Snipp Interactive Inc.

Good morning and welcome to the SNP Interactive second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Following the company's prepared remarks, we will open the call for questions. Please note that today's call is being recorded. Before we begin, I'd like to remind everyone that today's call contains forward-looking statements within the meaning of applicable securities laws. These statements are based on our current expectations and involve risks and uncertainties that could cause actual results to differ materially. For discussion of these risks and uncertainties, please refer to our public filings available on CEDA and our investor relations website. We do not undertake any obligation to update any forward-looking statements made during this call except as required by law. Good morning everyone and thank you for joining us. We are pleased to report our second quarter results earlier than we typically do. This should firstly give investors the comfort that we are continuing to invest in our processes and financial systems to enable faster reporting that will also help with our end-of-year audits. The second quarter was a challenging one, especially for clients. Following my comments from the first quarter, I had spoken about our clients finding it difficult to decide on when to launch programs as they assessed conflicting signals around inflation, supply chains, and consumer sentiment, we witnessed this playing out in program launches and new bookings. With delayed program launches, our revenue growth was impacted, but we still managed to grow our revenue for the first quarter, and our half-year performance and revenue growth remained robust at about 19%. Also, the upside for the future is that our deferred revenue increased 33%, This will eventually turn into revenue as some of these pent-up programs launch. The impact of the second quarter can also be seen in our bookings that declined year-on-year. However, our backlog remains healthy and above 15 million today. As we move into the second half of the year, we are adapting to a new reality where clients are taking longer to make decisions. They have the budgets and the intent to execute with us, but uncertainty in the economy is creating hesitation around when to launch. This indecision makes timing everything. For CIP, this is where we actually win. Unlike many in our industry who require long lead times, our ability to stay diligent, flexible, and fast to market give clients the opportunity they need. We are investing the effort to keep programs launch-ready across multiple formats, so when clients are ready to move, we can activate immediately. That speed and adaptability has become one of our biggest competitive advantages in this environment. When I step back and look at the full year, our pipeline remains strong. Client retention remains excellent. We remain debt-free, have cash on hand, and the underlying drivers of the business are intact. While we may see some quarter-to-quarter variability, I remain confident in our ability to grow profitably. With that, I'd like to turn the call over to our interim CFO, Malcolm Davidson, for a more detailed look at the financials. Malcolm?

Thank you, Joe. I'm excited to join this team and to be here during this exciting time of growth and development. This quarter, we continue to invest in our financial reporting processes and systems, and we're now starting to see the positive results in our internal and external reporting. Our investment in these resources has resulted in our ability to report and file our quarterly results more than a week before your due. The results we're very proud of. As the tool mentioned, we continue to build on a solid financial and operational foundation which will set the stage for future periods. Revenue for the three months ended June 30, 2025 with $4.8 million up from $4.7 million in the same quarter last year, an increase of about 2%. Gross profit for the quarter was $2.5 million resulting in a gross margin of 52% compared to 64% in Q2 of last year. The decrease in margin is a result of our investment in campaign and operating infrastructure and in key team members. Turning to EBITDA, we reported just slightly negative to EBITDA 1.1 million compared to positive EBITDA of 0.01 in the prior quarter last year. Moving to the balance sheet, we ended the quarter with 3.8 million cash up from 3.7 at the end of Q4. Cash flow from operations for the quarter was $0.5 million, a decrease of about $0.8 million from the same quarter last year. The primary reason for the decrease was the continued investment in our infrastructure and operating platforms, campaign infrastructure, and again, key personnel. Accounts receivable at June 30th was $3.1 million compared to $3.4 million at December 31, which is consistent with the company's average account balances for receivables. Combined tax, the council's deal will sit at $6.9 million, essentially flat compared to year-end, with a much cleaner AR profile. Booking backlog, which ties policy to preferred revenue, as it represents contracted programs that have not yet been recognized. This continues to provide clear visibility to future revenue and demonstrates strong customer engagement across our product suite. The story of the second quarter is the deferred revenue that increased by $7.1 million from $5.3 million at December 31, an increase of about $1.8 million. This increase is very positive and indicates Overall, we remain focused on maintaining financial discipline while continuing to invest in the areas that are driving the long-term growth. With that, I'll turn the call back over to Atul for closing remarks.

Thanks, Markham. In summary, the first half was an interesting mix of operating environments across the two quarters, in which we still achieved 19% revenue growth. The reason being that the key driving force behind our business today is our value proposition, which continues to resonate in the market. Our platform also continues to gain traction across promotions, loyalty rebates, and our new offers and media products. Having successfully launched this media product with marquee financial institutions like Bank of America, we now raise the focus on bringing in offer content that we can monetize on the back of the 60 million audience that we have access to. Large players in the industry are beginning to notice and have been engaged with us over multiple quarters to finalize deals to access this audience via our offers and media platforms. We will be shortly announcing a new partner that is an industry leader in the couponing and incentive space. They work with about 90% of consumer product manufacturers in the U.S. and Canada, managing complex incentives, media platforms, e-com transactions, and reverse logistics, touching hundreds of millions of households, e-com orders, pharmacy scripts, and call of returns. The drink at the table, thousands of skew-based offers that we will be enabling on Swift Media's financial media network, an industry first. That should come out soon. As we look into the second half of the year, we're excited by all the organic growth opportunities that lie in front of us. In addition, there is an increasing unsolicited inbound interest in Snip and our company. We continue to evaluate all opportunities as they arise and look forward to the rest of the year. Thank you as always for your support. I'll open it up for questions. If you can raise your hand on the chat, post a question, we will try and answer it. First question is from Daniel. I'm just going to unmute you, Daniel. There you go. If you unmute yourself now, you should be able to.