Snipp Interactive (SPN) Q4 2024 earnings summary

Executive summary

• Achieved record annual and quarterly EBITDA in Q4 2024, marking a pivotal year focused on high-margin, platform-based offerings.

• Fiscal 2024 revenue was CAD 22.89 million, with Q4 revenue at CAD 6.83 million, reflecting a decline due to the planned exit of a low-margin legacy contract but strong growth when adjusted for this impact.

• Gross margin improved significantly to 61% for the year and 62% in Q4, up from 31% and 39% respectively year-over-year.

• EBITDA for 2024 was CAD 703,000, a turnaround from a CAD 1.91 million loss in 2023; Q4 EBITDA was CAD 582,000.

• Bookings backlog increased 30% year-over-year to CAD 17.3 million at year-end, indicating strong future revenue visibility.

Financial highlights

• Fiscal 2024 revenue was CAD 22.89 million, down 25% year-over-year due to the planned exit of a low-margin legacy contract.

• Q4 revenue was CAD 6.83 million, down 14% from Q4 last year.

• Gross margin for 2024 expanded to 61% from 31% in 2023; Q4 gross margin was 62%, up from 39% in Q4 last year.

• EBITDA for 2024 was CAD 703,000, a turnaround from a CAD 1.91 million loss in 2023; Q4 EBITDA was CAD 582,000.

• Ended the year with CAD 3.7 million in cash and no debt.

Outlook and guidance

• Entering 2025 with record backlog, improved profitability, and a strong foundation for sustained growth.

• Bookings backlog at year-end was CAD 17.3 million, up 30% year-over-year.

• Core revenue continues to grow at a 28% CAGR over the last three years.

• Management expects continued revenue growth, excluding the impact of the exited contract, and is optimistic about Q1 2025.

• Focus remains on scalable, higher-margin revenue streams and profitable growth.