CALGARY, ALBERTA -- (Marketwire) -- 04/30/12 -- Poynt Corporation (TSX VENTURE:PYN) (OTCQX:PNYTF) ("Poynt Corp." or the "Company"), a global leader in mobile local search and advertising, today reported results for its fourth quarter and fiscal year ended December 31, 2011. All figures below are in Canadian dollars.
Q4 2011 Operational Highlights
-- The Company's mobile local search and advertising platform, Poynt
("Poynt" or the "Platform"), surpassed 12.4 million unique users
representing 154% growth year over year
-- Launched timesPoynt in India, a co-branded platform that merges the
Poynt Platform's mobile local search capabilities with timesCity.com
content and advertising network
-- Signed agreement with Nokia to preload timesPoynt on all Nokia Lumia 710
and Nokia Lumia 800 smartphones sold in India
-- Launched global on-device offering with Samsung to position Poynt on all
Samsung GALAXY devices
Full Year 2011 Results
Revenues increased 139% to $2.4 million from $1.0 million in 2010. This improvement was primarily due to the continued global increase in Poynt user adoption.
Net loss for 2011 was $20.5 million or $(0.05) per basic share, compared to a net loss of $16.9 million or $(0.07) per basic share in 2010. This loss is comprised of $5.8 million of non-recurring items. Adjusting for this, the loss is $14.7 million, which was in line with expectations. The increase was primarily due to the significant investment of Company resources in the development of the China Joint Venture. Other expenses included continued engineering of the Poynt platform and additional marketing initiatives that address growth opportunities in global geographies and to increase advertising within the Poynt platform.
The 2011 net loss also included $6.3 million of non-cash items comprised of $2.7 million of amortization and depreciation, $1.4 million related to impairment and losses on assets and $2.0 million of stock-based compensation and $0.2 million on onerous leases and other. This compares to $10.0 million of non-cash items in 2010 which were comprised of $2.2 million of amortization and depreciation, $7.2 million related to impairment of assets from adoption International Financial Reporting Standards and $714,000 of stock-based compensation. After adjusting for these non-cash items, 2011 net cash loss was approximately $14.2 million, compared to $6.9 million in 2010.
Poynt User Stats
Total unique users increased 21% sequentially to 12.4 million from 10.2 million in the previous quarter, and increased 154% from 4.9 million in 2010. As of April 30, 2012 the Platform's unique user base exceeds 15.4 million. Poynt Corp.'s revenue model includes user queries, page views, display advertising and transactions within the Platform, with user growth a key metric that drives the Company's revenues. Each user query generates several page views, which are monetized through display advertising and sponsored listings paid for by our advertisers. These advertising placements generate revenues on a cost per thousand impressions, or CPM, basis or on a cost per click, or CPC, basis. Transactions, such as ticket sales and restaurant reservations, also contribute to revenues on a fee for service basis.
"In 2011, we achieved record revenues, more than double over 2010, which was driven by increased user adoption and our monetization efforts," said Andrew Osis, CEO, Poynt Corp. "In fact, we added more than 7.5 million users in 2011, and through our partnership with timesCity (Times Internet Limited of India), we expanded into India, one of the largest mobile markets in the world."
Mr. Osis continued, "Entering 2012, we continued to experience tremendous user adoption across multiple platforms and geographies, especially in India, where timesPoynt has seen a 766% increase in unique users since the beginning of the year. This adoption rate clearly reflects our focus on expanding Poynt's feature set with user relevant content, as well as adding engaging capabilities that promote daily use. Our global user growth has in part been driven by greater awareness of the Poynt brand resulting from our targeted marketing efforts and on-device offerings."
"Through both geographic expansion and new preload agreements, our position in the mobile application space is strengthening. We expect to exceed 40 million users by the end of 2012, including 20 million new users from our China Joint Venture." Mr. Osis concluded, "We expect this scale to broaden our revenue streams and allow us to target a cash flow positive state by year's end, which could be further strengthened by the initial monetization of our expanding IP portfolio. Additionally, the Company expects to issue an update with respect to activities relating to the China Joint Venture in the near future."
Andrew Osis, CEO, Poynt Corp., will host the presentation followed by a question and answer period.
Date: Tuesday, May 1, 2012
Time: 10:30 a.m. Eastern time (8:30 a.m. Mountain time)
Dial-in number: 1-877-941-8416
Conference ID#: 4534715
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
To listen to the live webcast please go to http://viavid.net/dce.aspx?sid=000096DD. A replay of the webcast will be made available in due time following the conclusion of the call via Poynt's website at www.poynt.com.
A telephone replay of the call will be available after 1:30 p.m. Eastern time (11:30 a.m. Mountain time) and until June 1, 2012.