|View printer-friendly version|
|CrowdGather, Inc. Announces Record Fourth Quarter and Record 2012 Year-End Results|
The Company reported revenues of
“During 2012, we experienced a significant increase in revenue and gross
profit due in part to strategic acquisitions, but also because we
exclusively focused on monetizing our own forum ad inventory,” said
Net loss for the 2012 fiscal year was
Revenue improved in fiscal 2012 due to a number of acquisitions that included Pbnation.com and the Company’s largest network platform, Yuku.com, and also because the Company focused on increasing the monetization from its existing advertising inventory, which helped improve the revenue per thousand impressions (RPM). The acquisitions of forum properties helped provide additional ad inventory to sell, and gross profit improved greatly as the Company sold its own ad inventory and no longer incurred significant cost of revenue after Q1 2012 from the Adisn display and per-action advertising campaigns that contributed to over 50% of gross revenues in fiscal 2011.
The increase in fiscal 2012 gross profit was mostly offset by a
To better position the Company for advertisers, forum owners, and prospective investors, the Company has relaunched its corporate web site, www.crowdgather.com, with a new look and feel that features the Company’s ad supported business model and the benefits of its network for advertisers, forum owners, and general community users.
The Company recognizes that many online advertisers seek engagement with online enthusiasts, trendsetters, and users who are passionate about specific topics and products. Forums offer a significant opportunity to advertisers, as they are tightly knit social communities with concentrations of influencers who are often experts on the forum subject matter. These users have generally been inaccessible to advertisers, including agencies, with larger budgets who prefer making broad category or vertically specific purchases.
Thus, the Company is focused on deploying in late Q2 fiscal 2013 the
redeveloped ad server obtained during the
The Company is also committed to delivering brand safe content to serve its advertisers. The Company has thousands of moderators and forum administrators patrolling the network, and while it is developing a proprietary solution, it is currently using a third-party vendor to consistently identify and prune non-monetizable content that conflicts with the Company’s terms of service. Additionally, some of the content is international and from countries for which there are limited advertising opportunities. The Company estimates that the ongoing removal of non-monetizable content that also conflicts with its terms of service may reduce its total monthly pageviews by 20 to 30 million, to a total that ranges between 180 to 190 million monthly pageviews network wide, depending on normal traffic cyclicality. However, the Company does not expect any significant impact to revenue from the pruning and should experience an immediate lift to RPM.
Additionally, the Company expects the ad server, coupled with the
improved quality of the network, will further improve its RPM during
fiscal 2013. Based on historical cyclicality, the Company expects its Q3
and Q4 of fiscal 2013 that end in January and
As advertisers are drawn to quality content and editorially focused home pages, the Company has been working diligently to improve its brand sites—this was recently demonstrated by the relaunches of Digishoptalk.com and Pocketables.com in May of 2012. The Company is also conducting ongoing development across all of its network properties, i.e. Yuku.com, to continue improving the administrator and user experience in the communities. The Company is constantly working toward offering its communities favorable terms, features, and incentives to help them grow and prosper. Some changes will include offering mobile applications, new user interface and additional layout capabilities.
“We closed 2012 with record quarterly and annual revenues,” Sabnani continued, “and to our knowledge, in fiscal 2013 we will be the first forum company to deploy a customized ad server dedicated to creating a forum-centric ad network. We believe the ad server will help create a marketplace that will benefit advertisers and third party publishers, as well as help increase CPMs for our own inventory.
“We believe the company has enough capital to achieve breakeven,” Sabnani continued. “We are working toward completing a number of internal initiatives that should impact topline growth. Some of the initiatives include the ad server launch, the development of an internal tool for monitoring and removing non-monetizable content, and general software development that will improve our communities network wide. We are enthusiastic about our prospects for fiscal 2013 and will continue to work toward growing revenue from the deployment and improvement of engineering products that support our forum communities.”
In addition to selling display and other advertising across the
Company’s forum network, it also conducted a marketing case study around
online product distribution across its own platform, as well as
throughout the Internet. In January of 2012, the Company launched Erox
body spray, which involved America’s Next Top Model winner
Management believes the Company has sufficient working capital to
maintain operations, conduct further acquisitions, and improve the
monetization of existing ad inventory with its ad server to reach
breakeven without additional financing.
Because of the Company’s growing global reach, the Company has
implemented the US-EU Safe Harbor Framework and the US-Swiss Safe Harbor
Framework as set forth by the
For an additional overview of the Company and other details, please join
us for our financial results conference call on
With its growing portfolio of special interest forums and enthusiast
message board communities,
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended) concerning future
events and the Company’s growth and business strategy. Words such as
“expects”, “will”, “intends”, “plans”, “believes”, “anticipates”,
“hopes”, “estimates”, and variations on such words and similar
expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of
the Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that could cause
actual results to differ materially include, but are not limited to,
changes in the Company’s business; general economic, industry and market
sector conditions; the ability to generate increases revenues from the
Company’s forums; the ability to obtain additional financing to
implement the Company's long-term growth strategy; the ability to manage
the Company's growth; the ability to develop and market new technologies
to respond to rapid technological changes; competitive factors in the
market(s) in which the Company operates; and other events, factors and
risks disclosed from time to time in the Company’s filings with the