Snap interactive ... very good shit for them ...

SNAP Interactive Reports 79% Increase in Revenue Run Rate Based on December 2009 Gross ReceiptsNEW YORK, NY--(Marketwire - January 26, 2010) - SNAP Interactive, Inc. (OTCBB: STVI), a leading provider of online dating applications for social networking websites, is pleased to announce that it has an experienced a significant increase in gross receipts since transitioning to a premium subscription model on its 'Are You Interested?' brand in late 2009.


-- $5.6 million + Annual Revenue Run Rate Based on December 2009 Gross
Receipts

-- Based on December 2009 Gross Receipts, Annual Run Rate Increases More
than 79% over Pre-subscription Revenue Run Rate

-- Recurring Revenue from 3 & 6 Month Subscriptions Expected to Propel
Further Revenue Growth
For the month of December 2009 our revenue run rate based on gross receipts has increased to more than $5.6 million on an annual basis. This represents an increase of more than 79% from our 2009 revenue run rate of slightly more than $3 million as of September 30, 2009. These sales include gross revenue from the sale of multi month subscriptions as well as advertising revenue. However, from a GAAP accounting perspective revenues from multi month subscriptions are recognized over the length of the subscription rather than when purchased.

SNAP CEO Cliff Lerner stated: "The second half of 2009 was largely devoted to our transition to a subscription-based premium membership model on our 'Are You Interested?' brand. The subscription model has been successful in the online dating industry and we felt that converting to such a model was in our best interests in order for the company to grow and prosper as well as help us meet our objective of becoming less advertising-dependent for revenue generation. Another important change as a result of this transition is that we have now increased our spending on advertising and marketing and this may cause us to operate at a net loss in the near-term while the model ramps up. However based on the initial data that we have seen we are very pleased with the early results from our subscription model."

Lerner continued, "What is perhaps most encouraging about these early results is that these figures do not reflect any projected additional revenue from recurring subscriptions by current subscribers. The recurring revenue component is where the potential from this model becomes most visible and exciting. The majority of our subscription revenue is from users who purchased 3 and 6 month subscriptions. The current data does not reflect any incremental revenue from these users recurring once their initial subscriptions conclude. Clearly each user has a value to us far beyond what is attained from their initial purchase and this additional incremental revenue could be quite substantial. A further benefit of this model is that our revenue stream becomes more stable and allows to us to better forecast our revenues and expenses going forward. We look forward to seeing the full rewards of the subscription model in 2010 as the program continues to ramp up and further optimizations are made."