4th Quarter Revenue up 61% over 3rd Quarter
Total Reach tops 18 Million Users
Viggle Inc. (NASDAQ: VGGL), the entertainment marketing and
rewards platform, reported continued strong growth in all metrics.
Viggle enjoyed a significant increase in year-over-year
revenue and user growth, sequential quarterly growth, and
engagement and monthly average users, in its fiscal 2014 year ended
June 30, 2014. Fiscal 2014 annual revenue grew 29 percent from
$13.907 million to $17.985 million. Sequential quarterly revenue
grew 61 percent from $3.306 million in F3Q 2014 to $5.308 million
in F4Q 2014.
Total reach was 18.4 million and active reach was 9.4 million in
June 2014. The Viggle Rewards App alone also continued its strong
growth after this reporting period, more than doubling its monthly
average users in August, as previously reported.
The Viggle platform’s net registered users totaled 5,353,269 at
the end of F4Q 2014, an increase of 75 percent from the 3,062,535
at the end of F4Q 2013, and a 29 percent increase over the
4,140,653 net registered users recorded at the end of F3Q 2014.
During the quarter, Viggle announced its underwritten public
offering of 4,375,000 shares of its common stock at a price to the
public of $8.00 per share, raising net proceeds of $31.8 million.
The Company also successfully completed its integration of
Wetpaint, an entertainment news and social publishing platform, and
NextGuide, a personalized TV programming guide and distributed
reminder platform. With the progress of this integration, Viggle
launched a new Product Development Organization, and new Content
and Programming team.
As previously reported, Viggle had its strongest month in August
2014, with record numbers of new registered users and monthly
active users, as expansion of its platform and point earning system
continues to make tremendous strides. The Company released its
figures and recorded approximately 1,027,690 monthly active users
and an increase of approximately 653,223 new registered users.
“We are pleased to report a very strong year, as we’ve dedicated
our resources to investing in the infrastructure of our business
and making the shift from a mobile app for TV to a platform that
allows our users to earn points for watching TV, listening to
music, and watching web content,” said Greg Consiglio, President
and COO of Viggle. “As a result, today we are the leading mobile
entertainment discovery and rewards company bringing together
consumers and brands around entertainment content. We’ve
consistently delivered double-digit growth in revenues, and
continued to increase our subscriber base. We successfully
completed the integrations of Wetpaint and NextGuide, acquired
Choose Digital, officially launched Viggle Music in partnership
with Gracenote, and launched the initial version of the Viggle
Store, adding millions of songs and albums for download.” Consiglio
added that Viggle achieved all of this and received a significant
patent for rewarding entertainment usage and delivering real
rewards. “The Company is moving in the right direction and we look
forward to building on our momentum going forward,” he said.
Through the end of F4Q 2014, Viggle users have checked into
403,181,838 TV programs – including 48,314,250 from January 1,
2014, through the end of F4Q 2014. Additionally, users checked into
over 50 million songs using the new Viggle Music service between
January 1, 2014, and June 30, 2014. As of June 30, 2014, users have
redeemed a total of 3,146,276 million rewards, for an average of
12,981 points per redemption. The total retail value of rewards
redeemed through June 30, 2014, is approximately $19.3 million.
Overall, users’ average time in the platform has been 64 minutes
and 8 seconds per session.
For F4Q 2014, inclusive of acquisitions in the period, Viggle
reported an Adjusted EBITDA loss of $8.4 million as compared to an
Adjusted EBITDA loss of $8.0 million in F4Q 2013.
Fiscal 2014 YTD adjusted EBITDA loss of $27.3 million was a 15
percent decrease from the $32.1 million YTD adjusted EBITDA loss at
the end of F4Q 2013.
For more details on these results and a description of all
definitions please see our annual form 10-K filed this same
date.
Conference Call and Webcast
Date: Monday, September 29, 2014
Time: 9:00 A.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers:
1-877-407-3102
Dial in Number for International Callers (Outside of the U.S.
& Canada): 1-201-493-6790
Participating on the call will be Viggle President and Chief
Operating Officer Greg Consiglio and Chief Financial Officer John
Small, who will discuss operational and financial highlights for
the fourth quarter and fiscal 2014 and other metrics including
recent increases in users.
To join the live conference call, please dial into the above
referenced telephone numbers five to ten minutes prior to the
scheduled conference call time. A live webcast and archive of the
call will also be available on Viggle’s website at:
http://viggleinc.equisolvewebcast.com/q4-2014.
