Smtp, Inc. (SHSP) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2014

EXHIBIT 99.1

SMTP, INC. REPORTS FOURTH QUARTER AND YEAR-END 2014 FINANCIAL RESULTS

NASHUA, N.H., March 4, 2015 – SMTP, Inc. (NASDAQ: 

Fourth Quarter and Year-End 2014 Financial Highlights

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Revenues for the fourth quarter 2014 were $2.9 million, a 91% increase, compared to $1.5 million for the fourth quarter 2013. Revenues for the year ended December 31, 2014 increased to a record $7.5 million, up 30% from $5.8 million in 2013;

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Gross profit for the fourth quarter 2014 was $2.2 million, a 68% increase, compared to $1.3 million for the fourth quarter of 2013. Gross Profit for the year 2014 was $5.8 million, up 23% from $4.7 million in 2013;

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Net loss for the fourth quarter 2014 was $1.1 million, compared to net income of $0.3 million for the same period last year. The Company posted a net loss of $0.8 million for the year ended December 31, 2014, compared to net income of $1.3 million in 2013;

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The net loss in the fourth quarter of 2014 included acquisition-related charges of $0.8 million, amortization of intangible assets of $0.3 million and stock compensation of $0.2 million, compared to stock compensation of $0.1 million in the fourth quarter of 2013.

Recent Operational Highlights

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Added approximately $700,000 in new annual recurring revenue to the SharpSpring platform during Q4, showing strong growth for a product that has been in the market less than a year;

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Accumulated more than 250 marketing agency partners using and distributing the SharpSpring product by November, within ten months of the product launch in early 2014;

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Completed the acquisition of GraphicMail on October 17, 2014, adding an international distribution network, a full service email campaign management solution product offering and strong international sales leadership to SMTP;

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SMTP’s email delivery capabilities were successfully integrated into the GraphicMail and SharpSpring technology platforms, allowing it to target customers sending larger volumes of emails.

“During 2014, we successfully executed a number of strategic initiatives that have changed the complexion of SMTP and added long-term value to the Company. Specifically, the addition of GraphicMail and SharpSpring has proven to be highly complementary to our already capable email delivery platform,” said Jonathan Strimling, CEO of SMTP.  “Out of the gate, these acquisitions have had a positive impact on SMTP.  In addition to greatly expanding our product offering, providing us with global distribution and strengthening our team, the unique combination of these companies has accelerated our growth and enabled SMTP to compete successfully head-to-head against Hubspot and Marketo.”