EFactor Group Corp. Reports First Quarter 2015 Financial Results

Q1 2015 Revenues Rise to a Record $1.0 Million Through the Addition of Several Key Businesses to the EFactor Entrepreneurial Platform; Company’s Recent Acquisition of RocketHub Adds “Crowd Funding” Capabilities to Its Growing List of Business Services Creating a New “Funding” Division

NEW YORK, NY / ACCESSWIRE / May 15, 2015 / EFactor Group Corp. (OTCQB: EFCT) (“EFactor Group” “EFactor” or “the Company”), the premier business network for entrepreneurs designed to provide a variety of tools and business services to help drive business success, today announced financial results for its first quarter ended March 31, 2015.

First Quarter 2015 Highlights and CEO Commentary

– Consolidated revenues increase 7.6x to a record $1,003,641
– Social Networks division revenues increases 20.1x to $485,157
– Business Services division increases 4.5x to $518,484

“The significant revenue growth in the first quarter resulting from our acquisitions of entrepreneur-focused businesses and the performance of our partnerships is a clear indication of where our business is trending this year. In fact, we believe we are only beginning to scratch the surface of the power of our business model,” began Adriaan Reinders, CEO of EFactor Group Corp. “We are very pleased with the total revenue increase in the first quarter and we are also very excited to see the organic revenue growth within our business divisions. With the addition of RocketHub, we have now defined three distinct business divisions which we intend to rapidly grow in the quarters and years to come. As we move forward, our business model remains simple. We will continue to expand our Social Networks membership base and drive those members to the services they need to grow their businesses. By doing so, we are confident that we can build on our performance in each successive quarter this year, which will accelerate our EBITDA growth and unlock the substantial value of our company for the benefit of all our shareholders.”

Strategic Development: As EFactor Group’s business continues to evolve and expand the Company has formalized its operations into three (3) business divisions

With its acquisition of RocketHub completed in April, EFactor Group formalized a new “Funding” division. EFactor Group has now aligned its businesses into the following three (3) divisions to better reflect the Company’s objectives in serving its growing entrepreneurial membership base:

– Social Networks which includes the social networking platforms of EFactor.com, GroupCard, Member Digital and ELEQTand connect entrepreneurs to each other.

– Business Services which includes EQ Mentor, MCC International, HT Skills, Robson Dowry and dozens of partnership arrangements with firms like Dun&Bradstreet, American Express and GoDaddy that provide services and products to entrepreneurs.

– Funding which includes the operations and revenues of RocketHub and specific, funding oriented education and services provided through EFactor.com’s EScore(TM).

First Quarter 2015 Group and Business Division Revenues

Total consolidated revenue for EFactor Group Corp was $1,003,641 versus $116,545 for the same period in 2014. The increase in Group revenues are attributed to the Group’s acquisitions as well as organic sales growth in each of their respective businesses.

The Group’s Social Networks division increased revenues to $485,157 versus $23,009 during the same period in 2014. The Social Networks division’s 20.1x growth in revenues for the quarter was achieved through the Company’s acquisitions of GroupCard, Member Digital and ELEQT in 2014 and each business’ increases in membership fees, event sponsorships, advertising and sales of their respective service offerings.

EFactor Group’s Business Services division recorded revenues of $518,484 versus $93,536 in the first quarter of 2014. The 4.5x increase in the division’s revenues was attributed to the acquisition of HT Skills (staffing) in 2014 and increased revenue from third party revenue sharing partnerships.

Cash and Non-Cash Expenses:

EFactor Group’s total operating expenses are a combination of cash, and non-cash items. Costs of revenues and sales and marketing expenses to support the Group’s three business divisions totaled $357,107 for the quarter, an increase of 313% over the same period in 2014. The increase is a direct result of increased sales for the period ended March 31, 2015.

General and administrative costs for the quarter were $2.1 million, versus $2.3 million in 2014. Excluding $0.9 million and $1.4 million of non-cash, stock-based compensation captured in each respective quarter, the adjusted, non-GAAP general and administrative expenses were $1.3 million for the first quarter, representing an increase of 42% mainly attributable to the added entities within the organization.

Interest expense for the period was $238,352 versus $987,935 in 2014. Interest expenses includes non-cash amortization of $177,563 for share issuance expense to satisfy debt holder enhancements as part of the consideration for entering into these investments. The Company expects to repay or convert into common stock the majority of its outstanding notes subject to the raising further capital and increasing revenues over the course of the next nine months.

Excluding the value of non-cash stock based compensation and deprecation, the Company’s adjusted total expenses were $1.6 million for the quarter.

GAAP and Adjusted Earnings:

First quarter 2015 GAAP net loss decreased to $2.3 million from a loss of $3.9 million for the three month period ended March 31, 2014. The decrease in net loss compared to the prior year period is primarily a result of increased revenues in the Company’s divisions and control of operating expenses.

