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SpringBig Holdings (SBIG)
OTHER OTC:SBIG
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SpringBig Holdings
(OTC:SBIG)
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Select Model
Rating:41Neutral
Price Target:
$0.01
▼(-30.00% Downside)
SpringBig Holdings' overall stock score is significantly impacted by its poor financial performance, characterized by negative revenue growth and financial instability. The technical analysis further indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are unattractive due to ongoing losses and lack of dividend yield. These factors collectively suggest a high-risk investment with limited immediate upside potential.
Positive Factors
Business Model Strength
The subscription-based model provides predictable revenue streams and potential for scalability, supporting long-term business stability.
Gross Profit Margin
A strong gross profit margin indicates efficient cost management and pricing power, which can sustain profitability as revenue grows.
Partnerships
Strategic partnerships expand market reach and customer base, fostering growth and competitive advantage in the cannabis industry.
Negative Factors
Negative Revenue Growth
Declining revenue indicates challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.
Financial Instability
Negative equity highlights financial distress, limiting the company's ability to invest in growth and manage debt effectively.
Operational Losses
Ongoing losses suggest inefficiencies and potential sustainability issues, hindering the company's ability to achieve profitability.
SpringBig Holdings (SBIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$631.13K
Dividend YieldN/A
Average Volume (3M)41.08K
Price to Earnings (P/E)―
Beta (1Y)-0.57
Revenue Growth-15.03%
EPS Growth33.30%
CountryUS
Employees67
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding48,548,770
10 Day Avg. Volume52,406
30 Day Avg. Volume41,080
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-0.19
Price to Sales (P/S)0.08
P/FCF Ratio-1.85
Enterprise Value/Market Cap16.09
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit0.60
Enterprise Value/Ebitda-9.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SpringBig Holdings Business Overview & Revenue Model
Company DescriptionSpringBig Holdings, Inc. operates a software platform that provides customer loyalty and marketing automation solutions to cannabis retailers and brands in the United States and Canada. The company's platform connects consumers with retailers and brands through SMS marketing, emails, customer feedback system, and loyalty programs to support retailers and brands customer engagement and retention. Its reporting and analytics offerings deliver insights that clients utilize to understand their customer base, purchasing habits, and trends. The company was founded in 2016 and is headquartered in Boca Raton, Florida.
How the Company Makes MoneySpringBig generates revenue primarily through a subscription-based model, where cannabis retailers pay for access to its marketing platform and various services. Key revenue streams include monthly or annual subscription fees for software access, transaction fees from loyalty program redemptions, and additional charges for premium features such as advanced analytics and targeted marketing campaigns. The company also benefits from partnerships with cannabis dispensaries and retailers, allowing it to expand its customer base and enhance its service offerings. These partnerships often lead to increased customer engagement and retention, which in turn drives revenue growth for both SpringBig and its clients.
SpringBig Holdings Earnings Call Summary
Earnings Call Date:Mar 12, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
SpringBig showed resilience in revenue growth and reduced expenses, achieving positive EBITDA in December. However, challenges remain with macroeconomic pressures affecting client budgets and revenue projections. The company's expansion into new markets presents growth opportunities.Q4-2023 Updates
Positive Updates
Revenue Growth and Expense Reduction
SpringBig reported a 5% year-on-year revenue growth, reaching $28.1 million for fiscal 2023. Operating expenses were reduced by 17% year-on-year for the full year and by 31% in Q4.
Positive Adjusted EBITDA Achievement
SpringBig achieved its target of delivering positive adjusted EBITDA before the end of the fiscal year, with December being the first profitable month. Q4 adjusted EBITDA loss was reduced to $0.2 million from $3.2 million in the same quarter last year.
Successful Debt Financing
SpringBig secured $8 million in debt financing, strengthening its balance sheet. The financing consisted of a $6.4 million 8% secured convertible note and a $1.6 million 12% secured term loan.
Growth in Subscription Revenues
Subscription revenues increased by 14% year-on-year, representing 79% of total revenue compared to 73% in the prior year.
Expansion Beyond Cannabis Market
SpringBig is expanding its loyalty and messaging platform to other regulated industries such as alcohol, vape, smoke, and CBD, with 10 contracts already in place.
Negative Updates
Macroeconomic Challenges and Client Financial Stress
The company faced challenges due to broader macroeconomic concerns affecting marketing budgets and digital spend, leading to financial stress on clients, particularly in the cannabis industry.
Revenue Decline in Q1 2024 Guidance
Guidance for Q1 2024 indicates a sequential decline in revenue, attributed to seasonality and ongoing macroeconomic challenges.
Churn and Payment Issues with Clients
SpringBig experienced high churn rates and payment issues with some clients, leading to the cessation of services for nonpaying clients.
Gross Margin Impact from Increased Messaging Costs
Gross profit margin decreased in Q4 due to higher message distribution costs charged by telecom operators, impacting overall profitability.
