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Snipp Interactive Inc (TSE:SPN)
:SPN
Canadian Market

Snipp Interactive (SPN) AI Stock Analysis

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Snipp Interactive

(SPN)

Rating:49Neutral
Price Target:
Snipp Interactive's overall stock score reflects significant challenges in financial performance due to declining revenue and profitability issues. While the earnings call provided some optimism with record EBITDA and improved margins, technical indicators and valuation metrics remain weak. The stock's attractiveness is limited by ongoing net losses and a lack of dividend yield, suggesting cautious investor sentiment.

Snipp Interactive (SPN) vs. iShares MSCI Canada ETF (EWC)

Snipp Interactive Business Overview & Revenue Model

Company DescriptionSnipp Interactive (SPN) is a global provider of digital marketing promotions, rebates, and loyalty solutions. The company operates primarily in the marketing and advertising sectors, offering a suite of products including mobile marketing, loyalty programs, and customer engagement solutions. Snipp Interactive serves a range of industries, helping brands engage with their consumers through innovative technology-driven solutions.
How the Company Makes MoneySnipp Interactive makes money through a combination of service fees and subscription-based revenue models. The company charges clients for the implementation and management of digital marketing campaigns, which include promotions, contests, and loyalty programs. Additionally, it generates revenue from its software-as-a-service (SaaS) platforms, where clients pay subscription fees to access Snipp's suite of marketing and engagement tools. Significant partnerships with brands and agencies also contribute to its earnings, as these collaborations expand the reach and adoption of its services. The company's ability to deliver measurable marketing results and enhance customer engagement helps in retaining clients and driving recurring revenue.

Snipp Interactive Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q4-2024)
|
% Change Since: 0.00%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Positive
The call highlighted significant achievements in profitability, margin improvement, and strategic growth initiatives, despite a notable revenue decline and temporary trading suspension. The company's strong financial position and strategic partnerships position it well for future growth.
Q4-2024 Updates
Positive Updates
Record EBITDA Achievement
Snipp Interactive delivered the highest annual and quarterly EBITDA in the company's history for the fourth quarter of 2024, reaching $703,000 for the year, a major improvement from a $1.91 million loss in 2023.
Gross Margin Improvement
Gross margin for the year expanded to 61%, up from 31% in 2023. In Q4, gross margin was 62%, up from 39% in the same quarter last year.
International Expansion Success
Snipp continued to expand internationally, with significant progress in Europe, including new contracts with Colgate Palmolive and Hikoki Group across multiple countries.
Strong Backlog and Cash Position
Bookings backlog at year-end stood at $17.3 million, up 30% compared to the end of 2023. The company ended the year with $3.7 million in cash and remains debt-free.
Strategic Partnerships and New Contracts
Snipp signed 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.
Negative Updates
Revenue Decline
Revenue for fiscal 2024 was $22.89 million, down 25% from 2023. Revenue for Q4 totaled $6.83 million, down 14% from Q4 last year. The decline was due to the planned exit of a single 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. The company expects to resume trading on May 20, 2025.
Company Guidance
During the Snipp Interactive Fourth Quarter and Full Fiscal Year 2024 Earnings Conference Call, several key metrics and strategic insights were shared. The company reported a revenue of $22.89 million for fiscal year 2024, representing a 25% decrease from 2023, largely due to the planned exit from a low-margin legacy contract. However, core revenue demonstrated a healthy 28% CAGR over the last three years. Notably, Snipp achieved record EBITDA of $703,000 for the year, a significant improvement from a $1.91 million loss in 2023, with a Q4 EBITDA of $582,000. Gross margins also improved, reaching 61% for the year and 62% in Q4. The company's bookings backlog increased by 30% to $17.3 million. Despite a temporary trading halt due to a delayed audit filing, Snipp remains debt-free with $3.7 million in cash. Strategic achievements included a major contract with a global food and beverage company and ongoing expansion efforts in Europe. Looking ahead, Snipp is focused on leveraging its platform for sustainable growth, supported by a strong pipeline and client momentum. The company is also investing in new products and talent to scale its operations, all while navigating potential market uncertainties.

