“We have made excellent progress during the past year and are very well positioned to deliver on our 2024 operating plan,” said
Fourth Quarter 2023 Financial Highlights:
- Revenue increased to
$6.8 million , up 1% year-on-year. - Subscription revenue was up 10% year-on-year.
- Gross profit was
$4.8 million , representing a gross profit margin of 70%. - Operating expenses reduced by 31% year-on-year to
$6.9 million . - Net loss was
$(3.2) million compared to a loss of$(4.5) million in the prior year. - Adjusted EBITDA* loss was
$(0.2) million compared to a loss of$(3.2) million in the prior year. - Basic net income loss per share was
$(0.07) .
Full Year 2023 Financial Highlights:
- Revenue was
$28.1 million , an increase of 5% from the prior year. - Subscription revenue was
$22.3 million , a year-on-year increase of 14%; recurring subscription revenue now represents 79% of total revenue compared with 73% in the prior year. - Gross profit was
$21.6 million , representing a gross profit margin of 77%. - Operating expenses reduced by 17% year-on-year to
$29.9 million . - Net loss was
$(10.2) million compared to a loss of$(13.1) million in the prior year. - Adjusted EBITDA* loss was
$(3.6) million compared to a loss of$(12.6) million in the prior year. - Basic net income loss per share was
$(0.28) based on 36.1 million weighted average shares outstanding. Total shares outstanding as ofDecember 31, 2023 , were 45.3 million.
Key Operational Highlights:
- 396 new clients added during 2023 with annualized subscription value of
$3.4 million . - 14% year-on-year growth in messaging volumes to 2.4 billion standardized message units, with an increasing prevalence of push notifications directly to consumer mobile apps.
- Launched “subscriptions by Springbig” enabling Springbig’s retail clients to offer their consumers a subscription-based VIP loyalty program in Q3 with encouraging initial market reaction.
- Launched “gift cards by
Springbig ” enabling loyalty rewards and gift cards to be combined uniquely as an efficient method of in store payment within a consumer’s loyalty wallet, in Q4. $8.0 million debt financing, comprising$5.4 million of 8% Convertible Notes due 2026, a$1.6 million 12% Term Loan due 2026 and repurchase of existing Convertible Notes completed inJanuary 2024 .
Financial Outlook
For the first quarter of 2024,
- Revenue in the range of
$6.4 -$6.7 million . - Adjusted EBITDA* positive in the range of
$0.2 -$0.4 million .
For the year ending
- Revenue in the range of
$29 -$32 million . - Adjusted EBITDA* positive in the range of
$3.5 -$5.0 million .
* Adjusted EBITDA is a non-GAAP (as defined below) financial measure. For more information, see “Use of Non-GAAP Financial Measures” below. Additionally, reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
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,
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
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 first quarter of 2024 and the year ending
Use of Non-GAAP Financial Measures
In addition to the results reported in accordance with accounting principles generally accepted in
We present EBITDA and Adjusted EBITDA because these metrics are key measures 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 and Adjusted EBITDA provide 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.
Investor Relations Contact
VP of Investor Relations
ir@springbig.com
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
2023 | 2022 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 331 | $ | 3,546 | |||
Accounts receivable, net | 2,951 | 2,889 | |||||
Contract assets | 273 | 333 | |||||
Prepaid expenses and other current assets | 893 | 1,505 | |||||
Total current assets | 4,448 | 8,273 | |||||
Operating lease asset | 340 | 750 | |||||
Property and equipment, net | 320 | 375 | |||||
Convertible note receivable | - | 259 | |||||
Total assets | $ | 5,108 | $ | 9,657 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,529 | $ | 1,056 | |||
Accrued expenses and other current liabilities | 2,880 | 2,554 | |||||
Short-term cash advances | 1,925 | - | |||||
Current maturities of long-term debt | 4,360 | 5,451 | |||||
Deferred payroll tax credits | 1,751 | - | |||||
Deferred revenue | - | 291 | |||||
Operating lease liability - current | 99 | 465 | |||||
Total current liabilities | 13,544 | 9,817 | |||||
Senior secured convertible notes | - | 2,814 | |||||
Operating lease liability - non-current | 225 | 316 | |||||
Warrant liabilities | 3 | 338 | |||||
Total liabilities | 13,772 | 13,285 | |||||
Stockholders’ Equity | |||||||
Common stock par value | $ | 4 | $ | 3 | |||
Additional paid-in-capital | 27,886 | 22,701 | |||||
Accumulated deficit | (36,554 | ) | (26,332 | ) | |||
Total stockholders’ equity | (8,664 | ) | (3,628 | ) | |||
