SpringBig Holdings, Inc. (“springbig” or the “Company”) (NASDAQ:
SBIG), a leading provider of SaaS-based marketing solutions,
consumer mobile app experiences, and omnichannel loyalty programs
to the cannabis industry, today announced its financial results for
the second quarter ended June 30, 2022.
“Our second quarter results are evidence of the
powerful flywheel between our retail and brands platforms. We offer
what we believe to be the pre-eminent technology platform for
cannabis in a highly fragmented ecosystem, driving significant
value to our clients as they scale their businesses,” said Jeffrey
Harris, CEO and Chairman of springbig. “Acknowledging that cannabis
end-markets are experiencing industry specific headwinds, we view
such headwinds as transitory and do not believe the current market
reflects the intrinsic growth rate of springbig or the industry. We
see an incredible opportunity ahead to simultaneously expand our
market share and increase ROI for retailers and brands.”
Paul Sykes, springbig’s CFO, added, “While our
focus is on accelerating top line growth, we remain committed to
driving leverage through a balanced investment approach and plan to
achieve EBITDA breakeven during 2023.”
Second Quarter 2022 Financial and Key
Metric Highlights
- Total revenue in
the second quarter of 2022 increased to $6.6 million, up 13% from
the second quarter of 2021 and up 3% from the first quarter of
2022.
- Subscription revenue increased 35%
from the second quarter of 2021 and was up 6% from the first
quarter of 2022.
- Net dollar retention rate was 114%,
versus 93% in the year ago period and 110% at the end of 2021.
- We added 509 new retail locations
in the second quarter, bringing our total to more than 2,800.
- Adjusted EBITDA loss was $(3.6)
million as compared to a loss of $(1.3) million from the prior year
period.
- Basic net income loss per share was
$(0.14) based on 19.3 million weighted average shares outstanding.
The shares outstanding as at June 30, 2022 were 25.3 million.
- Cash and cash
equivalents totaled $14 million as of June 30, 2022.
For more information regarding our non-GAAP
financial measures, see “Use of Non-GAAP Financial Measures”.
Additionally, reconciliations of GAAP to non-GAAP financial
measures have been provided in the tables included in this
release.
Financial Outlook
For full fiscal year 2022, springbig expects
revenue in the range of $26-$29 million, representing 15%
year-over-year growth at the midpoint.
For fiscal year 2023, springbig expects an
acceleration in top line growth, with positive EBITDA during fiscal
2023.
Certain of the forward-looking financial
measures discussed above are provided on a non-GAAP basis. The
Company does not provide a reconciliation of such forward-looking
measures to the most directly comparable financial measures
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, Monday, August 15, 2022, at 5:00 p.m. Participants
can register here to access the live webcast of the conference
call. Alternatively, those who want to join the conference call via
phone can register at this link to receive a dial-in number and
unique PIN.
The webcast will be archived for one year
following the conference call and can be accessed on springbig’s
investor relations website at investors.springbig.com.
About springbig
springbig is a market-leading software platform
providing customer loyalty and marketing automation solutions to
cannabis retailers and brands in the U.S. and Canada. springbig’s
platform connects consumers with retailers and brands, primarily
through SMS marketing, as well as emails, customer feedback system,
and loyalty programs, to support retailers’ and brands’ customer
engagement and retention. springbig offers marketing automation
solutions that provide for consistency of customer communication,
thereby driving customer retention and retail foot traffic.
Additionally, springbig’s reporting and analytics offerings deliver
valuable insights that clients utilize to better understand their
customer base, purchasing habits and trends. For more information,
visit https://springbig.com/.
