TORONTO, ON–(Marketwired – June 30, 2017) – Peeks Social Ltd. (TSX VENTURE: PEEK) (OTCQB: PKSLF) today provided an update on the performance of the Peeks product and commented on the Financial Statements and Management’s Discussion and Analysis for the year ended February 28, 2017, which are available on the Company’s profile on SEDAR (www.sedar.com). Certain information provided below is extracted from these documents and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information.
The Peeks product was launched in November 2016. The Company reported licensing revenue derived from the Peeks product of $52,584 for the year ended February 28, 2017, which is provided by month to the end of February 2017 in the attached image. In addition, the Company routinely monitors certain Key Performance Indicators (“KPIs”) that it has identified as important in understanding the performance of the Peeks product, which are also provided by month, to the end of May 2017, in the attached image.
Q4 2017 Licensing Revenue
Licensing revenue earned from the Peeks app in Q4 2017, the three months ended February 28, 2017, was $49,150, compared to advertising revenue earned by the legacy Keek products (now retired) of $36,944 for the three months ended February 29, 2016. An important distinction is that by February 28, 2017, the Peeks product had only been operational for a period of four months, and as such this revenue was earned over approximately 3 million user sessions in Q4 2017. By comparison, by February 29, 2016, the legacy Keek product had been operational for approximately five years, and had approximately 15 million user sessions in Q4 2016 and nearly 200 million user sessions a month at its peak levels historically, prior to 2016.
Q4 2017 Net Loss
The net loss for the fourth quarter ended February 28, 2017, was $1,518,035, as compared to $1,780,096 for the fourth quarter ended February 29, 2016. The net loss for Q4 2017 was significantly contributed to by non-cash stock based compensation expense in the amount of $903,147, as compared to stock based compensation expense of $106,569 for Q4 2016. Stock based compensation expense relates to stock options issued pursuant to the Company’s Stock Option Plan. After considering items not affecting cash, net loss for Q4 2017 and Q4 2016 was $773,853 and $1,630,001, respectively, a decrease of $856,148. A list of items not affecting cash which are included in net loss can be found on the Consolidated Statements of Cash Flows included in the Financial Statements for the year ending February 28, 2017, and discussed in the MD&A.
“We are extremely pleased with the performance of the service since its launch in November. Whereas most of our competitors required tens of millions of dollars and a year or more to generate their first dollar, we have been able to accomplish that in a few short months with little investment. Since launch we have concentrated on perfecting the performance of the service by focusing on several metrics, the most important ones being user sessions and average monthly deposits. We have been successful in our efforts as our average dollars deposited per user per month has increased from $0.15 in November 2016 to $1.27 in May 2017 and our monthly user sessions have soared from 400,000 to almost 2,000,000 in the same period. This was as a result of several initiatives that we undertook that made it easier for individuals to spend money and provided users with a wider variety of spend-worthy content (i.e. crowdfunding, e-gaming). Our user sessions have increased as a result of continuous daily registrations and more frequent use of the service. As we continue these efforts we fully expect this upward trend to continue.
We are poised to launch major user acquisition campaigns this summer, which I believe will result in a significant increase in user registration rates and will catapult us towards being cash flow positive in record time.
Finally, we are extremely proud of our performance to date. With a relatively small user base and a comparatively small amount of investment we have succeeded in already becoming the 16th top grossing social app in the United States in the Google Play Store and the 132nd top grossing app overall in the United States, according to Appbrain. The revenue generating potential of our service on scale is incredible. Now we just need to step on the gas,” said Mark Itwaru, CEO of Peeks Social Ltd.
The Peeks app can be downloaded in either the Apple or Google app stores, or by visiting www.peeks.com.
Notes:
- This KPI represents the number of times the Peeks app was accessed by users. Data was provided through Google Analytics. For additional information on Google Analytics’ definition of “session” and the methods of calculating “sessions,” please refer to https://support.google.com/analytics.
- This KPI calculates the total dollar amount deposited in the Peeks service by registered users in a calendar month, divided by the number of registered users as at the end of that month. While the “dollars deposited per registered user” is an important KPI for the Peeks product, it is not a direct indicator of the Company’s financial performance.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
Forward looking statements:
The information and statements in this news release contain certain forward-looking information relating to performance metrics of the Peeks product. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The Company’s forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking information.
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For further information, please contact:
Peeks Social Ltd.
Mark Itwaru
Chairman & Chief Executive Officer
647-992-7727
mark@peeks.com