Revenue Growth Amidst Challenges
In a recent financial update, Springbig Holdings (OTC:SBIG) showcased a subtle but significant revenue increase, reaching $6.8 million, marking a 1% year-over-year growth for the fourth quarter concluding on December 31, 2023.
The quarter also witnessed a remarkable 10% surge in subscription revenue, with a commendable gross profit of $4.8 million, resulting in a robust gross margin of 70%.
Despite registering a net loss of $3.2 million, there was notable progress from the $4.5 million loss in the prior year. Additionally, Adjusted EBITDA displayed signs of revival, with a slight deficit of $0.2 million, a notable improvement from the $3.2 million loss in the same period last year.
Paul Sykes, the CFO of Springbig, highlighted the company’s strengthened financial position following the completion of an $8 million debt financing, emphasizing the capability to expand without requiring additional capital in the near future. With optimism for 2024, Sykes anticipates an Adjusted EBITDA margin of 12% to 15%.
Yearly Performance: Resilience Amidst Adversity
Expanding the lens to encompass 2023, Springbig reported revenues of $28.1 million, indicating a 5% increase from the previous year. Subscription services emerged as a potent revenue driver, posting a 14% year-on-year growth to $22.3 million, constituting 79% of the total revenue.
The annual gross profit stood at an impressive $21.6 million, reflecting a robust gross margin of 77%. Despite a net loss of $10.2 million, there was a significant reduction from the $13.1 million loss in 2022. Adjusted EBITDA losses also narrowed down to $3.6 million from $12.6 million, underscoring the efficacy of cost management and operational optimization.
Positive Trajectory Ahead
Bolstered by an $8 million debt financing initiative that fortified its balance sheet, Springbig envisions a promising outlook for 2024. The company forecasts revenue in the range of $29 to $32 million, alongside a positive Adjusted EBITDA of $3.5 to $5.0 million.
The ongoing strategic initiatives and cost-efficiency measures implemented by Springbig position the company on a trajectory towards sustained growth and profitability in the upcoming financial cycles.
