Release Date: June 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue grew 37% year over year to $6.4 million, indicating strong business performance.
- Gross margins expanded to 60%, reflecting improved cost efficiency and revenue mix.
- The company delivered its fourth consecutive quarter of positive EBITDA, marking a $0.9 million improvement over the same period last year.
- Operating cash flow reached $2.3 million, the highest quarterly total in the company's history.
- Bookings backlog increased by 16% year over year to $17.9 million, providing strong visibility into future revenue.
Negative Points
- The current environment creates unpredictability in quarter-to-quarter bookings, with some client decision-making taking longer.
- Snip Media, a new product, is still in its early stages and is not expected to contribute meaningfully to revenue until later in the year.
- The company experienced prior audit delays due to legacy internal processes and resource constraints, causing frustration among investors.
- There is a working capital deficit of $132,000, raising concerns about meeting near-term obligations without raising funds.
- The company is not currently planning to use its strong cash position for dividends or share repurchases, focusing instead on reinvesting in growth.
Q & A Highlights
Q: Can you elaborate on the accounts receivable changes and any seasonality or one-time factors affecting it?
A: Atul Sabharwal, CEO: The accounts receivable changes reflect growth with our clients and increased business, not any single deal. There might be some seasonality, but it's not material. The current environment is unpredictable, with clients hedging against potential recession, leading to more short-term programs.
Q: What are the main growth drivers for the next 12 to 24 months?
A: Atul Sabharwal, CEO: Our strategy is to "land and expand" with existing clients and enter new industries. We're focusing on selling more products to current clients and expanding geographically. We're also exploring new markets like media and financial services.
Q: Can you update us on the banking initiatives and their progress?
A: Atul Sabharwal, CEO: Our banking relationships with Bank of America and PNC Bank are strong, with our media product integrated into their apps. We're expanding into credit unions and exploring opportunities with unmonetized audiences in the financial sector.
Q: Are there plans for dividends, share repurchases, or acquisitions given the strong cash position?
A: Atul Sabharwal, CEO: We plan to reinvest capital into growing the business rather than distributing it. Share repurchases are not currently considered, but we are open to transformational acquisitions if the right opportunity arises.
Q: How does Snipp Interactive plan to leverage AI and data science for competitive advantage?
A: Atul Sabharwal, CEO: Our unique data sets are crucial for AI engines. We generate and control the data needed for effective AI applications. We're investing in AI capabilities, which enhance our value proposition and support personalized marketing strategies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
