Company Delivers Record EBITDA
Company To Hold Investor Conference Call On December 3, 2024
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 the three months ended September 30, 2024 (Q3 2024) and the nine months ended September 30, 2024. 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.sedarplus.ca).
The Company also announces conference call details for investors taking place on Tuesday, December 3, 2024, at 10:00am Eastern Time (US) to discuss the Company’s recent financial results and plans for the year.
The conference call will be available via the following weblink or dial-in options.
Weblink: https://v.ringcentral.com/join/390445166 for meeting ID 390445166
Dial-in: for parties in the United States dial +1-650-419-1505 and parties in Canada dial +1-437-800-0918, and then enter Meeting ID: 390445166.
Parties joining from other locations can refer to additional dial-in numbers based on your location listed at the following website and use the same Meeting ID referenced above: https://v.ringcentral.com/teleconference
Q3 2024 and 9 Months 2024 Highlights
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
- Revenue for the three months ended September 30, 2024 (“Q3 2024”) decreased by 22%, as compared to the three months ended September 30, 2023 (“Q3 2023”). Revenue for Q3 2024 was $6.7 million, as compared to $8.6 million for Q3 2023.
- Revenue for the nine months ended September 30, 2024 decreased by 29%, as compared to the nine months ended September 30, 2023. Revenue for the nine months ended September 30, 2024 was $16.1 million, as compared to $22.6 million for the nine months ended September 30, 2023.
- The revenue decline in both Q3 2024 and the first 9 months of 2024 was entirely tied to the planned sunsetting of a single contract that the company inherited with the acquisition of Gambit Rewards.
- Gross Margin for Q3 2024 increased by 93% from 32% in Q3 2023 to 62% in Q3 2024.
- Gross Margin for the first 9 months of 2024 increased by 114% from 28% in the first 9 months of 2023 to 60% in the first 9 months of 2024.
- EBITDA in Q3 2024 was $708,649 vs Q3 2023 EBITDA of $33,408, an improvement of $675,241.
- EBITDA in the first 9 months of 2024 was $120,866 vs an EBITDA loss of $1,939,921 in the first 9 months of 2023, an improvement of $2,060,787.
- Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $15.5MM at September 30, 2024, an increase of 7% as compared to September 30, 2023 of $14.5MM.
- Cash at the end of Q3 2024 was $4.6 million and the company continues to be debt free.
Atul Sabharwal, Founder of Snipp, stated “Q3 2024 represents a pivotal moment in Snipp’s history as we achieved record-breaking quarterly EBITDA - a testament to our strategic focus on high-margin revenue streams and operational excellence,” said Atul Sabharwal, Founder & CEO. “The early performance of SnippMEDIA, now reaching over 30 million monthly active users and achieving strong engagement metrics, along with continued strength in our core business, highlights our ability to deliver innovative solutions and potential high growth opportunities in the future that can only add to the continued growth of our business. With a near record bookings backlog in the core Snipp business and exciting integrations/launches planned for SnippMedia in 2025, we are well-positioned to build on this momentum and drive long-term value for our clients and shareholders.”
Non-GAAP Measures
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.
Gross Margin
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.
EBITDA
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).
Bookings Backlog
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:
About Snipp:
Snipp Interactive Inc. (TSX-V: SPN; OTCPK: SNIPF) is a leading 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 500 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 an 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 Snipp’s website at www.snipp.com and its profile on SEDAR+ at www.sedarplus.ca.
Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. Snipp is publicly listed on the TSX Venture Exchange in Canada and is also quoted on the OTC Pink marketplace under the symbol SNIPF.
FOR FURTHER INFORMATION PLEASE CONTACT:
Snipp Interactive Inc.
Richard Pistilli
Chief Financial Officer (Interim)
investors@snipp.com
1-888-99-SNIPP
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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