Snipp Interactive Financial Statement Overview

Summary
Snipp Interactive faces hurdles in revenue growth and profitability, with operational inefficiencies impacting the income statement. The balance sheet shows reasonable leverage and liquidity, but declining equity and cash reserves pose risks. Cash flow management reflects operational resilience but requires attention to improve free cash flow. Strategic improvements in operational efficiency and cost management are crucial for future growth and stability.
Income Statement
45
Neutral
Snipp Interactive has shown volatility in its revenue and profitability. The TTM (Trailing-Twelve-Months) revenue of $24 million is a decline from the previous annual figure of $30.5 million, indicating a revenue contraction. Both gross profit margin (32.5%) and net profit margin (-6.8%) suggest challenges in maintaining profitability, further highlighted by negative EBIT and EBITDA margins. While there are signs of operational inefficiencies, the company has managed to achieve gross profitability.
Balance Sheet
55
Neutral
The balance sheet presents a mixed view. The debt-to-equity ratio is low at 0.08, indicating conservative leverage, yet the return on equity is negative, reflecting operational losses. Equity ratio stands at 39%, showing a reasonable buffer against liabilities. The company's cash reserves provide liquidity but have declined over the past year, indicating potential pressure on financial stability.
Cash Flow
50
Neutral
Snipp Interactive's cash flow metrics depict a challenging scenario with a negative free cash flow in the TTM period, despite positive operating cash flow. The operating cash flow to net income ratio is positive, suggesting operational efficiency; however, the free cash flow to net income ratio is negative, highlighting concerns over capital expenditure management.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
24.03M30.55M24.66M15.28M8.69M8.64M
Gross Profit
7.82M591.87K2.51M3.07M1.17M383.37K
EBIT
-1.77M-2.28M-1.92M583.66K-1.27M-3.40M
EBITDA
-668.53K-2.27M-827.47K1.03M327.43K-1.21M
Net Income Common Stockholders
-1.62M-3.38M-1.39M2.13M-1.32M-7.02M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.53M4.14M5.55M1.74M1.92M848.72K
Total Assets
2.51M13.43M15.50M7.45M6.27M6.78M
Total Debt
0.00526.53K0.000.00294.40K0.00
Net Debt
-1.53M-2.42M-5.55M-1.74M-1.62M-848.72K
Total Liabilities
2.88M7.00M6.16M3.89M4.79M4.37M
Stockholders Equity
-368.70K6.43M9.34M3.56M1.48M2.41M
Cash FlowFree Cash Flow
-74.14K-2.69M-868.81K224.64K695.21K-686.06K
Operating Cash Flow
1.19M-1.40M19.33K1.02M1.47M187.92K
Investing Cash Flow
-1.27M-1.29M-877.81K-1.10M-777.72K-873.98K
Financing Cash Flow
261.01K-14.84K5.07M19.63K294.40K0.00

Snipp Interactive Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.07
Price Trends
50DMA
0.07
Negative
100DMA
0.08
Negative
200DMA
0.08
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
47.50
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPN, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SPN.

Snipp Interactive Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$1.48B17.4714.76%4.01%8.11%15.83%
TSKXS
73
Outperform
C$5.62B404.512.32%15.14%-31.45%
67
Neutral
$1.10B35.0841.12%20.52%246.69%
62
Neutral
$11.70B10.39-7.10%2.92%7.45%-8.42%
54
Neutral
$155.20M-4.68%-34.91%-1331.88%
TSSPN
49
Neutral
C$20.03M-0.29%-18.13%60.10%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SPN
Snipp Interactive
0.07
>-0.01
-12.50%
TSE:ENGH
Enghouse Systems
26.76
-1.16
-4.15%
TSE:QUIS
Quisitive Technology Solutions
0.56
0.22
64.71%
TSE:DCBO
Docebo
37.07
-15.20
-29.08%
TSE:KXS
Kinaxis Inc
199.14
51.69
35.06%

Snipp Interactive Corporate Events

Snipp Interactive Secures $1M+ Contract with Global Health Brand
Jan 14, 2025

Snipp Interactive has secured a three-year contract worth over $1 million with a leading global health and hygiene products company, showcasing its successful ‘land and expand’ strategy. This agreement highlights Snipp’s ability to provide scalable solutions that enhance customer engagement and profitability, reinforcing its market position and trust among global consumer brands.

Snipp Interactive Secures $1.2M Contract for Financial Media Network
Jan 7, 2025

Snipp Interactive has secured a significant $1.2 million contract for its financial media network, SnippMEDIA, with a major global food and beverage company. This agreement marks a milestone for SnippMEDIA and highlights Snipp’s growing influence in consumer engagement within the financial media sector. The platform’s ability to deliver AI-powered, targeted promotions is expected to further expand its reach and attract more enterprise clients, strengthening Snipp’s industry position and facilitating growth in the loyalty and promotions marketplace.

Snipp Interactive Featured in Forbes 2025 Predictions
Dec 18, 2024

Snipp Interactive has been recognized in Forbes’ 2025 Customer Experience Predictions, highlighting the company’s innovative leadership in loyalty and promotional solutions. With insights from its experts prominently featured alongside industry titans, Snipp reaffirms its strategic role in enhancing customer engagement for global brands.

Snipp Interactive Partners with YouNet for Efficiency Boost
Dec 11, 2024

Snipp Interactive Inc. has announced a strategic partnership with YouNet to enhance operational efficiencies by integrating AI-driven solutions. This collaboration aims to streamline processes, improve customer experience, and boost profitability by automating key functions such as customer support and data personalization.

Snipp Interactive Reports Meeting Success and Future Plans
Dec 9, 2024

Snipp Interactive Inc. successfully held its annual general meeting, re-electing its board members and securing shareholder approval for its amended stock option plan. The company continues to lead in the loyalty and promotions sector with its versatile platform, providing valuable data insights and innovative solutions for global clients.

Snipp Interactive Reports Strong Q3 2024 Results
Nov 5, 2024

Snipp Interactive has reported a strong increase in its Q3 2024 EBITDA, driven by robust core revenue growth and improved margins. With over $6 million in quarterly revenue and a debt-free status, the company is poised for continued growth heading into 2025. These preliminary financial results highlight Snipp’s strategic focus on high-margin contracts and operational efficiencies.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.