SpringBig Holdings, Inc. (OTCQX:SBIG), a provider of SaaS-based marketing solutions, consumer mobile app experiences and omnichannel loyalty programs to the cannabis industry, announced its financial results for the third quarter ended September 30, 2023.
“Springbig delivered another quarter of progress with a further sequential improvement in Adjusted EBITDA and strong year-on-year growth in subscription revenue,” said Jeffrey Harris, CEO and chairman.
Third Quarter 2023 Financial Highlights
- Revenue was $6.9 million, down 5% year-on-year. Subscription revenue was up 13% year-on-year.
- Gross profit was $5.2 million, a margin of 77%.
- Adjusted EBITDA loss was $0.9 million compared to a loss of $3.4 million in the prior year, driven by a 31% year-on-year reduction in operating expenses.
- Net loss was $2.7 million compared to a loss of $3.1 million in the prior year.
- Basic net income loss per share was $0.07 based on 41.9 million weighted average shares outstanding. Total shares outstanding as of September 30, 2023, were 43.5 million.
Nine Months Ended September 30, 2023 Financial Highlights
- Revenue increased to $21.3 million, an increase of 7% from the prior year.
- Subscription revenue was $17.2 million, a year-on-year increase of 19%; recurring subscription revenue now represents 81% of total revenue compared with 72% in the prior year.
- Gross profit was $16.8 million, representing 15% year-on-year growth and a margin of 79%.
- Adjusted EBITDA loss was $3.4 million compared to a loss of $9.4 million the prior year, an improvement of 64% year-on-year.
- Net loss was $7.0 million compared to a loss of $8.5 million in the prior year.
Operational Highlights
- 89 new clients were added in Q3, contributing to annualized subscription revenue of $0.7 million.
- Year-to-date messaging volumes grew by 12% YoY to 1.7 billion.
- Launch of ‘subscriptions by springbig,’ offering clients capabilities for subscription-based VIP loyalty programs.
CFO Paul Sykes emphasized the company’s focus on achieving positive Adjusted EBITDA in the final quarter and highlighted a 40% reduction in the current operating expense run-rate compared to the previous year. “We continue to focus on converting our customers to subscription revenue contracts and judiciously managing our working capital,” he concluded.
Price Action
SBIG’s shares were trading 8.47% down at $0.175 per share on Monday afternoon.
Image by micheile henderson On Unsplash
