Snipp Interactive Inc.

Okay, good afternoon, everyone. Thank you for joining us for the SNP Interactive fourth quarter and full fiscal year 2023 earnings call. I am Azhar Sabharwal, the founder and CEO of SNP Interactive. Joining me today is Jason Garcha, our Chief Financial Officer. Please visit our investor relations site at snip.com for a copy of our earnings press release and detailed financials. They have also been filed on CDAR. We present all financial figures in U.S. dollars unless otherwise indicated. So before we proceed, I'd like to remind everyone that today's discussion may contain forward-looking statements. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Okay, so 2023 was a transformative year for SNP. We've implemented strong controls following an extensive audit at the end of 2022, which notably concluded with immaterial changes. Our stock is actively trading again, and we are back on track with our fiscal 2023 audit, completed on time. More importantly, though, SNP achieved over 24% growth in our top line, thanks to continued investments in our people, markets, and in our products. We experimented with new business models, creating industry first with our loyalty gaming platform, as well as investing in a new line of business, Snip Media. As we approached the end of 2020-2023, we were also able to exit out of some of the low margin proof of concept partnerships that we inherited with the acquisition of Gambit that gave us a lot of learnings about the platform and its user base. While this rate of growth is the highest ever achieved in the company's history, and is the product of the hard work and execution of our entire team. 2023 was a year of investment, and now that we have made these larger investments, we are well poised to return in 2024 to profitable growth. The early signs are evident in our performance in the back half of 2023, which was EBITDA positive. It is worth pointing out to investors that Snip was consistently EBITDA positive through financial years 2021 and 2022 and the back half of 2023. So we know our model has leverage and we can generate a positive cash flow. Now that we are a quarter into the new year, and as we have previously stated, our gross profit margin profile has returned to its historical norm of being higher than 50%, and we will be excited to share our first quarter information in the next four weeks. The filing date is the end of this month of May, so we'll be talking to you guys again then. Our strategic focus in 2023 was on investment, innovation, and expanding our management teams to set us up for the next growth cycle. We made key hires, such as our first ever chief revenue officer and our first chief marketing officer. We built a sales team in Europe and are now adding deeper delivery capability in the region as our book of business continues to grow in Europe. These additions have strengthened our leadership team and are pivotal in driving our strategic decisions going forward. While the margin impact will be visible immediately with our Q1 earnings that we will announce at the end of May, the real revenue impact of our initiators will start to become evident over the course of the second half of this year. As previously indicated, investors should expect a decline in revenues for the first quarter, but focus on our margin story to appreciate our strategy. I will now briefly touch on each of our business segments, starting with the core SNP division. The core SNP business has been focused on deepening and extending our client relationships, which has led to significant milestones recently. Notably, we recently announced record bookings of over 9 million US dollars during the first quarter of 2024. This achievement is a result of the groundwork put in place during the prior 12 months. We feel that we are in the right place at the right time and with the right people, Companies are choosing SNP over our competitors due to the strength of our platform and our strong value proposition. Our pipeline is robust, and we are optimistic that the current trends being observed will continue during the quarters that lie ahead. This is evidenced by recent announcements concerning renewal business with some of the largest household names in global consumer goods. On Gambit, while our pilot programs have been very successful, we decided to end our primary legacy contract due to unattractive economic terms that we inherited in the acquisition. This will allow us to reposition the platform moving forward to focus on higher margin opportunities. This decision is one of the main contributors to Snip's margin improvement year over year, but will put some pressure on our top line in the short term. This business is still in its very early stages, creating a new mechanism of engagement in the loyalty industry takes years, and our team is working hard to build awareness among a variety of use cases. On SNP Media, we launched SNP Media with Bank of America in March. Early indications show performance metrics significantly above industry standards. The conversion rates and engagement levels among customers confirm the strength of our platform. This flywheel allows us to offer SNP Media placement to our CPG customers who want to get in front of Bank of America's 40 million loyalty users. It's worth noting earlier this month, Walmart backed ibotta, Raised about $577 million in its IPO at a $2.7 billion valuation. For those who are not familiar with the company, Ibotta is a free app that gives users cashback rewards when they shop. Ibotta partners with over 2,000 brands and retailers to offer cashback on groceries, clothing, electronics, wine, and more, just like we do. Users can earn cash back at the grocery store or when shopping online. We think the success of Ibotta's IPO is evidence of the growing value of direct consumer engagement and interaction platforms like ours. Ibotta has 3 million active users and 50 million users overall. By way of comparison, Snip's partnership with just Bank of America exposes us to 40 million users. I will now hand over the call to Jason Garcher, our CFO, who will provide a detailed overview of our financials for the quarter and the full year.

