Snipp Interactive Inc.

Thank you for joining us for the SNP Interactive second quarter 2024 earnings conference call. I am Atul Savarwal, founder and chief executive officer 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, which have also been filed on CDAR. We present all financial figures in U.S. dollars unless otherwise indicated. 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. So let's get into our second quarter 2024 summary and key developments. the second quarter of 2024 marked a period of record achievement for snip interactive underscored by the highest sales which we measure as bookings in our company history our continued focus on refining our revenue mix and enhancing our margin profile is yielding tangible results positioning us well for sustained growth and profitability during the second quarter our revenue mix continued to shift towards higher margin business which is a testament to our strategic focus on securing more profitable contracts. This has contributed to a significant improvement in our overall margin profile, aligning us more closely with our long-term financial objectives. Our bookings backlog through the first half of 2024 reached the highest level in the company's history, reflecting not only the success of our sales efforts, but also the strong demand for our platform across various industries, from leading consumer product brands to financial services. This backlog provides a solid foundation for continued revenue growth in our core SNAP business and profitability as we progress through the remainder of the year. So let's now focus on our strategic focus and achievements. Our strategic initiatives remain centered around three key areas. improving our revenue mix expanding our high margin core business and driving innovation through our platforms here's an update on our progress in each of these areas number one improving revenue mix we have continued to shed unprofitable revenue streams focusing on contracts that align with our gross margin threshold of 50 or higher This disciplined approach is evident in our improved margins and has been a key driver behind our strong margin performance this quarter. The shift in our revenue mix is a critical component of our strategy, ensuring that we not only grow, but do so profitably. Number two, expanding our core business. Our core SNP business remains strong, with momentum continuing to build as we secure larger and more impactful contracts. Our record bookings number is reflective of this momentum. Additionally, we continue to deepen our relationships with key new partners, including Walmart, where earlier this year we were onboarded as a Walmart Connect preferred partner. Our pipeline is filled with marquee brands, and we are increasingly recognized for our ability to deliver scalable, high-impact solutions across diverse industries. During the first half of the year, we hit the pavement attending Parts to Purchase, the Retail Media Summit, CRMC, Loyalty 360, the Shopper Summit, and the Grocery Summit. These events are important parts of the sales process, ensuring that we stay in front of industry leaders and clients, showcasing our leadership and subject matter expertise, especially as our industry is consolidating and there are market share opportunities for us to capitalize on. number three driving innovation through platforms innovation remains at the heart of our growth strategy particular particularly through our snip media and gambit platforms customers appreciate not only the reliability of our platform and speak to market they recognize our ability to also deliver a truly differentiated solution let's start with snip media our unique cashback office platform continues to gain traction within our first client bank of america And conservatively for its 40 million customers, SNP's CPG offerings have become a top-clicked grocery tile within Bank of America's loyalty program, highlighting its growing influence. Looking ahead, we are excited about the upcoming launches with PNC Bank and over 85 regional banks in the second half of this year. Over time, we estimate this will grow to over 200 regional banks. These partnerships will further expand our customer audience and enhance the value we offer to our roster of CPG clients. Moving on to Gambit, our Gambit loyalty gaming platform, having undergone strategic realignment, continues to be focused on finding new customers that align with our profitability goals. As discussed in the past, after sunsetting one, and I repeat, just one legacy low margin contract, we are now focused on higher margin opportunities within Gambit. We are having conversations across a variety of customer use cases, and we'll keep you updated if any of these potential contracts materialize. In the meantime, and for modeling purposes, total reported SNP revenues will remain pressured through the end of the year until we lap our strategic realignment of Gambit in Q1 2024. Both Gambit and SNP media businesses were investments we have funded internally. We named these projects Moon and Mars for a reason. They represent immense opportunity for our shareholders, but they're not without risk. The opportunity for both these projects has been clearly visible. With Gambit, the massive end-user interest was clearly demonstrated with the massive surge we witnessed in users exchanging their loyalty points for sports bets. We successfully also demonstrated an economic model with Dave & Buster's that had a 50% plus margin profile. But as with first-to-market initiatives, it's not always a straight line to success. The contract with Swagbucks, as mentioned, was an inherited contract that did not have any economic value for us. While with the latter with Dave & Buster's, for no fault of Gambit, we were impacted by Dave & Buster's other initiatives in the world of cash-based wagering that is completely unrelated to Gambit's non-cash wagering model. With SNP Media, one can measure the potential opportunities simply by looking at the caliber of banking partners we have attracted and who have allowed us to integrate our platform into theirs. It's not every day that Bank of America and PNC Bank would allow a small company like SNP to hook into their banking platforms to test something entirely new. With all groundbreaking ideas, converting new and untested opportunities into sustainable, profitable business is never a guaranteed outcome. But if you are successful, it can lead to outsized returns. To mitigate risk, investors should take comfort that we are working these opportunities very diligently and in a very disciplined way, more importantly, to ensure that they add value to our core business and not in any way a distraction for us on any front, both operationally and financially. So looking towards the outlook for the third quarter, as we look ahead, we are poised for a strong third quarter with expectations for sequential revenue increases in our core SNP business and continued margin improvements. As we have stated in the past, our elevated backlog indicates that the company's profitability will scale in the second half of the year when our largest clients are spending the majority of their annual promotional advertising and loyalty budgets. We are very pleased with our progress in repositioning our revenue mix and expect the core SNP business to scale given our new hires this past year driving incremental margin and a sustained path towards EBITDA profitability. While the exiting of the low margin gambit contract might be making it noisier for investors to appreciate our underlying performance for 2024, our strategic initiatives combined with the strong momentum from recent contracts gives us confidence that we will deliver another year of record revenues within our core SNP business. We're committed to driving value for our shareholders and are excited about the opportunities that lie ahead. I'll let Jason now make a few comments about our financial results. Jason.

Thank you, Atul. Revenue for Q2 2024 was $4.8 million compared to $7.5 million for Q2 2023, a decrease of 36%, and revenue for the first six months of 2024 was $9.4 million compared to $14 million in the comparative prior year period, a decrease of 33%. As Atul mentioned earlier, this revenue decline in both the three and six months ended June 30, 2024, was expected and tied to the sunsetting of a single pilot contract that SNP inherited from the Gambit acquisition. Gross margin for Q2 2024 was 64%, a significant improvement from the 26% in Q2 2023. Gross margin for the first six months of 2024 was 59%, which is also a significant improvement from 26% in the comparative prior year period. EBITDA for Q2 2024 was positive $11,958 compared to an EBITDA loss of $873,552 in Q2 2023, representing an EBITDA improvement of $885,510. EBITDA for the first six months of 2024 was a loss of $587,783 compared to an EBITDA loss of $1,973,329 in the comparative prior year period, representing an EBITDA improvement of $1,385,546. Our bookings backlog stood at $17.2 million on June 30, 2024 and representing an increase of 23% from June 30, 2023. Cash at the end of the second quarter of 2024 was $5 million, and the company continues to be debt-free. I will now hand over the call back to Atul. Atul?

Atul?