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STVI: 3Q17 Results and Early Encouraging Metrics on Recently Launched Camfrog Live

By M. Marin


Yesterday Snap Interactive (OTC:STVI) announced 3Q17 revenue of $5.9 million, up 27.5% year-over-year largely reflecting the October 2016 AVM merger. Snap reported a net loss from operations of roughly ($2.0) million, which included $604,000 of one-time expenses. 2018 results are expected to benefit from roughly $3.0 million in cost savings and revenue from new initiatives. 

Snap recently launched Camfrog Live, a one-to-many live streaming channel and an enhancement to Snap’s existing Camfrog video social networking app. Camfrog Live extends the range of content that the company can provide to Camfrog users. It offers each content creator their own live channel and the mechanism to collect virtual gifts and thereby earn money through a revenue sharing model with the company. Management expects that this will incentive the entertainer to utilize Camfrog Live and drive traffic to the platform by promoting it via social media outreach. In turn, the company expects to benefit through the revenue sharing model. 

Snap believes the revenue opportunity is substantial, as live video where one person broadcasts to entertain a group and the group can interact with the entertainer has already gained substantial traction in other markets. It is extremely popular in China, for example. Many users give the performer virtual gifts in appreciation of the content, generating revenue for the platform. While it is early, initial metrics are encouraging and management is optimistic about the revenue prospects of Camfrog Live and potential to integrate the technology into other existing Snap applications.


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