Science & Technology
Sun, February 13, 2011Fri, February 11, 2011Thu, February 10, 2011Wed, February 9, 2011Tue, February 8, 2011Mon, February 7, 2011Sun, February 6, 2011Sat, February 5, 2011Fri, February 4, 2011Thu, February 3, 2011Quepasa Corporation Reports Full Year 2010 Results
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Published in Science and Technology on Tuesday, February 8th 2011 at 10:00 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
WEST PALM BEACH, FL--(Marketwire - February 8, 2011) - Quepasa Corporation (
2010 Highlights
-- Revenues of $6.1 million for the year, versus $536,000 in the previous year. -- EBITDA totaled $26,000 in 2010 vs. EBITDA loss in the previous year (see discussion about EBITDA, a non-GAAP term, below). -- Revenue and EBITDA improvement was attributed to the success of the company's Quepasa DSM advertising platform, an innovative new tool that allows advertisers to deliver their brand message through a viral contest engine. DSM contest participants compete for prizes by sharing their entries across the social web, thus enabling advertisers to drive deep engagement and reach the most popular social media sites in a single campaign. -- Signed DSM and website development contracts throughout 2010 totaling $7.3 million, of which $5.7 million was recognized as GAAP revenue in 2010, with the remainder of $1.6 million to be recognized in 2011. -- Generated a total of 11.4 million engagements across six DSM campaigns initiated in 2010, and exceeded target engagement goals on all six of the campaigns. -- Added 19.6 million Quepasa.com members, increasing 239% from 5.8 million added in 2009 and reaching a record 27.2 million total members, with unique visits exceeding 46 million. -- Partnered with Hollywood Creations and Titan Gaming to develop skill- based wagering games for Quepsasa.com, building upon the success of the site's popular casual, role-playing and social-based games. -- Entered into Quepasa DSM reseller agreements with Sony Pictures Television Ad Sales in Latin America and Grupo Expansión (a division of Time) in Mexico. The company's reseller strategy is designed to accelerate Quepasa DSM time-to-market and increase potential scale in revenue by enabling major media partners to resell Quepasa DSM to advertisers as an innovative "social" solution in addition to their standard broadcast, cable and digital advertising products. -- Signed a licensing agreement with PlaySpan, the global leader in monetization solutions for more than 1,000 online games, virtual worlds, and social networks. Quepasa and third-party developers who publish games to Quepasa.com will be able to leverage robust local payment options across Latin America via PlaySpan's UltimatePay product, including locally issued credit cards and pre-paid card solutions. -- Raised $12.6 million primarily to fund expansion of Quepasa.com's gaming platform through continued development of company-owned gaming IP and through acquisition.
2010 Financial Results
Revenues were $6.1 million for 2010, an increase of $5.5 million or 1030% compared to revenues of $536,000 in 2009. The increase in revenues was primarily due to the company's continued improvements in website monetization efforts. (See "Important Disclosures," below, regarding revenue sources.)
Operating loss was $6.1 million or $(0.46) per basic and diluted share, which included $5.9 million of non-cash stock option expense amortization, compared to an operating loss of $9.9 million in the previous year, an improvement of $3.9 million or 39%.
Net loss for 2010 on a GAAP basis was $6.7 million or $(0.51) per basic and diluted share. This was an improvement from a net loss of $10.6 million or $(0.83) per basic and diluted share in the previous year.
EBITDA for 2010 was $26,000 or $0.00 per basic and diluted share, an improvement from an EBITDA loss of $3.9 million or $(0.31) per basic and diluted share in 2009 (see important discussion about the presentation of EBITDA, a non-GAAP term, below).
Cash and equivalents totaled $13.5 million as of December 31, 2010, as compared to $1.0 million at the end of the previous year.
Management Commentary
"The strong, viral-driven growth of Quespasa.com continued to reach record levels during the year as we realized substantial progress in the monetization of our user base," said John C. Abbott, CEO of Quepasa. "This included generating significant revenue from our new distributed social media advertising solution, Quepasa DSM, as well as establishing a new relationship with PlaySpan at year-end that allows us to more easily monetize user gaming activity."
"As we enter 2011, Quepasa DSM continues to gain traction with advertisers seeking to leverage consumers' rapid, widespread adoption of social media," said Abbott. "Quepasa DSM allows advertisers to reach multiple social media platforms in a single campaign, and leverage best-of-breed social media technologies to drive remarkable results -- especially as compared to traditional media options. With major reseller partnerships in place, we expect to attract new business by taking advantage of these partners' existing advertiser relationships and overall demand for social solutions.
"Our social gaming business also evolved rapidly in 2010, as we focused on tailoring our social gaming platform and offerings to our most important international markets. Our licensing agreement with PlaySpan gives our users and game developers access to a comprehensive portfolio of local payment options in our key markets. In addition to contributions from Hollywood Creations and Titan Gaming in 2010, we have also proactively sought out social gaming content that is culturally relevant to our user base. This resulted in our recent agreement to acquire Brazilian social game development studio, XtFt Games, which provides immediate access to a pipeline of relevant, localized titles. We believe we are now strongly positioned to capitalize on our rapid user growth and broader social gaming trends in the Latin marketplace in 2011."
