Earnings release
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SNIPP INTERACTIVE INC. SNIPP INTERACTIVE REPORTS Q2 2025 FINANCIAL RESULTS COMPANY TO HOLD INVESTOR CONFERENCE CALL ON AUGUST 21, 2025 AUGUST 20, 2025 VANCOUVER, BC, CANADA - Snipp Interactive Inc. ("Snipp" or the “Company”) ( TSX-V: SPN; OTCPK: SNIPF ), a global provider of digital marketing promotions, rebates and loyalty solutions, announces its financial results for the three months ended June 30, 2025 (“Q2 2025”) and for the six months ended June 30, 2025 (“H1 2025”) . All results are reported under International Financial Reporting Standards ("IFRS") and in US dollars. A copy of the complete unaudited interim financial statements and management's discussion and analysis are available on SEDAR+ (www.sedarplus.ca). The Company also announces conference call details for investors taking place on Thursday, August 21st, 2025, at 10:00am Eastern Time (US) to discuss the Company’s recent financial results and plans for the year. The conference call will be available via the following weblink or dial-in options. Weblink: https://v.ringcentral.com/join/076779338 or One tap to join audio only from a smartphone: +16504191505,,076779338# United States (San Mateo, CA) Or dial: +1 (650) 4191505 United States (San Mateo, CA) Access Code / Meeting ID: 076779338 Parties joining from other locations can refer to additional dial-in numbers based on your location listed at the following website and use the same Meeting ID referenced above: https://v.ringcentral.com/teleconference Q2 2025 Highlights* • Revenue for the three months ended June 30 (“Q2 2025”) increased by 2% compared to the three months ended June 30, 2024 (“Q2 2024”). • Operating Expenses were $6.4 million compared to $5.3 million on Q2 2024, an increase of 20% • Gross Margin was 52% for Q2 2025 compared to 64% for Q2 2024. • EBITDA in Q2 2025 was negative ($1.2) million vs Q2 2024 EBITDA positive of $0.1 million, an EBITDA decrease of $1.1 million. • Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $15.2MM at June 30, 2025, a decrease of 12% compared to June 30, 2024 of $17.2 million. • Cash at the end of Q2 was $3.8 million and the company continues to be debt free. • Cash flows generated by operating activities was $0.5 million, a decrease of $0.83 million from the comparable quarter.
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H1 2025 Highlights* • Revenue for the six months ended June 30 (“H1 2025”) increased by 19% compared to the six months ended June 30, 2024 (“H2 2024”). Revenue for H1 2025 was $11.2 million compared to $9.4 million for H1 2024. • Gross Margin was consistent at 57% for H2 2025 compared to 59% for H2 2024. • EBITDA in H2 2025 was negative ($0.9) million vs H2 2024 EBITDA negative of ($0.6) million, an EBITDA decrease of $0.3 million. • Deferred Revenue increased from $5.3 million to $7.1 million at end of H1 2025. *(Refer to Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog discussion below) “Our second quarter results mirror what we had previously communicated wherein clients are finding it difficult to decide on when to launch programs as they assess conflicting signals around inflation, supply chains and consumer sentiment. This is reflected in our bookings remaining pretty much flat between Q1 and Q2 but decreasing when compared to the same period last year. Also , revenue only increased marginally year on year as fewer programs launched this quarter even though many clients have already paid us for these programs . This is evident in the 34% growth in our Deferred Revenues – prepayments we receive from Clients for future program launches . The good news is that this Deferred Revenue will eventually convert to Revenu e over the next few quarters that could potentially be interesting for us from a revenue perspective ”, said Atul Sabharwal, Founder of Snipp. “We are also beginning to realize the benefits of our investment s in financial reporting processes, which enabled us to file this quarter more than a week ahead of the deadline, a meaningful step forward in operational efficiency and transparency. Our first half results reflect continued revenue growth, consistent margins, and a robust backlog, all solid indicators of disciplined execution and the increasing strength of our platforms. In addition, we are encouraged by the positive momentum of our newest products - SnippOFFERS and SnippMEDIA. We are now razor focused on bringing in new revenue partners and clients for these products . In the coming weeks we hope to announce our first major partnership in this area.” Non-GAAP Measures Snipp uses certain performance measures throughout this document that are not recognizable under Canadian generally accepted accounting principles or IFRS ("GAAP"). These performance measures include Gross Margin and EBITDA. Management believes that these measures provide supplemental financial information that is useful in the evaluation of the Company's operations. Investors should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP and IFRS as an indicator of Snipp's performance. The Company's method of calculating these measures may diffe r from that of other organizations, and accordingly, these may not be comparable. Gross Margin Snipp defines Gross Margin as revenue less campaign infrastructure. The Company's calculation of Gross Margin is not a financial measure that is recognized under GAAP. Investors should be cautioned that the Company's defined Gross Margin should not be construed as an alternative measure to other measures determined in accordance with GAAP.
