Net Registered Users Surpasses 7 Million, Total
Reach Surpasses 26 Million
Viggle Inc. (NASDAQ:VGGL), the entertainment marketing and
rewards platform, today released its results for its first quarter
fiscal year 2015 ended September 30, 2014. The Company reported
strong double-digit growth in its key operating and financial
metrics. Viggle enjoyed a significant increase in year-over-year
revenue and user growth, sequential quarterly growth, and
engagement and registered users in its first quarter fiscal 2015.
Revenue grew 49 percent from $4.338 million to $6.476 million in
F1Q 2015. Sequential quarterly revenue grew 22 percent from $5.308
million in F4Q 2014.
Total reach was 26.2 million and active reach was 10.3 million
in September 2014. The Viggle platform’s net registered users
surpassed 7 million during the quarter, which was an increase of
112 percent and 32 percent from the same quarter of the prior year
and prior quarter, respectively.
Viggle recently secured a $30 million investment through a
securities purchase agreement with Sillerman Investment Company
III, an entity owned by the Company’s Chief Executive Officer,
Robert F.X. Sillerman. The Company intends to utilize the funds to
repay $15 million of existing indebtedness and for working capital
purposes including marketing, and to fuel innovation for its
marketing and rewards platform.
Greg Consiglio, President and COO of Viggle said, “Fiscal 2015
is off to a strong start and we remain confident in our ability to
execute and continue this growth trend. Our first quarter results
were in line with our expectations, as we saw solid traction
generated from the acquisitions we made last year. In addition to
having thousands of new users every day, it is our objective to
find innovative ways to attract new users, and engage our active
customers. The recent financing is an important event for Viggle as
it will enable us to boost our marketing efforts. We are pleased
with our team’s strong commitment and progress on our strategic
goals.”
As of F1Q 2015, Viggle users have checked into 428,497,868 TV
programs and over 75 million songs using the new Viggle Music
service. As of September 30, 2014, users have redeemed a total of
44 billion points for approximately 3.5 million rewards, an average
of 12,687 points per reward redemption. The total retail value of
rewards redeemed through September 30, 2014 is approximately $20.3
million. Overall, users’ average time in the Viggle app has been
more than 63 minutes.
For F1Q 2015, Viggle reported an Adjusted EBITDA loss of $7.8
million as compared to an Adjusted EBITDA loss of $5.9 million in
F1Q 2014 and $8.4 million in F4Q 2014.
For more details on these results and a description of all
definitions please see our quarterly form 10-Q filed this same
date.
Conference Call and Webcast
Date: Wednesday, November 12, 2014Time: 9:00 A.M. Eastern Time
(ET)Dial in Number for U.S. & Canadian Callers:
1-877-407-3102Dial 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 first quarter and fiscal 2015 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/q1-2015.
A replay will be available for 14 days starting on November 12,
2014, beginning one hour after the end of the conference call, and
will run through midnight on November 26, 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 13594822.
About ViggleViggle is an entertainment marketing and
rewards platform whose app rewards its members for watching TV
shows and discovering new music. Viggle Platform had total reach of
26.2 million in September 2014, including over 7 million Viggle
registered users. Since its launch, Viggle members have redeemed
over $20 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 StatementThis 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 EBITDAThe
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. Therefore, the Company
adjusts cost of watchpoints and engagement points as reported,
which represents the cost of points earned by users during the
period, to the cost of actual rewards redeemed by users during the
period. Selling, general and administrative expenses as reported
are likewise adjusted as certain point costs are classified as
marketing. 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 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 Quarter Ended Ended 4th Quarter
September September Ended June 30, 2014 30, 2013 30,
2014 Cost of watchpoints and engagement points as reported $ (1,164
) $ (2,579 ) $ (801 ) Adjustment to cost of watchpoints and
engagement points 281 855
(273 )
Adjusted cost of watchpoints and
engagement points
(883 ) (1,724 ) (1,074 )
Selling, general and administrative expenses as reported (22,771 )
(25,334 ) (21,853 ) Adjustment to selling, general and
administrative expenses 31 46
(31 ) Adjusted selling, general and administrative
expenses $ (22,740 ) $ (25,288 ) $ (21,884 )
Reconciliation of operating loss to Adjusted EBITDA
(amounts in thousands) Quarter Quarter Ended Ended 4th
Quarter September September Ended June 30, 2014 30, 2013
30, 2014 Revenue $ 6,476 $ 4,338 $ 5,308 Operating
loss as reported $ (17,459 ) $ (23,575 ) $ (16,444 ) Add: Stock
compensation costs 7,562 15,796 6,862 Adjustment to cost of
watchpoints and engagement points 281 855 (273 ) Adjustment to
Selling, general and administrative expenses 31 46 (420 )
Depreciation and amortization costs 1,800
962 1,851 Adjusted EBITDA * $
(7,785 ) $ (5,916 ) $ (8,424 ) * 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 costs, and adjustment to rewards costs
Viggle Inc.Robert Haag, 866-976-4784Managing PartnerIRTH
CommunicationsVGGL@irthcommunications.comorInvestor Relations:John
C. Small, 646-738-3220CFO, Viggle Inc.john@viggle.comorMedia:Ed
Tagliaferri, 212-981-5182DKC Public
Relationsedmund_tagliaferri@dkcnews.com