Total liabilities and stockholders’ equity | $ | 5,108 | $ | 9,657 | |||
Consolidated Statement of Operations (unaudited) | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | $ | 6,805 | $ | 6,770 | $ | 28,064 | $ | 26,629 | |||||||
Cost of revenues | 2,031 | 1,492 | 6,496 | 6,701 | |||||||||||
Gross Profit | 4,774 | 5,278 | 21,568 | 19,928 | |||||||||||
Expenses | |||||||||||||||
Selling, servicing and marketing | 1,752 | 3,230 | 8,280 | 12,333 | |||||||||||
Technology and software development | 1,754 | 2,995 | 8,011 | 11,353 | |||||||||||
General and administrative | 3,409 | 3,752 | 13,611 | 12,542 | |||||||||||
Total operating expenses | 6,915 | 9,977 | 29,902 | 36,228 | |||||||||||
Loss from operations | (2,141 | ) | (4,699 | ) | (8,334 | ) | (16,300 | ) | |||||||
Interest income | 7 | 11 | 24 | 18 | |||||||||||
Interest Expense | (1,133 | ) | (317 | ) | (2,247 | ) | (949 | ) | |||||||
Change in fair value of warrants | 76 | 467 | 334 | 4,158 | |||||||||||
Loss before income taxes | $ | (3,191 | ) | $ | (4,538 | ) | $ | (10,223 | ) | $ | (13,073 | ) | |||
Income taxes expense | - | (3 | ) | - | (3 | ) | |||||||||
Net loss | $ | (3,191 | ) | $ | (4,541 | ) | $ | (10,223 | ) | $ | (13,076 | ) | |||
Net loss per common share: | |||||||||||||||
Basic and diluted | $ | (0.07 | ) | $ | (0.17 | ) | $ | (0.28 | ) | $ | (0.59 | ) | |||
Weighted-average common shares outstanding - basic and diluted | 44,143,371 | 26,321,894 | 36,147,187 | 22,287,828 | |||||||||||
Statement of Cash Flows (unaudited) | |||||||
(in thousands) | |||||||
Year Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (10,223 | ) | $ | (13,076 | ) | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||
Depreciation and amortization | 272 | 259 | |||||
Discount amortization on convertible note | 783 | 304 | |||||
Stock-based compensation expense | 821 | 1,226 | |||||
Bad debt expense | 1,563 | 1,474 | |||||
Accrued interest on convertible notes | 68 | 26 | |||||
Amortization of operating lease right of use assets | 409 | 318 | |||||
Change in fair value of warrants | (334 | ) | (4,158 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (1,625 | ) | (1,317 | ) | |||
Prepaid expenses and other current assets | 613 | (578 | ) | ||||
Contract assets | 60 | 31 | |||||
Accounts payable and other liabilities | 1,172 | 1,450 | |||||
Operating lease liabilities | (458 | ) | (318 | ) | |||
Deferred payroll tax credits | 1,751 | - | |||||
Deferred revenue | (291 | ) | (159 | ) | |||
Net cash used in operating activities | (5,419 | ) | (14,518 | ) | |||
Cash flows from investing activities | |||||||
Purchase of convertible note | 259 | (259 | ) | ||||
Purchases of property and equipment | (217 | ) | (154 | ) | |||
Net cash used in investing activities | 42 | (413 | ) | ||||
Cash flows from financing activities | |||||||
Business combination, net of issuing cost | - | 10,110 | |||||
Proceeds from short-term cash advance | 2,467 | - | |||||
Repayment of short-term cash advance | (542 | ) | - | ||||
Proceeds from convertible notes | - | 7,000 | |||||
Proceeds from related party payable | 987 | - | |||||
Repayment of related party payable | (522 | ) | |||||
Repayment of convertible note | (3,238 | ) | (1,000 | ) | |||
Proceeds from common stock | 2,661 | - | |||||
Cost of equity issuance | - | - | |||||
Proceeds from exercise of stock options, net | 274 | 140 | |||||
Net cash (used in) provided by financing activities | 2,087 | 16,250 | |||||
Net increase/(decrease) in cash and cash equivalents | (3,290 | ) | 1,319 | ||||
Cash and cash equivalents, at beginning of the period | 3,546 | 2,227 | |||||
Cash and cash equivalents, at end of the period | $ | 256 | $ | 3,546 | |||
Reconciliation of net loss to non-GAAP EBITDA and Adjusted EBITDA | |||||||||||||
(in thousands) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Net loss | (3,191 | ) | (4,541 | ) | (10,223 | ) | (13,076 | ) | |||||
Interest income | (7 | ) | (11 | ) | (24 | ) | (18 | ) | |||||
Interest expense | 1,133 | 317 | 2,247 | 949 | |||||||||
Income taxes | - | 3 | - | 3 | |||||||||
Depreciation expense | 73 | 68 | 272 | 259 | |||||||||
EBITDA | (1,992 | ) | (4,164 | ) | (7,728 | ) | (11,883 | ) | |||||
Stock-based compensation | 215 | - | 821 | 1,226 | |||||||||
Bad debt expense | 732 | 1,194 | 1,565 | 1,474 | |||||||||
Business combination related bonus | - | - | - | 550 | |||||||||
Severance and related payments | 359 | 188 | 494 | 188 | |||||||||
Settlement of litigation, including legal costs | - | - | 1,050 | - | |||||||||
Asset write-offs | 509 | - | 509 | - | |||||||||
Change in fair value of warrants | (76 | ) | (467 | ) | (334 | ) | (4,158 | ) | |||||
Adjusted EBITDA | (253 | ) | (3,249 | ) | (3,623 | ) | (12,603 | ) | |||||
Source: springbig
2024 GlobeNewswire, Inc., source