Company Guidance
During the SpringBig Q4 2023 earnings call, the company provided guidance for the first quarter and full year of 2024. They expect Q1 revenue to be between $6.4 million and $6.7 million, with an adjusted EBITDA profit ranging from $0.2 million to $0.4 million. For the full year, they anticipate total revenue to be between $29 million and $32 million, representing a 10% year-on-year growth at the midpoint. The projected adjusted EBITDA profit for the year is estimated between $3.5 million and $5.0 million. SpringBig's CEO, Jeffrey Harris, highlighted the company's strong position, with a 5% revenue growth year-on-year and a significant reduction in operating expenses by 31% in Q4. They reported a positive adjusted EBITDA in December, with a Q4 loss of just $200,000 compared to $3.2 million the previous year. The company also secured $8 million in debt financing to bolster their balance sheet and drive future growth initiatives.SpringBig Holdings Financial Statement Overview
Summary
SpringBig Holdings is facing considerable financial challenges across all verticals. The company has negative revenue growth, consistent operational losses, and strained financial stability with negative equity. While there are slight improvements in free cash flow, the overall financial health remains precarious, necessitating strategic changes to achieve sustainable growth and profitability.Income Statement
SpringBig Holdings has experienced fluctuating revenue with a significant decline to $24.65 million in 2024 from $28.05 million in 2023, indicating a negative revenue growth rate of approximately -12.8%. The gross profit margin remains relatively healthy at around 73%, but the company is struggling with negative EBIT and net profit margins, reflecting ongoing operational challenges and persistent losses.45
Neutral
Balance Sheet
The balance sheet reveals significant financial instability with negative stockholders' equity of -$9.77 million in 2024, indicative of accumulated losses exceeding assets. The debt-to-equity ratio is negative due to the negative equity, highlighting potential solvency issues. The equity ratio is also negative, underscoring financial distress.30
Negative
Cash Flow
Cash flow analysis shows negative free cash flow of -$1.02 million in 2024, marking some improvement from previous years. However, the operating cash flow remains negative, indicating that the company is not generating enough cash from its operations to cover expenses. The free cash flow to net income ratio is not meaningful due to negative figures.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.36M | 24.65M | 28.05M | 26.63M | 24.02M | 15.18M |
| Gross Profit | 16.97M | 17.99M | 21.56M | 19.93M | 17.09M | 10.21M |
| EBITDA | -1.13M | 879.00K | -7.30M | -11.55M | -5.58M | -1.58M |
| Net Income | -2.77M | -1.88M | -10.23M | -13.08M | -5.75M | -1.60M |
Balance Sheet | ||||||
| Total Assets | 5.16M | 6.83M | 5.11M | 9.66M | 7.04M | 12.32M |
| Cash, Cash Equivalents and Short-Term Investments | 1.53M | 1.18M | 331.00K | 3.55M | 2.23M | 10.45M |
| Total Debt | 417.00K | 11.28M | 4.68M | 9.05M | 0.00 | 780.95K |
| Total Liabilities | 16.13M | 16.60M | 13.78M | 13.29M | 2.58M | 2.80M |
| Stockholders Equity | -10.97M | -9.77M | -8.67M | -3.63M | 4.46M | 9.53M |
Cash Flow | ||||||
| Free Cash Flow | 734.00K | -1.02M | -4.33M | -14.67M | -8.14M | -1.20M |
| Operating Cash Flow | 762.00K | -953.00K | -3.98M | -14.52M | -7.88M | -1.00M |
| Investing Cash Flow | -28.00K | -64.00K | -351.00K | -413.00K | -374.00K | -195.37K |
| Financing Cash Flow | -49.00K | 1.86M | 1.11M | 16.25M | 38.00K | 9.02M |
SpringBig Holdings Technical Analysis
Negative
0.02
Price Trends
0.02
Negative
0.03
Negative
0.05
Negative
Market Momentum
>-0.01
Positive
14.50
Positive
-63.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBIG, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 14.50 is Positive, neither overbought nor oversold. The STOCH value of -63.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBIG.
SpringBig Holdings Risk Analysis
SpringBig Holdings disclosed 67 risk factors in its most recent earnings report. SpringBig Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SpringBig Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $720.48M | 451.14 | 4.45% | ― | 22.97% | 49.49% | |
62 Neutral | $521.18M | -8.43 | -41.00% | ― | 6.33% | -66.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $169.79M | 13.47 | 18.24% | ― | 0.59% | ― | |
59 Neutral | $242.28M | -7.86 | -20.20% | ― | -6.23% | 28.57% | |
51 Neutral | $388.95M | -1.83 | -25.34% | ― | -7.43% | 61.36% | |
41 Neutral | $631.13K | -0.27 | ― | ― | -15.03% | 33.30% |
* Technology Sector Average
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SpringBig Holdings
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-60.00%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.