Snipp Interactive Reports Record Financial Results for Q1 2022
Snipp Interactive Inc. (TSXV:SPN)(OTC PINK:SNIPF) reported record Q1 2022 results, with revenue of $4.2 million, up 64% year-over-year, marking the highest Q1 revenue in its history. The gross margin stood at 56%, down from 68% in Q1 2021. EBITDA increased by 105% to $0.3 million, and the company achieved a net income of $25,147, recovering from a net loss of $181,647 in the previous year. The bookings backlog rose 44% to $10.8 million, and cash reserves reached $1,899,110.
- Record Q1 2022 revenue of $4.2 million, up 64% year-over-year.
- Bookings backlog increased by 44% to $10.8 million.
- EBITDA rose 105% to $0.3 million.
- Gross margin decreased to 56% from 68% in Q1 2021.
VANCOUVER, BC / ACCESSWIRE / May 30, 2022 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSXV:SPN)(OTC PINK:SNIPF), a global provider of digital marketing promotions, rebates, and loyalty solutions, announced its financial results for Q1 2022. All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete unaudited financial statements and management's discussion and analysis are available on SEDAR (www.sedar.com).
Q1 2022 Highlights in US dollars
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
Q1 2022 results as compared to Q2 2021
- Revenue totaled
$4.2 million , which represents an increase of64% and is the highest revenue recognized during a Q1 period in the Company's history. - Gross margin was
56% , as compared to68% in Q1 2021. - EBITDA totaled
$0.3 million , which represents an increase of105% . - Net Income totaled
$25,147 , as compared to a Net Loss in Q1 2021 of ($181,647) . - Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at
$10.8 million at March 31, 2022, an increase of44% compared to March 31, 2021 of$7.5 million . - Cash at the end of Q1 2022 stood at
$1,899,110 and the company continues to be debt free. The previously announced$5,000,000 investment from Bally's (USD$0.20 per share) took place subsequent to Q1 2022 and will be recognized in our Q2 2022 financials.
"The first quarter continued to demonstrate the continued growth of our core business. We are incredibly pleased with the strong start to the year this has given us. In addition, on the back of our sustained growth we closed on two strategic steps in the first quarter. The first was our acquisition of Gambit Rewards and the second was on closing a strategic investment from Bally's Corporation." said Mr. Sabharwal, Founder of Snipp Interactive Inc. "Both initiatives are expected to yield tangible growth for us in future quarters. With Gambit Rewards, we have already completed our first major set of integrations and soon to be announced partnerships. We are also in the process of re-branding the platform with the assistance of Bally's before embarking on a larger roll out. In addition, under the umbrella of our recently announced commercial agreement with Bally's, we are continuing to scope out implementations of SnippCARE, our industry leading loyalty data platform. The revenue impact from this partnership will materialize over the back half of this year. In summary we are excited about the prospects of the business and are continuing to see our momentum carry into the second quarter."
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 | |||||||
| Months Ended | Months Ended | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| USD | USD | |||||||
Net income (loss) before interest, foreign exchange, other income, and taxes | 32,491 | (176,377 | ) | |||||
Amortization of intangibles | 274,893 | 307,761 | ||||||
Depreciation of equipment | 2,188 | 2,249 | ||||||
Share-based payments | 6,671 | 20,315 | ||||||
EBITDA | 316,243 | 153,948 | ||||||
The Following are calculations of Gross Margin:
| Three | Three | |||||||
| Months Ended | Months Ended | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| USD | USD | |||||||
Revenue | 4,205,175 | 2,569,958 | ||||||
Less: | ||||||||
Campaign infrastructure | 1,843,787 | 824,621 | ||||||
Gross Margin | 2,361,388 | 1,745,337 | ||||||
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 the clear 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.
Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. Snipp is publicly listed on the TSXV 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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