associated usage fees based on the volume of online events. The Company also earns a small portion of its revenue from training and implementation of new customers, professional services, partnerships and royalties.
About Accelerize Inc.
Accelerize Inc. (OTCQB: ACLZ) (OTCBB: ACLZ) offers marketing technology solutions that revolutionize the way advertisers leverage their digital advertising data. For more information, visit www.accelerize.com.
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