Market Overview

SITO Mobile Reports Second Quarter 2016 Financial Results

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Q2 Revenue $9.9 Million, Up 168% Year-Over-Year; Led by Media Placement Revenue of $8.3 Million, Up 285% Year-Over-Year

Brent Rosenthal to join SITO Mobile's Board of Directors

JERSEY CITY, N.J., Aug. 15, 2016 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (NASDAQ: SITO), a leading mobile engagement platform, today announced its results for the second quarter ended June 30, 2016.

Second Quarter 2016 Business Highlights

  • TOTAL REVENUE: was $9.9 million, an increase of 168% year-over-year.
     
  • MEDIA PLACEMENT REVENUE: (SITO Mobile's programmatic advertising revenue) was $8.3 million, an increase of 285% year-over-year and 71% sequentially.
     
  • GROSS PROFIT: was $5.4 million (55% gross margin) in Q2 2016, up from $1.8 million (51% gross margin) in Q2 2015. (Please refer to the supplemental schedule below for calculation of Gross Profit and Gross Margin).
     
  • ADJUSTED EBITDA:  was $1.8 million for the quarter, up from $0.1 million in Q1 and ($0.2) million in Q2 of 2015.  (See attached schedule for reconciliation of Adjusted EBITDA to GAAP)
     
  • NET INCOME:  was $0.7 million, which equates to $0.04 earnings per share on total shares outstanding of 17.4 million.

"In the Second quarter, we produced early indications of the kind of consistent, solid revenue growth we're expecting as we work towards becoming a dominant player in location-based mobile advertising," said Jerry Hug, CEO of SITO Mobile. "The overall market for mobile advertising is already measured in $10's of billions and is growing rapidly.   Mobile Media is uniquely equipped to handle location-based ad campaigns and SITO Mobile is emerging as a leading player in this $18 billion segment of the mobile advertising market. SITO Mobile is creating higher levels of mobile consumer engagement – resulting in more clients, more campaigns and larger campaign spending commitments, as the largest global advertisers shift significant advertising dollars to mobile. On this foundation, we look forward to producing meaningful revenue growth for the balance of 2016 and beyond."

Commenting on SITO's new Board Member, Hug added, "We're excited to welcome Brent Rosenthal to our Board of Directors.  Brent is an accomplished investor and business professional with an outstanding 20+ year track record of creating shareholder value in cable, telecom, mobile, Out-of-Home and information companies.  Most recently, he spearheaded an investment in Rentrak Corporation (NASDAQ: RENT) where he served on the Board of Directors from 2008 – 2016, including as the Non-Executive Chairman from 2011 – 2016.  He worked closely with management to pivot the Company which led to a dramatic increase in market capitalization,  culminating in a merger with comScore (NASDAQ: SCOR).  Brent's business acumen, professional network and extensive public company Board experience will be invaluable to our team."

Conference call information:

Date: Monday, August 15, 2016
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: 877-407-8293
Dial in Number for International Callers (Outside U.S. & Canada): 201-689-8349

Participating on the call will be SITO Mobile's Chief Executive Officer Jerry Hug and Chief Financial Officer Kurt Streams. To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.

A replay will be available for 2 weeks starting on August 15, 2016 at approximately 8:00 P.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 13642293.

About SITO Mobile Ltd.

SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty, and ultimately sales. For more information, visit www.sitomobile.com

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, sales growth, our reliance on brand owners and wireless carriers, the possible need for additional capital as well as other risks identified in our filings with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

[FINANCIAL TABLES TO FOLLOW]

SITO Mobile, Ltd.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Three Months Ended  For the Six Months Ended 
  June 30,  June 30, 
  2016  2015  2016  2015 
             
Revenue            
Media placement $8,297,880  $2,154,030  $13,159,380  $3,781,530 
Wireless applications  1,454,428   1,387,313   2,945,078   3,391,629 
Licensing and royalties  125,946   139,535   261,365   274,539 
Total revenue  9,878,254   3,680,878   16,365,823   7,447,698 
                 
Costs and Expenses                
Cost of revenue  4,430,522   1,807,237   7,487,118   3,423,210 
Sales and marketing  2,662,886   905,285   4,762,905   1,781,574 
General and administrative  1,454,056   1,474,156   3,351,324   2,638,908 
Depreciation and amortization  160,444   77,361   324,804   145,442 
                 
Total costs and expenses  8,707,908   4,264,039   15,926,151   7,989,134 
                 
Income (loss) from operations  1,170,346   (583,161)  439,672   (541,436)
                 
Other Income (Expense)                
Interest income  -   -   -   54,323 
Interest expense  (445,091)  (454,199)  (885,113)  (888,758)
                 
Net income (loss) before income taxes  725,255   (1,037,360)  (445,441)  (1,375,871)
                 
Provision for income taxes  -  
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