TORONTO, April 03, 2018 (GLOBE NEWSWIRE) --
Snipp Interactive Inc. ("Snipp" or the “Company”) (OTCQB:SNIPF)
(TSX-V:SPNV), a global provider of digital marketing promotions,
rebates and loyalty solutions, is pleased to announce its financial
results for Q4 2017 and the year ended December 31, 2017 (“Fiscal
2017”). All results are reported under International Financial
Reporting Standards ("IFRS") and in US dollars. A copy of the
complete audited financial statements and management's discussion
and analysis are available on SEDAR (www.sedar.com).
Q4 2017 and Fiscal 2017
Highlights
(Refer to Non-GAAP Measures, Gross Margin,
EBITDA and Bookings Backlog discussion below)
- Revenue for Q4 2017 increased by 29% compared to Q4 2016.
Revenue for Q4 2017 was $3.84MM compared to revenue for Q4 2016 of
$2.99MM.
- Revenue for Fiscal 2017 increased by 15% compared to Fiscal
2016. Revenue for Fiscal 2017 was $12.88MM compared to revenue for
Fiscal 2016 of $11.22MM.
- EBITDA in Q4 2017 improved by 83% compared to Q4 2016, an
EBITDA improvement of $1,080,597. Q4 2017 EBITDA loss was $0.22M vs
Q4 2016 EBITDA loss of $1.30MM.
- EBITDA in Fiscal 2017 improved by 70% compared to Fiscal 2016,
an EBITDA improvement of $4,551,329. Fiscal 2017 EBITDA loss was
$1.92M vs Fiscal 2016 EBITDA loss of $6.47MM.
- Bookings for Q4 2017 improved by 45% compared to Q4 2016, an
improvement of $1,266,293. Q4 2017 Bookings were $4.07MM vs Q4 2016
Bookings of $2.80MM
- Bookings Backlog (programs that have been sold, but whose
revenues have not yet been recognized) stood at $5.7MM at December
31, 2017, an increase of 35% compared to Bookings Backlog at
December 31, 2016 of $4.2MM.
- Gross margins improved in Q4 2017 by 5% from 61% in Q4 2016 to
66% in Q4 2017.
- Gross margins improved in Fiscal 2017 by 4% from 66% in Fiscal
2016 to 70% in Fiscal 2017.
- The Company continued to focus on cost improvements from its
integration efforts, resulting in the following Q4 2017 cost
savings compared to Q4 2016:
- Salaries and compensation expenses decreased by approximately
US $197k or 8%;
- General and administrative expenses decreased by approximately
US $82k or 22%;
- Professional fees decreased by approximately US $69k or
46%;
- Marketing and investor relations expenses decreased by
approximately US $34k or 73%;
- The following are cost savings recognized in the year ended
December 31, 2017 compared to the year ended December 31, 2016:
- Salaries and compensation expenses decreased by approximately
US $2.3MM or 20%;
- General and administrative expenses decreased by approximately
US $278k or 20%;
- Professional fees decreased by approximately US $150k or
36%;
- Marketing and investor relations expenses decreased by
approximately US $152k or 62%;
- Travel expenses decreased by approximately US $218k or
72%;
- The Company was ranked 114th on Deloitte’s Technology Fast
500™, a ranking of the 500 fastest growing technology, media,
telecommunications, life sciences and energy tech companies in
North America. Deloitte’s Technology Fast 500 provides a ranking of
the fastest growing technology, media, telecommunications, life
sciences and energy tech companies – both public and private – in
North America. Technology Fast 500 award winners are selected based
on percentage fiscal year revenue growth from 2014 to 2016. Snipp
grew 1189% percent during this period.
“We are extremely pleased with our Q4 and Full
year 2017 results. The company has come a long way from the days of
having only one technical solution - our industry leading receipt
processing engine, to today; where we can now compete across
multiple industries through robust solutions like our Loyalty and
Rebates platforms,” commented Atul Sabharwal, CEO and Founder of
Snipp. “We look forward to 2018 as we focus on reaching consistent
profitability and taking advantage of strategic opportunities in
both new and existing markets. Repeat business from our current
clients is picking up, but new industries such as Hospitality and
Cannabis will provide further avenues of growth well into the
future. The tremendous success of our recently announced Cannabis
Marketing Resource Center gives us an added level of confidence in
2018. This is familiar ground for us, similar to other regulated
industries where we already have an established position. So our
timing is perfect in educating and engaging with many of the
industry leaders prior to the revenue ramp that will begin in the
Cannabis industry later this year.”