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EBITDA Snipp defines earnings before interest, taxes, depreciation and amortization (“EBITDA”) as revenue minus operating expenses excluding non-cash operating expenses of share-based payments, depreciation and amortization (interest and taxes are not included in the Company’s operating expenses). Bookings Backlog Snipp 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. The Following are calculations of EBITDA: EBITA CALCULATIONS Three Three Six Six Months Ended Months Ended Months Ended Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Operating loss (1,540,908) (532,764) (1,692,459) (1,744,750) Amortization of intangibles 288,555 260,889 557,570 519,668 Depreciation of equipment 3,410 3,167 8,430 6,185 Share-based payments 83,022 280,666 223,018 631,114 EBITA (1,165,921) 11,958 (40,774) (587,783) The Following are calculations of Gross Margin: Revenue 4,825,525 4,753,273 11,225,702 9,413,548 Less: Campaign infrastructure (2,311,713) (1,721,506) (4,876,660) (3,848,780) Gross Margin 2,513,812 3,031,767 6,349,042 5,564,768 Gross Margin % 52% 64% 57% 59% About Snipp: Snipp Interactive Inc. (TSX -V: SPN; OTCPK: SNIPF) is a leading Platform -as-a-Service (PaaS) company in the global loyalty and promotions sector. Snipp’s proprietary and modular SnippCARE (Customer Acquisition, Retention & Engagement) Platform allows its ma rquee list of Fortune 500 clients and world-class agencies and partners to use various modules of the Platform to run long -term and short-term programs and promotions, while continually generating and capturing unique zero party data that is invaluable in providing insights to drive sales. SnippCHECK, the Platform’s Receipt Processing Module has established itself as an industry leader and standard by powering a large majority of all receipt-based promotions in North America. SnippLOYALTY, the Platform’s full scale modular loyalty engine allows clients the flexibility of deploying any/all aspects of a standard loyalty program on a case -by-case basis. SnippREWARDS, the Platform’s modular catalogue of digital and physical rewards provides clients with global and easily deployable access to an extensive catalogue of digital and physical rewards. SnippWIN, the Platform’s gaming module solves for the implementation and compliance difficulties of offering games of chance and skill on a global basis and allows for the global deployment and administration of legally compliant games of chance and skill. For more information, visit Snipp’s website at www.snipp.com and its profile on SEDAR+ at www.sedarplus.ca. Snipp is headquartered in Vancouver, Canada with a presence across the United States, Canada, Ireland, Europe, and India. Snipp is publicly listed on the TSX Venture Exchange in Canada and is also quoted on the OTC Pink marketplace under the symbol SNIPF.
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FOR FURTHER INFORMATION PLEASE CONTACT: Snipp Interactive Inc. Malcolm Davidson Chief Financial Officer (Interim) investors@snipp.com 1-888-99-SNIPP Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "pla n", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward -looking statements. Such statements reflect our current views with respect to future events and are subject to various risks and uncertainties, which may cause actual results to differ materially from those anticipated. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuat ions, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward -looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. ©2025 Snipp Interactive Inc. All rights reserved. All other trademarks and trade names are the property of their respective owners.