Snipp Interactive’s Earnings Call Highlights Growth Amid Challenges

Snipp Interactive ((TSE:SPN)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Snipp Interactive was marked by a positive sentiment, despite some challenges. The company showcased significant achievements in profitability and margin improvement, alongside strategic growth initiatives. While there was a notable revenue decline and temporary trading suspension, Snipp’s strong financial position and strategic partnerships have positioned it well for future growth.

Record EBITDA Achievement

Snipp Interactive reported its highest annual and quarterly EBITDA in the company’s history during the fourth quarter of 2024. The company achieved an EBITDA of $703,000 for the year, a remarkable turnaround from a $1.91 million loss in 2023. This achievement underscores the company’s focus on improving operational efficiency and profitability.

Gross Margin Improvement

The company saw a significant improvement in its gross margins, which expanded to 61% for the year, up from 31% in 2023. In the fourth quarter, the gross margin was 62%, compared to 39% in the same quarter last year. This improvement reflects Snipp’s ability to manage costs effectively and enhance its profit margins.

International Expansion Success

Snipp continued its international expansion with notable success in Europe. The company secured new contracts with major clients such as Colgate Palmolive and Hikoki Group across multiple countries, highlighting its growing global footprint and ability to attract significant international business.

Strong Backlog and Cash Position

At the end of the year, Snipp’s bookings backlog stood at $17.3 million, marking a 30% increase compared to the end of 2023. The company also maintained a strong cash position with $3.7 million and remained debt-free, providing a solid foundation for future growth initiatives.

Strategic Partnerships and New Contracts

The company announced a major contract with one of the world’s largest food and beverage companies and expanded its financial media network in partnership with Bank of America. These strategic partnerships are expected to drive further growth and enhance Snipp’s market presence.

Revenue Decline

Despite the positive developments, Snipp reported a revenue decline for fiscal 2024, with revenues totaling $22.89 million, down 25% from 2023. The fourth quarter revenue was $6.83 million, a 14% decrease from the same period last year. This decline was attributed to the planned exit from a low-margin legacy contract.

Delayed Audit Filing and Trading Suspension

The company’s audit filing was delayed due to a last-minute IT systems test by the auditor, resulting in a temporary trading suspension. Snipp expects to resume trading on May 20, 2025. Despite this setback, the company remains optimistic about its future prospects.

Forward-Looking Guidance

Looking ahead, Snipp Interactive is focused on leveraging its platform for sustainable growth. The company plans to capitalize on its strong pipeline and client momentum, investing in new products and talent to scale operations. Despite potential market uncertainties, Snipp is committed to maintaining its growth trajectory and enhancing shareholder value.

In conclusion, Snipp Interactive’s earnings call highlighted a positive outlook, driven by record profitability and strategic growth initiatives. While challenges such as revenue decline and trading suspension were noted, the company’s strong financial position and strategic partnerships provide a solid foundation for future success.