Springbig, a leader in SaaS-based marketing solutions and loyalty programs, reported a modest but noteworthy revenue increase to $6.8 million -1% year-on-year growth for the fourth quarter ending December 31, 2023.
The quarter also witnessed a significant 10% rise in subscription revenue, with a strong gross profit of $4.8 million, resulting in a robust 70% gross margin.
Despite these gains, the company faced a net loss of $3.2 million, showing improvement from the $4.5 million loss in the previous year. Adjusted EBITDA indicated signs of recovery with a minor loss of $0.2 million compared to $3.2 million the year before.
Springbig’s CFO, Paul Sykes, noted that the completion of an $8 million debt financing significantly strengthened their balance sheet, fully funding operations and enabling expansion without additional capital in the near term. Anticipating Adjusted EBITDA margins of 12% to 15% in 2024, Sykes expressed pride in the company’s revenue growth amidst challenges.
Yearly Performance: A Path to Recovery
In 2023, Springbig reported revenues of $28.1 million, reflecting a 5% increase from the previous year. Subscription services continued to drive revenue, experiencing a 14% year-on-year increase to $22.3 million and now constituting 79% of total revenue. The company achieved an impressive gross profit of $21.6 million with a substantial gross margin of 77%.
While Springbig continues its journey towards profitability, there was a net loss of $10.2 million in 2023, showcasing a notable reduction from the previous year’s $13.1 million loss. Adjusted EBITDA losses narrowed to $3.6 million from $12.6 million, reflecting efficient cost management and operational optimization.
Forward Outlook
With the bolstering of its balance sheet through an $8 million debt financing initiative, Springbig foresees an upward trajectory in 2024. The company projects revenue in the range of $29 to $32 million and a positive Adjusted EBITDA of $3.5 to $5.0 million.