DENVER, March 10, 2015 /CNW/ --
- 2014 total revenue increased approximately 50%
- Q1 Employee Benefit revenue growth projected to exceed 130%
ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced preliminary revenue results for the 4th quarter ended December 31, 2014 and revenue guidance for the first quarter of 2015. All amounts are in U.S. dollars.
The Company is providing certain preliminary revenue estimates for the fourth quarter and year ended December 31, 2014. The financial results provided in this release are prior to the completion of the annual year-end audit by ID Watchdog's independent public accountants and, therefore, are unaudited, subject to change and these results may differ from the audited results.
For the fourth quarter of 2014, revenue totaled approximately $1,012,000, an increase of $334,000, or 49%, from the fourth quarter of 2013. During the fourth quarter of 2014, revenue from our employee benefit and tech support channels contributed $113,000 and $245,000, respectively, to the total increase in revenues. These increases were partially offset by a $24,000 net decrease in revenue from our consumer marketing channel and other revenue sources.
For the year ended December 31, 2014, revenue totaled approximately $3,533,000, an increase of $1,175,000, or 50%, from 2013. During 2014, revenue from our employee benefit and tech support channels contributed $431,000 and $735,000, respectively, to the total increase in revenue. In addition, revenue from our consumer marketing channel and from other revenue sources contributed $9,000 to the total increase in revenue.
Cash and cash equivalents as of December 31, 2014, totaled approximately $886,000, an increase of approximately $334,000 from the total as of December 31, 2013.
ID Watchdog CEO, Michael Greene, stated, "I am pleased with the 50% revenue growth we achieved in 2014 and the tremendous success we had in developing strong relationships with many of the largest benefit brokers in the country who will help us to accelerate our employee benefit revenue growth over the long-term. I am thrilled with our January employee benefit enrollment results as we added numerous large brand name employers to our roster of clients and we are estimating revenue growth exceeding 130% in our employee benefit channel in the first quarter of 2015 as compared to the first quarter of 2014. Our employee benefit channel will typically experience 50%-60% of its annual customer growth in the first quarter with the balance being added primarily in the second half of the year."
Mr. Greene continued, "We announced on November 26, 2014, that ID Watchdog's wholly-owned subsidiary, Identity Rehab Corporation, had terminated its sales and revenue sharing arrangement with its principal partner in its tech support channel effective November 21, 2014. As a result, we will continue to recognize subscription renewals from existing customers, but we do not anticipate any new customer subscription activity in this channel in the near term. In the first quarter of 2015, as a result of strong customer growth in the second half of 2014 and subscription renewals of existing customers, we anticipate that our tech support channel revenue will increase by 25% to 30% over the similar period in the prior year, however, we anticipate that revenue from this channel will decline by 25% to 35% in 2015 as compared to 2014, due to the absence of revenue from new customer subscriptions. While the decrease in revenue from this channel will serve to slow our total revenue growth during 2015, we anticipate revenue growth in the range of 60% to 70%, in the first quarter of 2015 as compared to the first quarter of 2014."
Mr. Greene concluded, "We're off to a fabulous start to the year and the endless news of security breaches will only serve to reinforce the need for identity theft protection services and we believe we are well positioned to serve this growing need in the market."
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ID Watchdog, Inc.
Jay B. Lewis
Chief Financial Officer
SOURCE ID Watchdog, Inc.