2015 revenue increases 30% year-over-year as Company achieves profitability on an adjusted EBITDA basis in Q4 

Newport Beach, CA – March 15, 2016Accelerize Inc. (OTCQB: ACLZ) (OTCBB: ACLZ), a leader in marketing technology solutions, today announced financial results for its fiscal year ended December 31, 2015.

Accelerize owns and operates CAKE, a marketing technology provider of solutions that track and analyze the performance of digital marketing spend, in real-time. CAKE’s powerful software-as-a-service (SaaS) enterprise platform is an industry standard for affiliate networks, advertisers, publishers and agencies to measurably improve and optimize campaign performance and return on investment.

Company Highlights for 2015

  • Company achieves Profitability in Q4 on an Adjusted EBITDA Basis: The Company achieved positive adjusted EBITDA in Q4 as a direct result of strategic initiatives implemented in Q3 to realign the company’s cost structure and streamline operations while focusing on sales growth and global expansion. Adjusted EBITDA is a non-GAAP measure management believes provides important insight into the Company’s operating results (see reconciliation of non-GAAP measures below).
  • Customer Growth and Revenue Expansion: Q4 revenue reached $5.46 million increasing by 13% year over year with record monthly recurring license revenues. During Q4, the average number of customers increased by 20% and revenue per customer increased by 8.5% year-over-year as CAKE continues to gain traction as an enterprise solution.
    • Continued International Expansion: The Company achieved significant global diversification with 29% of overall revenue derived outside the U.S. for fiscal year 2015, up from 25% for fiscal year 2014. CAKE achieved a 52% year over year increase in the number of customers it services outside the United States and now serves customers in more than 30 countries worldwide. During 2015 Cake added more than 60 new clients from the EMEA, APAC and LATAM regions to its growing international customer base.
  • Product Innovation: In mid 2015 the Company launched CAKE Connect, a new worldwide digital marketing ecosystem that includes Facebook, Neo@Ogilvy, Marketo, Google, Forensiq, Bing and more. CAKE Connect enables customers as well as the Company’s extensive network of industry-leading agency, technology, media and network partners, to easily collaborate and generate additional revenues. The Company also continues to invest in product development to expand market New machine learning and multi-touch attribution capabilities are being introduced to expand Cake’s existing rules-driven attribution in order to programmatically allow marketers to analyze complex customer journeys. This will further enhance a marketer’s ability to make planning and marketing course correction decisions to drive better return on investment for advertising spend.
  • Named as a “Vendor to Watch” by Gartner, Inc. for the second year in a row: Gartner, Inc. once again named CAKE by Accelerize a “Vendor to Watch” in its annual “Magic Quadrant Digital Marketing Hubs” report. Identifying significant trends influencing the market, the research is intended for chief marketing officers (CMOs), chief marketing technologists and other digital marketing leaders involved in the selection of core systems to support digital marketing business requirements. According to Gartner, “CAKE is best-known as a performance marketing automation platform with a strength in analytics and a focus on affiliate marketing optimization. It has hub-like real-time multi-channel data management and onboarding capabilities.”

“2015 was another year of record revenue for Accelerize, but more importantly, it was a pivotal year of change that I believe will set the stage for a progressive profitable expansion in the coming years. By remaining focused on our vision of delivering a cutting edge digital marketing solution while streamlining our operations, we have transformed Accelerize into a business that not only delivers strong revenue growth through innovation, but one that also can deliver a strong bottom line performance, ” said Brian Ross, Chairman and CEO of Accelerize. “Through the strategic initiatives we implemented in Q3 2015, we have already made tremendous strides forward, achieving a reacceleration of revenue growth and positive adjusted EBITDA ahead of the plan we outlined in November. We continue to build our customer base through expansion and extremely high retention rates giving us a solid and growing recurring revenue stream to fuel future performance. With our streamlining now complete, we enter 2016 more confident than ever that we can achieve continued revenue growth and further improvement in profitability in the quarters and years to come.”

Financial Highlights for FY 2015

  • Revenues: Total revenues for fiscal 2015 rose to a record $21.4 million, a 30% increase from revenues of $16.5 million recorded in fiscal 2014. The revenue increase was driven organically by a 20% increase in the average number of customers on the CAKE SaaS platform and an 8.5% increase in average revenue per customer. The Company expects future revenues to be driven by ongoing organic growth, international expansion, product innovation, as well as increased sales and marketing efforts.
  • Operating Income (Loss): Operating loss in fiscal 2015 was $(6.1 million), compared to an operating loss of $(3.3 million) in fiscal 2014. The increased operating loss in fiscal 2015 was attributable to significant expenditures on sales, marketing, product development and G&A during the first eight months of the year. The Company began several strategic streamlining initiatives beginning in Q3 to selectively reduce costs and enhance profitability, while simultaneously maintaining solid growth. This resulted in the Company’s Q4 2015 operating loss narrowing to ($667,000) from ($2.1 million) in the previous quarter and ($893,000) in Q4 2014.
  • Net Income (Loss): Net loss for fiscal 2015 was $(6.2 million), compared to net loss of $(3.3 million) during the prior year period. Earnings per share was $(0.10) in 2015 compared to $(0.05) in 2014. The net loss in 2015 was attributable to an increase in sales, marketing, product development and G&A expenses as described above.
  • Cash Flow: Net Cash used in operations in fiscal 2015 was $(2.1 million) compared to net cash used in operations of $(2.6 million) during the prior year period. The decrease in cash used in operations (in comparison to Net Income) is largely attributable to a large non-cash add-back for stock-based compensation and favorable changes in working capital. Net cash at December 31, 2015 was $0.9 million compared to $1 million at December 31, 2014.
  • Revenue Model: The Company’s revenue model is based on a monthly license fee, a usage fee (based on volume of online events), and a training and implementation fee. Customers purchase annual subscriptions with an additional usage fee.

Subsequent Events

On March 11, 2016 the Company received a $625,000 subordinated loan from Agility Capital to increase its financial flexibility. The Company also reached an agreement with Square 1 Bank to extend its current credit facility due to expire on March 17, 2016 until May 31, 2016. The Company is currently in negotiations with several parties to secure a longer-term credit facility of sufficient size to fuel its future growth plans. While no agreement has been reached at this time, the Company expects to have a new facility in place in the first half of 2016.

About Accelerize

Accelerize Inc. (OTCQB: ACLZ) (OTCBB: ACLZ) offers marketing technology solutions that revolutionize the way advertisers leverage their digital advertising data. For more information, visit