Thank you, Atul. Revenue for 2023 was $30.55 million compared to 2022 when we reported $24.66 million, which is an increase of 24% year over year. Revenue for Q4 2023 was $7.96 million compared to Q4 2022 when we reported $7.04 million, an increase of 13% year over year. The company recognized negative EBITDA of approximately $1.9 million during the 2023 fiscal year versus positive EBITDA of approximately $22,000 in the 2022 fiscal year. However, the company recognized positive EBITDA of approximately $32,000 during Q4 2023 versus negative EBITDA of approximately $694,000 in Q4 of 2022. Our EBITDA significantly improved during the second half of 2023, where we recognized approximately 65,000 of positive EBITDA compared to negative EBITDA of approximately 413,000 in the second half of 2022. Booking's backlog stood at 13.6 million as of December 31st, 2023, representing an increase of 14% from December 31st, 2022, which was at 11.9 million. Booking's backlog represents a number of different signed contracts and with multiple types of revenue representing the SNP product portfolio. Every contract signed each quarter will add to this growing backlog. SNP defines bookings backlog as future revenue from existing customer contracts to be recognized in future quarters. 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 revenue gives the company better revenue visibility each quarter. Also note that cash at the end of 2023 stood at 2.9 million with accounts receivable at 2.1 million and the company continues to be debt free. I would now like to hand the call back over to Atul for some closing remarks.

Thanks, Jason. So looking ahead into 2024, we are optimistic about leveraging our investments from 2023. We anticipate these efforts will begin to materialize prominently in our financials, starting with the upcoming quarters, excited by the breadth of opportunity in front of us. We look forward to sharing information in multiple areas from An upcoming partnership with one of the world's largest retailers, to launching new clients in new industries that we've never operated in before, to our onboarding and SNP media of an additional large bank towards the end of Q2, as well as a non-bank publisher. This will further increase our potential audience size for that new business line, making it even a more powerful solution for our clients. So a lot of good things coming down the pipe. for the business. As we continue to innovate and expand strategically, our commitment to drive sustainable profitability has never been stronger. So if you had to leave this call with three things, here are the three things I would leave you guys with. One is our SNP revenue mix is shifting back to its historical higher margin profile. In the short term, our top line will be somewhat pressured from the ending of the Gambit proof of concept relationships, but our gross margin as a result will exceed 50%. This level of gross profit contribution will enable the company to generate positive EBITDA and add to a solid balance sheet over the course of 2024. At the same time, point number two is our backlog. Snips backlog and pipeline of new business is the strongest that it has been in several years. This is based on the industry mix quality of customers and types of revenue we are signing up. We are winning really meaningful deals with some of the biggest names, not only in consumer brands, but also in diversified markets like construction. So look out for more announcements in this area. Lastly, the industry in which we operate is finally gaining traction and momentum from an awareness and valuation perspective. I really encourage everybody to go look at Ibotta's stock. The continued acceleration of technology into the global loyalty and promotions marketplace have helped transform rebate and couponing companies into highly sophisticated, scalable data platforms with loyalty engines that detect and discern meaningful data in real time. The attractiveness of this multi-billion dollar industry grows more each year, and we expect consolidation among players, both large and small, to pick up steam in the upcoming years. Okay, so we're going to go into a Q&A session. We heard investors last conference call saying that, you know, we should open it up for everybody to ask questions. We really did receive a ton of questions last time since our stock had been halted. So we're going to try something today. You can either ask a question on chat or put your hand up and we'll unmute you to ask the question, your digital hand. So hopefully you guys know how to do that. So yeah, if any questions, happy to take them now. Either via chat or if you put your hand up, Jason will unlock you to ask a question.