- First quarter with positive Adjusted EBITDA* and sixth consecutive improving quarter
- Operating expenses reduced by 34% year-on-year
- Stronger balance sheet, with no near-term debt maturities
Mark Silver , founder ofDirect Energy andUniversal Energy Group , appointed to Board of Directors
The Company also announced that
“We have continued to make good progress in a challenging macroenvironment. Our newer offerings, such as ‘subscriptions by Springbig’ and ‘gift cards by Springbig’ are gaining traction as is our objective of diversification into regulated markets beyond cannabis” said
First Quarter 2023 Financial Highlights:
- Revenue was
$6.5 million , compared to$7.2 million in the prior year. - Subscription revenue represents 83% of total revenue at
$5.4 million , compared to$5.7 million in the prior year. - Gross profit was
$4.7 million , representing a gross profit margin of 72%. - Operating expenses reduced by 34% year-on-year to
$5.0 million . - Net income was
$0.4 million , including a gain of$1.6 million on the repurchase of convertible debt, compared to a net loss of$(2.3) million in the prior year. - Adjusted EBITDA* positive
$0.2 million compared to a loss of$(1.3) million in the prior year. - Basic and diluted net income per share was
$0.01 .
Key Operational Highlights:
$8.0 million debt financing, comprising$6.4 million 8% Convertible Notes due 2026 and a$1.6 million 12% Term Loan due 2026, both completed inJanuary 2024 . The proceeds were utilized to repurchase entirely existing Senior Secured Convertible Notes due 2025 for a discounted amount of$2.9 million and for general corporate purposes.- Strong momentum in newer initiatives with clients encompassing both “subscriptions by Springbig”, a subscription-based VIP loyalty program, and “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.
Financial Outlook
For the second quarter of 2024,
- Revenue in the range of
$6.5 -$7.0 million . - Adjusted EBITDA* positive in the range of
$0.3 -$0.6 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.
Appointment of
The board of directors now comprises
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 second 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
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,668 | $ | 331 | |||
Accounts receivable, net | 3,211 | 2,948 | |||||
Contract assets | 255 | 273 | |||||
Prepaid expenses and other current assets | 588 | 893 | |||||
Total current assets | 5,722 | 4,445 | |||||
Operating lease asset | 3,031 | 340 | |||||
Property and equipment, net | 325 | 320 | |||||
Total assets | $ | 9,078 | $ | 5,105 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,040 | $ | 2,925 | |||
Accrued expenses and other current liabilities | 1,767 | 1,951 | |||||
Short-term cash advances | 1,195 | 1,925 | |||||
Current maturities of long-term debt | - | 4,360 | |||||
Deferred payroll tax credits | 1,751 | 1,751 | |||||
Deferred revenue | 2 | - | |||||
Related party payable | - | 540 | |||||
Operating lease liability, current | 329 | 99 | |||||
Total current liabilities | 7,084 | 13,551 | |||||
Long-term debt, non-current | 7,198 | - | |||||
Operating lease liability, non-current | 2,815 | 225 | |||||
Warant liabilities | 6 | 3 | |||||
Total liabilities | 17,103 | 13,779 | |||||
Stockholders’ Equity | |||||||
Common stock par value | $ | 4 | $ | 4 | |||
Additional paid-in-capital | 28,119 | 27,887 | |||||
Accumulated deficit | (36,148 | ) | (36,565 | ) | |||
Total stockholders’ equity | (8,025 | ) | (8,674 | ) | |||
Total liabilities and stockholders’ equity | $ | 9,078 | $ | 5,105 | |||
Condensed Consolidated Statement of Operations (unaudited) | |||||||
(in thousands, except share and per share data) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues | $ | 6,474 | $ | 7,157 | |||
Cost of revenues | 1,794 | 1,350 | |||||
Gross Profit | 4,680 | 5,807 | |||||
Expenses | |||||||
Selling, servicing and marketing | 1,527 | 2,478 | |||||
