Snipp Interactive Reports Preliminary Unaudited Financial Results for Q4 2020

Rhea-AI Summary

Snipp Interactive Inc. (TSXV:SPN)(OTC PINK:SNIPF) announced preliminary unaudited Q4 2020 financial results indicating significant improvements. Q4 2020 EBITDA is expected to exceed $100,000, marking an increase of over 100% from the previous year, while revenue is projected to grow by over 50% to above $2 million. Gross margin is forecasted to rise above 70%, compared to 60% in Q4 2019. The company emphasizes its cost reduction efforts and a strong end to 2020 despite a revenue loss of over $1.5 million attributed to the pandemic, indicating a positive outlook for 2021.

Positive

• Q4 2020 EBITDA expected to exceed $100,000, improving by over $1 million from Q4 2019.
• Projected Q4 2020 revenue above $2 million, a 50% increase from Q4 2019 revenue of $1.35 million.
• Gross margin forecasted to be above 70%, up from 60% in Q4 2019.
• Company anticipates full-year EBITDA positivity for 2020.

Negative

• Reported revenue loss of over $1.5 million for the full year 2020 due to the pandemic.

VANCOUVER, BC / ACCESSWIRE / March 9, 2021 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSXV:SPN)(OTC PINK:SNIPF), a global provider of digital marketing promotions, rebates, and loyalty solutions, announces its preliminary unaudited financial results for Q4 2020. Note that these preliminary Q4 2020 financial results have not been audited. The Company is currently in the process of having its full fiscal 2020 financial results audited. All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars.

Q4 2020 Highlights - based on preliminary unaudited results

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

• EBITDA in Q4 2020 is forecast to improve by over 100% compared to Q4 2019, an EBITDA improvement of over $1,000,000. Q4 2020 EBITDA is forecast to be greater than $100,000 positive vs Q4 2019 EBITDA that was negative $1,014,667.
• The Company also forecasts to be EBITDA positive on a full year basis.
• Revenue for Q4 2020 is forecast to increase by over 50% compared to Q4 2019. Revenue for Q4 2020 is forecast to be above $2,000,000 compared to revenue for Q4 2019 of $1,349,685.
• Gross margin in Q4 2020 is forecast to be above 70% compared to 60% in Q4 2019.
• The Company continued to focus on cost improvements from its integration efforts, resulting in lower costs over multiple expense categories.

"Q4 marked the end of what was a difficult year for everyone. Despite the profound challenges posed by the Covid-19 pandemic and the resulting loss of revenue of over $1.5MM for the year, I am very proud of our teams' dedication and focus on executing to our strategy. This has ultimately led to an epic fourth quarter of growth that clearly demonstrates the growing value of our platform and gives us a base to build on for 2021. As we enter the final month of our first quarter in 2021, we are seeing the benefits accruing from a strong end to the last year. We look forward to completing our annual audit and releasing our full year audited financials in April as well as our first quarter results in May as per our regular release schedule.

Visit the Snipp website at http://www.snipp.com/ for Snipp's full suite of solutions and examples of Snipp programs.

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 stock-based compensation, 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.

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.

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FAQ

What are Snipp Interactive's preliminary Q4 2020 financial results?

Snipp Interactive expects Q4 2020 EBITDA to exceed $100,000, revenue to be above $2 million, and gross margin to be over 70%.

How much did Snipp Interactive's revenue grow in Q4 2020 compared to Q4 2019?

Revenue for Q4 2020 is forecasted to increase by over 50% compared to Q4 2019.

What challenges did Snipp Interactive face in 2020?

The company reported a revenue loss of over $1.5 million for the year due to the Covid-19 pandemic.

When will Snipp Interactive release its full audited financials?

The company plans to complete its annual audit and release the full year audited financials in April.

What is the current outlook for Snipp Interactive in 2021?

Snipp is optimistic about 2021, expecting to benefit from a strong end to 2020.