Snipp has also posted an updated investor
presentation on its website at the following URL
http://www.snipp.com/presentations/
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 supplemental financial
information that is useful in the evaluation of the Company's
operations.
Investors should be cautioned, however, that
these measures should not be construed as alternatives to measures
determined in accordance with GAAP and IFRS as an indicator of
Snipp's performance. The Company's method of calculating these
measures may differ from that of other organizations, and
accordingly, these may not be comparable.
EBITDA
Snipp defines earnings before interest, taxes,
depreciation and amortization (“EBITDA”) as revenue minus operating
expenses excluding non-cash operating expenses of stock-based
compensation, depreciation and amortization (interest and taxes are
not included in the Company’s operating expenses).
Gross Margin
Snipp defines Gross Margin as revenue less
campaign infrastructure. The Company's calculation of Gross Margin
is not a financial measure that is recognized under GAAP. Investors
should be cautioned that the Company's defined Gross Margin should
not be construed as an alternative measure to other measures
determined in accordance with GAAP.
Bookings Backlog
Snipp defines Bookings Backlog as future revenue
from existing customer contracts to be recognized in future
quarters in the current fiscal year and the next fiscal year.
Bookings get translated into revenues based on IFRS principles and
the Bookings Backlog reflects how revenues in future quarters in
the current fiscal year and next fiscal year are steadily being
booked today.
For More Information
CONFERENCE CALL DETAILS:
In conjunction with this announcement, Snipp
management will host a conference call and live webcast for
analysts and investors on Tuesday, April 3, 2018 at 10:00 a.m.
Eastern Time to discuss the Company’s financial results.
To listen to the live conference call, parties
in the United States and Canada should dial 800-281-7973, access
code 6384966. International parties should call 323-794-2093 using
the same access code 6384966. Please dial in approximately 15
minutes prior to the start of the call.
A live and archived webcast of the conference
call will be accessible on the “Investors” section of the Company’s
website under “Presentations” at www.snipp.com. To access the live
webcast, please log in 15 minutes prior to the start of the call to
download and install any necessary audio software.
The Following are calculations of EBITDA:
|
Three |
Three |
Year |
Year |
|
Months
Ended |
Months
Ended |
Ended |
Ended |
|
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2016 |
|
USD |
USD |
USD |
USD |
Net loss before interest, foreign exchange, change in fair value of
derivative liability, change in fair value of acquisition
consideration payable in equity and taxes |
(809,233) |
(1,017,509) |
(4,241,303) |
(9,114,587) |
|
|
|
|
|
Amortization of intangibles |
454,428 |
(65,224) |
1,714,339 |
1,472,943 |
Depreciation of equipment |
9,869 |
15,576 |
45,825 |
51,627 |
Stock-based compensation |
126,706 |
(231,670) |
560,093 |
1,117,642 |
|
|
|
|
|
EBITDA |
(218,230) |
(1,298,827) |
(1,921,046) |
(6,472,375) |
The Following are calculations of Gross
Margin:
|
Three |
Three |
Year |
Year |
|
Months
Ended |
Months
Ended |
Ended |
Ended |
|
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2016 |
|
USD |
USD |
USD |
USD |
Revenue |
3,843,326 |
2,985,774 |
12,879,019 |
11,223,727 |
|
|
|
|
|
Less: |
|
|
|
|
Campaign infrastructure |
1,293,039 |
1,171,244 |
3,808,721 |
3,808,736 |
|
|
|
|
|
Gross Margin |
2,550,287 |
1,814,530 |
9,070,298 |
7,414,991 |
Q4’ 2017 Financials
CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION |
|
|
Expressed in U.S.
