SpringBig Holdings, Inc. (“springbig,” “we,” “our” or the
“Company”) (OTCQX: SBIG), a leading provider of vertical SaaS-based
marketing solutions, consumer mobile app experiences, and
omnichannel loyalty programs, today 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 of springbig. “We continue to provide a curated
menu of innovative solutions to enable our clients to retain and
grow their customer bases while efficiently managing our expenses.
I remain confident that our strategy is sound, with feedback from
our clients and partners reaffirming that we are making the right
investments to both add value to our clients while at the same time
capturing the long-term opportunity in front of us. Our launch of
‘subscriptions by springbig’, offering our clients robust
capabilities to launch and power their own subscription-based VIP
loyalty programs is the latest new product to assist our clients.
In addition, next quarter we will be launching an innovative gift
card payment feature integrated into our loyalty wallet which we
expect to further accelerate our revenues and customer
retention.”
Paul Sykes, springbig’s CFO, added, “reaching
positive Adjusted EBITDA has been our stated priority throughout
the year and we expect to realize that goal in the final quarter.
Our current operating expense run-rate is approximately 40% lower
than last year, and having optimized our expenses we are now nicely
positioned for an acceleration in Adjusted EBITDA next year. We
continue to focus on converting our customers to subscription
revenue contracts and judiciously managing our working
capital.”
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.
* Adjusted EBITDA is a non-GAAP (as defined
below) financial measure. For more information regarding our
non-GAAP financial measures, 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.
Key Operational Highlights:
- 89 new clients
added in Q3 with annualized subscription revenue of $0.7 million,
and a further $0.9 million in annualized incremental revenue
through clients upgrading their subscriptions.
- 12% year-on-year growth in
year-to-date messaging volumes to 1.7 billion with an increasing
prevalence of push notifications directly to customer mobile
apps.
- Launched
‘subscriptions by springbig’ enabling springbig’s retail clients to
offer their consumers a subscription-based VIP loyalty
program.
Financial Outlook
For the year ending December 31, 2023, springbig
currently expects revenue in the range $28.0 - $28.5 million,
representing 6% year-on-year growth at the midpoint, and Adjusted
EBITDA** loss to remain approximately at same for the full year as
it is for the nine months ended September 30, 2023, of $(3.4)
million. The Adjusted EBITDA loss in the prior year was $(12.6)
million.
** Adjusted EBITDA is a non-GAAP financial
measure provided in this “Financial Outlook” section on a
forward-looking basis. The Company does not provide a
reconciliation of such forward-looking measure to the most directly
comparable financial measure 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 Company will host a conference call and
webcast today, Monday, November 13, 2023, at 5:00 p.m. ET.
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. 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/.
About springbig
springbig is a market-leading vertical software
platform providing customer loyalty and marketing automation
solutions to 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 systems, 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 bases, purchasing habits and
trends. For more information, visit https://springbig.com/.
Forward Looking Statements
Certain statements contained in this press
release constitute “forward-looking statements” within the meaning
of the “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“outlook,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would,” and similar expressions
may identify forward-looking statements, but the absence of these
words does not mean that a statement is not forward-looking.
Forward-looking statements are predictions, projections and other
statements about future events and financial results that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. In particular, these include
but are not limited to statements relating to the Company’s
business strategy, future offerings and programs and expected
financial performance for the third quarter of 2023 and the year
ending December 31, 2023. Many factors could cause actual future
events and financial results to differ materially from the
forward-looking statements in this press release, including but not
limited to the fact that we have a relatively short operating
history in a rapidly evolving industry, which makes it difficult to
evaluate our future prospects and may increase the risk that we
will not be successful; that if we do not successfully develop and
deploy new software, platform features or services to address the
needs of our clients, if we fail to retain our existing clients or
acquire new clients, and/or if we fail to expand effectively into
new markets, our revenue may decrease and our business may be
harmed; and the other risks and uncertainties described under “Risk
Factors” in the Company’s Quarterly Reports on Form 10-Q for the
quarters ended September 30, 2023 and June 30, 2023 filed with the
Securities and Exchange Commission (the “SEC”) on November 13, 2023
and August 10, 2023 respectively, the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022 filed with the SEC
on March 28, 2023 and in the other documents we file from time to
time with the SEC. These forward-looking statements involve a
number of risks and uncertainties (some of which are beyond the
control of springbig), and other assumptions, which may cause the
actual results or performance to be materially different from those
expressed or implied by these forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and the Company assumes no obligation and does not
intend to update or revise these forward-looking statements other
than as required by applicable law. The Company does not give any
assurance that it will achieve its expectations.