Forward Looking Statements
Certain statements contained in this press
release constitute “forward-looking statements” within the meaning
of federal securities laws. 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 that are based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to the risks and uncertainties
described under “Risk Factors” ’of the registration statement on
Form S-4, the proxy statement/prospectus relating to the business
combination, the Company’s Form 8-K filed with the Securities and
Exchange Commission (the “SEC”) on June 21, 2022, and in the
Company’s Form 10-Q for the period ended June 30, 2022 expected to
be filed on August 15, 2022, and other documents filed by the
Company from time to time with the SEC. These forward-looking
statements involve a number of risks and uncertainties (some of
which are beyond the control of springbig), and other assumptions,
which may cause the actual results or performance to be materially
different from those expressed or implied by these forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and the Company assumes no obligation
and does not intend to update or revise these forward-looking
statements other than as required by applicable law. The Company
does not give any assurance that it will achieve its
expectations.
Use of Non-GAAP Financial
Measures
In addition to the results reported in
accordance with accounting principles generally accepted in the
United States (GAAP) included throughout this press release, we
have disclosed EBITDA and Adjusted EBITDA, both of which are
non-GAAP financial measures that we calculate as net income before
interest, taxes, depreciation and amortization in the case of
EBITDA and further adjustments to exclude unusual and/or infrequent
costs in the case of Adjusted EBITDA, which are detailed in the
reconciliation table that follows, in order to provide investors
with additional information regarding our financial results. Below
we have provided a reconciliation of net loss (the most directly
comparable GAAP financial measure) to EBITDA and Adjusted
EBITDA.
We present EBITDA and Adjusted EBITDA because
these metrics are a key measure 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 provides 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 it 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.
Definition of Key Operating and
Financial Metrics
Net dollar retention rate: The
Company calculates its “net dollar retention rate” - also referred
to as its “net revenue retention rate” - as the average recurring
monthly subscription revenue adjusted for losses, increases and
decreases in monthly subscriptions during the prior twelve months
divided by the average recurring monthly subscription revenue over
the prior, trailing twelve-month period. Net dollar retention rate
(or “net revenue retention rate”) does not have a standardized
meaning and is therefore unlikely to be comparable to similarly
titled measures presented by other companies, and further,
investors should not consider it in isolation.
Investor Relations
Contact Ryan
Flanagan ICR
Strategic Communications &
Advisory ir@springbig.com
Media
Contact Phoebe
Wilson MATTIO
Communications springbig@mattio.com
|
Springbig
Holding, Inc |
Consolidated
Balance Sheets |
(in thousands) |
|
June 30, 2022 |
|
December 31, 2021 |
|
(Unaudited) |
|
(Audited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
14,179 |
|
|
$ |
2,227 |
|
Accounts receivable, net |
|
3,597 |
|
|
|
3,045 |
|
Contract assets |
|
324 |