Investor Update Call
The company will provide an audio investor update on Wednesday, February 9, 2011 at 4:30 p.m. Eastern time to provide further details about the company's 2010 results and outlook for 2011. Quepasa CEO John C. Abbott and CFO Mike Matte will host the presentation.
Date: Wednesday, February 9, 2011 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Dial-In Number: 1-877-941-8601 International: 1-480-629-9810 Conference ID#: 4410638
To access the simultaneous webcast, go to [ http://viavid.net/dce.aspx?sid=0000817F ], or visit the Investors section on the company's website at [ www.quepasacorp.com ].
Please call the telephone number or log into the webcast at least 5-10 minutes prior to the start time. You will be asked to register your name and organization. If you have any difficulty connecting with the call or webcast, please contact Liolios Group at 1-949-574-3860.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day and until February 16, 2011:
Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay pin number: 4410638
About Quepasa Corporation
Quepasa Corporation (
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including leveraging robust local payment options, continuing to gain traction with advertisers, expectations regarding attracting new business and our belief that we are strongly positioned to capitalize on our rapid user growth. Forward-looking statements can also be identified by words such as "targets", "expects", "believes", "anticipates", "intends", "may", "will", "plan", "continue", "forecast", "remains", "would", "should", and similar expressions. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance and results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include competitive factors, our continued support from our Mexican sponsors, finalizing the acquisition of XtFt, our failure to develop and integrate the new games, our members' usage of the games and the continued acceptance of our DSM. Further information on our risk factors is contained in our filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2010. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
Important Disclosures
Approximately 95% of the revenues for the year ended December 31, 2010 came from two companies of which a director of Quepasa is an officer or director.
Use of Non-GAAP Financial Information
EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income, operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of the company's liquidity. Quepasa Corporation defines EBITDA as earnings (or loss) before interest expense, income taxes, depreciation and amortization, including amortization of non-cash stock-based compensation. Other companies (including the company's competitors) may define EBITDA differently. Quepasa presents EBITDA because it believes it to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in a similar industry. Management also uses this information internally for forecasting and budgeting. It may not be indicative of the historical operating results of Quepasa nor is it intended to be predictive of potential future results. Investors should not consider EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. See "Reconciliation of GAAP Income (Loss) to EBITDA (Loss)" below for further information on this non-GAAP measure and reconciliation of GAAP Income (Loss) to EBITDA (Loss) for the periods indicated.
QUEPASA CORPORATION AND SUBSIDIARY Reconciliation of GAAP Net Income (Loss) to EBITDA (Loss) For the Three Months Ended ------------------------------------- December 31, Per Basic Per Diluted 2010 Share Share ----------- ----------- ----------- Net INCOME (LOSS) ALLOCABLE TO COMMON SHAREHOLDERS $(1,817,375) $ (0.14) $ (0.14) ----------- ----------- ----------- Interest expense 151,505 0.01 $ 0.01 Depreciation and amortization of property and equipment 64,626 0.00 $ 0.00 Amortization of stock based compensation 1,160,276 0.09 $ 0.09 ----------- ----------- ----------- EBITDA (loss) $ (440,968) $ (0.03) $ (0.03) =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC 12,982,326 =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, DILUTED 12,982,326 =========== For the Three Months For the Three Months Ended Ended ------------------------ ------------------------ Per Basic Per Basic September 30, and Diluted December 31, and Diluted 2010 Share 2009 Share ----------- ----------- ----------- ----------- Net INCOME (LOSS) ALLOCABLE TO COMMON SHAREHOLDERS $ (346,048) $ (0.03) $(2,617,911) $ (0.21) ----------- ----------- ----------- ----------- Interest expense 150,560 0.01 151,501 0.01 Depreciation and amortization of property and equipment 62,310 0.00 118,947 0.01 Amortization of stock based compensation 1,580,590 0.12 1,506,663 0.12 ----------- ----------- ----------- ----------- EBITDA (loss) $ 1,447,412 $ 0.11 $ (840,800) $ (0.07) =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC 12,982,326 12,729,261 =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, DILUTED 18,614,946 12,729,261 =========== =========== For the Year Ended For the Year Ended --------------------------- -------------------- Per Basic Per Per and December 31, Basic Diluted December 31, Diluted 2010 Share Share 2009 Share ----------- ------ ------ ------------ ------ ----------- ------ ------ ------------ ------ Net INCOME (LOSS) ALLOCABLE TO COMMON SHAREHOLDERS $(6,762,150) $(0.52) $(0.35) $(10,687,007) $(0.84) ----------- ------ ------ ------------ ------ Interest expense 603,609 0.05 $ 0.03 603,607 0.05 Depreciation and amortization of property and equipment 319,779 0.02 $ 0.02 512,977 0.04 Amortization of stock based compensation 5,864,969 0.45 $ 0.30 5,626,436 0.44 ----------- ------ ------ ------------ ------ EBITDA (loss) $ 26,207 $ 0.00 $ 0.00 $ (3,943,987) $(0.31) =========== ====== ====== ============ ====== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC 13,117,845 12,725,894 =========== ============ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, DILUTED 19,559,264 12,725,894 =========== ============ QUEPASA CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets December 31, December 31, 2010 2009 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 13,546,572 $ 1,028,267 Accounts receivable, net of allowance of $16,000 and $37,000, at December 31, 2010 and 2009, respectively 1,361,024 310,781 Notes receivable - current portion, including accrued interest of $3,633 and $0, at December 31, 2010 and 2009, respectively 314,221 - Restricted cash 275,000 - Other current assets 113,841 190,513 ------------ ------------ Total current assets 15,610,658 1,529,561 Property and equipment, net 645,728 422,548 Notes receivable, long-term portion 156,079 250,000 Other assets 40,324 48,282 ------------ ------------ Total assets $ 16,452,789 $ 2,250,391 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable $ 286,990 $ 118,001 Accrued expenses 414,249 180,288 Accrued dividends 278,750 167,250 Unearned grant income 12,364 13,810 ------------ ------------ Total current liabilities 992,353 479,349 ------------ ------------ Notes payable, net of unamortized discount of $1,643,241 and $1,929,885, at December 31, 2010 and 2009, respectively 6,272,545 5,673,702 ------------ ------------ Total liabilities 7,264,898 6,153,051 ------------ ------------ STOCKHOLDERS' EQUITY (DEFICIT): Preferred stock, $.001 par value; authorized - 5,000,000 shares; 25,000 shares issued and outstanding at December 31, 2010 and December 31, 2009 25 25 Common stock, $.001 par value; authorized - 50,000,000 shares; 15,287,280 shares issued and outstanding at December 31, 2010 and 12,743,111 shares issued and outstanding at December 31, 2009 15,287 12,743 Additional paid-in capital 175,276,319 155,425,366 Accumulated deficit (166,096,889) (159,334,739) Accumulated other comprehensive income (loss) (6,851) (6,055) ------------ ------------ Total stockholders' equity (deficit) 9,187,891 (3,902,660) ------------ ------------ Total liabilities and stockholders' equity (deficit) $ 16,452,789 $ 2,250,391 ============ ============ QUEPASA CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) For the Three Months Ended For the Years Ended ------------------------ ------------------------- December 31, December 31, ------------------------ ------------------------- 2010 2009 2010 2009 ----------- ----------- ----------- ------------ REVENUES $ 1,854,295 $ 338,958 $ 6,054,141 $ 535,976 ----------- ----------- ----------- ------------ OPERATING COSTS AND EXPENSES: Sales and marketing 289,775 100,316 891,980 455,427 Product development and content 1,966,284 917,123 4,774,694 3,147,023 General and administrative 1,177,034 1,643,496 6,123,083 6,351,229 Depreciation and amortization 64,626 118,947 319,779 512,977 ----------- ----------- ----------- ------------ TOTAL OPERATING COSTS AND EXPENSES 3,497,719 2,779,882 12,109,536 10,466,656 ----------- ----------- ----------- ------------ LOSS FROM OPERATIONS (1,643,424) (2,440,924) (6,055,395) (9,930,680) ----------- ----------- ----------- ------------ OTHER INCOME (EXPENSE): Interest income 4,887 2,300 6,229 38,351 Interest expense (151,505) (151,501) (603,609) (603,607) Gain (Loss) on disposal, net - (650) - (650) Loss on settlement of receivable - - - (100,000) Other income 524 739 2,125 21,079 ----------- ----------- ----------- ------------ TOTAL OTHER INCOME (EXPENSE) (146,094) (149,112) (595,255) (644,827) ----------- ----------- ----------- ------------ LOSS BEFORE INCOME TAXES (1,789,518) (2,590,036) (6,650,650) (10,575,507) Income taxes - - - - ----------- ----------- ----------- ------------ NET LOSS $(1,789,518) $(2,590,036) $(6,650,650) $(10,575,507) =========== =========== =========== ============ Preferred stock dividends (27,875) (27,875) (111,500) (111,500) ----------- ----------- ----------- ------------ NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS $(1,817,393) $(2,617,911) $(6,762,150) $(10,687,007) =========== =========== =========== ============ NET LOSS PER COMMON SHARE ALLOCABLE TO COMMON SHAREHOLDERS BASIC AND DILUTED $ (0.13) $ (0.21) $ (0.52) $ (0.84) =========== =========== =========== ============ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 13,609,609 12,736,186 13,117,845 12,725,894 =========== =========== =========== ============ NET LOSS $(1,789,518) $(2,590,036) $(6,650,650) $(10,575,507) Foreign currency translation adjustment (1,207) 944 (796) (6,155) ----------- ----------- ----------- ------------ COMPREHENSIVE LOSS $(1,790,725) $(2,589,092) $(6,651,446) $(10,581,662) =========== =========== =========== ============
