VANCOUVER, BC / ACCESSWIRE / August 27, 2024 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSX-V:SPN)(OTCPK:SNIPF), a global provider of digital marketing promotions, rebates and loyalty solutions, announces its financial results for the six months ended June 30, 2024 ("H1 2024") along with Q2 2024. 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.sedarplus.ca).
The Company also announces conference call details for investors taking place on Thursday, August 29, 2024, at 10:00am Eastern Time (US) to discuss the Company's recent financial results and plans for the year.
The conference call will be available via the following weblink or dial-in options.
Weblink: https://v.ringcentral.com/join/522973404 for meeting ID 522973404
Dial-in: for parties in the United States dial +1-650-419-1505 and parties in Canada dial +1-437-800-0918, and then enter Meeting ID: 522973404. Parties joining from other locations can refer to additional dial-in numbers based on your location listed at the following website and use the same Meeting ID referenced above: https://v.ringcentral.com/teleconference
H1 2024 Highlights
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
Revenue for the six months ended June 30, 2024 ("H1 2024") decreased by 33% compared to the six months ended June 30, 2023 ("H1 2023"). Revenue for H1 2024 was $9.4 million compared to $14.0 million for H1 2023.
The decline was entirely tied to the anticipated sunsetting of a single contract that the company inherited with the acquisition of Gambit Rewards.
Revenue for the three months ended June 30, 2024 ("Q2 2024") decreased by 36% compared to the three months ended June 30, 2023 ("Q2 2023"). Revenue for Q2 2024 was $4.8 million compared to $7.5 million for Q2 2023.
The decline was entirely tied to the anticipated sunsetting of a single contract that the company inherited with the acquisition of Gambit Rewards
Gross Margin for Q2 2024 increased by 146% from 26% in Q2 2023 to 64% in Q2 2024.
Gross Margin for H1 2024 increased by 127% from 26% in H1 2023 to 59% in Q2 2024.
EBITDA in Q2 2024 was positive $11,958 vs Q2 2023 EBITDA loss of $873,552, an EBITDA improvement of $885,510.
EBITDA in H1 2024 was a loss of $587,783 vs H1 2023 EBITDA loss of $1,973,329, an EBITDA improvement of $1,385,546.
Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $17.2MM at June 30, 2024, an increase of 23% compared to June 30, 2023 of $14MM.
Cash at the end of Q2 2024 was $5 million and the company continues to be debt free.
"Our second quarter of 2024 marks a significant milestone for Snipp as we achieved the highest bookings in our company's history, reflecting the strength of our strategic initiatives and the value of our platform to our growing list of Fortune 500 customers," stated Atul Sabharwal, Founder of Snipp. "Our continued focus on enhancing our revenue mix has led to substantial improvements in our margin profile, setting us on a clear path toward sustained profitability. Our backlog is also at its highest level ever, providing a solid foundation for continued growth in our core Snipp business as we enter the second half of the year.
Atul Sabharwal continued, "Looking ahead, we are poised for a strong third quarter, with expectations for significant revenue increases in our core Snipp business and continued margin improvements. As we have stated in the past, our elevated backlog indicates that the Company's profitability will scale in the second half of the year when promotional activity is typically stronger. We are very pleased with our progress in repositioning our revenue mix and expect the core Snipp business to scale substantially given our new hires this past year, driving incremental margin and a sustained path towards EBITDA profitability."
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.
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.
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).
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 |
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| Three |
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| Six |
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| Six |
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| Months Ended |
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| Months Ended |
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| Months Ended |
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| Months Ended |
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| June 30, 2024 |
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| June 30, 2023 |
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| June 30, 2024 |
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| June 30, 2023 |
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| USD |
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| USD |
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| USD |
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| USD |
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Net loss before interest, foreign exchange, other income and taxes |
|
| (532,764 | ) |
|
| (1,288,199 | ) |
|
| (1,744,750 | ) |
|
| (2,814,699 | ) |
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Amortization of intangibles |
|
| 260,889 |
|
|
| 272,700 |
|
|
| 519,668 |
|
|
| 540,008 |
|
Depreciation of equipment |
|
| 3,167 |
|
|
| 2,763 |
|
|
| 6,185 |
|
|
| 5,325 |
|
Share-based payments |
|
| 280,666 |
|
|
| 139,184 |
|
|
| 631,114 |
|
|
| 296,037 |
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EBITDA |
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| 11,958 |
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| (873,552 | ) |
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| (587,783 | ) |
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| (1,973,329 | ) |
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The Following are calculations of Gross Margin:
| Three |
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| Three |
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| Six |
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| Six |
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| Months Ended |
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| Months Ended |
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| Months Ended |
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| Months Ended |
| |||||
| June 30, 2024 |
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| June 30, 2023 |
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| June 30, 2024 |
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| June 30, 2023 |
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| USD |
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| USD |
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| USD |
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| USD |
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Revenue |
|
| 4,753,273 |
|
|
| 7,451,883 |
|
|
| 9,413,548 |
|
|
| 14,027,012 |
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Less: |
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|
Campaign infrastructure |
|
| 1,721,506 |
|
|
| 5,525,698 |
|
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| 3,848,780 |
|
|
| 10,423,291 |
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Gross Margin |
|
| 3,031,767 |
|
|
| 1,926,185 |
|
|
| 5,564,768 |
|
|
| 3,603,721 |
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About Snipp:
Snipp Interactive Inc. (TSX-V:SPN)(OTCPK:SNIPF) is a leading Platform-as-a-Service (PaaS) company in the global loyalty and promotions sector. Snipp's proprietary and modular SnippCARE (Customer Acquisition, Retention & Engagement) Platform allows its marquee list of Fortune 500 clients and world-class agencies and partners to use various modules of the Platform to run long-term and short-term programs and promotions, while continually generating and capturing unique zero party data that is invaluable in providing insights to drive sales. SnippCHECK, the Platform's Receipt Processing Module has established itself as an industry leader and standard by powering a large majority of all receipt-based promotions in North America. SnippLOYALTY, the Platform's full scale modular loyalty engine allows clients the flexibility of deploying any/all aspects of a standard loyalty program on a case-by-case basis. SnippREWARDS, the Platform's modular catalogue of digital and physical rewards provides clients with global and easily deployable access to an extensive catalogue of digital and physical rewards. SnippWIN, the Platform's gaming module solves for the implementation and compliance difficulties of offering games of chance and skill on a global basis and allows for the global deployment and administration of legally compliant games of chance and skill. For more information, visit Snipp's website at www.snipp.com and its profile on SEDAR+ at www.sedarplus.ca.
Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. Snipp is publicly listed on the TSX Venture Exchange 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.
View the original press release on accesswire.com
