Snipp Interactive (SPN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was $9.4M, down 33% year-over-year due to the sunsetting of a single inherited contract.

• Q2 2024 revenue was $4.8M, a 36% decrease compared to Q2 2023, also tied to the contract sunset.

• Bookings backlog reached a record $17.2M at June 30, 2024, up 23% year-over-year.

• Gross margin and EBITDA improved significantly, reflecting a shift in revenue mix and operational focus.

Financial highlights

• Gross margin for Q2 2024 rose to 64% from 26% in Q2 2023; H1 2024 gross margin was 59% vs. 26% in H1 2023.

• Q2 2024 EBITDA was positive $11,958, a turnaround from a loss of $873,552 in Q2 2023.

• H1 2024 EBITDA loss narrowed to $587,783 from $1,973,329 in H1 2023.

• Cash at end of Q2 2024 was $5M, with no debt.

Outlook and guidance

• Management expects a strong Q3 2024 with significant revenue increases and continued margin improvements.

• Elevated backlog is expected to drive profitability in the second half of the year, as promotional activity typically increases.

• New hires are anticipated to help scale the core business and drive incremental margin.