Cannabis-Focused Software Co. Springbig Sees Slight Q1 Revenue Decline But Improves Net Loss, Keeps Full Year Financial Guidance

Florida-based software and cannabis marketing company Springbig Holdings, Inc. SBIG released its first quarter 2024 financial figures and announced the appointment to the board of Mark Silver, president of Optus Capital Corporation and a key player in the company’s January debt refinancing.

Paul Sykes, CFO, remarked on achieving a positive adjusted EBITDA for the first time at $150,000, compared to a loss of $1.3 million in the prior year, and debt financing:

"After completing our $8 million debt financing in January, we have a much stronger and cleaner balance sheet,” Sykes said. “We continue to manage the optimization of our operating expenses, which have reduced by 34% year-on-year, and expect a continuing positive trend in our Adjusted EBITDA margins as the year progresses."

Key Financial Figures

• Revenue: Q1 2024 revenue of $6.5 million decreased from $7.2 million the previous year.
• Gross Profits and Margin: Gross profits are $4.7 million, with a gross margin of 72%, down 19% compared to $5.8 million in Q1 2023.
• Net income: $417,000 compared to a net loss of $2.3 million in the prior year.
• Basic and diluted net income per share was $0.01, versus a loss per share of $0.08 in the same period of 2023.

Debt Financing And Reduced Operating Expenses

Informed net income includes a gain of $1.6 million on the repurchase of convertible debt, done in January 2024.

The improved financial figures related to an operating expenses reduction of 34% year-on-year and debt-restructuring of $6.4 million by 8% convertible notes due 2026 and a $1.6 million 12% in a term loan due 2026.

The company remarked newer initiatives “subscriptions by Springbig" and "gift cards by Springbig" as sources of diversification “into regulated markets beyond cannabis”.

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Financial Outlook

For the second quarter of 2024, Springbig currently expects revenue in the range of $6.5 – $7.0 million and Adjusted EBITDA positive in the range of $300.000 to $600.000. For the year ending December 31, 2024, expects revenue in the range of $29 – $32 million and adjusted EBITDA gain in the range of $3.5 – $5.0 million.

Price Action

Springbig stock was trading 11.65% down at 15 cents per share during Thursday’s per-market session.

See Also: Software Company Springbig Banks On Loyalty Programs, Reaps $28.1M Revenue, Shrinks Net Loss With EBITDA Revival

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