A replay will be available for 7 days starting on September 29,
2014, beginning one hour after the end of the conference call, and
will run through midnight on October 6, 2014. To access the replay,
please dial 1-877-660-6853 in the U.S. and 1-201-612-7415 for
international callers. The conference ID# is 13582794.
About Viggle
Viggle is an entertainment marketing and rewards platform that
rewards its members for watching TV and discovering music. The
Viggle Platform had total reach of 22.5 million in July 2014,
including over 6.2 million Viggle registered users. Since its
launch, Viggle members have redeemed nearly $19 million in rewards
for watching their favorite TV programs and listening to music.
Members can also use Viggle Store, a rewards destination where they
can redeem their Viggle Points for music downloads. In addition,
Viggle operates Wetpaint, which offers entertainment and celebrity
news online; NextGuide, maker of technology that helps consumers
search for, find, and set reminders for TV shows and movies; and
Choose Digital, a digital marketplace platform that allows
companies to incorporate digital content into existing rewards and
loyalty programs in support of marketing and sales initiatives. For
more information, visit www.viggle.com or follow us on Twitter
@Viggle.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated. All
information provided in this press release is as of the date of
this release. Except as required by law, Viggle Inc. undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Non-GAAP Adjusted Rewards Costs and Adjusted EBITDA
The Company provides a non-GAAP measure for adjusted rewards
costs as an alternative view of the Company’s cost of providing
rewards to its users. The Company reports rewards costs in its
Consolidated Statement of Operations in both cost of watchpoints
and engagement points and in selling, general and administrative
expenses. Management believes that a useful financial measure for
investors is to provide to them the amount of cash the Company has
actually paid to provide rewards to its users. The Company also
presents Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure
that represents operating loss (as reported) plus depreciation and
amortization, stock based compensation, certain one-time selling,
general and administrative expenses, and adjustment to rewards
costs. Management believes these non-GAAP measures enhance
investors’ understanding of the Company’s financial performance.
The information on adjusted rewards costs and Adjusted EBITDA
should be considered in addition to, but not in lieu of operating
income prepared in accordance with generally accepted accounting
principles in the United States (GAAP). Since adjusted reward costs
and Adjusted EBITDA are not measures determined in accordance with
GAAP, they have no standardized meaning prescribed by GAAP and
therefore, may not be comparable to the calculation of similar
measures of other companies. A reconciliation between GAAP
financial measures and non-GAAP financial measures is as
follows.
Reconciliation of rewards cost to adjusted rewards cost and
selling, general and administrative expenses to adjusted selling,
general and administrative expenses (amounts in thousands)
Quarter Ended June 30, 2014 Quarter Ended June 30, 2013 Year
Ended June 30, 2014 Year Ended June 30, 2013 Cost of watchpoints
and engagement points as reported $ (801) $ (2,068) $
(2,310) $ (8,461) Adjustment to cost of watchpoints and engagement
points $ (273) $ 854 (2,594) 3,187 Adjusted
cost of watchpoints and engagement points $ (1,074) $ (1,214)
(4,904) (5,274)
Selling, general and administrative expenses as
reported $ (21,853) $ (20,794) (83,598)
(102,433) Adjustment to selling, general and administrative
expenses $
(31)
$ 290 (283) 1,376 Adjusted selling, general
and administrative expenses $ (21,884) $ (20,504) $ (83,881)
$ (101,057)
Reconciliation of operating loss to
Adjusted EBITDA (amounts in thousands)
Quarter Ended June 30, 2014 Quarter Ended June 30,
2013 Year Ended June 30, 2014 Year ended June 30, 2013
Revenue $ 5,308 $
4,585
$ 17,985 $ 13,907
Operating loss as reported $ (16,444) $ (18,280) $ (65,859)
$ (96,987) Add: Stock
compensation costs $ 6,862 $ 8,214 36,704
56,524 Adjustment to cost of watchpoints and engagement points $
(273) $ 854 (2,594) 3,187 Adjustment to
Selling, general and administrative expenses $ (420) $ 290
(1,459) 1,376 Depreciation and amortization costs $
1,851 $ 932 5,894 3,771 Adjusted EBITDA * $
(8,424) $ (7,990) $ (27,314) $ (32,129) * Adjusted EBITA is
a non-GAAP measure, but shown above it represents operating loss
plus depreciation and amortization, stock based compensation,
interest (expense) income, net, certain one-time selling, general
and administrative expenses, and adjustment to rewards costs
IRTH CommunicationsRobert Haag, 866-976-4784Managing
PartnerVGGL@irthcommunications.comorInvestor Relations:Viggle
Inc.John C. Small, 646-738-3220CFOjohn@viggle.com