Use of Non-GAAP Financial
Measures
In addition to the results reported in
accordance with accounting principles generally accepted in the
United States (GAAP) included throughout this press release, we
have disclosed EBITDA and Adjusted EBITDA, both of which are
non-GAAP financial measures that we calculate as net income before
interest, taxes, depreciation and amortization, in the case of
EBITDA, and further adjustments to exclude unusual and/or
infrequent costs, in the case of Adjusted EBITDA, which are
detailed in the reconciliation table that follows, in order to
provide investors with additional information regarding our
financial results. Below we have provided a reconciliation of net
loss (the most directly comparable GAAP financial measure) to
EBITDA and Adjusted EBITDA.
We present EBITDA and Adjusted EBITDA because
these metrics are a key measure used by our management to evaluate
our operating performance, generate future operating plans and make
strategic decisions regarding the allocation of investment
capacity. Accordingly, we believe that EBITDA provides useful
information to investors and others in understanding and evaluating
our operating results in the same manner as our management.
Management also believes that these measures provide improved
comparability between fiscal periods.
EBITDA and Adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation or
as a substitute for analysis of our results as reported under GAAP.
Some of these limitations are as follows:
- Although
depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future, and neither EBITDA nor Adjusted EBITDA reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements;
- EBITDA and Adjusted EBITDA do not
reflect changes in, or cash requirements for, our working capital
needs; and
- EBITDA and Adjusted EBITDA do not
reflect tax payments that may represent a reduction in cash
available to us.
Because of these limitations, you should
consider EBITDA and Adjusted EBITDA alongside other financial
performance measures, including net income and our other GAAP
results. Also, these non-GAAP financial measures, as determined and
presented by the Company, may not be comparable to related or
similarly titled measures reported by other companies.
Definition of Key Operating and
Financial Metrics
Net dollar retention rate: The Company
calculates its “net dollar retention rate” - also referred to as
its “net revenue retention rate” - as the average recurring monthly
subscription revenue adjusted for losses, increases and decreases
in monthly subscriptions during the prior twelve months divided by
the average recurring monthly subscription revenue over the prior,
trailing twelve-month period. Net dollar retention rate (or “net
revenue retention rate”) does not have a standardized meaning and
is therefore unlikely to be comparable to similarly titled measures
presented by other companies, and further, investors should not
consider it in isolation.
Investor Relations Contact
Claire
BollettieriVP of Investor Relationsir@springbig.com
Media ContactPaul
Cohenpaul@milkandhoneypr.com
|
|
SpringBig Holding, Inc |
Consolidated Balance Sheets |
(in thousands) |
|
September 30, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
(audited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
293 |
|
|
$ |
3,546 |
|
Accounts receivable, net |
|
3,871 |
|
|
|
2,889 |
|
Contract assets |
|
289 |
|
|
|
333 |
|
Prepaid expenses and other current assets |
|
1,213 |
|
|
|
1,505 |
|
Total current assets |
|
5,666 |
|
|
|
8,273 |
|
Operating lease asset |
|
522 |
|
|
|
