Zacks Small-Cap Research Updates Coverage with Outperform Ranking on SMTP Inc. - Video Research Alert on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - February 25, 2015) - Zacks Small-Cap Research has updated coverage on SMTP Inc. (NASDAQ: SMTP). Following SMTP’s announcement that it expects to report record revenue for the 4th quarter ended December 2014, analyst Lisa Thompson gave the company an outperform ranking, and a 12-month target price of $13.50, a premium of 175 % to the $4.91 price on February 20th, the day the report was issued.

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The company stated that it expects to report revenue of between $2.8 million and $2.9 million for the 4th quarter, a significant increase from the $1.63 million reported in the 3rd quarter.

The company provides cloud-based email services ranging from sophisticated marketing automation systems to cost-effective SMTP relay services. The company recently expanded its product offerings through the acquisitions of SharpSpring and GraphicMail.

SharpSpring, a new start-up, operates a marketing automation and call-tracking platform that is a direct challenger to Marketo in the small and medium business market.

Ten-year old GraphicMail, based in Cape Town, South Africa, has a front-end email platform that competes with products like MailChimp and Constant Contact.

Jonathan Strimling, CEO stated: "SMTP's favorable revenue during the fourth quarter is reflective of our success in rapidly integrating GraphicMail and SharpSpring, and such progress is particularly evident in the accelerated growth of the SharpSpring product. During the quarter, SharpSpring experienced 50% quarter-over-quarter growth in the rate at which it added new annual recurring revenue and now touts more than 1,000 cumulative end users. In the fourth quarter alone, SharpSpring signed 100 new customers representing more than $700,000 of annual recurring revenue."

The successful integration of both SharpSpring and GraphicMail onto the SMTP delivery platform allows both companies to target larger-volume, higher recurring revenue customers. The company is commencing international sales and marketing efforts in ten countries through its network of local country partners and by launching direct sales of SharpSpring in the United Kingdom.

Analyst Lisa Thompson stated: “The recent acquisitions should more than triple the companies’ addressable market opportunity, making it much more competitive against larger players, and lower the combined companies’ tax rate.”

The company plans to report its financials for year end 2014 and to host its earnings conference call with investors in early March.

SMTP trades at $5.17 and with 5 million shares outstanding, the company is capitalized at $25.8 million.

For more information about SMTP, please visit the company’s website www.smtp.com.

Investor relations is handled by Jeffrey Goldberger of KCSA Strategic Communications, who can be reached at 212-896-1249 or by email at smtp@kcsa.com.

For more information about Zacks Small-Cap Research or to obtain a copy of their research report, please visit the company’s website www.scr.zacks.com.

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