Specialty social media and gaming network CrowdGather, Inc. (OTCQB:CRWG) today announced financial results for the fiscal year ended on April 30th.
CrowdGather reported revenues of $2,399,842, compared to revenues of $1,537,051 reported for fiscal 2014. Gross profit for the fiscal year ended April 30, 2015, was $1,847,207, an increase of 20% from the $1,533,071 reported for fiscal 2014. Net loss for the 2015 fiscal year was $7,149,564 or $.06 per share, down 7.5% from a net loss of $7,725,770 or $.13 for the fiscal year ended April 30, 2014.
The platform also announced that it believes revenues will continue to increase in the current fiscal year and that those increases, combined with recent restructuring efforts finalizing the integration of its Plaor, Inc. subsidiary, have the Company striving to achieve positive operating cash flow in the current fiscal year.
Richard Corredera, CrowdGather’s Chief Operating Officer, stated:
“We believe the online social casino’s steadily improving monetization performance continues to reinforce our belief in the effectiveness of bringing high quality and engaging slot machine games from some of the top slot designers in the industry to a social casino setting. As the online social casino has set new performance records in most of our key metrics each quarter we believe the product is ready to scale out to a larger audience and we are looking forward to building the brand further.”
CrowdGather generated approximately $670,000 in total bookings during the quarter, of which approximately $510,000 were from social gaming. Bookings is a non-GAAP financial measure the Company uses in evaluating its business health and performance. It should be considered supplemental in nature and is not meant as a substitute for revenue recognized in accordance with US GAAP.
The platform reported total assets of $9,901,540 as of the end of the fiscal year with $4,048,014 in current liabilities resulting in $5,853,526 of shareholders’ equity. Intangibles and intellectual property related to its internet domain names, online communities, and its highly rated social casino comprise the largest portion of the Company’s asset base with a book value per share of $.05.
CrowdGather also reported additional non-GAAP performance metrics on its social gaming segment including an ABPU (“Average Bookings per User”) of $.31, up 63% from the fiscal year’s first quarter ABPU of $.19. Average daily bookings reported as $6,363 with an average DAU (“Daily Active Users”) of 20,203, up 38% and down 15% from $4,605 and 23,783, respectively. The average annual ABPU was also reported to be $.25 with consistent growth achieved in each successive quarter of the fiscal year.
Sanjay Sabnani, CrowdGather’s Chairman and CEO noted:
“In a little over a year since our acquisition of Plaor, we have seen the revenues of its flagship Mega Fame Social Casino double while almost every meaningful operating metric has increased in a positive manner. Overall our company has cut costs dramatically and operating expenses are down significantly, especially in the current fiscal first quarter where the benefit of many of these reductions has just been achieved.”
He then added:
“Despite the growth and success, we are still trying to navigate out of our current convertible debt obligations so that we can pursue more consistent and affordable growth financing. With some nominal restructuring and modest infusion of working capital, we believe CrowdGather could achieve profitability very quickly. As it stands, we are already managing to run at almost breakeven on an operating basis during these resource constrained times. With the right financing, we will continue to grow our existing digital media businesses while we launch our crowdfunding portal in 2016 in a shift towards increasing our exposure to digital cannabis assets.”