Financial information

Snipp Interactive Reports Second Quarter 2021 Financial Results


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Quarterly revenue growth of 51% year-on-year, positive net income and debt-free

VANCOUVER, BC / ACCESSWIRE / August 24, 2021 / Snipp Interactive Inc. (“Snipp” or the “Company”) (TSXV: SPN) (OTC PINK: SNIPF), a Global Provider of Digital Marketing Promotions, Rebates and Loyalty Solutions, Announces Financial Results for the Second quarter 2021. All results are reported in accordance with International Financial Reporting Standards (“IFRS”) and in U.S. dollars. A copy of the complete unaudited interim financial statements and MD&A is available on SEDAR (www.sedar.com).

Highlights for Q2 2021

(See discussion of Non-GAAP Measures, Gross Margin, EBITDA and Backlog below)

  • Returned for the second quarter of 2021 increased by 51% compared to Q2 2020. Q2 2021 revenue was $ 3,020,274, compared to $ 2,005,681 for Q2 2020.
  • EBITDA in Q2 2021 increased by 1.282% compared to Q2 2020, an improvement in EBITDA of $ 426,942. Q2 2021 EBITDA was $ 460,254 compared to Q2 2020 EBITDA of $ 33,312.
  • The Company has posted positive EBITDA for the last six consecutive quarters, from the first quarter of 2020 to the second quarter of 2021.
  • Net revenue for the second quarter of 2021 was positive $ 423,935 compared to a net loss for Q2 2020 of $ 364,666 negative, a change of 216%
  • Gross margin in Q2 2021 was 73% compared to 65% in Q2 2020.
  • Returned for the semester ended June 30, 2021 increased by 28% compared to the six-month period ended June 30, 2020. Sales for the six-month period ended June 30, 2021 amounted to $ 5,590,232, compared to sales for the six-month period ended June 30, 2020 of 4,378,893 $.
  • Half-year EBITDA ended June 30, 2021 improved by 672% compared to the six-month period ended June 30, 2020, an improvement in EBITDA of $ 534,629. For the six-month period ended June 30, 2021, EBITDA amounted to $ 614,202 compared to $ 79,573 for the six-month period ended June 30, 2020.
  • Half-year net result ended June 30, 2021 increased by 128% at $ 242,288 compared to a net loss for the six-month period ended June 30, 2020 of $ 870,707.
  • The gross margin for the six-month period ended June 30, 2021 and the six-month period ended June 30, 2020 was 70%.
  • Book of reservations (programs sold, but for which revenues have not yet been recognized) amounted to $ 9.5M as at June 30, 2021, a 157% increase compared to June 30, 2020 of $ 3.7 million.

“The second quarter of 2021 represents our sixth consecutive quarter with positive EBITDA. By realizing a positive net result thanks to the strength of our operations, we continue to validate our strategy of building “the” global and modular platform for acquiring and retaining industry-leading customers, which we have pursued with determination over the course of over the past two years and are even more confident in a bigger and brighter future as we remain focused on executing this growth strategy. enter new sectors and markets that can benefit from our SnippCARE (r) platform. presence in new industries. We will also continue to enter new geographic markets and establish a direct presence to serve more of our existing Fortune 500 clients across the globe. Today, with only 3 of our clients, we run programs in over 39 countries, so we have plenty of room to grow. The significant growth in our backlog should also give investors confidence that our revenue growth will continue to expand over the next few quarters as our reservations materialize into recognized revenue. Therefore, 2021 continues to be a year of significant and profitable growth for the company, ”said Atul Sabharwal, Founder and CEO.

Non-GAAP measures

Snipp uses certain performance measures throughout this document that are not recognizable under Canadian generally accepted accounting principles or IFRS (“GAAP”). These performance measures include gross margin and EBITDA. Management believes that these measures provide additional financial information useful in evaluating the operations of the Company.

