Accelerize New Media, Inc. Reports Record Revenues in 2013

Company Achieves Significant Revenue Growth and Full Year of Profitability in FY 2013

NEWPORT BEACH, CA–(Marketwired – Mar 26, 2014) – Accelerize New Media, Inc. (OTCQB:ACLZ), owner and operator of CAKE, the marketing technology company that provides a comprehensive enterprise suite of innovative marketing intelligence tools, today announced financial results for its fiscal year ended December 31, 2013.

“We continue to experience increasing demand from advertisers and publishers for our software-as-a-Service (SaaS) multi-channel marketing intelligence platform. That combined with international expansion and our healthy recurring revenue business model enabled Accelerize to achieve its second full year of profitability. Revenue growth of 66% year over year fueled further investments in sales and marketing while Accelerize maintained profitability,” said Accelerize New Media, Inc. Chairman and CEO Brian Ross. “Given the growing number of new enterprise clients and expanded adoption of our suite of products among existing clients, we fully expect this momentum to continue through 2014 as we scale our business both domestically and internationally.”

“Our powerful multi-channel enterprise solution has become the industry standard for ad networks, publishers, brands and agencies to measurably improve and optimize their digital spend. That adoption translates to over 400 customers that are driving over two billion consumer actions every month through the CAKE enterprise platform,” said Mr. Ross. “Today, advertisers demand a measurable return on investment for their marketing initiatives. We are confident that our sales, marketing and R&D investments will result in ongoing and significant market share gains as the industry embraces performance-based marketing intelligence. ”

Financial Highlights for FY 2013

Revenues: Total revenue increased 66% to $9,653,865 from $5,800,622 year over year, driven organically by a 55% increase in the average number of clients and a 25% increase in the average revenue per client. We expect future revenues to be driven by ongoing organic growth, international expansion, as well as increased sales and marketing efforts.
Operating Income: Operating income (loss) was $(184,637), compared to an operating income of $380,937 for 2012, 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 was $93,776, compared to an income of $492,948, during the prior year period, due to expenses related to product innovation, international expansion, and increased sales and marketing investments that grew faster than revenue.
Cash Flow: Cash provided by operations increased to $749,195 compared to a cash increase of $166,059 a year ago. Approximately $1,425,215 was invested in research and development. We increased our expenditures to support our additional customers and the scope of our activities, which increased our total operating expenses from $5,419,685 in 2012 to $9,838,502 in 2013. Free cash flow, which amounts to cash flows from operations less capital expenditures, totaled $(31,756) for 2013.

About Accelerize New Media, Inc.

Accelerize New Media, Inc. (OTCQB: ACLZ) owns and operates CAKE, a marketing technology company providing a comprehensive enterprise suite of innovative marketing intelligence tools for the performance marketing industry. The CAKE SaaS proprietary marketing platforms are used by the world’s leading companies and the world’s largest customer-base of enterprise affiliate marketing networks and merchants. CAKE’s solutions are based on reliable, feature rich technology and are bolstered by the industry’s leading customer service and top-tier technology partners — assuring the highest level of uptime. The company has also now launched cupCAKE, a campaign management solution for small and medium sized affiliate marketers.

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 say that we expect momentum to continue through 2014 and future revenues to be driven by ongoing organic growth, international expansion and increased sales and marketing efforts, that our sales, marketing and R&D investments will result in ongoing and significant market share gains, that we plan to continue managing our costs and scaling revenues to improve operating margins and that CAKE enables marketers to measurably improve and optimize digital spend, 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.

ACCELERIZE NEW MEDIA, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS