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SpringBig's Q3 2023: Adjusted EBITDA Improvement, 13% YoY Growth In Subscription Revenue

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**SpringBigโ€™s Q3 2023: Enhanced Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), Substantial Growth in Subscription Revenue by 13% Year-over-Year**

![Image Source](https://cdn.benzinga.com/files/images/story/2023/11/13/micheile-henderson-lz_4npfkcv8-unsplash_1.jpg?optimize=medium&dpr=1&auto=webp&height=800&width=1456&fit=crop)

SpringBig Holdings, Inc. (SBIG), a distinguished provider of Software as a Service (SaaS) marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs to the cannabis industry, recently unveiled its financial results for the third quarter ending on September 30, 2023.

โ€œSpringbig delivered another quarter of progress with a further sequential improvement in Adjusted EBITDA and robust year-on-year growth in subscription revenue,โ€ expressed Jeffrey Harris, the CEO and chairman.

**Key Financial Highlights for Q3 2023:**
โ€“ **Revenue**: Reported at $6.9 million, exhibiting a 5% year-on-year decline. However, the subscription revenue witnessed an extraordinary 13% increase year-over-year.
โ€“ **Gross Profit**: Stood at $5.2 million, reflecting a solid margin of 77%.
โ€“ **Adjusted EBITDA**: Despite a loss of $0.9 million, it showcased a notable improvement compared to the prior year, attributed to a 31% reduction in operating expenses year-over-year.
โ€“ **Net Loss**: Totaled $2.7 million, in contrast to a loss of $3.1 million in the previous year.
โ€“ Basic **Net Income Loss** per share was $0.07, based on 41.9 million weighted average shares outstanding. The total shares outstanding as of September 30, 2023, were recorded at 43.5 million.

**Key Financial Highlights for the Nine Months Ended September 30, 2023:**
โ€“ **Revenue**: Elevated to $21.3 million, signifying a significant 7% increase from the previous year.
โ€“ **Subscription Revenue**: A substantial $17.2 million, demonstrating a remarkable year-on-year growth of 19%. Recurring subscription revenue now represents 81% of total revenue compared with 72% in the prior year.
โ€“ **Gross Profit**: Notably surged to $16.8 million, illustrating a 15% year-on-year growth and an impressive margin of 79%.
โ€“ **Adjusted EBITDA Loss**: Posted at $3.4 million, marking a substantial improvement of 64% year-on-year compared to a loss of $9.4 million in the prior year.
โ€“ **Net Loss**: Amounted to $7.0 million, down from a loss of $8.5 million in the previous year.

Operational Highlights:
โ€“ The company added 89 new clients in Q3, contributing to annualized subscription revenue of $0.7 million.
โ€“ Year-to-date messaging volumes rose by 12% year-over-year to 1.7 billion.
โ€“ Furthermore, the launch of โ€˜subscriptions by SpringBigโ€™ provides clients with capabilities for subscription-based VIP loyalty programs.

CFO Paul Sykes emphasized the companyโ€™s aim of achieving positive Adjusted EBITDA in the final quarter and highlighted a 40% reduction in the current operating expense run-rate compared to the previous year. โ€œWe continue to focus on converting our customers to subscription revenue contracts and judiciously managing our working capital,โ€ he concluded.

**Price Action**:

Itโ€™s noteworthy that SBIGโ€™s shares were trading 8.47% down at $0.175 per share on Monday afternoon.

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![Image by Micheile Henderson on Unsplash](https://cdn.benzinga.com/files/images/story/2023/11/13/micheile-henderson-lz_4npfkcv8-unsplash_1.jpg?optimize=medium&dpr=1&auto=webp&height=800&width=1456&fit=crop)

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