ProfitPoint Reports Strong Year-Over-Year Growth in its Gift & Loyalty Card Business
FRANKLIN, TENN. (February 13, 2006) - ProfitPoint Inc. announced increased revenues for the 4th Quarter ending December 31, 2005 of 250 percent over Q4 2004. Year over year revenue growth for that same period rose an impressive 500 percent.
ProfitPoint also reported selling in excess of four million gift and loyalty cards to its customers throughout the course of the year while sales of accessory items such as card carriers, display racks and other merchandising tools climbed 3,000 percent.
The growth rates are primarily attributable to a strong focus on product distribution through its direct, company-owned sales force and a core group of non-traditional channel partners that provide the company access to thousands of qualified prospects who fit the profile of a "perfect gift and loyalty client," according to ProfitPoint CEO Vaden Landers.
"Our primary products and services are loyalty and gift card programs designed to increase customer traffic, generate incremental sales, encourage repeat business, and reduce the risk of shrinkage and exposure to fraud for our client business partners," Landers said. "Specialty businesses, retailers, and restaurants spend a significant amount of money each year marketing and advertising their products or services."
When properly designed and implemented, Landers added, "a gift and loyalty card program can be the most cost-effective marketing dollar a business will ever spend in terms of accomplishing the above stated objectives."
ProfitPoint raised an initial round of equity capital in July 2004. Today, the company announced discussions with potential new investors interested in working with ProfitPoint to establish a leadership position in the marketplace serving the payment processing needs of retailers, restaurants and service-related businesses and associations ranging in size from 1 to 1,000 locations.
ProfitPoint expects to close on a second round of financing by the second quarter of 2006 and to hire a significant number of new salespeople in strategic markets around the country.
"Acquisitions will also play a role in our near-term growth plans as well," Landers said. "We know we can only grow organically at this pace for so long. In order to achieve our goal of becoming a dominant player in the delivery of stored value solutions to our target market, we must diversify our approach by exploring the potential for purchasing like-minded companies who have a solid customer base, established distribution capabilities and strong recurring revenues."
Headquartered in the Nashville, Tenn., area, ProfitPoint Inc. also has field offices in Atlanta, Philadelphia, Boston, Hartford and Knoxville, among others. The Company's President, A. James Battista, will continue to oversee the sales force expansion. Plans are underway to acquire double the space ProfitPoint currently occupies in anticipation of this new business growth and development.
About ProfitPoint Inc.
ProfitPoint Inc. is a leading provider of gift and loyalty card services to the small to medium sized merchant community. Headquartered near Nashville, Tennessee, ProfitPoint supports its gift and loyalty cards with point-of-purchase accessories, real-time electronic transaction processing and customizable reports for each merchant. ProfitPoint specializes in the design and production of custom gift and loyalty cards, software capability and merchant education to meet each individual client's needs. Now serving approximately 20,000 merchant locations nationwide, ProfitPoint produces in excess of five million cards per year and does more than 10 million stored value transactions on its gift and loyalty card platform. ProfitPoint has experienced annualized growth of more than 100 percent each year since its inception in 2003.