Investors should however be cautioned that these measures should not be interpreted as alternatives to measures determined in accordance with GAAP and IFRS as an indicator of Snipp’s performance. The method of calculating these Company metrics may differ from that of other organizations and, therefore, they may not be comparable.

EBITDA

Snipp defines earnings before interest, taxes, depreciation and amortization (“EBITDA”) as revenue less operating expenses excluding non-cash operating expenses of share-based payments, depreciation and amortization ( interest and taxes are not included in the operating expenses of the Company).

Gross margin

Snipp defines gross margin as campaign infrastructure minus revenue. The calculation of the Company’s gross margin is not a recognized financial measure under GAAP. Investors should be cautioned that the Company’s defined gross margin should not be interpreted as an alternative measure to other measures determined in accordance with GAAP.

Book of reservations

Snipp defines the backlog as the future revenue from existing customer contracts that will be recognized in the coming quarters. Reservations are converted into revenues on the basis of IFRS principles and the order book reflects the way in which revenues for the coming quarters are regularly recognized today.

Here are the EBITDA calculations:

Three
Ended months
June 30, 2021
Three
Ended months
June 30, 2020
Six
Ended months
June 30, 2021
Six
Ended months
June 30, 2020
USD USD USD USD

Net income (loss) before interest, foreign exchange, other income and taxes

125,790 (408,875) (50,587) (890 119)

Amortization of intangible assets

298,349 420,447 606,110 925 295

Material depreciation

1,566 4 751 3,815 10,273

Share-based payments

34 549 16,989 54,864 34 124

EBITDA

460,254 33 312 614 202 79,573

Here are the gross margin calculations:

Three
Ended months
June 30, 2021
Three
Ended months
June 30, 2020
Six
Ended months
June 30, 2021
Six
Ended months
June 30, 2020
USD USD USD USD

Returned

3,020,274 2 005 681 5,590,232 4,378,893

Less:

Campaign infrastructure

827,733 696,963 1,652,354 1 327 470

Gross margin

2 192 541 1,308,718 3 937 878 3 051 423

About Snipp:

Snipp is a global loyalty and promotions company with a single goal: to develop disruptive engagement platforms that generate information and drive sales. Our solutions include buyer marketing promotions, loyalty, rewards, discounts, and data analytics, all of which are seamlessly integrated to provide a one-stop marketing technology platform. We also provide the services and expertise to design, execute and promote client programs. SnippCheck, our receipt processing engine, is the market leader in receipt-based purchase validation; SnippLoyalty is the industry’s only unified loyalty solution for CPG brands. Snipp has powered hundreds of programs for Fortune 1000 brands and world-class agencies and partners.

Snipp is headquartered in Vancouver, Canada, with a presence in the United States, Canada, Ireland, Europe and India. The company is listed on the Toronto Venture Exchange (TSX-V) in Canada and is also listed on the OTC Pink market under the symbol SNIPF.

FOR MORE INFORMATION, PLEASE CONTACT:

Snipp Interactive Inc.
Jaisun Garcha
Financial director
[email protected]
1-888-99-SNIPP

Caution regarding forward-looking statements

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “may”, “intention”, “plan”, “anticipate”, “believe”, “estimate”, ” expect ”and similar phrases are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. There are many factors that could cause our actual results to differ materially from statements made, including factors discussed in documents we have filed with Canadian securities regulators. If one or more of these risks and uncertainties, such as changes in demand and prices for the company’s products or the materials needed to manufacture such products, labor relations issues, currency fluctuations and interest rates, increased competition and factors, occur or if the assumptions underlying forward-looking statements prove to be incorrect, actual results may differ materially from those described herein as expected, planned, anticipated or expected. We do not intend and assume no obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to place undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Copyright Snipp Interactive Inc. All rights reserved. All other trademarks and trade names are the property of their respective owners.

THE SOURCE: Snipp Interactive Inc.

See the source version on accesswire.com:
https://www.accesswire.com/661208/Snipp-Interactive-Reports-Financial-Results-for-Q2-2021

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