Mr. Atul Sabharwal reports

SNIPP INTERACTIVE INC. REPORTS Q3 POSITIVE EBITDA ON 448% REVENUE GROWTH WHEN COMPARED TO THE SAME PERIOD LAST YEAR

Snipp Interactive Inc. has released its third quarter fiscal 2015 results for the quarter ended Sept. 30, 2015. (All results are reported under international financial reporting standards and in U.S. dollars unless otherwise indicated.) Snipp reports third quarter 2015 revenue of $4.75-million (Canadian) ($3.63-million), adjusted earnings before interest, taxes, depreciation and amortization of $170,000 (Canadian) ($130,000) and net income of $82,833 (Canadian) ($63,294). A copy of the complete unaudited financial statements and of management's discussion and analysis is available on SEDAR.

Third quarter 2015 financial summary:

• Revenue of $4.75-million (Canadian), a 448-per-cent increase over the same quarter last year and the 15th consecutive quarter where revenue has grown when compared with the same period in the previous year;
• Revenue growth driven by an increase in the total number of campaigns executed, as well as a growth in the average campaign size;
• Third quarter U.S.-dollar reoccurring revenue was 15 per cent of total revenue in comparison with 10 per cent for second quarter;
• Gross margin of 77.3 per cent; the company defines gross margin as revenue less campaign infrastructure costs;
• Positive earnings before interest, taxes, depreciation and amortization of $115,198 (Canadian) ($88,025) represent 50-per-cent growth compared with the same period last year;
• EBITDA profitability was driven by high-margin promotions and continued increase in reoccurring and long-term revenue as part of the total revenue mix;
• Positive adjusted EBITDA of $171,707 (Canadian) ($131,204), which excludes one-time acquisition and integration costs from the acquisition of HIP Digital Media Inc.;
• $15.4-million (Canadian) ($11.6-million) of current assets with $9.6-million (Canadian) ($7.2-million) of working capital;
• $9.0-million (Canadian) ($6.7-million) of cash and equivalents, with no outstanding bank debt along with accounts receivable of $5.7-million (Canadian) ($4.3-million).

Corporate highlights:

• Launched 56 new programs and signed three new master service agreements with a record increase in average campaign values for third quarter 2015;
• Robust sales pipeline exceeding $20-million (Canadian) ($15-million);
• A 642-per-cent revenue growth in the first nine months of 2015 versus the comparable period in 2014;
• Completed the acquisition and integration of HIP Digital;
• Strengthened core team with the appointment of Rahoul Roy as chief legal officer and executive vice-president, corporate development, and the appointment of Tom MacIssac, Cove Street Partners, to the advisory board to focus on driving the growth of the company through mergers and acquisitions;
• Strengthened Snipp's board of directors by appointing Michael Cannata, an IP expert, as additional independent board member and member of the audit committee and compensation committee.

"Third quarter was an excellent quarter. Snipp was able to demonstrate profitability, an extremely high-margin growth in our reoccurring revenue streams and strong overall sales growth. The integration of our two acquisitions earlier in the year have proceeded optimally and have started to generate considerable value for the company. We have a robust sales pipeline today, the majority of which is loyalty-related work, a lions share of which utilizes our SnippCheck receipt-processing solution. This is a great testament to the fact that both our execution and acquisition strategy in 2015 has worked. We are now well positioned for 2016, not only to grow the business organically with an increasing proportion of long-term reoccurring revenue streams but also given our balance sheet strength, to exploit the significant opportunity that exists to acquire and roll up the promotions and loyalty marketing industry in North America," stated Atul Sabharwal, founder and chief executive officer of Snipp.

For more information

In conjunction with this announcement, Snipp management will be holding a conference call on Dec. 3, 2015, at 10 a.m. Eastern Standard Time to discuss the company's results for third quarter fiscal 2015.

    THIRD QUARTER 2015 CONFERENCE CALL DETAILS 

Date            Dec. 3, 2015                                 
Time            10 a.m. EST                                             
Dial-in number  Local/international: 647-788-4922                        
                North American toll-free: 877-291-4570                     
Replay number   Local/international: 416-621-4642                        
                North American toll-free: 800-585-8367                     
                Conference ID: 87462501                                    

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