Snipp Interactive Reports Q1 2024 Financial Results Company to Hold Investor Conference Call on June 3, 2024

Rhea-AI Summary

Snipp Interactive reported its Q1 2024 financial results, highlighting a 29% decrease in revenue compared to Q1 2023, attributed to the sunsetting of a single contract from the Gambit Rewards acquisition. Despite the decline, the company's gross margin increased significantly from 29% to 54%, and EBITDA losses improved from $1.1 million to $0.6 million. The bookings backlog rose 12% to $15.4 million. Snipp ended the quarter with $4.2 million in cash and remains debt-free. The company secured multiple large contracts, including a historic deal with a global food and beverage company, expected to generate over $6 million in Q3 2024. Snipp anticipates continued margin improvement and profitability scaling in the second half of the year.

Positive

• Gross margin increased by 108% from 29% in Q1 2023 to 54% in Q1 2024.
• EBITDA loss improved by $0.5 million, reducing from $1.1 million in Q1 2023 to $0.6 million in Q1 2024.
• Bookings backlog increased by 12% to $15.4 million as of March 31, 2024.
• Snipp secured the largest contract in its history, expected to generate over $6 million in Q3 2024.
• Revenue from core business increased by 29% year over year.
• Snipp ended the quarter with $4.2 million in cash and remains debt-free.

Negative

• Revenue for Q1 2024 decreased by 29% compared to Q1 2023.
• The decline in revenue was tied to the anticipated sunsetting of a single contract from the Gambit Rewards acquisition.

VANCOUVER, BC / ACCESSWIRE / May 31, 2024 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSX-V:SPN)(OTCPK:SNIPF), a global provider of digital marketing promotions, rebates and loyalty solutions, announces its financial results for the three months ended March 31, 2024 ("Q1 2024"). All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete unaudited interim financial statements and management's discussion and analysis are available on SEDAR (www.sedarplus.ca).

The Company also announces conference call details for investors taking place on Monday, June 3, 2024, at 10:00am Eastern Time (US) to discuss the Company's recent financial results and plans for the year.

The conference call will be available via the following weblink or dial-in options.

Weblink: https://v.ringcentral.com/join/754842569 for meeting ID 754842569

Dial-in: for parties in the United States dial +1-650-419-1505 and parties in Canada dial +1-437-800-0918, and then enter Meeting ID: 754842569. Parties joining from other locations can refer to additional dial-in numbers based on your location listed at the following website and use the same Meeting ID referenced above: https://v.ringcentral.com/teleconference

Q1 2024 Highlights

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

• Revenue for the three months ended March 31, 2024 ("Q1 2024") decreased by 29% compared to the three months ended March 31, 2023 ("Q1 2023").
  • The decline was entirely tied to the anticipated sunsetting of a single contract that the company inherited with the acquisition of Gambit Rewards
• Gross Margin for Q1 2024 increased by 108% from 29% in Q1 2023 to 54% in Q1 2024.
• EBITDA in Q1 2024 was a loss of $0.6 million vs Q1 2023 EBITDA loss of $1.1 million, an EBITDA improvement of $0.5 million.
• Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $15.4MM at March 31, 2024, an increase of 12% compared to March 31, 2023 of $13.8MM.
• Cash at the end of Q1 was $4.2 million and the company continues to be debt free.

"We continued to execute on our strategic plan to enhance our revenue mix and improve gross margins by shedding unprofitable revenue during the first quarter. This revenue decline was expected and was entirely tied to a single pilot contract that we inherited with the acquisition of Gambit. Our focus as outlined previously is on expanding our business with contracts closer to our 50% margin threshold on an aggregate", said Atul Sabharwal, Founder of Snipp. "I'm pleased to report that, our gross margins improved both sequentially and year over year to 54% and importantly revenue from our core business increased by 29% year over year, reflecting the value of our platform and the scalability of our customer solutions. We anticipate continued margin improvement in the upcoming quarters."

