In its latest financial disclosure on Tuesday, Springbig SBIG, a leader in SaaS-based marketing solutions and loyalty programs, reported a modest but noteworthy revenue increase to $6.8 million -1% year-on-year growth for the fourth quarter ending December 31, 2023.
This period also saw a notable 10% rise in subscription revenue. The gross profit for the quarter stood at $4.8 million, translating into a robust gross margin of 70%.
Despite these gains, the company faced a net loss of $3.2 million, an improvement from the $4.5 million loss in the previous year.
Adjusted EBITDA also showed signs of recovery, with a minor loss of $0.2 million compared to a $3.2 million loss the year before.
Paul Sykes, Springbig’s CFO, stated, “Completing our $8 million debt financing has significantly strengthened our balance sheet, fully funding our operations and allowing for expansion without additional capital in the near term. Despite 2023’s challenges, we’re proud of our revenue growth and, with our recent initiatives and streamlined expenses, anticipate Adjusted EBITDA margins of 12% to 15% in 2024.”
Yearly Performance: A Path to Recovery
Looking at the broader picture for 2023, Springbig reported revenues of $28.1 million, a 5% increase from 2022. Subscription services continued to be a strong revenue driver, with a 14% year-on-year increase to $22.3 million, now accounting for 79% of total revenue.
The year’s gross profit was impressive at $21.6 million, reflecting a gross margin of 77%.
However, the company’s journey towards profitability is ongoing, with a net loss of $10.2 million, albeit a significant reduction from the $13.1 million loss in 2022.
Adjusted EBITDA losses narrowed to $3.6 million from $12.6 million, indicating efficient cost management and operational optimization.
Forward Outlook
With an $8 million debt financing initiative bolstering its balance sheet, Springbig anticipates an upward trajectory in 2024, forecasting revenue between $29 to $32 million and a positive Adjusted EBITDA of $3.5 to $5.0 million.
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