SpringBig Holdings, Inc.

Good afternoon, everyone, and welcome to Springbix Fiscal Year 2023 Second Quarter Earnings Conference Call. I would now like to turn the call over to Springbix Investor Relations. Clarabelle and Terry, please go ahead.

Thank you. Hi, everyone, and thanks for joining our Q2 Earnings Conference Call. Joining me on the call today are Jeff Harris, our CEO, founder, and chairman, and Paul Sykes, our CFO. By now, everyone should have access to our earnings announcement. This announcement is also on our investor relations website. During this call, we'll make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors outlined in our 10-K filed with the SEC on March 28, 2023. Also during this call, we will discuss certain non-GAAP financial measures. These non-GAAP measures are not intended to be a substitute for our GAAP results. Please refer to our earnings release on our investor relations website for a reconciliation of GAAP to non-GAAP financial measures, as well as additional context on our key operating metrics. And finally, this call in its entirety is being webcast from our investor relations website at www.investors.springbig.com. And an audio replay will be available on our website in a few hours. With that, I'd like to turn the call over to Jeff.

Thanks, Claire. And thanks to everyone for once again joining our quarterly earnings call. We had a solid second quarter in market conditions that continue to be challenging. And I continue to be impressed with the way our teams throughout the company are performing and with the progress we are making across a number of areas. During today's call, Paul and I will provide you details on our second quarter results, update you on key business initiatives, and provide guidance for the third quarter and full year 2023. Jumping right into Q2 results, I am pleased to report that we delivered revenue of $7.2 million, representing growth of 12% year over year. Although broader macroeconomic concerns continued away on marketing budgets and digital spend, we continue to see a trend whereby budget consideration for maintaining and growing existing customers, a central tenant of our platform, remains somewhat less discretionary. Growth in the second quarter was again driven by subscription revenue, which in Q2 grew 19% year-on-year. We are primarily a subscription-based vertical SaaS business, which provides predictability and increases visibility into results. We saw continued strength across all of our key performance metrics. We added 105 new customers in the quarter, maintaining the cadence of recent quarters. Our net revenue retention rate remained within our target range at 100%, despite the macro environment, and we continue to develop and launch innovative new product offerings. While we continue to invest in growing our top line, we are also focused and committed to driving leverage and are continuing to execute towards our goal of EBITDA breakeven during 2023, which is now tantalizingly close. We have two primary segments in our business, our retail and brands platforms. Our retail platform provides merchants the tools that they need to create and manage a successful digital marketing and loyalty program, along with instituting a data-driven approach to how they connect and engage with their customers. Our brands platform helps cannabis brands more easily connect directly with consumers through our retail platform. We're uniquely suited for the selling motion of directly connecting brands, retailers, and consumers. And during the first half of the year, we have seen 74 brands run an excess of 1,200 campaigns, an increase of 36% compared with last year. benefiting both the retailer by driving traffic to their store and the brand through increased awareness and influence. Since becoming a publicly listed company in June of last year, I have repeatedly talked about the three key pillars of our growth. First, a network effect that we feel is a unique and powerful flywheel between our retail and brand platforms. Second, a high growth subscription revenue component that increases predictability in our revenue stream. And third, The new initiatives and opportunities we have to monetize and leverage the fact that our platform is present in more than 3,100 retail locations and present in the smartphones of over 35 million marketable consumers. We're uniquely positioned to introduce offerings to our client base that provide meaningful growth opportunities for both our clients and spring bankers. I am as confident as ever that our strategy is sound, with feedback from our clients and partners reaffirming that we are making the right investments to capture the long-term opportunity in front of us. We continue to develop and launch innovative SaaS-based offerings to enable our clients to retain and grow their customer bases, including our most recent launch of a VIP loyalty program, Subscriptions by SpringVic. Subscriptions by SpringVic enables our retail clients to offer consumers in return for a monthly or annual subscription the opportunity to earn additional loyalty rewards, access to special promotions, and other perks as VIP subscribers. This program, operating in conjunction with other Spring Big loyalty and digital communications offerings, was launched in June, and we are already seeing meaningful interest from our clients, with several having expanded their contracts to incorporate this new offering and a few having already launched their VIP subscriber programs. We see meaningful potential from both a revenue growth and a profitability standpoint for both our retail partners and Spring Big, as these VIP subscription programs get launched and mature over time. As discussed in previous calls, we are also expanding our offerings to beyond the cannabis market with clients including alcohol, vape, and smoke stores, and developing products that will enable our clients to offer their consumers the ability to combine the redemption of loyalty rewards with a stored payment method at the point of sale. These newer initiatives are going to take time to evolve, especially given the current macro environment, but we are confident that in time they will fuel significant growth to complement the potential we believe is present in our existing offerings. Before I hand over to Paul, who will walk through our financial results for the second quarter in detail, I do want to comment on the excellent progress we are making towards our stated goal of EBITDA break-even during the current year. Our Q2 adjusted EBITDA was a loss of $1.1 million, and with the combination of revenue growth and impact of the expense reduction initiatives, we expect a significant reduction in losses during Q3. For the second half of the fiscal year, we are expecting to generate positive adjusted EBITDA. Our Q2 performance is encouraging. Overall, we are managing our business efficiently for the factors within our control and recognize the challenging current macro and industry-specific realities. We have a rich pipeline of revenue-generating initiatives and a strong high growth subscription revenue base. With that, I'd like to turn things over to Paul, who will walk through our financial results for the second quarter in greater detail and discuss our outlook. Paul?