|
|
|
364 |
|
Prepaid expenses and other current assets |
|
2,742 |
|
|
|
927 |
|
Total
current assets |
|
20,842 |
|
|
|
6,563 |
|
Property and equipment, net |
|
471 |
|
|
|
480 |
|
Convertible note receivable |
|
250 |
|
|
|
- |
|
Total assets |
$ |
21,563 |
|
|
$ |
7,043 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Liabilities |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
3,532 |
|
|
$ |
412 |
|
Accrued expenses and other current liabilities |
|
3,018 |
|
|
|
1,722 |
|
Deferred revenue |
|
427 |
|
|
|
450 |
|
Total
current liabilities |
|
6,977 |
|
|
|
2,584 |
|
Senior secured convertible notes, at estimated fair value |
|
9,843 |
|
|
|
- |
|
Warant liabilities, at estimate fair value |
|
1,616 |
|
|
|
- |
|
Total
liabilities |
|
18,436 |
|
|
|
2,584 |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
Common stock (par value $0.0001 per shares, 300,000,000 authorized
at June 30, 2022; 25,290,270 issued and outstanding as of
June 30, 2022; (par value $0.0001 per shares,
22,764,527authorized at December 31, 2021; 17,862,108 issued
and outstanding as of December 31, 2021) |
$ |
3 |
|
|
$ |
2 |
|
Additional paid-in-capital |
|
21,825 |
|
|
|
17,682 |
|
Accumulated deficit |
|
(18,701 |
) |
|
|
(13,225 |
) |
Total
stockholders’ equity |
|
3,127 |
|
|
|
4,459 |
|
Total liabilities and stockholders’ equity |
$ |
21,563 |
|
|
$ |
7,043 |
|
|
|
|
|
|
Springbig
Holding, Inc |
Consolidated
Statement of Operations (unaudited) |
(in
thousands, except share and per share data) |
|
Three Months Ended June 30, |
|
Six Months ending June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues |
$ |
6,584 |
|
|
$ |
5,804 |
|
|
$ |
12,948 |
|
|
$ |
11,013 |
|
Cost of
revenues |
|
1,998 |
|
|
|
1,865 |
|
|
|
3,841 |
|
|
|
3,459 |
|
Gross
Profit |
|
4,586 |
|
|
|
3,939 |
|
|
|
9,107 |
|
|
|
7,554 |
|
Expenses |
|
|
|
|
|
|
|
Selling, servicing and marketing |
|
3,105 |
|
|
|
2,449 |
|
|
|
6,048 |
|
|
|
4,520 |
|
Technology and software development |
|
2,910 |
|
|
|
1,811 |
|
|
|
5,547 |
|
|
|
3,376 |
|
General and administrative |
|
3,854 |
|
|
|
1,134 |
|
|
|
5,567 |
|
|
|
2,232 |
|
Total
operating expenses |
|
9,869 |
|
|
|
5,394 |
|
|
|
17,162 |
|
|
|
10,128 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(5,283 |
) |
|
|
(1,455 |
) |
|
|
(8,055 |
) |
|
|
(2,574 |
) |
Interest income |
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
2 |
|
Interest expense |
|
(219 |
) |
|
|
- |
|
|
|
(312 |
) |
|
|
- |
|
Change in fair value of 6% Senior Secured Convertible Note |
|
11 |
|
|
|
- |
|
|
|
11 |
|
|
|
- |
|
Change in fair value of warrants |
|
2,880 |
|
|
|
- |
|
|
|
2,880 |
|
|
|
- |
|
Loss before
income taxes |
$ |
(2,611 |
) |
|
$ |
(1,454 |
) |
|
$ |
(5,476 |
) |
|
$ |
(2,572 |
) |
Income taxes
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
loss |
$ |
(2,611 |
) |
|
$ |
(1,454 |
) |
|
$ |
(5,476 |
) |
|
$ |
(2,572 |
) |
|
|
|
|
|
|
|
|
Net loss per
common share: |
|
|
|
|
|
|
|
Basic and
diluted |
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic and diluted |
|
19,285,050 |
|
|
|
17,767,554 |
|
|
|
18,586,515 |
|
|
|
17,749,178 |
|
|
|
|
|
|
|
|
|
|
Springbig
Holding, Inc |
Statement of
Cash Flows (unaudited) |
(in
thousands) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(2,611 |
) |
|
$ |
(1,454 |
) |
|
$ |
(5,476 |
) |
|
$ |
(2,572 |
) |
Adjustments
to reconcile net (loss) income to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
64 |
|
|
|
6 |
|
|
|
123 |
|
|
|
12 |
|
Stock-based compensation expense |
|
1,045 |
