Shopkick reaches profitability, touts $200M in 2012 partner revenues
Shopkick, whose location-based consumer rewards application is now in use across more than 7,500 retail stores and malls nationwide, achieved its first profitable quarter during the fourth quarter of 2012, a little more than two years after the company first rolled out its service.
Although Shopkick declined to specify total sales or related profitability metrics, the startup said it has now driven more than $300 million in revenue for its retail and brand partners, including more than $200 million in 2012 revenues alone.
The free Shopkick app, which is available for devices running Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android, offers its 4 million users rewards points called "kicks" for entering traditional brick-and-mortar stores, scanning consumer goods and making purchases. To collect kicks, shoppers must physically step inside brick-and-mortar locations--Shopkick leverages patent-pending location technology which automatically identifies the user's presence in partner stores, crediting rewards and delivering relevant offers directly to their account. Consumers can redeem kicks to claim prizes like gift cards, movie tickets, Facebook Credits and iTunes downloads. Shoppers also can sign up to receive special in-store coupons and discounts.
According to Shopkick, the app has generated more than 16 million verified walk-ins for partners like Target, Macy's, Old Navy, American Eagle, Best Buy, Crate & Barrel, Toys"R"Us and ExxonMobil, including an average of 2 million per month during the fourth quarter. Shopkick also reports 26 million product scans.
Forty-seven percent of all U.S. smartphone owners use mobile shopping applications, according to a Nielsen report issued last year. Shopkick ranked fourth in terms of unique audience size, trailing only eBay Mobile, Amazon (NASDAQ:AMZN) Mobile and Groupon.
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