BOCA RATON, Fla., March 09, 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 its financial results for the fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights:
- Revenue* increased to $6.8 million, up 2% year-on-year
- Subscription revenue was up 33% year-on-year
- Net dollar retention rate was 105% for the twelve months ended December 31, 2022
- Gross profit was $5.3 million, representing a gross profit margin of 78%
- Net loss was $(4.5) million compared to a loss of $(2.5) million in the prior year
- Adjusted EBITDA** loss was $(3.2) million compared to a loss of $(2.1) million in the prior year
- Reduced ongoing operating expenses which will be realized throughout 2023
- Basic net income loss per share was $(0.17)
- Cash and cash equivalents totaled $3.5 million as of December 31, 2022
Full Year 2022 Financial Highlights:
- Revenue* was $26.6 million, an increase of 14% from the prior year
- Subscription revenue was $20.4 million, a year-on-year increase of 38%; recurring subscription revenue now represents 77% of total revenue compared with 63% in the prior year
- Net loss was $(13.1) million compared to a loss of $(5.8) million in the prior year
- Adjusted EBITDA** loss was $(12.6) million compared to a loss of $(5.5) million in the prior year
- Basic net income loss per share was $(0.59) based on 22.3 million weighted average shares outstanding. Total shares outstanding as of December 31, 2022 were 26.7 million.
“We are pleased with our fourth quarter results and performance. We closed the year with strong momentum and continue to deliver exceptional value to our customers across our broadening platform” said Jeffrey Harris, CEO and Chairman of springbig. “I’m excited by the opportunities ahead of us in 2023. We have a rich pipeline of new revenue generating initiatives and a strong, high-growth subscription revenue base. We ended the year with more than 3,000 retail locations utilizing the springbig platform and in the last year these clients generated more than $7.5 billion of GMV and distributed in excess of 2 billion messages using springbig.”
Paul Sykes, springbig’s CFO, added “While we seek to accelerate the top line, we are actively managing our business to deliver profitable growth and reaffirm our goal of reaching the milestone of EBITDA breakeven during this year. We are also committed to ensuring our balance sheet supports these growth objectives and are considering a potential supplemental capital raise.”
For the first quarter of 2023, springbig currently expects:
- Revenue in the range of $7.1 – $7.4 million, representing 17% growth at the midpoint.
- Adjusted EBITDA** loss in the range of $(1.4) – $(1.2) million.
For the year ending December 31, 2023, springbig currently expects:
- Revenue in the range of $31 – $34 million, representing 22% year-over-year growth at the midpoint.
- Adjusted EBITDA** loss in the range of $(3.0) – $(1.5) million, with positive EBITDA being reached during fiscal year 2023.
* Revenues in 2022 and prior year are revised to reflect a change in the treatment of credits issued to customers, which are included in revenues whereas previously these were in cost of revenue. This revision reduces revenues while leaving gross profit and net loss unchanged. Prior to this revision our 2022 revenue would have been $27.6 million, ahead of the mid-point of our 2022 guidance.
** Adjusted EBITDA is a non-GAAP (as defined below) financial measure. For more information, see “Use of Non-GAAP Financial Measures”. Additionally, reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
Adjusted EBITDA and EBITDA are non-GAAP financial measures provided in this “Financial Outlook” section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Conference Call and Webcast Information
The webcast will be archived for one year following the conference call and can be accessed on springbig’s investor relations website at https://investors.springbig.com/.
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/.