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, announced its financial results for the year ended December 31, 2022 (“Fiscal 2022”). All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete audited financial statements and management's discussion and analysis are available on SEDAR (www.sedarplus.ca).
Fiscal year ended December 31, 2022 results as compared to Fiscal year ended December 31, 2021
Results of Annual General and Special Meeting
Snipp held its annual general and special meeting of shareholders (the "Meeting") on Friday, December 15, 2023. Snipp would like to thank its shareholders for their continued support, as all matters that were put before them at the Meeting were approved. Snipp is pleased to announce the re-election of Brian J. Tunick, Sarfaraz Haji, Sina Miri and Atul Sabharwal, to its board of directors. At the Meeting, shareholders appointed RSM Canada LLP as Snipp's auditor for the ensuing year. Also, at the Meeting, in accordance with the policies of the TSX-V, Snipp obtained disinterested shareholder approval of the Company’s amended fixed number stock option plan (the "Option Plan").
“After many months of hard work on the part of our auditors and internal team, we are pleased to announce that our 2022 audit is complete and our YTD financials for 2023 will be released during the next week showing further revenue growth compared to 2022 as we made the decision to invest heavily behind our Gambit and SnippMedia businesses,” stated Atul Sabharwal, CEO of Snipp. “With the delay of the audit behind us, we are eager to advance key strategic and operational initiatives to support our ongoing sales growth and execution of our business plan. Snipp remains uniquely positioned to take advantage of strong trends in our industry, including an intense focus on customer loyalty and reward programs, and the desire of large brands to know more about their customers’ spending habits. In addition to strong growth in our core Snipp business with our Fortune 500 clients, we are also seeing momentum build across both our newer Gambit and SnippMedia solutions. Our backlog, new logo wins as well as our geographic expansion with some of our largest clients instills confidence that we can deliver accelerated revenue growth and return to profitability in 2024 as we begin to leverage some of the investment spending for our new growth businesses. For interested parties, we will schedule an investor conference call shortly after we have filed our 2023 quarterly financials, to give an update on where we are gaining share with our Fortune 500 clients, how our Gambit and SnippMedia solutions are bringing Snipp into new verticals as well as our focus to bring attention to the Snipp story to US investors.
Restatements
During the year ended December 31, 2022, the Company identified an error in its revenue recognition policy that impacted prior periods. Previously the Company considered many of its arrangements with customers to include multiple performance obligations, however the services provided to customers were determined to not be distinct as a result of customers not being able to benefit from the individual services on their own or with other resources that are readily available to the customers. The Company identified and reassessed revenue contracts that impacted prior periods based on its modified revenue recognition policy. This reassessment resulted in a $921,757 decrease in revenue and $246,345 decrease in campaign infrastructure for the year ended December 31, 2021, and a $925,484 aggregate decrease in revenue and $223,058 aggregate decrease in campaign infrastructure from fiscal years prior to the year ended December 31, 2021. These changes also resulted in a $1,093,085 increase in deferred revenue and a $817,770 decrease in accounts receivable for the year ended December 31, 2021, and a $588,687 increase in deferred revenue and a $400,411 decrease in accounts receivable as at January 1, 2021. Accordingly, the consolidated financial statements for the year ended December 31, 2021, and the consolidated statement of financial position as at January 1, 2021, have been restated to reflect adjustments made as a result of these changes. There was no change in the consolidated statements of changes in shareholders’ equity other than the aforementioned deficit and net income changes.
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.
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).
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.
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.
Jaisun Garcha
Chief Financial Officer
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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