In This Article:
Release Date: December 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Snipp Interactive Inc (SNIPF) reported a record EBITDA of $708,649 for Q3 2024, marking a significant turnaround from a $600,000 EBITDA loss in the first half of the year.
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Gross margins improved dramatically to 62% in Q3 2024, up from 32% in the same period last year, due to strategic shifts away from lower-margin contracts.
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The company achieved a positive EBITDA of $120,866 for the first nine months of 2024, a strong improvement from a $1.94 million loss in the same period last year.
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Snipp Interactive Inc (SNIPF) ended Q3 2024 with a record bookings backlog of $15.5 million, indicating strong future growth potential.
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The company remains debt-free with an increased cash balance of $4.6 million as of September 30, 2024, up from $2.9 million at the end of 2023.
Negative Points
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Q3 2024 revenue was $6.65 million, down 22% year-over-year, primarily due to the termination of a single low-margin contract.
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Year-to-date net loss remains at $1.4 million, which includes $1.6 million in non-cash expenses.
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Despite improvements, the company still faces challenges in fully monetizing its Gambit asset, with no immediate plans for its sale.
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The company has not yet finalized plans for stock consolidation or moving to US exchanges, which could impact shareholder value.
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Salaries, wages, and benefits increased by about $400,000 on a sequential basis, reflecting higher operational costs.
Q & A Highlights
Q: Can you speak on the deferred revenue? A: Deferred revenue represents clients who prepay us for contracts. This revenue will convert into recognized revenue as the programs go live.
Q: Can you comment on strategic plans for Gambit? A: We inherited a contract with Gambit that affected our margins. We chose not to renew it on the same terms and have since integrated Gambit into our platform. We plan to relaunch Gambit aligned with Snipp's brand, focusing on incorporating it into our loyalty platform for sports betting incentives.
Q: What is the status of stock consolidation? Is that still on the table? A: Stock consolidation is still on the table, along with potentially moving to US exchanges if it benefits shareholder value. We have shareholder approval for consolidation but have not decided when to execute it.
Q: Can you speak on the value of active monthly users regarding Snipp Media? A: Active users are crucial for breaking the chicken-and-egg scenario between advertisers and users. Investors typically value an active user at about $40. Growing our active user base is essential for attracting brand spending on our media platform.