springbig Announces Cost Reduction Actions to Accelerate Path to Profitability and Strengthen Financial Profile

Rhea-AI Summary

SpringBig Holdings, Inc. (NASDAQ: SBIG) announced cost-cutting initiatives aimed at enhancing profitability. The measures include a 23% reduction in workforce, impacting 37 positions, alongside a one-time restructuring charge of approximately $0.2 million in Q4 2022. This is expected to result in a 21% decrease in annual operating expenses for 2023 compared to the first nine months of 2022. CEO Jeffrey Harris emphasized the goal of reaching positive EBITDA and accelerating revenue growth in the upcoming year.

Positive

• Expected 21% reduction in operating expenses for 2023 compared to the first nine months of 2022.
• Initiatives aim to accelerate timeline to positive EBITDA in 2023.
• Focus on prioritizing growth opportunities and strengthening financial position.

Negative

• Workforce reduction of 37 positions (23% of headcount) may impact operational capacity.
• One-time cash restructuring charge of approximately $0.2 million in Q4 2022.

BOCA RATON, Fla., Nov. 30, 2022 (GLOBE NEWSWIRE) -- SpringBig Holdings, Inc. (“springbig” or the “Company”) (NASDAQ: SBIG), a leading provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs to the cannabis industry, today announced that the company is undertaking a series of initiatives to reduce costs and drive efficiency in order to accelerate its path to profitability. These cost-cutting measures will allow the company to prioritize growth opportunities, right-size its expense structure and preserve capital while strengthening its financial position.

“Our focus remains on consistent execution and expanding the reach of the springbig platform, while optimizing our organization to deliver profitable growth. We believe that the steps we are announcing today will produce an annual operating expense run rate in 2023 that is expected to be approximately 21% less than annualized operating expenses incurred for the nine months ended September 30, 2022, shortening the timeline to our goal of positive EBITDA during 2023, and we continue to expect an acceleration in revenue next year,” said Jeffrey Harris, CEO and Chairman of springbig.

As part of the initiatives announced today, Springbig has announced a workforce reduction of 37 positions, or 23% of the company’s headcount through a combination of layoffs and attrition to ensure its long-term health. The company expects a one-time cash restructuring charge for the layoffs of approximately $0.2 million in Q4 of 2022.

Harris added, “We greatly value the collaborative efforts of our talented colleagues responsible for building springbig into the platform it is today, and I want to thank all of our employees for their focus and dedication through this process.”

About springbig

springbig is a market-leading software platform providing customer loyalty and marketing automation solutions to cannabis retailers and brands in the U.S. and Canada. springbig’s platform connects consumers with retailers and brands, primarily through SMS marketing, as well as emails, customer feedback system, and loyalty programs, to support retailers’ and brands’ customer engagement and retention. springbig offers marketing automation solutions that provide for consistency of customer communication, thereby driving customer retention and retail foot traffic. Additionally, springbig’s reporting and analytics offerings deliver valuable insights that clients utilize to better understand their customer base, purchasing habits and trends. For more information, visit https://springbig.com/.

Forward Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risks and uncertainties described under “Risk Factors” ’of the registration statement on Form S-4, the proxy statement/prospectus relating to the business combination, the Company’s Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on June 21, 2022, and in the Company’s Form 10-Q for the period ended September 30, 2022 filed with the SEC on November 14, 2022, and other documents filed by the Company from time to time with the SEC. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond the control of springbig), and other assumptions, which may cause the actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

Investor Relations Contact        
Ryan Flanagan
ICR Strategic Communications & Advisory
ir@springbig.com   

Media Contact
Phoebe Wilson
MATTIO Communications
springbig@mattio.com

FAQ

What are SpringBig's cost-cutting initiatives announced in November 2022?

SpringBig announced a series of cost-cutting initiatives, including a workforce reduction of 37 positions (23% of headcount) and measures to decrease annual operating expenses by 21% in 2023.

How does SpringBig plan to improve profitability?

SpringBig aims to improve profitability by reducing operational costs and expects to achieve positive EBITDA in 2023 through these initiatives.

What impact will the layoffs have on SpringBig?

The layoffs, affecting 37 positions, may reduce operational capacity but are intended to ensure the company's long-term health and financial stability.

What financial impact do the restructuring charges have on SpringBig?

The restructuring will result in a one-time cash charge of approximately $0.2 million in the fourth quarter of 2022.

When does SpringBig expect to see revenue acceleration?

SpringBig expects an acceleration in revenue growth in 2023 as part of its cost-cutting and efficiency initiatives.