Michael Pritchard - Company Counsel Alex Harrington - CEO and CFO

Good day, and welcome to the Snap Interactive First Quarter 2016 Earnings Conference Call. Today's conference is being recorded. At this time, I’d like to turn the conference over to Mr. Michael Pritchard, Company Counsel from Haynes and Boone. Please go ahead, sir.

Thank you. Good afternoon, and welcome to the Snap Interactive 2016 first quarter earnings and business update call. Again, my name is Michael Pritchard, and I am with Haynes and Boone outside counsel to SNAP. Earlier today, SNAP issued a presentation to accompany this call. The presentation can be accessed in Investor Relations section of SNAP’s website snap-interactive.com under the Events & Presentations tab. It is also available on the left side of the snap-interactive.com home page under the heading SNAP Q1 2016 Earnings Call and Business Update. I'd like to inform everyone in attendance that certain statements made during today’s conference call that are not statements of historical fact, including those concerning future plans, objectives, goals, strategies or performance, are forward-looking statements. These statements reflect the good faith beliefs and judgments of the company and are based on currently available information only as of the date of this conference call. These statements are subjects to risks, uncertainties and other factors that could cause actual results to differ materially from current expectations. These factors include those described in the Risks Factors section of the company's periodic reports that are filed with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance and the company expressly disclaims any obligation to update earlier statements as a result of new information, except as required by law. Certain non-GAAP measures may be discussed during today’s presentation, including adjusted EBITDA and bookings. Adjusted EBITDA and bookings have been calculated consistent with the manner in which they are defined in the company's periodic reports filed with the Securities and Exchange Commission. Each of these measures has been reconciled with the nearest applicable GAAP measure in the company's earnings release, which is available in the Press Releases section of snap-interactive.com. With that, I’ll turn the call over to Alex Harrington, SNAP’s Chief Executive Officer and Chief Financial Officer.

Thanks, Michael, and thank you all for joining us on today's call. As Michael mentioned, I encourage you all to access the Q1 2016 earnings call presentation available on snap-interactive.com. The easiest place to find it is on our home page if you scroll down on the left hand side. Today I will review Q1 highlights and share updates on our growth strategy for 2016 and beyond. Those that have the presentation open, can flip forward to page five and I will pause for a moment just for those who are getting the presentation now. Great. Starting now with SNAP’s Q1 2016 highlights, I'll first cover the strategic objectives in general and then those for the quarter. You may recall for those following the company that in 2015 we did a - performed a strategic review where we determined that SNAP’s 30 million user database which is one of the largest in the industry was an untapped engine for growth and the best way to tap that growth was to develop a portfolio of products to address a fragmented consumer market with an array of strong brands. And what's important about this strategy is it fuels growth in a capital efficient way leveraging the assets that we already have and provides an opportunity for a step change in revenue through cross selling products. In Q1, the focus was both strategic and financial. On the financial side, the objective was to reverse the 2015 trend of declining revenue and bookings and to cut expenses to manage down cash burn, in particular since Q1 is typically the most cash intensive quarter. On the strategic side, as we've previously discussed on prior earnings calls, the rebranding of the core product in March was a big objective for the quarter as was the re-launch…

Thank you. [Operator Instructions]

I believe we have one question that came in, in advance of the call over email. Michael, could you read them on behalf of the investor who submitted the question?

Yes. And in fact, the question is a two-part question. So part one is, has Snap’s business development agreement with Match.com expired and would Snap consider entering into other similar agreements in the future? Part two of the question is, Tinder seems to dominate the segment of the dating application market comprised of teens and twenty-somethings. As a result, is FirstMet targeting the huge segment of the market comprised of people aged 30 to 50?

Thank you, Michael. So thank you again for submitting the questions. I'll take the first one first about the business development agreement with Match.com. So I think that's referring to an agreement that we had and that we extended back in 2014. It was a fairly significant revenue generator, but it was also fairly restrictive, it was more or less exclusive arrangement to make our advertising inventory available to Match and its partners or its affiliate sites and we found that it was rather constraining and in some ways, just advantageous to us in terms of our business flexibility. And we chose to terminate in favor of some other partnerships, one with Zoosk and more recently, we've had advertising arrangements that are on a more arm's-length basis, both with Match and other competitors on the premise that we can still derive advertising revenues as we've seen that's mounted quarter-over-quarter pretty consistently, but that we have more flexibility to operate our business the way we like. There can be cannibalization in terms of providing ads for competitors on our product and presenting those in the same context as presenting our own upgrade offer. Generally, our own upgrade offer is a better place to direct our users’ attention. So to avoid that type of cannibalization, we typically - we just need to have a flexibility of displaying ads in the way that we want with the partners that we want. So, we still have a relationship, an advertising relationship with Match group. We have with several other players and other ad networks and we are always open to business allotment arrangements, but in particular, we are sensitive to that business flexibility that I discussed. The second part of the question was about where our focus in the market is and indeed Tinder…

[Operator Instructions] And it appears we have no questions at this time. I'll turn the call back over to Alex Harrington for closing remarks.

Well, thank you, all for joining today's call. If there are any follow-up questions after this call, feel free to email ir@snap-interactive.com and I would be happy to be responsive. I look forward to keeping you all posted on our progress and thanks again.

That concludes today's conference call. We appreciate your joining.