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New York, NY and Rotterdam, NL – August 13, 2015:

Financial technology brand reports strong revenue growth as new products added within The Funding Network™

 

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  • Total revenue of $92,370 for second quarter 2015 includes first revenues from newly launched monitoring and loan crowdfunding products.
  • Revenue increased 28% in USD compared to the prior year period, while in the operational currency of the Company (EUR) revenue increased 59%, however the significant decrease in the value of EUR compared to USD means the reported revenue increase is lower.
  • As of June 30 The Funding Network™ has seen a total transaction volume of $192 million since its launch in March 2015, which the Company expects to result in increased monthly recurring revenue streams.
  • Operating expenses for the second quarter increased compared to the prior year period due mainly to share-based compensation expenses which accounted for 19% of total second quarter operating expenses of $644,486.
  • Four high-level executives across financial, media and telecoms industries were added as new members of the Company’s Board of Directors.

“We are delighted to report strong revenue growth as our core business continues to expand while we add new revenue streams from our loan crowdfunding and monitoring products. Following its launch in March, the diversified product portfolio of The Funding Network™ is now taking shape, creating value for investors and entrepreneurs. We are starting to reap the commercial benefits of our newly launched investing, monitoring and data tools as we continue to innovate at the forefront of online funding,” said Korstiaan Zandvliet, co-founder and CEO of Symbid Corp.

“We continued to grow our core business with transaction-based crowdfunding revenues up 8% from the same period last year as we added a loan product to became one of the first European platforms to offer both equity and loan crowdfunding. The Company is excited about the potential for this peer-to-business lending product with the market witnessing exponential growth. Meanwhile, our business has successfully pivoted towards a more complete funding offering to start-ups and small businesses: The Funding Network™. This has resulted in new monthly recurring revenue streams that we expect to increase as we further integrate our products. Add to this the continued development of Symbid Italia, plus other tracks for international expansion, and we are confident of growing our business in the coming months.”

“Looking ahead our focus is on the continued commercialisation of our diversified product portfolio of, including the new monitoring tool and an upcoming deal-making tool. 2015 is undoubtedly a crucial year in our business development. These results represent a solid foundation on which we expect to build towards our strategic vision of becoming the leading European online funding platform in 2016.”

Summary of Second Quarter 2015 Financial Performance:

  • Total revenue increased by 28% compared to prior year period to $92,370.
  • 84% of revenue attributable to transaction-based model of core crowdfunding business, compared to 100% in same period 2014, due to new revenue streams from The Funding Network™.
  • Selling, general and administrative expenses increased by 37% from same period 2014 to $429,413 due to increase in share-based payments made to staff members, accounting for approximately $115,000.
  • Research and development costs decreased by 74% compared to same period 2014 to $26,077 due to fewer external suppliers providing related services and personnel costs for internal developers being listed under selling, general and administrative expenses.
  • Total operating expenses increased by 7% from same period 2014 to $644,486, due to the addition of share-based payments as a cost factor.
  • Net losses increased by 4% from same period 2014 to $552,116.

2015 Commercial Outlook:

  • In December 2014 the Company signed a strategic alliance agreement with leading financial advisory firm Credion which, following its launch in March, has resulted in a monthly transaction volume of approximately $55m for The Funding Network™. The Company expects this to result in increased monthly recurring revenue streams attributable to its cloud-based monitoring product as it is now included in all service agreements with entrepreneurs joining The Funding Network™.
  • The Company underwent a successful re-launch of its website in March 2015 in line with its repositioning to a more holistic funding platform, known as The Funding Network™, connecting traditional and alternative financing options in one go-to platform.
  • The Company expects to continue its ongoing release of new products and services with the launch of a deal-making tool in fourth quarter 2015, following significant user experience improvements in the third quarter.
  • The formal incorporation of Symbid Italia S.p.A. in February 2015 represents the first stage of a European roll-out which the Company expects to continue throughout 2015. The Company intends to commercialize this international expansion in the fourth quarter of 2015.
  • Management announced the addition of four new high-level executives to our Board of Directors, including Hendrik Kasteel, Jérôme Koelewijn, Vincent Lui and Michiel Buitelaar. With a combined 87 years of experience in C-level positions at global finance, media and telecoms corporations, they will offer their expertise to help the Company accelerate its growth.
  • • The Company is actively pursuing a capital raise strategy in order to accelerate the horizontal and vertical expansion of its funding network and balance cash flow. Second quarter 2015 saw the Company continue its focus on the internal development of technology thereby creating long-term value through successful innovation. The Company is now bringing this financial technology portfolio to market following the launch of The Funding Network™ in March 2015.

Symbid Corp. Full Year results, including the income and balance sheets, can be found here. Please visit Financial Information for an overview of all recent financial results.

Three months ended June 30
2015 2014
Revenues
Crowdfunding 77,804 72,090
Other 14,566 N/A
Total revenues 92,370 72,090
Operating expenses
Selling, general and administrative 429,413 313,196
Professional fees 152,794 192,436
Research and development costs 26,077 98,774
Depreciation and amortization 36,202 333
Total operating expenses 644,486 604,739
Operating loss -552,116 -532,649
Other income (expense)
Fair value adjustment derivative liability – warrants -517  70,097
Interest expense -2,566 -3,860
Government subsidy N/A 2,742
Gain on sale of investment in Gambitious B.V. N/A -7,114
Other income and expense N/A -14,630
Total other income (expense) -3,083 47,235
Net loss -555,199 -485,414
Net loss attributable to non-controlling interests -18,155 -4,608
Net loss attributable to Symbid Corp. stockholders  $(537,044)  $(480,806)
Basic and diluted net loss per common stock  $(0.02)  $(0.02)
Weighted average number of shares outstanding
Basic and diluted 34,705,257 26,224,839