"Following the close of the first quarter, Snipp secured multiple large contracts including the largest contract in the company's history. This contract with a leading global food and beverage company, recognized in over 50 countries, is forecast to generate over $6MM of revenue for the company in the third quarter. Moreover, the team secured multiple seven-figure deals with a diverse range of companies across existing and new industries. These significant contracts bolster the confidence and enthusiasm of our sales team, who are now filling our pipeline with several marquee brands and working on growing our unique CPG offerings on our SnippMEDIA platform. As we have communicated to our stakeholders, the seasonality of our business will resemble that of 2023. Our current record backlog indicates that the company's profitability will scale in the second half of the year when promotional activity is typically stronger. Overall, we are very pleased with our progress in repositioning our revenue mix which should position the Company on a sustained path towards EBITDA profitability."

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.

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.

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).

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
		Months Ended				Months Ended
		March 31, 2024				March 31, 2023
		USD				USD
Net loss before interest, foreign exchange and taxes			(1,211,986	)			(1,526,500	)
Amortization of intangibles			258,779				267,308
Depreciation of equipment			3,018				2,562
Share-based payments			350,448				156,853
EBITDA			(599,741	)			(1,099,777	)

The Following are calculations of Gross Margin:

		Three				Three
		Months Ended				Months Ended
		March 31, 2024				March 31, 2023
		USD				USD
Revenue			4,660,275				6,575,129
Less:
Campaign infrastructure			2,127,274				4,897,593
Gross Margin			2,533,001				1,677,536

About Snipp:

Snipp Interactive Inc. (TSX-V:SPN)(OTCPK:SNIPF) is a leading Platform-as-a-Service (PaaS) company in the global loyalty and promotions sector. Snipp's proprietary and modular SnippCARE (Customer Acquisition, Retention & Engagement) Platform allows its marquee list of Fortune 500 clients and world-class agencies and partners to use various modules of the Platform to run long-term and short-term programs and promotions, while continually generating and capturing unique zero party data that is invaluable in providing insights to drive sales. SnippCHECK, the Platform's Receipt Processing Module has established itself as an industry leader and standard by powering a large majority of all receipt-based promotions in North America. SnippLOYALTY, the Platform's full scale modular loyalty engine allows clients the flexibility of deploying any/all aspects of a standard loyalty program on a case-by-case basis. SnippREWARDS, the Platform's modular catalogue of digital and physical rewards provides clients with global and easily deployable access to an extensive catalogue of digital and physical rewards. SnippWIN, the Platform's gaming module solves for the implementation and compliance difficulties of offering games of chance and skill on a global basis and allows for the global deployment and administration of legally compliant games of chance and skill. For more information, visit Snipp's website at www.snipp.com and its profile on SEDAR+ at www.sedarplus.ca.

Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. Snipp is publicly listed on the TSX Venture Exchange 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.

View the original press release on accesswire.com

FAQ

What were Snipp Interactive's Q1 2024 earnings?

Snipp Interactive reported a 29% decrease in revenue for Q1 2024 compared to Q1 2023, with revenue of $4.66 million.

How did Snipp Interactive's gross margin change in Q1 2024?

Snipp Interactive's gross margin increased from 29% in Q1 2023 to 54% in Q1 2024.

What was Snipp Interactive's EBITDA loss in Q1 2024?

Snipp Interactive's EBITDA loss improved to $0.6 million in Q1 2024, down from $1.1 million in Q1 2023.

How much was Snipp Interactive's bookings backlog as of March 31, 2024?

Snipp Interactive's bookings backlog stood at $15.4 million as of March 31, 2024, a 12% increase from the previous year.

What significant contracts did Snipp Interactive secure recently?

Snipp Interactive secured a historic contract with a global food and beverage company, expected to generate over $6 million in Q3 2024, along with multiple seven-figure deals.

What is Snipp Interactive's cash position as of the end of Q1 2024?

Snipp Interactive ended Q1 2024 with $4.2 million in cash and remains debt-free.