Technology and software development | 1,666 | 2,300 | |||||
General and administrative | 1,769 | 2,757 | |||||
Total operating expenses | 4,962 | 7,535 | |||||
Loss from operations | (282 | ) | (1,728 | ) | |||
Interest income | 4 | 10 | |||||
Interest Expense | (875 | ) | (391 | ) | |||
Gain on note repurchase | 1,573 | - | |||||
Change in fair value of warrants | (3 | ) | (153 | ) | |||
Income (loss) before income taxes | $ | 417 | $ | (2,262 | ) | ||
Income taxes expense | - | - | |||||
Net income (loss) | $ | 417 | $ | (2,262 | ) | ||
Net income (loss) per common share: | |||||||
Basic | $ | 0.01 | $ | (0.08 | ) | ||
Diluted | $ | 0.01 | $ | (0.08 | ) | ||
Weighted-average common shares outstanding: | |||||||
Basic | 45,432,272 | 26,803,839 | |||||
Diluted | 77,315,056 | 26,803,839 |
Statement of Cash Flows (unaudited) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 417 | $ | (2,262 | ) | ||
Adjustments to reconcile net income (loss) income to net cash used in operating activities: | |||||||
Gain on note repurchase | (1,573 | ) | - | ||||
Non-cash interest expense | 108 | - | |||||
Depreciation and amortization | 54 | 66 | |||||
Discount amortization on convertible note | - | 259 | |||||
Amortization of debt financing costs | 116 | - | |||||
Stock-based compensation expense | 195 | 162 | |||||
Bad debt expense | 87 | 169 | |||||
Accrued interest on convertible notes | 117 | 22 | |||||
Amortization of operating lease right of use assets | 90 | 123 | |||||
Change in fair value of warrants | 3 | 153 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (351 | ) | (448 | ) | |||
Prepaid expenses and other current assets | 305 | 474 | |||||
Contract assets | 18 | 10 | |||||
Accounts payable and other liabilities | (1,505 | ) | 363 | ||||
Operating lease liabilities | 39 | (126 | ) | ||||
Deferred payroll tax credits | - | 1,442 | |||||
Deferred revenue | 2 | (28 | ) | ||||
Net cash used in operating activities | (1,878 | ) | 379 | ||||
Cash flows from investing activities | |||||||
Purchase of convertible note | - | (3 | ) | ||||
Purchases of property and equipment | (59 | ) | (9 | ) | |||
Net cash used in investing activities | (59 | ) | (12 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from issuance of convertible notes | 6,400 | - | |||||
Repayment of convertible notes | (2,895 | ) | (1,457 | ) | |||
Proceeds from the issuance of term notes | 1,600 | - | |||||
Repayment of short-term cash advances | (730 | ) | - | ||||
Repayment of related party payable | (540 | ) | - | ||||
Cost of convertible and term note issuance | (561 | ) | - | ||||
Proceeds from exercise of stock options | - | - | |||||
Proceeds from common stock | - | 113 | |||||
Net cash (used in) provided by financing activities | 3,274 | (1,344 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | 1,337 | (977 | ) | ||||
Cash and cash equivalents, at beginning of the period | 331 | 3,546 | |||||
Cash and cash equivalents, at end of the period | $ | 1,668 | $ | 2,569 | |||
Supplemental cash flows disclosures | |||||||
Interest paid | $ | 720 | $ | 132 | |||
Common stock issued for services rendered relating to debt financing | $ | 37 | $ | - | |||
Accrued cost of debt issuance | $ | 319 | $ | - | |||
Obtaining a right-of-use asset in exchange for a lease liability | $ | 2,781 | $ | - |
Reconciliation of net loss to non-GAAP EBITDA and Adjusted EBITDA | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net income (loss) | 417 | (2,262 | ) | ||||
Interest income | (4 | ) | (10 | ) | |||
Interest expense | 875 | 391 | |||||
Depreciation expense | 54 | 66 | |||||
EBITDA | 1,342 | (1,815 | ) | ||||
Stock-based compensation | 195 | 162 | |||||
Bad debt expense | 87 | 169 | |||||
Gain on repurchase of convertible debt | (1,573 | ) | - | ||||
Severance and related payments | 96 | - | |||||
Change in fair value of warrants | 3 | 153 | |||||
Adjusted EBITDA | 150 | (1,331 | ) |
Source: springbig
2024 GlobeNewswire, Inc., source