|
|
|
119 |
|
|
|
1,226 |
|
|
|
237 |
|
Change in fair value of convertible notes |
|
(11 |
) |
|
|
- |
|
|
|
(11 |
) |
|
|
- |
|
Change in fair value of warrants |
|
(2,880 |
) |
|
|
- |
|
|
|
(2,880 |
) |
|
|
- |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(952 |
) |
|
|
(349 |
) |
|
|
(552 |
) |
|
|
(459 |
) |
Prepaid expenses and other current assets |
|
(1,362 |
) |
|
|
(175 |
) |
|
|
(1,815 |
) |
|
|
(182 |
) |
Contract assets |
|
(21 |
) |
|
|
(14 |
) |
|
|
40 |
|
|
|
(22 |
) |
Accounts payable and other liabilities |
|
4,322 |
|
|
|
538 |
|
|
|
4,416 |
|
|
|
455 |
|
Contract liabilities |
|
(58 |
) |
|
|
28 |
|
|
|
(23 |
) |
|
|
78 |
|
Net
cash used in operating activities |
$ |
(2,464 |
) |
|
$ |
(1,301 |
) |
|
$ |
(4,952 |
) |
|
$ |
(2,452 |
) |
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
Business combination, net of cash acquired |
|
|
|
|
|
- |
|
|
|
(122 |
) |
Purchase of convertible note |
|
(250 |
) |
|
|
- |
|
|
|
(250 |
) |
|
|
Purchases of property and equipment |
|
(40 |
) |
|
|
(153 |
) |
|
|
(113 |
) |
|
|
(195 |
) |
Net
cash used in investing activities |
|
(290 |
) |
|
|
(153 |
) |
|
|
(363 |
) |
|
|
(317 |
) |
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
Business combination, net of issuing cost |
|
10,096 |
|
|
|
- |
|
|
|
10,185 |
|
|
|
- |
|
Proceeds from convertible notes |
|
|
|
|
|
7,000 |
|
|
|
- |
|
Proceeds from exercise of stock options, net |
|
76 |
|
|
|
- |
|
|
|
82 |
|
|
|
- |
|
Net
cash provided by financing activities |
|
10,172 |
|
|
|
- |
|
|
|
17,267 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
|
7,418 |
|
|
|
(1,454 |
) |
|
|
11,952 |
|
|
|
(2,769 |
) |
Cash and
cash equivalents, at beginning of the period |
|
6,761 |
|
|
|
9,132 |
|
|
|
2,227 |
|
|
|
10,447 |
|
Cash and
cash equivalents, at end of the period |
$ |
14,179 |
|
|
$ |
7,678 |
|
|
$ |
14,179 |
|
|
$ |
7,678 |
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash financing
activities |
|
|
|
|
|
|
|
Issue of
common stock for business combination |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
50 |
|
Indemnity
holdback for business combination |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
23 |
|
Conversion
of convertible note and outstanding interest into common stock |
$ |
7,305 |
|
|
$ |
- |
|
|
$ |
7,305 |
|
|
$ |
- |
|
Warrant
assumed in business combination at estimate fair value |
$ |
4,496 |
|
|
$ |
- |
|
|
$ |
4,496 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Springbig
Holding, Inc |
Reconciliation of net loss to non-GAAP EBITDA and Adjusted
EBITDA |
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Net loss |
|
(2,611 |
) |
|
(1,454 |
) |
|
(5,476 |
) |
|
(2,572 |
) |
Interest
income |
|
|
|
(1 |
) |
|
|
|
2 |
|
Interest
expense |
|
219 |
|
|
|
|
312 |
|
|
|
Depreciation
expense |
|
64 |
|
|
6 |
|
|
123 |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
(2,328 |
) |
|
(1,449 |
) |
|
(5,041 |
) |
|
(2,558 |
) |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
1,045 |
|
|
119 |
|
|
1,226 |
|
|
237 |
|
Business
combination related bonuses |
|
550 |
|
|
|
|
550 |
|
|
|
Change in
fair value of warrants |
|
(2,880 |
) |
|
|
|
(2,880 |
) |
|
|
Change in
fair value of convertible note |
|
(11 |
) |
|
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
(3,624 |
) |
|
(1,330 |
) |
|
(6,156 |
) |
|
(2,321 |
) |
|
|
|
|
|
|
|
|
|
Stock-based
compensation is recorded in General and Administrative
expenses |
|
|
|
|
|
|
|
|
|
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