Dollars |
|
|
As at |
|
|
|
December 31, 2017 |
December 31, 2016 |
|
|
|
ASSETS |
|
|
|
|
|
Current |
|
|
Cash |
386,630 |
2,375,619 |
Accounts receivable, net of allowance for doubtful accounts
of |
3,815,278 |
4,242,388 |
$24,693 (2016 - $70,811) |
|
|
Deposits, prepaid expenses and other assets |
498,151 |
286,592 |
|
|
|
|
4,700,059 |
6,904,599 |
|
|
|
Equipment |
66,329 |
105,839 |
Intangible assets |
5,121,845 |
5,484,587 |
Goodwill |
3,343,129 |
3,343,129 |
|
|
|
|
13,231,362 |
15,838,154 |
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current |
|
|
Accounts payable and accrued liabilities |
2,542,885 |
2,676,646 |
Deferred revenue |
959,881 |
1,961,622 |
Due
to related parties |
44,972 |
76,610 |
Working Capital Line of Credit |
933,159 |
2,000,000 |
|
|
|
|
4,480,897 |
6,714,878 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
Common shares |
26,186,684 |
22,815,647 |
Warrants |
421,796 |
421,796 |
Contributed surplus |
4,797,541 |
4,237,448 |
Deficit |
(21,395,878) |
(16,952,007) |
Accumulated other comprehensive loss |
(1,259,678) |
(1,399,608) |
|
|
|
|
8,750,465 |
9,123,276 |
|
|
|
|
13,231,362 |
15,838,154 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
Expressed in U.S. Dollars |
|
|
|
Three |
Three |
|
Months Ended |
Months Ended |
|
December 31, 2017 |
December 31, 2016 |
|
|
|
REVENUE |
3,843,326 |
|
2,985,774 |
|
|
|
|
EXPENSES |
|
|
Salaries and
compensation |
2,281,651 |
|
2,478,541 |
|
General and
administrative |
285,645 |
|
368,131 |
|
Campaign
infrastructure |
1,293,039 |
|
1,171,244 |
|
Professional fees |
79,183 |
|
147,733 |
|
Marketing and investor
relations |
12,462 |
|
46,195 |
|
Travel |
31,333 |
|
21,347 |
|
Bad debt expense |
78,243 |
|
51,410 |
|
Amortization of
intangibles |
454,428 |
|
(65,224 |
) |
Depreciation of
equipment |
9,869 |
|
15,576 |
|
Stock-based compensation |
126,706 |
|
(231,670 |
) |
|
4,652,559 |
|
4,003,283 |
|
Net loss before
interest, foreign exchange and taxes |
(809,233 |
) |
(1,017,509 |
) |
|
|
|
Interest expense |
(21,229 |
) |
(5,459 |
) |
Foreign exchange (loss)
gain |
(10,352 |
) |
1,136 |
|
Net loss before tax
provision |
(840,814 |
) |
(1,021,832 |
) |
Provision for
taxes |
(43,484 |
) |
- |
|
Net loss for the year |
(884,298 |
) |
(1,021,832 |
) |
OTHER COMPREHENSIVE LOSS |
|
|
Items that may be reclassified subsequently to
loss |
|
|
Cumulative translation
adjustment |
115,912 |
|
(29,316 |
) |
Comprehensive loss for the period |
(768,386 |
) |
(1,051,148 |
) |
Basic and diluted loss per common share |
(0.00 |
) |
(0.01 |
) |
Weighted average number of common shares outstanding –
basic and diluted |
177,545,371 |
|
132,536,675 |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|
Expressed in U.S. Dollars |
|
|
|
Year |
Year |
|
Ended |
Ended |
|
December 31, 2017 |
December 31, 2016 |
|
|
|
REVENUE |
12,879,019 |
11,223,727 |
|
|
|
EXPENSES |
|
|
Salaries and
compensation |
9,175,637 |
11,448,476 |
General and
administrative |
1,145,136 |
1,422,822 |
Campaign
infrastructure |
3,808,721 |
3,808,736 |
Professional fees |
265,875 |
415,988 |
Marketing and investor
relations |
92,138 |
244,119 |
Travel |
86,473 |
304,551 |
Bad debt expense |
226,085 |
51,410 |
Amortization of
intangibles |
1,714,339 |
1,472,943 |
Depreciation of
equipment |
45,825 |
51,627 |
Stock-based compensation |
560,093 |
1,117,642 |
|
17,120,322 |
20,338,314 |
Net loss before
interest, foreign exchange, change in fair value of derivative
liability, change in fair value of acquisition consideration
payable in equity and taxes |
(4,241,303) |
(9,114,587) |
|
|
|
Interest income
(expense) |
(93,583) |
467 |
Foreign exchange
loss |
(65,501) |
(27,816) |
Change in fair value of
derivative liability |
- |
31,834 |
Change in fair value of
acquisition consideration payable in equity |
- |
537,380 |
Net loss before tax
provision |
(4,400,387) |
(8,572,722) |
Provision for
taxes |
(43,484) |
- |
Net loss for the year |
(4,443,871) |
(8,572,722) |
OTHER COMPREHENSIVE LOSS |
|
|
Items that may be reclassified subsequently to
loss |
|
|
Cumulative translation
adjustment |
139,930 |
(365,198) |
Comprehensive loss for the period |
(4,303,941) |
(8,937,920) |
Basic and diluted loss per common share |
(0.03) |
(0.07) |
Weighted average number of common shares outstanding –
basic and diluted |
157,529,807 |
122,906,690 |
|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
|
|
