By Carolyn J Dawson, TMCnet Contributor
SNAP Interactive, a major provider of dating applications for social networking websites, has announced its continuously growing average daily gross cash receipts as per the preliminary results until June 13. The unaudited operational highlights of the preliminary results showed that till June 2010 the average daily gross cash receipts had gone up by more than 20 percent over the year-to-date average. The average daily gross cash receipts had grown by more than 8 percent as compared to the average daily gross cash receipts in month of May 2010.
In a release, Clifford Lerner, president and CEO of SNAP stated, “We have seen a monthly increase in average daily gross cash receipts from premium and subscription sales in each month since we introduced the subscription service. Trend has continued through the first half of June thus far and we believe that the additional growth is due in part to the benefits of recurring subscriptions which are a core element to the subscription model. As three and six month recurring subscriptions are now kicking in and recurring revenue continues to increase, the results are very exciting and we will continue to fine tune our business model in order to best optimize its growth.” As per the GAAP accounting, the revenue earned from multi month subscriptions are considered for over the length of the subscription term rather than at the time of purchase. The majority of the company’s subscription sales are from subscriptions having a term of three or six months, they have apportioned that revenue earned over the term of the subscription, even though the income was collected in full at the time of purchase. The difference between the total cash receipts collected and the recognized revenue from the sales will appear in the company’s financials as deferred revenue, this deferred revenue amount for financial year ending March 31, 2010 was $604,531.In the release, Lerner further mentioned, “We’re also very pleased with the increase in new users and traffic growth that we’ve experienced over the past couple of months. With our subscription model fully implemented we have turned our attention back toward user acquisition and viral growth and I believe that the results speak for themselves.”
Carolyn John is a Contributor to TMCnet. To read more of her articles, please columnist page.
Edited by Erin Harrison
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