51% YoY Quarterly Revenue Growth, Net Income Positive and Debt Free
VANCOUVER, BC / ACCESSWIRE / August 24, 2021 / Snipp Interactive Inc. ('Snipp' or the "Company") (TSXV:SPN)(OTC PINK:SNIPF), a global provider of digital marketing promotions, rebates and loyalty solutions, announces its financial results for Q2 2021. All results are reported under International Financial Reporting Standards ('IFRS') and in US dollars. A copy of the complete unaudited interim financial statements and management's discussion and analysis are available on SEDAR (www.sedar.com).
Q2 2021 Highlights
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
- Revenue for Q2 2021 increased by 51% compared to Q2 2020. Revenue for Q2 2021 was $3,020,274 compared to $2,005,681 for Q2 2020.
- EBITDA in Q2 2021 increased by 1,282% compared to Q2 2020, an EBITDA improvement of $426,942. Q2 2021 EBITDA was $460,254 vs Q2 2020 EBITDA of $33,312.
- The Company has been EBITDA positive for the last six consecutive quarters from Q1 2020 to Q2 2021.
- Net income for Q2 2021 was positive $423,935 compared to a net loss for Q2 2020 of negative $364,666, a change of 216%
- Gross margin in Q2 2021 was 73% compared to 65% in Q2 2020.
- Revenue for the six months ended June 30, 2021 increased by 28% compared to the six months ended June 30, 2020. Revenue for the six months ended June 30, 2021 was $5,590,232 compared to revenue for the six months ended June 30, 2020 of $4,378,893.
- EBITDA in the six months ended June 30, 2021 improved by 672% compared to the six months ended June 30, 2020, an EBITDA improvement of $534,629. For the six months ended June 30, 2021 EBITDA was $614,202 compared to $79,573 for the six months ended June 30, 2020.
- Net income for the six months ended June 30, 2021 increased by 128% to $242,288 compared to a net loss for the six months ended June 30, 2020 of $870,707.
- Gross margin for both the six months ended June 30, 2021 and the six months ended June 30, 2020 was 70%.
- Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $9.5MM at June 30, 2021, an increase of 157% compared to June 30, 2020 of $3.7MM.
"Q2 2021 represents our sixth consecutive quarter with positive EBITDA. By achieving positive Net Income on the strength of our operations, we continue to validate our strategy of building out 'the' industry leading global and modular Customer Acquisition and Retention Platform, which we have single-mindedly pursued over the last two years and are even more confident in a bigger and brighter future as we stay focused on executing this growth strategy. For now our focus will remain on profitable top line growth with a view of capturing more market share and entering new industries and markets that can leverage our SnippCARE(r) Platform. In the coming quarter as we keep EBITDA positive but double down on top line growth, we plan on sacrificing a few points of margin to gain this bigger market share and build our presence in new industries. We will also continue to break into new geographic markets and establish a direct presence to service more of our existing Fortune 500 clients across the globe. Today with just 3 of our clients we are executing programs in over 39 countries so there is a lot of room for us to grow. The significant growth in our bookings backlog should also give investors confidence that our revenue growth will continue to expand over the coming quarters as our bookings materialize into recognized revenue. Consequently 2021 is continuing to be a significant and profitable year of growth for the company," said Atul Sabharwal, Founder & CEO.
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 Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||
| USD | USD | USD | USD | |||||||||
Net income (loss) before interest, foreign exchange, other income and taxes | 125,790 | (408,875) | (50,587) | (890,119) | ||||||||
Amortization of intangibles | 298,349 | 420,447 | 606,110 | 925,295 | ||||||||
Depreciation of equipment | 1,566 | 4,751 | 3,815 | 10,273 | ||||||||
Share-based payments | 34,549 | 16,989 | 54,864 | 34,124 | ||||||||
EBITDA | 460,254 | 33,312 | 614,202 | 79,573 | ||||||||
The Following are calculations of Gross Margin:
| Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||
| USD | USD | USD | USD | |||||||||
Revenue | 3,020,274 | 2,005,681 | 5,590,232 | 4,378,893 | ||||||||
Less: | ||||||||||||
Campaign infrastructure | 827,733 | 696,963 | 1,652,354 | 1,327,470 | ||||||||
Gross Margin | 2,192,541 | 1,308,718 | 3,937,878 | 3,051,423 | ||||||||
About Snipp:
Snipp is a global loyalty and promotions company with a singular focus: to develop disruptive engagement platforms that generate insights and drive sales. Our solutions include shopper marketing promotions, loyalty, rewards, rebates and data analytics, all of which are seamlessly integrated to provide a one-stop marketing technology platform. We also provide the services and expertise to design, execute and promote client programs. SnippCheck, our receipt processing engine, is the market leader for receipt-based purchase validation; SnippLoyalty is the only unified loyalty solution in the market for CPG brands. Snipp has powered hundreds of programs for Fortune 1000 brands and world-class agencies and partners.
Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. The company is publicly listed on the Toronto Stock Venture Exchange (TSX-V) 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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