123greetingslogoIntrasoft Technologies, which owns and operates the e-greeting cards site 123greetings.com seems to be witnessing a significant growth on mobile:  The number of mobile e-cards sent through 123Greetings mobile apps grew by 60% sequentially to 169,520 cards for the quarter ended June 30, 2014.

This is up from 105,749 e-cards in the previous quarter. It’s worth noting that 123Greetings had launched its iOS and Android apps in Q3-FY14 and it claims to have registered 0.19 million app downloads until now.

123Greetings.com also witnessed a 30.4% growth in total visitors from handheld devices to 5.52 million for the quarter, from 4.24 million in the same quarter last year.

Birthday Calendar & E-cards mobile app: 123Greetings also launched a new mobile app called Birthday Calendar & E-cards during this quarter. The app enables users to import birthdays & anniversaries of their friends and family from Facebook & their phone book and set customizable reminders to get birthday notifications on their phone. One can also send or schedule the delivery of e-cards. It is currently available on iOS & Android.

E-Commerce orders nearly triples YoY: 123Greetings’ online gifting e-commerce business 123Greetings Store also witnessed significant growth during the quarter. It shipped a total of 116,081 orders, which is nearly triple of 38,927 orders in the same quarter last year. It grew by 31% on a sequential basis.

The store recorded an average of 1,290 orders per day, a nearly three-fold increase from 433 orders per day in the same quarter last year. This was from an active base of 873 vendors, up from 490 vendors in Q1-FY14 but down from 975 vendors in Q4-FY14. The company has listed 140,528 products at 588,544 places across its website & other marketplaces as of June 30, 2014.

The company mentions that it has also appointed an undisclosed investment banker to source capital for its e-commerce business.

123Greetings Studio: 123Greetings’ card creation platform 123Greetings Studio delivered 1,391 additional e-cards during the quarter, up from 1,210 cards in the previous quarter. It also grew its regional and International language content library with 84 new e-cards across Hindi, Russian, Mandarin, Spanish, German and French languages for key holidays and occasions.

Financials

The net consolidated profit of Intrasoft Technologies registered a significant 141% growth year-on-year (YoY) to 0.83 crore for the quarter, from Rs 0.34 crore in the same quarter last year. It had posted a net profit of 0.99 crore in the previous quarter.

The total operational revenue also saw a similar growth: It grew by 153% to Rs 59.57 crore for the quarter, from Rs 23.53 crore in the same quarter last year. It had posted revenues of Rs 47.2 crore in the previous quarter. The company attributed the increase in topline to the growth in its e-commerce business. 

Remember that these consolidated results include the results of the company’s wholly owned subsidiaries, 123Greetings.com Inc (USA), 123Greetings Singapore and One Two Three Greetings (India) and 123Greetings primarily targets the US market.

Expenditure also shoots up significantly

The product and content development expenditure has almost tripled to Rs 44.39 crore from Rs 15.43 crore in the same quarter last year. The sales and marketing expenses have also shot up to Rs 8.61 crore from Rs 3 crore in the same quarter last year.

The general and administrative expenses increased to Rs 2.02 crore from Rs 1.36 crore in Q1-FY14, while the employee costs went up to Rs 4.07 crore from Rs 2.58 crore in Q1-FY14.

Download: Press Release | Financials