Marketwired

Snipp Interactive Inc. Reports Q1 2016 Financial Results

Marketwired

WASHINGTON, DC--(Marketwired - May 30, 2016) - Snipp Interactive Inc. ("Snipp") (TSX VENTURE:SPN)(SNIPF), an international provider of marketing promotions, rebates and loyalty solutions, is pleased to announce its financial results for Q1 2016, ended March 31, 2016. All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete unaudited interim financial statements and management's discussion and analysis are available on SEDAR (www.sedar.com). Exchange rates used for USD to CAD conversions are listed at the end of the press release.

Fiscal Q1 2016 Quarterly Financial Summary

(Refer to Non-GAAP Measures, Gross Margin discussion below)

  • Revenue for Q1 2016 was US $2.1 million with a gross margin of 75% compared to Q1 2015 revenue of US $3.7 million with a gross margin of 4%. Revenue was lower year over year due to the shift towards longer-term, recurring revenue streams such as loyalty. Despite the lower revenues, the gross margin was 1875% higher (the company defines gross margin as revenue less campaign infrastructure costs).

  • Revenue for Q1 2016 was 14% higher than revenue in Q4 2015.

  • The higher margin profile of Q1 2016 is due to the shift in the revenue mix from one off short term promotions and rewards to longer term higher margin loyalty and API licensing deals.

  • Sales bookings (which include recurring revenue streams) for Q1 2016 totaled US $4.5MM in comparison to US $0.8 MM in Q1 2015, an increase of 462%. The current bookings backlog stands at US $6.4 MM. The associated revenue will be recognized through 2017.

  • The company estimates that based on new bookings made in the recently concluded first quarter and previous bookings from 2015, we are already guaranteed over US 6MM in revenue for 2016 which is half of our 2015 full year revenue (US $11.9 MM). The 2016 Revenue number will increase as the current pipeline converts into new bookings over the next three quarters. The margin on this revenue is estimated to be at 70% or higher.

  • The current sales pipeline stands at $24.5MM as of May 23rd, 2016.

  • In Q1 2016 Loyalty and API revenue streams were 43% of total revenue in comparison to 2% for Q1 2015.

  • The last two quarters (Q4 2015 and Q1 2016) have marked the beginning of a new phase for the company's sales with longer and higher value contracts and greater recurring revenues from Loyalty sales, reflecting the increased acceptance of the company's solutions and a shift from one-time promotions to loyalty and embedded API deals.

  • The company had US$4.5 million of current assets at the end of Q1 with no outstanding bank debt. This is prior to the recently concluded equity raise that the company successfully closed in the past few weeks.

and

Recommended Stories