SNAP Interactive (Ticker: STVI) the company behind “Are You Interested” and “Meet New People”, announced revenue guidance today for the third quarter. The company is estimating that they will have revenue of $870,000, up from $35,383 one year prior and $533,257 the quarter prior. Considering that the shift from the old design started last quarter, this is some decent revenue.
While it isn’t the $1 million a month that Mob Wars is rumored to generate, it is definitely a substantial amount. The announcement also stated that the company experienced a net increase in traffic which is interesting considering that individual applications were negatively impacted by the redesign. I’ll be interested to see what type of performance this company has in the fourth quarter.
This is the only publicly traded company in the social application space so quarterly reports are definitely useful for judging the state of the social web economy. It’s difficult to judge revenue generation strictly based on active users though as there are a number of variables contributing to revenue generation.
One potential reason for the low revenue numbers compared to some of the gaming applications is the company’s decision to stay away from some of the more controversial ad networks. Those are the ad networks which provide offers to users which essentially generate revenue through lead generation means. For now the company is focused on growth, according to Clifford Lerner, the company’s CEO.
Monetization is currently a secondary focus for the company. As to expansionary opportunities the company has provided no guidance but I wouldn’t discount the possibility of this company expanding onto new platforms beyond social networks.