Mobile Advertising Company UpSnap Sees 25-percent Rise in Mobile Ad Revenue

Some mobile applications operate on subscription models, or charge a one-time, upfront download fee. However, by and large apps generate revenue through in-app advertising.
As a result, many companies now need to provide highly targeted mobile advertising. Canada’s UpSnap (CSE:UP) is one company that is working to fulfill this need, and on Monday it released its third-quarter results. They offer insight into the financial state and future of the company.

Company snapshot

UpSnap offers data-driven mobile advertising services, mobile platform products and voice and data search capabilities to small businesses on a subscription basis and through a reseller network. The company also combines first-party data and real-time analytics to deliver site-agnostic, results-driven campaigns.
By tailoring each campaign to align with its clients’ unique goals, UpSnap is able to deliver meaningful exposure and enhanced results. Indeed, the company places an emphasis on customers directing their own needs. For instance, UpSnap’s mobile platform products allow companies to run their own mobile advertising exchanges. 

Q3 highlights

UpSnap’s total operating revenue increased by 20 percent in Q3 2015, growing from $0.95 million in Q3 2014 to $1.13 million. For the first nine months of 2015, this figure grew by a whopping 42 percent to reach $3.83 million — that’s up from $2.7 million during the year-ago period.
In particular, mobile advertising revenue saw a rise in Q3, increasing 25 percent from Q3 2014 to hit $0.91 million. This growth may be a reflection of the growing need for targeted mobile advertising mentioned above. UpSnap is targeting a growing market that is directly in need of these services.
It’s also worth noting that UpSnap is not only drawing in new customers, but also retaining old ones. As CEO Bruce Howard states in Monday’s release, “[w]e continue to add new subscribers to our platform while retaining a high percentage of our current customers that have seen exceptional value since started utilizing our mobile advertising technology. As our existing clients see the benefits of our service, we as a Company are beginning to see a higher spend per customer.”
At close of day Monday, UpSnap’s share price was sitting at $0.03. It’s seen a 100-percent increase since the start of the year.

 
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.