Over $70.8 million of annualized revenues from the two combined services
GUANGZHOU CITY, China, Sept. 13 /PRNewswire-Asia-FirstCall/ -- Subaye, Inc. (Nasdaq: SBAY) ("Subaye" or the "Company"), a leading outsourced marketing services provider in China engaged in online video advertising and cloud computing business solutions, announced today that its Cloud Computing customers grew to 13,353 in August, an increase of 37% since July 31, 2010. The Company also announced that it has 38,881 paying online video advertising customers as of August 31st, 2010, an increase of 140% year-to-date for its fiscal year ending September 30, 2010, and an increase of 13% since the Company's second fiscal quarter ended June 30, 2010. The current level of 38,881 paying members generates a monthly run rate of approximately $4.6 million in revenues per month, or $54.7 million annually.
Subaye saw new online video paying member growth from both its largest province of Guangdong and from its new markets. In the first two months of its fiscal fourth quarter ending September 30, 2010, the Company added 703 and 3,796 new subscribers in Guangdong and in new markets, respectively. The percentage of total subscribers from new markets increased from approximately 23% in March 2010 to 41% in August. As Subaye continues to add more agents and productivity for agents improves, Management expects subscriber growth to remain strong. Subaye had 1,023 sales agents at the end of July, up from approximately 600 at the end of June. The Company remains on track to end of fiscal 2010 with approximately 1,500 sales agents.
Number of Paying Subscribers Growth Rate
9/30/09 3/31/09 6/30/10 8/31/10 6/30-8/31 FY 2010
Regions: To Date
Guangdong 16,211 16,998 22,417 23,120 3 % +43 %
Hong Kong -- 1,361 1,361 1,437 6 % --
Taiwan -- 739 739 818 11 % --
Hunan -- 2,921 2,921 3,376 16 % --
Hainan -- -- 3,133 2,873 -8 % --
Hubei -- -- 3,811 3,892 2 % --
Anhui -- -- -- 571 -- --
Chongqing -- -- -- 511 -- --
Fujian -- -- -- 476 -- --
Jiangxi -- -- -- 712 -- --
Zhejiang -- -- -- 1,095 -- --
Total 16,211 22,019 34,382 38,881 13 % +140 %
Cloud Computing (CC)
Since Subaye started promoting its Cloud Computing services in March 2010, it has dramatically increased the number of paying subscribers to 13,353, an increase of 8,153, or 157%. Growth has accelerated month-over-month in every month since March, increasing by 4% in April, 15% in May, 18% in June, 32% in July and 37% in August. The attractive value proposition, superior functionality, and improved cross-sell of its CC services to existing online video members are the primary drivers of the acceleration in subscriber growth. Penetration has increased from 0% of Subaye's 86,311 VIDEO SHOWCASE member base in March to 12% in August. The 13,353 paying customers at August 31, 2010 generate approximately $1.3 million of revenues per month, or $16.0 million per year.
"We are beginning to see more of our customers signing up for both of our core online platforms - VIDEO SHOWCASE and CLOUD COMPUTING," stated Mr. Zhiguang Cai, Chief Executive Officer of Subaye, Inc. "The interest our VIDEO SHOWCASE customers have in our CC services is a strong indication of the value we provide our customers. With attractive returns on our investment, we will continue to add more sales agents in new and existing provinces in order to capture a greater share of these growing opportunities."
About Subaye, Inc.
Subaye, Inc. is a leading outsourced marketing services provider in China engaged in online video advertising and cloud computing business solutions. Subaye's online video advertising network provides production, upload, storage, and publishing onto video sharing websites. Subaye also offers cloud computing business solutions and is in the process of developing an online mall with 3D imaging throughout the online customer interface. Visitors of Subaye's websites, namely, www.subaye.com, view video showcases of Subaye members, primarily small to mid-size enterprises ("SMEs"), and select products or services they wish to purchase. Paying members utilizing Subaye's video advertising platform pay a membership fee of approximately $117.0 per month. The Company previously conducted a trade services and an entertainment media business. For further information on Subaye, Inc., please visit http://www.subaye.net .
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Subaye, Inc.'s industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Subaye, Inc.'s operations are conducted in the People's Republic of China ("PRC") and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
For more information, please contact:
Company:
James Crane
Chief Financial Officer
P.R.C. Cell: +86-186-2136-3580
U.S. Office: +1-617-209-4199
Investor Relations:
Ted Haberfield
HC International, Inc.
Tel: +1-760-755-2716 (US)
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
