Company expands market opportunity through the launch of Journey, its new enterprise software platform for large advertisers, publishers and brands
NEWPORT BEACH, CA--(Marketwired - Nov 15, 2017) - Accelerize (
Accelerize owns and operates CAKE, a technology provider of customer journey analytics solutions that measurably improve marketing campaign performance and return on advertising spend. CAKE's powerful software-as-a-service (SaaS) enterprise platform provides unparalleled insight into every step in the customer journey and sophisticated tools that enable advertisers, publishers, agencies and affiliate networks to maximize the effectiveness of their marketing efforts across the digital spectrum.
Business Highlights for Q3 2017
"We are excited to have begun the launch of Journey late in Q3 2017 as we position the Company to accelerate its recurring revenue growth in 2018 and beyond," said Brian Ross, Chairman and CEO of Accelerize. "We believe that the favorable response we have seen from our initial marketing efforts of this dynamic software platform to a select group of large advertisers, publishers and brands demonstrates that we have developed a SaaS-based product that is on point and poised for success. We anticipate that Journey will deliver a progressive expansion in higher margin recurring revenue throughout 2018 as we successfully penetrate this very large market opportunity. We are confident this will enable us to build lasting value to our stockholders for many years to come."
Financial Highlights for Q3 2017
"In the third quarter we continued to lay the foundation for our expansion into a much larger and higher margin revenue opportunity with the launch of our Journey enterprise software platform," said Andy Mazzarella, CFO of Accelerize. "While the migration and set up costs associated with our new three year hosting services agreement with Amazon had a short term negative impact on margins, it sets the stage for tremendous scalability that will ultimately result in reduced costs and greater profitability as we grow. We expect to see a progressive uptick in margins beginning in Q4 as costs begin to normalize and we achieve greater utilization rates through the addition of new customers on the Journey platform in 2018. We are in continued discussions to expand our borrowing capabilities to support our anticipated market expansion and look forward to delivering strengthening financial performance for the benefit of our stockholders."
About Accelerize Inc.
Accelerize Inc. (OTCQB: ACLZ) offers marketing technology solutions that revolutionize the way advertisers leverage their digital advertising data. For more information, visit www.accelerize.com.
Use of Forward-looking Statements
This press release may contain forward-looking statements from Accelerize 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 Accelerize Inc. describes the benefits and impact of its new enterprise software including contributing higher margin recurring revenue in Q1 2018 and thereafter, the market opportunity from its new enterprise software, the benefits of its hosting services agreement, its sales and revenue growth goals, the growth of future revenues, expectations for gross margins, expansion of borrowing capabilities, and uses other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, Accelerize Inc. is using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize Inc. 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; or, loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize Inc. to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize Inc. 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 Inc., reference is made to Accelerize Inc.'s reports filed from time to time with the Securities and Exchange Commission.
Use of Non-GAAP Financial Information
Accelerize Inc. provides financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). To help understand Accelerize Inc.'s financial performance the Company has supplemented its financial results that it provides in accordance with GAAP with certain non-GAAP financial measures. The method Accelerize Inc. uses to produce non-GAAP financial results is not computed according to GAAP and may differ from the methods used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Specifically, management is excluding the following items from its non-GAAP Adjusted EBITDA calculation:
Stock-Based Compensation and Warrant Expenses: The Company's compensation strategy includes the use of stock-based compensation and warrants to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation and warrant expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
