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SpringBig Holdings, Inc. (SBIG)·Q2 2024 Earnings Summary

Executive Summary

  • Springbig delivered Q2 2024 revenue of $6.61M and a second consecutive quarter of positive Adjusted EBITDA ($0.33M), with operating expenses down 36% YoY and gross margin at 71% .
  • Year-to-date Adjusted EBITDA reached $0.5M, a $3.0M YoY improvement, driven by disciplined cost optimization and clients managing messaging volumes more tightly amid macro pressures .
  • Management guided Q3 2024 revenue to $6.5–$6.8M and Adjusted EBITDA to $0.5–$0.8M, indicating sequential EBITDA improvement as cost reductions persist and new offerings gain traction .
  • Wall Street consensus (S&P Global) for Q2 2024 was unavailable; therefore, estimate beats/misses cannot be assessed. The call transcript for Q2 2024 was not found in our document system or investor site archives; analysis relies on the 8-K and press release .

What Went Well and What Went Wrong

What Went Well

  • Second straight positive Adjusted EBITDA with $0.33M in Q2; year-to-date Adjusted EBITDA of $0.5M represents a $3.0M YoY improvement as operating expenses were reduced 36% YoY .
  • Subscription revenue remained resilient at 83% of total ($5.5M), supporting revenue durability in challenging conditions; gross margin healthy at 71% .
  • Management highlighted traction for “subscriptions by Springbig” and “gift cards by Springbig,” noting “we continue to make good progress… gaining traction as our clients increasingly recognize the value and benefits of our broader suite of offerings” (CEO Jeffrey Harris) .

What Went Wrong

  • Revenue declined 8% YoY to $6.61M due to clients being “increasingly budget-conscious in managing their messaging volumes… to avoid excess fees and churn… due to some clients being financially stressed” (CFO Paul Sykes), signaling macro pressure on usage-based revenue .
  • Net loss of $(0.65)M persists despite cost cuts; interest expense ($0.54M) and warrant fair value changes weighed on reported results .
  • Cash balance of $0.72M is modest versus current maturities of debt ($7.39M), highlighting liquidity constraints despite recent financings; operating cash flow was $(1.92)M in 1H24 .

Financial Results

MetricQ2 2023Q1 2024Q2 2024
Revenue ($USD Millions)$7.214 $6.5 $6.612
Gross Profit ($USD Millions)$5.703 $4.7 $4.697
Gross Profit Margin %79.0% (calc from )72.0% 71.0%
Operating Expenses ($USD Millions)$7.476 $5.0 $4.754
Net Income ($USD Millions)$(2.028) $0.4 (incl. $1.6M gain on debt repurchase) $(0.647)
Diluted EPS ($USD)$(0.06) $0.01 $(0.01)
Adjusted EBITDA ($USD Millions)$(1.138) $0.2 $0.330

KPIs

KPIQ2 2023Q1 2024Q2 2024
Subscription Revenue ($USD Millions)$5.6 $5.4 $5.5
Subscription Revenue (% of Total)—83% 83%
Weighted Avg Shares (Millions)31.490 45.577 45.722
Total Shares Outstanding (Millions)—45.340 46.148
Cash and Equivalents ($USD Millions)—$0.331 $0.724
Current Maturities of Debt ($USD Millions)—$4.360 $7.391

Note: Segment reporting is not applicable; the company reports consolidated results .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2024$6.5–$7.0M — (actual delivered $6.612M) Achieved within range
Adjusted EBITDAQ2 2024$0.3–$0.6M — (actual delivered $0.33M) Achieved within range
RevenueQ3 2024—$6.5–$6.8M New
Adjusted EBITDAQ3 2024—$0.5–$0.8M New
RevenueFY 2024$29–$32M $29–$32M (unchanged per prior guidance) Maintained
Adjusted EBITDAFY 2024$3.5–$5.0M $3.5–$5.0M (unchanged per prior guidance) Maintained

Earnings Call Themes & Trends

Note: A Q2 2024 call transcript could not be located in our document system or investor site archives; themes compiled from press releases and filings .

TopicPrevious Mentions (Q4 2023)Previous Mentions (Q1 2024)Current Period (Q2 2024)Trend
New product adoption (subscriptions, gift cards)Launches highlighted; expected to drive 2024 growth “Gaining traction”; diversification beyond cannabis “Gaining traction” cited as revenue support Improving adoption
Cost optimization / OpEx disciplineOpEx down 31% YoY OpEx down 34% YoY OpEx down 36% YoY; driving positive Adj. EBITDA Strengthening
Client budget discipline and messaging volumes——Clients managing volumes to avoid extra fees; churn risk among financially stressed clients Headwind persists
Profitability trajectory (Adj. EBITDA)Adj. EBITDA loss; aiming for 12–15% margin in 2024 First positive Adj. EBITDA; improving trend Second positive Adj. EBITDA; Q3 guide higher Improving

Management Commentary

  • CEO Jeffrey Harris: “We continue to make good progress… our newer offerings… are gaining traction… we are pleased to report 2% quarter-over-quarter revenue growth in challenging macroeconomic conditions” .
  • CFO Paul Sykes: “We are reporting a second quarter with positive Adjusted EBITDA*, and our seventh consecutive quarter of improving Adjusted EBITDA*… achieved in a period where we have experienced a 9% decline in revenue due to clients being increasingly budget-conscious… to avoid excess fees and churn arising due to some clients being financially stressed” .

Q&A Highlights

  • A Q2 2024 earnings call transcript could not be found in our system or on the investor site; Q&A highlights are therefore unavailable .

Estimates Context

  • S&P Global Wall Street consensus estimates for Q2 2024 (revenue, EPS) were not retrievable at this time due to data-access limits; estimate comparisons are unavailable. Values would otherwise be retrieved from S&P Global.

Key Takeaways for Investors

  • Positive EBITDA momentum: second straight quarter of positive Adjusted EBITDA ($0.33M) with Q3 guidance implying sequential improvement ($0.5–$0.8M), supported by sustained OpEx control .
  • Revenue stability amid macro headwinds: subscription mix at 83% continues to anchor revenue durability, though usage-driven messaging volumes remain pressured as clients manage within plans to limit overage fees .
  • Cost discipline is the near-term driver: 36% YoY OpEx reduction offsetting revenue softness; continued leverage is the primary path to EBITDA expansion in 2H24 .
  • Liquidity/obligations: low cash ($0.72M) versus current maturities of debt ($7.39M) frames balance sheet prudence; financing steps earlier in 2024 strengthened structure but cash generation remains a focus .
  • Product-led diversification: growing adoption of subscriptions and gift cards suggests non-messaging drivers can support ARPU and wallet share over time, mitigating cyclical messaging volume constraints .
  • Near-term trading: catalysts include confirmation of Q3 EBITDA guidance trajectory and continued adoption of new products; risks include further messaging volume moderation and client financial stress translating to churn .
  • Medium-term thesis: execution on cost structure and higher-margin subscription features could compound EBITDA improvements; watch for evidence of cross-sell conversion, usage stabilization, and capital needs given debt maturities .