750 |
|
Property and equipment, net |
|
425 |
|
|
|
375 |
|
Convertible note receivable |
|
269 |
|
|
|
259 |
|
Total assets |
$ |
6,882 |
|
|
$ |
9,657 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,622 |
|
|
$ |
1,056 |
|
Accrued expenses and other current liabilities |
|
2,376 |
|
|
|
2,554 |
|
Short-term cash advances |
|
780 |
|
|
|
- |
|
Current maturities of long-term debt |
|
4,560 |
|
|
|
5,451 |
|
Deferred payroll tax credits |
|
1,751 |
|
|
|
- |
|
Deferred revenue |
|
35 |
|
|
|
291 |
|
Operating lease liability - current |
|
390 |
|
|
|
465 |
|
Total current liabilities |
|
12,514 |
|
|
|
9,817 |
|
Senior secured convertible notes |
|
- |
|
|
|
2,814 |
|
Operating lease liability - non-current |
|
153 |
|
|
|
316 |
|
Warant liabilities |
|
80 |
|
|
|
338 |
|
Total liabilities |
|
12,747 |
|
|
|
13,285 |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
Common stock par value $0.0001 per shares, 300,000,000 authorized
at September 30, 2023; 43,478,502 issued and outstanding as of
September 30, 2023; (par value $0.0001 per shares, 300,000,000
authorized at December 31, 2022; 26,659,711 issued and outstanding
as of December 31, 2022) |
$ |
4 |
|
|
$ |
3 |
|
Additional paid-in-capital |
|
27,495 |
|
|
|
22,701 |
|
Accumulated deficit |
|
(33,364 |
) |
|
|
(26,332 |
) |
Total stockholders’ equity |
|
(5,865 |
) |
|
|
(3,628 |
) |
Total liabilities and stockholders’ equity |
$ |
6,882 |
|
|
$ |
9,657 |
|
|
|
|
|
SpringBig Holding, Inc |
Consolidated Statement of Operations
(unaudited) |
(in thousands, except share and per share
data) |
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
6,888 |
|
|
$ |
7,232 |
|
|
$ |
21,259 |
|
|
$ |
19,859 |
|
Cost of revenues |
|
1,604 |
|
|
|
1,688 |
|
|
|
4,465 |
|
|
|
5,209 |
|
Gross Profit |
|
5,284 |
|
|
|
5,544 |
|
|
|
16,794 |
|
|
|
14,650 |
|
Expenses |
|
|
|
|
|
|
|
Selling, servicing and marketing |
|
1,864 |
|
|
|
3,075 |
|
|
|
6,528 |
|
|
|
9,103 |
|
Technology and software development |
|
1,912 |
|
|
|
2,811 |
|
|
|
6,257 |
|
|
|
8,358 |
|
General and administrative |
|
4,200 |
|
|
|
3,215 |
|
|
|
10,202 |
|
|
|
8,790 |
|
Total operating expenses |
|
7,976 |
|
|
|
9,101 |
|
|
|
22,987 |
|
|
|
26,251 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(2,692 |
) |
|
|
(3,557 |
) |
|
|
(6,193 |
) |
|
|
(11,601 |
) |
Interest income |
|
3 |
|
|
|
7 |
|
|
|
17 |
|
|
|
7 |
|
Interest Expense |
|
(400 |
) |
|
|
(320 |
) |
|
|
(1,114 |
) |
|
|
(632 |
) |
Change in fair value of warrants |
|
347 |
|
|
|
811 |
|
|
|
258 |
|
|
|
3,691 |
|
Loss before income taxes |
$ |
(2,742 |
) |
|
$ |
(3,059 |
) |
|
$ |
(7,032 |
) |
|
$ |
(8,535 |
) |
Income taxes expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
$ |
(2,742 |
) |
|
$ |
(3,059 |
) |
|
$ |
(7,032 |
) |
|
$ |
(8,535 |
) |
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic and diluted |
|
41,897,995 |
|
|
|
25,629,910 |
|
|
|
33,452,502 |
|
|
|
20,928,363 |
|
|
|
|
|
|
|
|
|
SpringBig Holding, Inc |
Statement of Cash Flows (unaudited) |
(in thousands) |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(7,032 |
) |
|
$ |
(8,535 |
) |
Adjustments to reconcile net (loss) income to net cash used in
operating activities: |
|
|
|
Depreciation and amortization |
|
199 |
|
|
|
191 |
|
Discount amortization on convertible note |
|
633 |
|
|
|
146 |
|
Stock-based compensation expense |
|
606 |
|
|
|
1,226 |
|
Bad debt expense |
|
833 |
|
|
|
280 |
|
Accrued interest on convertible notes |
|
(13 |
) |
|
|
27 |
|
Amortization of operating lease right of use assets |
|
393 |
|
|
|
- |
|
Change in fair value of warrants |
