SpringBig Holdings, Inc. (“Springbig” or the “Company”) (OTCQX: SBIG), a leading provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs, today announced its financial results for the fourth quarter and full year ended December 31, 2023.
“We have made excellent progress during the past year and are very well positioned to deliver on our 2024 operating plan,” said Jeffrey Harris, CEO and Chairman of Springbig. “We continue to deliver exceptional value to our clients across our broadening platform and to add innovative new offerings such as the recently launched ‘subscriptions by Springbig’ and ‘gift cards by Springbig’.”
Paul Sykes, Springbig’s CFO, added “After completing our $8 million debt financing shortly after the year-end, we now have a much stronger and cleaner balance sheet with our operating plan fully funded and capital that will enable the Company to continue to expand without further capital raises in the near term and to deliver shareholder value. We are pleased to have delivered revenue growth in 2023 despite the challenging macroenvironment, and with accelerating revenue growth driven by our recent launches, coupled with an optimized operating expense base we expect to generate Adjusted EBITDA* margins of 12% to 15% in 2024.”
Fourth Quarter 2023 Financial Highlights:
- Revenue increased to $6.8 million, up 1% year-on-year.
- Subscription revenue was up 10% year-on-year.
- Gross profit was $4.8 million, representing a gross profit margin of 70%.
- Operating expenses reduced by 31% year-on-year to $6.9 million.
- Net loss was $(3.2) million compared to a loss of $(4.5) million in the prior year.
- Adjusted EBITDA* loss was $(0.2) million compared to a loss of $(3.2) million in the prior year.
- Basic net income loss per share was $(0.07).
Full Year 2023 Financial Highlights:
- Revenue was $28.1 million, an increase of 5% from the prior year.
- Subscription revenue was $22.3 million, a year-on-year increase of 14%; recurring subscription revenue now represents 79% of total revenue compared with 73% in the prior year.
- Gross profit was $21.6 million, representing a gross profit margin of 77%.
- Operating expenses reduced by 17% year-on-year to $29.9 million.
- Net loss was $(10.2) million compared to a loss of $(13.1) million in the prior year.
- Adjusted EBITDA* loss was $(3.6) million compared to a loss of $(12.6) million in the prior year.
- Basic net income loss per share was $(0.28) based on 36.1 million weighted average shares outstanding. Total shares outstanding as of December 31, 2023, were 45.3 million.
Key Operational Highlights:
- 396 new clients added during 2023 with annualized subscription value of $3.4 million.
- 14% year-on-year growth in messaging volumes to 2.4 billion standardized message units, with an increasing prevalence of push notifications directly to consumer mobile apps.
- Launched “subscriptions by Springbig” enabling Springbig’s retail clients to offer their consumers a subscription-based VIP loyalty program in Q3 with encouraging initial market reaction.
- Launched “gift cards by Springbig” enabling loyalty rewards and gift cards to be combined uniquely as an efficient method of in store payment within a consumer’s loyalty wallet, in Q4.
- $8.0 million debt financing, comprising $5.4 million of 8% Convertible Notes due 2026, a $1.6 million 12% Term Loan due 2026 and repurchase of existing Convertible Notes completed in January 2024.
Financial Outlook
For the first quarter of 2024, Springbig currently expects:
- Revenue in the range of $6.4 – $6.7 million.
- Adjusted EBITDA* positive in the range of $0.2 – $0.4 million.
For the year ending December 31, 2024, Springbig currently expects:
- Revenue in the range of $29 – $32 million.
- Adjusted EBITDA* positive in the range of $3.5 – $5.0 million.
* Adjusted EBITDA is a non-GAAP (as defined below) financial measure. For more information, see “Use of Non-GAAP Financial Measures” below. Additionally, reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
Adjusted EBITDA is a non-GAAP financial measure provided in this “Financial Outlook” section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measure to the most directly comparable financial measure calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Conference Call and Webcast Information
The Company will host a conference call and webcast today, Tuesday, March 12, 2024, at 5:00 p.m. ET. Participants can register here to access the live webcast of the conference call. Alternatively, those who want to join the conference call via phone can register at this link to receive a dial-in number and unique PIN
The webcast will be archived for one year following the conference call and can be accessed on Springbig’s investor relations website at https://investors.springbig.com/.
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