SpringBig (Nasdaq: SBIG) reported an uptick in losses during 2022, a few months after a round of fourth-quarter layoffs and hints toward wind downs struck employees and news wires.
The Florida-based company, which provides marketing solutions, mobile apps, and loyalty programs to operators in the cannabis industry, reported its financial results for the fourth quarter and full year ending on Dec. 31, 2022.
Despite a net loss of $4.5 million for the fourth quarter, revenue increased by 2% year-on-year to $6.8 million, with subscription revenue up 33% year-on-year.
The net dollar retention rate was 105% for the year, and gross profit was $5.3 million, representing a gross profit margin of 78%.
“We closed the year with strong momentum and continue to deliver exceptional value to our customers across our broadening platform,” said Jeffrey Harris, CEO and chairman.
For the full year 2022, the company’s revenue was $26.6 million, an increase of 14% from the prior year, with subscription revenue at $20.4 million, a year-on-year increase of 38%.
However, the net loss for the full 2022 was $13.1 million versus a loss of $5.8 million in the prior year, with adjusted EBITDA loss at $12.6 million versus a loss of $5.5 million in 2021. Basic net income loss per share was $0.59.
Despite the net loss, Springbig’s strong subscription revenue growth and a broadening platform show promise for the future, considering the “rich pipeline of new revenue-generating initiatives,” the CEO said.
“We ended the year with more than 3,000 retail locations utilizing the Springbig platform, and in the last year these clients generated more than $7.5 billion of GMV and distributed in excess of 2 billion messages using Springbig,” Harris said.
CFO Paul Sykes added that the company is well positioned to expedite the top line and achieve profitable growth and reaffirmed management’s goal of reaching EBITDA breakeven sometime this year.
“We are also committed to ensuring our balance sheet supports these growth objectives and are considering a potential supplemental capital raise,” he said.
For the first quarter of 2023, Springbig expects revenue in the range of $7.1 million to $7.4 million, representing 17% growth at the midpoint, and an adjusted EBITDA loss between $1.4 million to $1.2 million.
The company also expects revenue in the range of $31 million to $34 million by the end of 2023, representing 22% year-over-year growth at the midpoint, and an adjusted EBITDA loss in the range of $3 million to $1.5 million.