Cannabis SaaS Provider Springbig Reports 3Q 2022 Financial Results: Total Revenue Up 22% YoY

SpringBig Holdings, Inc. SBIG, a provider of Software as a service (or SaaS) marketing solutions reported its financial results late Monday for the third quarter that ended September 30, 2022.

“Our third quarter results reinforce my view that we are widening the gap as the leading technology loyalty platform across the cannabis sector,” said Jeffrey Harris, CEO and Chairman of springbig. “Acknowledging that cannabis end-markets are experiencing industry-specific headwinds, it’s absolutely clear to me that our growth trajectory is intact as we continue to leverage the network effect flywheel between retailers and brands, and that we are making the right investments to capture the long-term opportunity in front of us.”

Paul Sykes, springbig’s CFO, added, “Looking to 2023, we expect the continuing strong growth in subscription revenue, increasing brands adoption, and the emergence of data sales and other initiatives to drive top-line acceleration, and we are reaffirming our goal of reaching the milestone of positive EBITDA during 2023.”

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Third Quarter 2022 Financial and Key Metric Highlights

• Total revenue in the third quarter of 2022 increased to $7.4 million, up 22% from the third quarter of 2021 and up 13% from the second quarter of 2022.
• Subscription revenue increased 48% from the third quarter of 2021 and was up 9% from the second quarter of 2022.
• The net dollar retention rate was 119%, versus 85% in the year-ago period and 114% in the second quarter of 2022.
• Adjusted EBITDA loss for the third quarter was $(3.5) million as compared to a loss of $(1.2) million from the prior year period.
• The basic net income loss per share was $(0.12) based on the 25.6 million weighted average shares outstanding.
• The shares outstanding as of September 30, 2022, were 26.2 million.
• Cash and cash equivalents totaled $6.8 million as of September 30, 2022.

Financial Outlook

For the full fiscal year 2022, springbig expects revenue in the range of $27.0 - $28.0 million, representing 14% year-over-year growth at the midpoint. For the fiscal year 2023, springbig expects an acceleration in top-line growth, with the milestone of positive EBITDA being reached during fiscal 2023.

Photo by Lorenzo Cafaro On Pixabay.