Cannabis marketing company SpringBig Holdings Inc. (OTCQX: SBIG) posted a $2.7 million loss against $6.9 million in revenue for the third quarter of 2023 after it was de-listed from the Nasdaq in September.
The lackluster third quarter brings the company’s losses for 2023 to $7 million thus far, the company reported, which is down from the $8.5 million it lost in the first nine months of 2022.
Leadership at the Florida-based marketing solutions provider insisted that the future is still rosy, however, given that the company has increased its subscription base by 13% even as revenues shrank by 5%. The company cited the addition of 89 new clients in the most recent quarter, which brought $700,000 in new subscription revenues.
“I remain confident that our strategy is sound, with feedback from our clients and partners reaffirming that we are making the right investments to both add value to our clients while at the same time capturing the long-term opportunity in front of us,” CEO Jeffrey Harris said in a statement.
Harris highlighted the company’s launch of “subscriptions by springbig,” which he said is a new suite of services that helps clients debut their own VIP loyalty programs for their customers. And in the fourth quarter this year, SpringBig will be rolling out a “gift card payment feature integrated into our loyalty wallet” that he believes will drive overall revenues.
The company forecast full year revenues of $28 million to $28.5 million, which would be a 6% increase from 2022, along with an adjusted EBITDA loss of $3.4 million.
CFO Paul Sykes said that the company expects to reach “positive adjusted EBITDA” by the end of 2023, in large part through reducing operating costs, which the company has cut by 31% since Q3 2022.
“Our current operating expense run-rate is approximately 40% lower than last year, and having optimized our expenses we are now nicely positioned for an acceleration in adjusted EBITDA next year,” Sykes said. “We continue to focus on converting our customers to subscription revenue contracts and judiciously managing our working capital.”
At the end of September, SpringBig had $6.8 million in total assets, including $293,000 in cash, against $12.7 million in total liabilities.