|
(258 |
) |
|
|
(3,691 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(1,815 |
) |
|
|
(1,990 |
) |
Prepaid expenses and other current assets |
|
292 |
|
|
|
(1,499 |
) |
Contract assets |
|
44 |
|
|
|
16 |
|
Accounts payable and other liabilities |
|
1,558 |
|
|
|
1,630 |
|
Operating lease liabilities |
|
(403 |
) |
|
|
- |
|
Deferred payroll tax credits |
|
1,751 |
|
|
|
- |
|
Deferred revenue |
|
(256 |
) |
|
|
(120 |
) |
Net cash used in operating activities |
|
(3,468 |
) |
|
|
(12,319 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of convertible note |
|
(10 |
) |
|
|
(256 |
) |
Purchases of property and equipment |
|
(249 |
) |
|
|
(143 |
) |
Net cash used in investing activities |
|
(259 |
) |
|
|
(399 |
) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Business combination, net of issuing cost |
|
- |
|
|
|
10,185 |
|
Proceeds from short-term cash advance |
|
1,000 |
|
|
|
- |
|
Repayment of short-term cash advance |
|
(220 |
) |
|
|
- |
|
Proceeds from convertible notes |
|
- |
|
|
|
7,000 |
|
Proceeds from related party payable |
|
125 |
|
|
|
- |
|
Repayment of convertible note |
|
(3,088 |
) |
|
|
- |
|
Proceeds from common stock |
|
2,661 |
|
|
|
- |
|
Cost of equity issuance |
|
(278 |
) |
|
|
- |
|
Proceeds from exercise of stock options, net |
|
274 |
|
|
|
112 |
|
Net cash (used in) provided by financing
activities |
|
474 |
|
|
|
17,297 |
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
(3,253 |
) |
|
|
4,579 |
|
Cash and cash equivalents, at beginning of the period |
|
3,546 |
|
|
|
2,227 |
|
Cash and cash equivalents, at end of the period |
$ |
293 |
|
|
$ |
6,806 |
|
|
|
|
|
Supplemental cash flows disclosures |
|
|
|
Conversion of convertible note and outstanding interest into common
stock |
$ |
1,250 |
|
|
$ |
7,305 |
|
Warrant assumed in business combination at estimate fair value |
$ |
- |
|
|
$ |
4,496 |
|
Right of use assets obtained in exchange for lease obligations -
operating leases |
$ |
165 |
|
|
$ |
150 |
|
Legal settlements satisfied through issuance of common stock |
$ |
263 |
|
|
$ |
- |
|
Satisfaction of professional fees through issuance of common
stock |
$ |
18 |
|
|
$ |
- |
|
Costs of equity issuance deducted from proceeds |
$ |
342 |
|
|
$ |
- |
|
Interest paid |
$ |
467 |
|
|
$ |
- |
|
SpringBig Holding, Inc |
Reconciliation of net loss to non-GAAP EBITDA and Adjusted
EBITDA |
(in thousands) |
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(2,742 |
) |
|
(3,059 |
) |
|
(7,032 |
) |
|
(8,535 |
) |
Interest income |
|
(3 |
) |
|
(7 |
) |
|
(17 |
) |
|
(7 |
) |
Interest expense |
|
400 |
|
|
320 |
|
|
1,114 |
|
|
632 |
|
Depreciation expense |
|
68 |
|
|
67 |
|
|
199 |
|
|
191 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
(2,277 |
) |
|
(2,679 |
) |
|
(5,736 |
) |
|
(7,719 |
) |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
239 |
|
|
- |
|
|
606 |
|
|
1,226 |
|
Bad debt expense |
|
453 |
|
|
94 |
|
|
833 |
|
|
280 |
|
Business combination related bonus |
|
- |
|
|
- |
|
|
- |
|
|
550 |
|
Severance and related payments |
|
- |
|
|
- |
|
|
135 |
|
|
- |
|
Settlement of litigation, including legal costs |
|
1,050 |
|
|
- |
|
|
1,050 |
|
|
- |
|
Change in fair value of warrants |
|
(347 |
) |
|
(811 |
) |
|
(258 |
) |
|
(3,691 |
) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(882 |
) |
|
(3,396 |
) |
|
(3,370 |
) |
|
(9,354 |
) |
|
|
|
|
|
|
|
|
|
SpringBig (NASDAQ:SBIG)
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SpringBig (NASDAQ:SBIG)
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De Mai 2023 à Mai 2024