Snipp Interactive Reports Record Financial Results for Q3 2021 with 154% YoY Quarterly Revenue Growth, 169% Growth in Net Income from Operations, and 349% EBITDA Growth Representing the Highest Ever Recorded Quarterly Revenue, Net Income from Operations, and EBITDA
VANCOUVER, BC, CANADA - Snipp Interactive Inc. ("Snipp" or the “Company”) (TSX-V: SPN; OTCPK: SNIPF), a Platform-as-a-Service (PaaS) company in the global loyalty and promotions sector announces its financial results for Q3 2021. 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.sedar.com).
Q3 2021 Highlights
(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below)
- Highest ever recorded quarterly Revenue; Net Income from Operations; and EBITDA.
- Revenue for Q3 2021 increased by 154% compared to Q3 2020. Revenue for Q3 2021 was $5,416,976 compared to $2,132,521 for Q3 2020.
- EBITDA in Q3 2021 increased by 349% compared to Q3 2020, an EBITDA improvement of $373,619. Q3 2021 EBITDA was $480,587 vs Q3 2020 EBITDA of $106,968.
- The Company has been EBITDA positive for the last seven consecutive quarters from Q1 2020 to Q3 2021.
- Net income from operations for Q3 2021 was positive $165,554 compared to a net loss from operations for Q3 2020 of negative $239,752, a change of 169%.
- Net income for Q3 2021 was positive $137,869 compared to a net loss for Q3 2020 of negative $211,623, a change of 165%.
- Gross margin in Q3 2021 was 39% compared to 73% in Q3 2020.
- Revenue for the nine months ended September 30, 2021 increased by 69% compared to the nine months ended September 30, 2020. Revenue for the nine months ended September 30, 2021 was $11,007,208 compared to revenue for the nine months ended September 30, 2020 of $6,511,414.
- EBITDA in the nine months ended September 30, 2021 improved by 487% compared to the nine months ended September 30, 2020, an EBITDA improvement of $908,248. For the nine months ended September 30, 2021 EBITDA was $1,094,789 compared to $186,541 for the nine months ended September 30, 2020.
- Net income for the nine months ended September 30, 2021 increased by 135% to $380,157 compared to a net loss for the nine months ended September 30, 2020 of $1,082,330.
- Gross margin for the nine months ended September 30, 2021 was 55% compared to 71% for the nine months ended September 30, 2020.
- Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $9.4MM at September 30, 2021, an increase of 141% compared to September 30, 2020 of $3.9MM.
“Revenue, Net Income from Operations, and EBITDA in Q3 2021 were the highest recorded by the company in its history. Q3 2021 represents our seventh consecutive quarter with positive EBITDA and our second consecutive quarter with positive net income. EBITDA has grown 487% to $1.1MM in the nine months of 2021 compared to the comparable period in 2020. Our revenue over the first nine months of 2021 surpassed our twelve-month 2020 revenue by 27%. For the comparable nine-month period, our revenue is 69% higher in 2021 than 2020, which is a testament to the value we are bringing to our clients. We anticipate ending the year strong as our fourth quarter is also looking to continue this quarterly year on year growth trend. Our SnippCARE platform is continuing to see traction in new industries and global markets with net new and international customers as well as our existing Fortune 500 clients. We are focusing on continuing to deliver strong financial performance by building on our organic growth while continuing to evaluate options to unlock shareholder value that would allow us to exponentially ramp revenues as we expand into new related markets and develop new products and services. As previously announced, upon rationalizing costs and establishing steady state EBITDA growth, we intentionally reduced our margins to seed new markets and industry verticals but fully expect the year to finish in the fifty plus margin range. Over time as we continue to expand our topline, we expect that margins will trend back to our historical 60-70% range” said Atul Sabharwal, Founder & CEO.
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 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 1000 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 the clear 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 the Company’s website at www.snipp.com
Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. The company is publicly listed on the Toronto Stock Venture Exchange (TSX-V) 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
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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