Over $7.9 Million Revenue, 47% YoY Quarterly Revenue Growth, Highest Ever Recorded Quarterly Revenue, EBITDA Positive & Debt Free
VANCOUVER, BC, CANADA - 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 Q3 2022. 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).
Q3 2022 Highlights
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
- Revenue for Q3 2022 increased by 47% compared to Q3 2021. Revenue for Q3 2022 was $7,936,073 compared to $5,416,976 for Q3 2021.
- In Q3, revenue from the Gambit Rewards platform accounted for 29% of total Q3 revenue.
- EBITDA in Q3 2022 was $280,540 vs Q3 2021 EBITDA of $480,587.
- The Company has generated positive EBITDA for the last eleven consecutive quarters.
- Gross margin in Q3 2022 was 34% compared to 39% in Q3 2021.
- Margin decline is largely attributable to the re-launch of the Gambit Rewards program. Gross Margins are likely to remain pressured while the Company continues to invest in the roll out of Gambit as it builds a monetizable audience.
- Revenue for the nine months ended September 30, 2022 increased by 60% compared to the nine months ended September 30, 2021. Revenue for the nine months ended September 30, 2022 was $17,616,434 compared to revenue for the nine months ended September 30, 2021 of $11,007,208.
- EBITDA in the nine months ended September 30, 2022 was $716,190 compared to $1,094,789 for the nine months ended September 30, 2021.
- Gross margin for the nine months ended September 30, 2022 was 41% compared to 55% for the nine months ended September 30, 2021.
- Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $12.4MM at September 30, 2022, an increase of 32% compared to September 30, 2021 of $9.4MM.
“2022 continues to be a transformational year for the company with revenue increasing 47% in the quarter and 60% year to date. Additionally, we marked our eleventh consecutive quarter of positive EBITDA. We exited the period with clear visibility for continued strong year-over-year growth, despite a market that is beginning to face headwinds. Historically, economic environments such as the current one mean greater competition facing Fortune 500 clients, and thus a greater need to promote their products and stay top of mind with consumers. We are observing this positive trend in conversations with our customer base who continue to see the value proposition of our platform and explore new ways to elevate their loyalty initiatives.
Growth in the third quarter was driven in part by Gambit revenue, which increased to 29% of our total revenue from 14% in the second quarter. We just completed the first full quarter of our operation with Gambit and are now preparing to move beyond the pilot phase with our single client to date. We understand the dynamics of the business well and are focused on investing in the growth of this platform. We look forward to sharing more information on our pipeline for additional clients in the near term. As previously noted, Gambit is the first of its kind to compete in a market that is estimated to be worth $100 billion in unused loyalty points. We continue to focus on our customer acquisition costs and growing the platform at a pace that allows us to reinvest in scaling our audience while still maintaining profitability for the company. We appreciate the sensitivity to margins that Gambit growth is having on the business as a whole and are diligently reviewing optimization strategies going forward. We expect fourth quarter margins to be in line with those reported during the third quarter. We are also confident Gambit can continue to grow rapidly in the quarters ahead and are excited about our new growth initiatives in development at this time,” said Atul Sabharwal, Founder & CEO.
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.
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).
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.
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:
The Following are calculations of Gross Margin:
Snipp Interactive Inc (TSX-V: SPN; OTCPK: SNIPF) is a 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 1000 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 the clear 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 the Company’s website at www.snipp.com
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.
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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.
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