Snipp Interactive Reports Financial Results for Q4 2020 and Fiscal 2020

Rhea-AI Summary

Snipp Interactive Inc. (OTC PINK:SNIPF) reported financial results for Q4 2020 and the fiscal year ending December 31, 2020, demonstrating notable growth. Q4 revenue surged by 62% year-over-year to $2,180,860, with full-year revenue increasing by 1% to $8,692,274. The company achieved a gross margin of 75% in Q4 and 72% for the fiscal year. EBITDA improved significantly, rising 116% in Q4 and 128% for the year, marking a transition to positive EBITDA. Bookings backlog also increased by 49% to $6.7MM, indicating strong future revenue potential.

Positive

• Q4 2020 revenue rose by 62% to $2,180,860.
• Fiscal 2020 revenue increased by 1% to $8,692,274.
• Gross margin improved to 75% in Q4 2020.
• EBITDA in Q4 2020 was positive at $159,612, up from a negative $1,014,667 in Q4 2019.
• Bookings backlog rose by 49% to $6.7MM, indicating future growth.

Negative

• Fiscal 2020 gross margin decreased slightly to 72% from 73% in Fiscal 2019.
• Net loss before interest and taxes was $240,869 in Q4 2020.

VANCOUVER, BC / ACCESSWIRE / April 30, 2021 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSX-V:SPN; OTC PINK:SNIPF), a global provider of digital marketing promotions, rebates and loyalty solutions, announces its financial results for Q4 2020 and the year ended December 31, 2020 ("Fiscal 2020"). All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete audited financial statements and management's discussion and analysis are available on SEDAR (www.sedar.com).

Q4 2020 and Fiscal 2020 Highlights

(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)

• Revenue for Q4 2020 increased by 62% compared to Q4 2019. Revenue for Q4 2020 was $2,180,860 compared to $1,349,685 for Q4 2019.
• Revenue for the year ended December 31, 2020 increased by 1% compared to the year ended December 31, 2019. Revenue for the year ended December 31, 2020 was $8,692,274 compared to revenue for the year ended December 31, 2019 of $8,643,755.
• Gross margin in Q4 2020 was 75% compared to 60% in Q4 2019.
• Gross margin in Fiscal 2020 was 72% compared to 73% in Fiscal 2019.
• EBITDA in Q4 2020 increased by 116% compared to Q4 2019, an EBITDA improvement of $1,174,279. Q4 2020 EBITDA was $159,612 vs negative EBITDA for Q4 2019 of ($1,014,667).
• EBITDA in Fiscal 2020 increased by 128% compared to Fiscal 2019, an EBITDA improvement of $1,575,909. Fiscal 2020 EBITDA was $346,153 vs negative EBITDA for Fiscal 2019 of ($1,229,756).
• Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $6.7MM at December 31, 2020, an increase of 49% compared to December 31, 2019 of $4.5MM.

"2020 represented a significant milestone for Snipp as we achieved a full year of being EBITDA positive not only on an annual basis but also for each individual quarter. All of this despite the challenges faced during the course of the year with the pandemic, is a testament to the fact of the value of our platform, the resiliency of our people, and the loyalty of our clients. With significant fourth quarter revenue growth setting the foundation for 2021 we are confident that this year will be a year of significant and profitable growth for the company" said Atul Sabharwal, Founder & CEO.

Non-GAAP Measures

Snipp uses certain performance measures throughout this document that are not recognizable under Canadian generally accepted accounting principles or IFRS ("GAAP"). These performance measures include Gross Margin and EBITDA. Management believes that these measures provide supplemental financial information that is useful in the evaluation of the Company's operations.

Investors should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP and IFRS as an indicator of Snipp's performance. The Company's method of calculating these measures may differ from that of other organizations, and accordingly, these may not be comparable.

EBITDA

Snipp defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as revenue minus operating expenses excluding non-cash operating expenses of share-based payments, depreciation and amortization (interest and taxes are not included in the Company's operating expenses).

Gross Margin

Snipp defines Gross Margin as revenue less campaign infrastructure. The Company's calculation of Gross Margin is not a financial measure that is recognized under GAAP. Investors should be cautioned that the Company's defined Gross Margin should not be construed as an alternative measure to other measures determined in accordance with GAAP.

Bookings Backlog

Snipp defines Bookings Backlog as future revenue from existing customer contracts to be recognized in future quarters. Bookings get translated into revenues based on IFRS principles and the Bookings Backlog reflects how revenues in future quarters are steadily being booked today.

The Following are calculations of EBITDA:

		Three				Three				Year				Year
		Months Ended				Months Ended				Ended				Ended
		December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
		USD				USD				USD				USD
Net loss before interest, foreign exchange, impairment and taxes			(240,869	)			(1,594,836	)			(1,370,740	)			(3,568,909	)
Amortization of intangibles			321,999				552,424				1,578,787				2,160,987
Depreciation of equipment			9,054				6,005				22,744				26,273
Stock-based compensation			69,428				21,740				115,362				151,893
EBITDA			159,612				(1,014,667	)			346,153				(1,229,756	)

The Following are calculations of Gross Margin:

Three

Three

Year

Year

Months Ended

Months Ended

Ended

Ended

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

USD

USD

USD

USD

Revenue

2,180,860

1,349,685

8,692,274

8,643,755

Less:

Campaign infrastructure

535,640

544,286

2,431,484

2,292,970

Gross Margin

1,645,220

805,399

6,260,790

6,350,785

About Snipp:

Snipp is a global loyalty and promotions company with a singular focus: to develop disruptive engagement platforms that generate insights and drive sales. Our solutions include shopper marketing promotions, loyalty, rewards, rebates and data analytics, all of which are seamlessly integrated to provide a one-stop marketing technology platform. We also provide the services and expertise to design, execute and promote client programs. SnippCheck, our receipt processing engine, is the market leader for receipt-based purchase validation; SnippLoyalty is the only unified loyalty solution in the market for CPG brands. Snipp has powered hundreds of programs for Fortune 1000 brands and world-class agencies and partners.

Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. The company is publicly listed on the Toronto Stock Venture Exchange (TSX-V) in Canada and is also quoted on the OTC Pink marketplace under the symbol SNIPF.

FOR FURTHER INFORMATION PLEASE CONTACT:


Snipp Interactive Inc.
Jaisun Garcha
Chief Financial Officer
investors@snipp.com
1-888-99-SNIPP

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Copyright Snipp Interactive Inc. All rights reserved. All other trademarks and trade names are the property of their respective owners.

SOURCE: Snipp Interactive Inc.

View source version on accesswire.com:
https://www.accesswire.com/643506/Snipp-Interactive-Reports-Financial-Results-for-Q4-2020-and-Fiscal-2020

FAQ

What were Snipp Interactive's financial results for Q4 2020?

Snipp reported a revenue increase of 62% in Q4 2020, reaching $2,180,860.

How did Snipp's EBITDA perform in Q4 2020?

EBITDA in Q4 2020 improved significantly by 116%, amounting to $159,612.

What is the bookings backlog for Snipp at the end of 2020?

Snipp's bookings backlog increased by 49% to $6.7MM by December 31, 2020.

What was Snipp Interactive's revenue for the fiscal year 2020?

For the fiscal year 2020, Snipp reported a revenue of $8,692,274, up 1% from 2019.

How did Snipp's gross margin change in 2020?

Snipp's gross margin in Q4 2020 was 75%, but the fiscal year margin decreased slightly to 72%.