VANCOUVER, BC / ACCESSWIRE / May 31, 2021 / Snipp Interactive Inc. (“Snipp” or the “Company”) (TSX-V: SPN) (OTC PINK: SNIPF), a global provider of digital marketing promotions, discounts and loyalty solutions, reports financial results for the first quarter of 2021. All results are presented in accordance with International Financial Reporting Standards (“IFRS”) and in US dollars. A copy of the complete unaudited interim financial statements and MD&A are available on SEDAR (www.sedar.com).
Highlights for the first quarter of 2021
(See discussion of Non-GAAP Measures, Gross Margin, EBITDA and Backlog below)
- Q1 2021 revenue increased 8% from Q1 2020. Q1 2021 revenue was $ 2,569,958, compared to $ 2,373,212 in Q1 2020.
- The gross margin in Q1 2021 was 68% compared to 73% in Q1 2020.
- Q1 2021 EBITDA increased 233% from Q1 2020, an improvement in EBITDA of $ 107,687. Q1 2021 EBITDA was $ 153,948 compared to Q1 2020 EBITDA of $ 46,261.
- The backlog (programs sold, but for which revenues have not yet been recognized) amounted to $ 7.5 million as of March 31, 2021, an increase of 60% compared to March 31, 2020 of 4.7 M $.
“The first quarter of 2021 represents our fifth consecutive quarter with positive EBITDA. We continue to focus on accelerating our revenue growth as we deliver positive EBITDA. The success of our strategy is evident as we continue to enter new geographic markets and new industry segments. The significant growth in our backlog should give investors confidence that our revenue growth will continue to expand over the next few quarters as our bookings materialize into recognized revenue. Therefore, 2021 promises to be a year of significant and profitable growth for the company, ”said Atul Sabharwal, Founder and CEO.
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.
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).
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:
|Ended months||Ended months|
|March 31, 2021||March 31, 2020|
Net loss before interest, foreign exchange, other income and taxes
Amortization of intangible assets
|2 249||5 522|
Here are the gross margin calculations:
|Ended months||Ended months|
|March 31, 2021||March 31, 2020|
|824 621||630 507|
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 necessary to design, execute and promote client programs. SnippCheck, our receipt processing engine, is the market leader in receipt-based purchase validation; SnippLoyalty is the only unified loyalty solution in the CPG brand market. 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.
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Snipp Interactive Inc.
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”, “will”, “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.
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SOURCE: Snipp Interactive Inc.
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