SpringBig's Q1 Earnings Up 16% YoY, Subscription Revenue Spikes 28%

SpringBig Holdings, Inc. SBIG, a leading provider of SaaS-based marketing solutions, consumer mobile app experiences and omnichannel loyalty programs to the cannabis industry, announced late Thursday its financial results for the first quarter ended March 31, 2023.

The company reported revenue of $7.2 million, up 16% YoY, with subscription revenue increasing by 28%. Gross profit was $5.8 million, representing 28% YoY growth and a margin of 81%, while the net loss was $(2.3) million compared to $(2.9) million in the prior year.

SpringBig's CEO and chairman, Jeffrey Harris, expressed satisfaction with the Q1 execution and the progress made across several new initiatives.

Paul Sykes, Springbig's CFO, reported significant progress towards profitability in Q1 with efficient cost management, revenue growth, and a full quarter impact of lower operating expenses. SpringBig aims to reach EBITDA breakeven during the year.

Highlights

• SpringBig added 108 new clients in Q1 with annualized subscription revenue of $1.0 million and 47 clients that upgraded and extended their subscriptions with annualized incremental subscription revenue of $2.8 million.
• The company also signed subscription contracts with retailers in the liquor, vape, and smoke verticals, extending its reach beyond the cannabis vertical.
• Cash and cash equivalents totaled $2.6 million as of March 31, 2023.

Outlook

• For Q2 2023, SpringBig expects revenue in the range of $7.3 - $7.6 million, representing 15% YoY growth at the midpoint, and adjusted EBITDA loss in the range of $(0.9) - $(1.2) million.
• For the year ending December 31, 2023, SpringBig expects revenue in the range of $31 - $34 million, representing 22% YoY growth at the midpoint, and adjusted EBITDA loss in the range of $(3.0) - $(1.5) million, with positive EBITDA being reached during fiscal year 2023.

Price Action

SpringBig's shares rose 11.54% to $0.75 per share on Thursday.

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