Cannabis marketing software company SpringBig Holdings, Inc. (Nasdaq: SBIG) reported an upward trend in its final financial results for the second quarter ended June 30.
The company, which is known for creating SaaS-based marketing tools, mobile apps, and customer loyalty programs for operators, saw a 12% revenue surge, reaching $7.2 million year-on-year. This missed the Yahoo analyst average estimate of $8.17 million.
Additionally, the company saw 105 new clients in the second quarter, generating annualized subscription revenue of $900,000. Meanwhile, 81 existing clients upgraded and extended their subscriptions, yielding annualized incremental subscription revenue of $1.5 million.
“I am as confident as ever that our strategy is sound, with feedback from our clients and partners reaffirming that we are making the right investments to capture the long-term opportunity in front of us,” CEO Jeffrey Harris said in a statement.
“We are continuing to manage our business efficiently with a keen eye on measured growth focused on profitability while recognizing the challenging current macro and industry-specific realities and continuing to develop innovative SaaS based offerings to enable our clients to retain and grow their customer bases, including our recent launch of ‘Subscriptions by springbig’.”
CFO Paul Sykes reinforced Harris’ sentiment, pointing to the company’s cost-effective measures and continual revenue growth.
Sykes added that the company is on track to break even in terms of adjusted EBITDA during the third quarter and foresee positive figures in the latter half of the fiscal year.
Some notable second-quarter financial figures include:
- Subscription revenue increase of 19% year-on-year.
- Net dollar retention rate of 100%.
- Gross profit of $5.7 million, reflecting 24% growth year-on-year.
- Lowered net loss, from $2.6 million last year to $2 million this year.
Additionally, the company’s recent venture, ‘Subscriptions by springbig,’ promised investors more upside for its subscription-based VIP loyalty program. At the same time, the company is being sued by a former partner for allegedly copying the idea.
Looking forward, SpringBig’s third-quarter projections estimate a revenue ranging between $7.2 million to $7.5 million. For the entirety of 2023, management anticipate revenues from $29 million to $31 million.
With positive adjusted EBITDA anticipated within the fiscal year, the company feels hopeful about its path to profitability.