BOCA RATON, Fla., July 11, 2023 — 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 preliminary results for the quarter ended June 30, 2023 and provided an update on the outlook for the second half of the fiscal year.
Revenues for the three months ended June 30, 2023, are expected to be $7.2 million, representing 12% year-on-year growth, and Adjusted EBITDA loss is expected to be $1.1 million compared with $3.4 million in the same three-month period last year. For the first half of the fiscal year, revenues have increased by 14% year-on-year to $14.4 million and Adjusted EBITDA loss has been reduced by 58% to $2.5 million compared with $5.9 million in the same six-month period last year.
For the year ending December 31, 2023, springbig currently expects revenue in the range of $31.0 million to $32.5 million, representing 19% growth at the mid-point, and an Adjusted EBITDA loss in the range of $(1.5) million to $(2.0) million.
“We are pleased with the improvement in our financial performance which is being achieved in challenging end-market macro conditions,” said Paul Sykes, springbig’s CFO. “We have right sized our operating expenses, and this combined with continuing revenue growth results in the Company expecting to reach the critical milestone of Adjusted EBITDA profitability in Q3 of this year.”
As the Company has communicated repeatedly during the last nine months, springbig expects to turn Adjusted EBITDA positive during Q3 and to generate an Adjusted EBITDA profit in the range of $0.5 million to $1.0 million for the second half of this fiscal year. “These improved results are both a combination of consistent revenue growth along with adjusting the Company’s operating expense base to a going forward annualized rate of approximately $25 million or $6.25 million per quarter beginning in Q3 of this year. The operating expense base reduction represents a 30% reduction as compared to the Company’s run rate during the second half of 2022,” added Paul Sykes.
The Company also strengthened its balance sheet during the quarter having completed a $4.0 million public equity offering on May 31, 2023, as well as meaningfully restructuring its Senior Secured Convertible Notes. The equity offering included participation by Jeffrey Harris, springbig’s CEO and Chairman, Paul Sykes, CFO, and several independent directors. Additionally, Jeffrey Harris exercised stock options, with the proceeds from his payment of the exercise amount further enhancing the Company’s cash position. In aggregate, executives and directors invested $0.7 million during the past quarter. The Company utilized proceeds from the public equity offering partially to reduce the principal outstanding on its Senior Secured Convertible Notes and additionally to ensure the Company is adequately funded to reach profitability. “This reduction of the Company’s aggregate debt along with the restructuring of the principal payment schedule to one that is more Company friendly, helps provide a major improvement to the Company’s balance sheet,” added Paul Sykes.
“I am as confident as ever that our strategy is sound, with feedback from our clients and partners reaffirming that we are making the right investments to capture the long-term opportunity in front of us,” said Jeffrey Harris, CEO and Chairman. “We continue to develop and launch innovative SaaS based offerings to enable our clients to retain and grow their customer bases, including our recent launch of ‘Subscriptions by springbig’. Simultaneously we have been, and intend to continue, managing our business efficiently with a focus on accelerating our path to profitability and I am pleased that milestone now seems imminent.”
‘Subscriptions by springbig’ enables springbig retail clients to offer consumers in return for a monthly or annual subscription the opportunity to earn additional loyalty rewards, access to special promotions and other perks as VIP subscribers. ‘Subscriptions by springbig’, operating in conjunction with other springbig loyalty and digital communication offerings, was launched during June and is rapidly seeing meaningful interest from our clients, with several having already signed contract amendments with the Company to launch their own VIP loyalty paid subscription programs. Springbig, which will be sharing in the subscription revenue generated from these programs with its retail clients, sees meaningful potential from both a revenue growth and profitability standpoint for both its retail partners and springbig as these programs get launched and mature over time. “We are excited by the launch of several retailer subscription programs just in the last couple of weeks. Our expectation is that we will begin to see many more clients launch subscription programs for their respective customer bases in the months to come,” added Jeffrey Harris.
The Company will report its results for the second quarter ended June 30, 2023, after market close on Thursday, August 10, 2023. Participants can register here to access the live webcast of the conference call. Alternatively, those who want to join the conference call via phone can register at this link to receive a dial-in number and unique PIN.
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/.