ACCELERIZE INC. | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
September 30, 2017 |
December 31, 2016 |
|||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current Assets: | ||||||||||
Cash | $ | 634,772 | $ | 1,680,127 | ||||||
Restricted cash | 50,000 | 50,000 | ||||||||
Accounts receivable, net of allowance for bad debt of $300,949 and $349,535, respectively | 2,474,511 | 2,229,610 | ||||||||
Prepaid expenses and other assets | 527,264 | 398,187 | ||||||||
Total current assets | 3,686,547 | 4,357,924 | ||||||||
Property and equipment, net of accumulated depreciation and amortization of $3,201,153 and $2,585,072, respectively | 3,712,401 | 2,933,126 | ||||||||
Other assets | 122,592 | 102,574 | ||||||||
Total assets | $ | 7,521,540 | $ | 7,393,624 | ||||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||
Current Liabilities: | ||||||||||
Accounts payable and accrued expenses | $ | 2,344,121 | $ | 2,639,008 | ||||||
Deferred revenues | 71,663 | 53,450 | ||||||||
Credit facility, short term | 2,736,684 | 2,038,946 | ||||||||
Other short-term loan, net of unamortized deferred financing cost of $9,791 and $43,133, respectively | 839,403 | 506,867 | ||||||||
Total current liabilities | 5,991,871 | 5,238,271 | ||||||||
Credit facility, net of unamortized deferred financing cost of $291,630 and $429,769, respectively | 4,498,346 | 4,588,227 | ||||||||
Other long-term loan, net of unamortized deferred financing cost of $95,953 and $0, respectively | 379,853 | - | ||||||||
Other liabilities | 1,168,750 | 1,487,500 | ||||||||
Total liabilities | 12,038,820 | 11,313,998 | ||||||||
Stockholders' Deficit: | ||||||||||
Series A Preferred stock; $0.001 par value; 54,000 shares authorized; None issued and outstanding. | - | - | ||||||||
Series B Preferred stock; $0.001 par value; 1,946,000 shares authorized; None issued and outstanding. | - | - | ||||||||
Common stock; $0.001 par value; 100,000,000 shares authorized; 65,523,042 and 63,415,254 shares issued and outstanding, respectively | 65,522 | 63,414 | ||||||||
Additional paid-in capital | 25,948,303 | 25,211,737 | ||||||||
Accumulated deficit | (30,485,874 | ) | (29,118,196 | ) | ||||||
Accumulated other comprehensive loss | (45,231 | ) | (77,329 | ) | ||||||
Total stockholders' deficit | (4,517,280 | ) | (3,920,374 | ) | ||||||
Total liabilities and stockholders' deficit | $ | 7,521,540 | $ | 7,393,624 | ||||||
ACCELERIZE INC. | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
Three-month periods ended September 30, |
Nine-month periods ended September 30, |
|||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Revenues: | $ | 6,065,674 | $ | 6,015,800 | $ | 18,016,552 | $ | 17,883,105 | ||||||||||
Cost of revenue | 2,749,975 | 2,073,018 | 6,660,684 | 6,035,828 | ||||||||||||||
Gross profit | 3,315,699 | 3,942,782 | 11,355,868 | 11,847,277 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 1,031,878 | 952,704 | 3,208,434 | 2,957,140 | ||||||||||||||
Sales and marketing | 1,119,302 | 924,415 | 3,419,095 | 2,791,715 | ||||||||||||||
General and administrative | 1,554,982 | 1,956,991 | 5,232,896 | 6,492,958 | ||||||||||||||
Total operating expenses | 3,706,162 | 3,834,110 | 11,860,425 | 12,241,813 | ||||||||||||||
Operating income (loss) | (390,463 | ) | 108,672 | (504,557 | ) | (394,536 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||
Other income (loss) | 2 | (153 | ) | 744 | 20,781 | |||||||||||||
Other expense | (305,284 | ) | (242,516 | ) | (863,865 | ) | (676,748 | ) | ||||||||||
Total other (expense) | (305,282 | ) | (242,669 | ) | (863,121 | ) | (655,967 | ) | ||||||||||
Net loss | $ | (695,745 | ) | $ | (133,997 | ) | $ | (1,367,678 | ) | $ | (1,050,503 | ) | ||||||
ACCELERIZE INC. | |||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||
Three-month periods ended | Nine-month periods ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
GAAP Net loss | $ | (695,745 | ) | $ | (133,997 | ) | $ | (1,367,678 | ) | $ | (1,050,503 | ) | |||||
EBITDA Calculation | |||||||||||||||||
Interest | 282,255 | 219,942 | 793,444 | 639,744 | |||||||||||||
Depreciation-US | 30,816 | 40,839 | 95,522 | 191,414 | |||||||||||||
Depreciation-UK | 3,255 | 11,364 | 8,079 | 34.851 | |||||||||||||
Amortization | 193,935 | 195,387 | 509,039 | 570,966 | |||||||||||||
EBITDA: | $ | (185,484 | ) | $ | 333,535 | $ | 38,406 | $ | 386,472 | ||||||||
Stock-based compensation expense | 74,726 | 108,150 | 256,397 | 356,932 | |||||||||||||
Warrant expense | 125,866 | 125,867 | 377,600 | 680,467 | |||||||||||||
Adjusted EBITDA: | $ | 15,108 | $ | 567,552 | $ | 672,403 | $ | 1,423,872 | |||||||||
Contact Information:
Investor Contact:
Ascendant Partners, LLC
Richard Galterio
Rich@ascendantpartnersllc.com
(732) 410-9810