Expressed in U.S. Dollars |
|
|
|
Year |
Year |
|
Ended |
Ended |
|
December 31, 2017 |
December 31, 2016 |
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
Net
loss for the year |
(4,443,871) |
(8,572,722) |
Items
not involving cash: |
|
|
Amortization of intangibles |
1,714,339 |
1,472,943 |
Depreciation of equipment |
45,825 |
51,627 |
Stock-based compensation |
560,093 |
1,117,642 |
Change in fair value of derivative liability |
- |
(31,834) |
Change in fair value of acquisition consideration payable in
equity |
- |
(537,381) |
Changes in non-cash working capital items: |
|
|
Accounts receivable |
427,110 |
(1,300,575) |
Deposits, prepaid expenses and other assets |
(211,559) |
30,275 |
Accounts payable and accrued liabilities |
(133,761) |
406,563 |
Deferred revenue |
(1,001,741) |
1,069,857 |
Due
to related parties |
(31,638) |
(480,445) |
|
|
|
Net cash flows used in
operating activities |
(3,075,203) |
(6,774,050) |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
Additions to equipment |
(6,315) |
(35,507) |
Additions to intangible assets |
(1,351,597) |
(1,639,771) |
Due
to Swiss Post |
- |
(861,956) |
|
|
|
Net cash flows used in
investing activities |
(1,357,912) |
(2,537,234) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
Proceeds from common shares issued |
3,375,076 |
5,275,554 |
Share
issuance costs |
(19,927) |
(72,860) |
Proceeds from warrants exercised |
- |
17,268 |
Proceeds from options exercised |
15,888 |
14,600 |
Proceeds from working capital line of credit |
(1,066,841) |
2,000,000 |
|
|
|
Net cash flows provided
by financing activities |
2,304,196 |
7,234,442 |
|
|
|
Effect of exchange rate changes on cash |
139,930 |
(244,156) |
|
|
|
Change in cash for the year |
(1,988,989) |
(2,320,998) |
|
|
|
Cash and cash equivalents, beginning of year |
2,375,619 |
4,696,617 |
|
|
|
Cash and cash equivalents, end of year |
386,630 |
2,375,619 |
About Snipp:
Snipp is a global loyalty and promotions company
with a singular focus: to develop disruptive engagement platforms
that generate insights and drive sales. Our solutions include
shopper marketing promotions, loyalty, rewards, rebates 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 for receipt-based purchase validation; SnippLoyalty is the
only unified loyalty solution in the market for CPG brands. Snipp
has powered hundreds of programs for Fortune 1000 brands and
world-class agencies and partners.
Snipp is headquartered in Toronto, Canada with
offices across the United States, Canada, Ireland, Europe, and
India. The company is publicly listed on the OTCQB, of the OTC
market in the United States of America, and on the Toronto Stock
Venture Exchange (TSX) in Canada. Snipp was selected to the TSX
Venture 50®, an annual ranking of the strongest performing
companies on the TSX Venture Exchange, in 2015 and 2016. SNIPP IS
RANKED AMONGST THE TOP 500 FASTEST GROWING COMPANIES IN NORTH
AMERICA On Deloitte’s 2017 Technology Fast 500™ List, for the
second year in a row.
FOR FURTHER INFORMATION PLEASE CONTACT:
MKR Group, Inc.
Todd Kehrli / Mark Forney
snipp@mkr-group.com
Snipp Interactive Inc.
Jaisun Garcha
Chief Financial Officer
investors@snipp.com
Cautionary Note 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",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions 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.
Many factors could cause our actual results to differ materially
from the statements made, including those factors discussed in
filings made by us with the Canadian securities regulatory
authorities. Should one or more of these risks and uncertainties,
such as changes in demand for and prices for the products of the
company or the materials required to produce those products, labour
relations problems, currency and interest rate fluctuations,
increased competition and general economic and market factors,
occur or should assumptions underlying the forward looking
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, or
expected. We do not intend and do not assume any obligation to
update these forward-looking statements, except as required by law.
The reader is cautioned not to put undue reliance on such
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.
Snipp Interactive (PK) (USOTC:SNIPF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Snipp Interactive (PK) (USOTC:SNIPF)
Historical Stock Chart
From Apr 2023 to Apr 2024