SpringBig's Q3 2023: Adjusted EBITDA Improvement, 13% YoY Growth In Subscription Revenue
Portfolio Pulse from Joana Scopel
SpringBig Holdings, Inc. (OTCQX:SBIG) reported its Q3 2023 financial results, showing a 13% YoY increase in subscription revenue but a 5% decline in overall revenue. The company reduced its Adjusted EBITDA loss to $0.9 million from $3.4 million the previous year and cut its net loss to $2.7 million from $3.1 million. Gross profit margin remained strong at 77%. Operational highlights include adding 89 new clients and launching a new subscription-based VIP loyalty program. CFO Paul Sykes aims for positive Adjusted EBITDA in Q4 and notes a 40% reduction in operating expenses. SBIG's stock fell 8.47% to $0.175 per share.
November 13, 2023 | 11:24 pm
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NEGATIVE IMPACT
SpringBig reported a 13% increase in subscription revenue and improved Adjusted EBITDA loss, but overall revenue declined by 5%. The stock price dropped 8.47% following the earnings release.
Despite the positive growth in subscription revenue and improved Adjusted EBITDA, the decline in overall revenue and the subsequent drop in stock price indicate a negative short-term impact on SBIG's stock. The market's reaction to the earnings report, as evidenced by the 8.47% decline in share price, suggests that investors may have concerns about the company's overall revenue trajectory and profitability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100