Excluding the non-cash components of expenses outlined earlier, adjusted net loss for the year was $0.68 million or a loss of $0.005 per share based on a weighted average of 141,591,611 shares as March 31, 2015.

EFactor Group Corp. Outlook and Goals:

With recent independent research estimating the worldwide number of entrepreneurs at 300 million, EFactor Group is well positioned to target a large subset of entrepreneurs that have an affinity for on-line engagement. This represents a substantial target market for EFactor Group which the Company estimates is approximately 90 million entrepreneurs. To build on its current performance and further penetrate this market, EFactor Group has established the following goals in 2015 and 2016.

– Increase the number of EFactor.com members from 1.5 million to 3.0 million in 2015 and 5.0 million in 2016.
– Increase the conversion of ‘free’ to ‘paying’ EFactor.com members from 1.0% to 3.0% in 2015, to 5.0% in 2016.
– Increase the spend per member from $100.00 in 2014 to $500.00 in 2016.

“We believe our EFactor.com platform and across our Social Networks division plus the variety of services we offer through our subsidiaries is the best mix of content, resources, education and business services for entrepreneurs in the market,” began Marion Freijsen, COO of EFactor Group Corp. “We are excited for our team, our shareholders and members at what each successive quarter will continue to produce for us in 2105.” Freijsen concluded.

EFACTOR GROUP CORP. FIRST QUARTER 2015 EARNINGS CONFERENCE CALL

DATE: Friday, May 15, 2015
TIME: U.S. 9:00 a.m. ET, EUROPE 14:00 hrs. CET
DIAL IN: U.S. 1-877-407-0784, INTERNATIONAL 1-201-689-8560
CONFERENCE ID: “EFactor Group Corp. Conference Call”
WEBCAST: http://public.viavid.com/index.php?id=114644

A replay of the call will be available beginning two hours after the call through midnight, May 22, 2015 by telephone at +1-877-870-5176 (US Domestic) or +1-858-384-5517 (International). The replay pin number is 13609887. This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this http://public.viavid.com/index.php?id=114644 or at ViaVid’s website at http://www.viavid.com, where the webcast can be accessed through May 14, 2016.

Use of Adjusted, Non-GAAP Financial Measures

To supplement the Company’s condensed financial statements presented in accordance with GAAP, EFactor Group Corp. uses “adjusted” non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted Expense and Adjusted, Non-GAAP net income and earnings per share.

“Adjusted”, or “Non-GAAP” measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed with GAAP results and the accompanying reconciliation, enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management’s internal comparison of the Company’s financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

About EFactor Group Corp.

EFactor Group Corp. is the premier business network for entrepreneurs designed to provide a variety of tools and business services to help drive business success. Through its wholly owned business services subsidiaries, EFactor Group provides its growing entrepreneurial community of over 1.5 million members with social networking and education, entrepreneur-focused business services, and financing opportunities including crowd funding. A proprietary selection and matching algorithm to offer specific content and resources tailored to each entrepreneur’s unique business needs. With members in every country in the world (196 countries) across 240 industry groups, EFactor Group has built the only comprehensive entrepreneurial community that serves as a source of inspiration and ideas on platform that also consolidates essential services to foster business growth.

EFactor Group’s operations are categorized by the following Business Divisions: 1. Social Networking, 2. Business Services and, 3. Funding options. For more information about EFactor Group Corp. (OTCQB: EFCT) please visit: http://efactorgroup.com.

See our company video here: http://ir.efactorgroup.com/videos/view/4/efactor-video.

Cautionary Note on Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not statements of historical facts and often contain words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words of similar meaning. Forward-looking statements are based on management’s current expectations, beliefs, assumptions and estimates regarding our company, industry, economic conditions, government regulations, energy policies and other factors. These statements are subject to significant risks, uncertainties, and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements. These risks include risk factors described from time to time in the reports and registration statements we file with the Securities and Exchange Commission, including those in our most recent Form 10-K and any updates thereto in our Forms 10-Q. There may be other risks and uncertainties that are not currently known to us or that we currently believe are not material. We make forward-looking statements based on currently available information, and we assume no obligation to, and expressly disclaim any obligation to, update or revise publicly any forward-looking statements made in this release, whether as a result of new information, future events or otherwise, except as required by law.

Company:

Marion Freijsen – Co-Founder/COO
EFactor Group Corp.
Main: +1 650 380 8280
Email: marion@EFactorgoup.com
EFactor email: http://www.EFactor.com/marion

Investor Relations:

John Mattio – Corporate and Investor Communications
EFactor Group Corp.
Main: +1 203 297 3911
Email: john.mattio@efactor.com

SOURCE: EFactor Group Corp.

ReleaseID: 428931