Snipp Interactive (OTCQX:SNIPF; TSXV:SPN) has provided an update on its financial metrics.
As quoted in the press release:
With the launch of Snipp’s ‘Loyalty in a Box’ solution in November of 2016 and Snipp’s Rebate Center offering in February of 2017, the company has now completed its portfolio of solutions that will enable the revenue mix to shift to a higher proportion of long-term contracts (which spread revenue over multiple quarters). With these solutions in place, the recurring segment of the business has finally begun to have a positive impact on the predictability of Snipp’s multi-layered revenue sources. To begin this new trend, Q4/2016 will mark the resumption of positive quarter over quarter revenue comparisons, with revenue expected to show an approximately 50% increase over Q4/2015. Audited totals will be reported in the next financial news release.
Snipp’s bookings backlog has grown substantially. On January 1st 2016 this metric stood at $0.7MM but by January 1st 2017 had increased to $4MM – a 471% improvement. The company for the first time in its history entered a new financial year with a significant number of signed contracts and long term recurring SAAS style revenue streams. Every long-term contract signed each quarter will add to this growing and increasingly predictable revenue stream. Snipp defines bookings backlog as future revenue to be recognized in future quarters from existing customer contracts. Bookings get translated into revenues based on IFRS principles and the bookings backlog reflects how revenues in future quarters are steadily being booked today.
“This recurring revenue gives us a head start on every quarter, but most importantly, represents very high margin business,” said Atul Sabharwal, CEO of Snipp. “Our gross margins grew from 55% in 2015 to approximately 66% in 2016. Our goal is to maintain margins in the 70%+ range as our new offerings gain traction.” Refer to Non-GAAP Measures, Margin, EBITDA definitions below.