SpringBig Holdings, Inc. (NASDAQ:SBIG) Q2 2023 Earnings Call Transcript

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Some are new clients. Some are changes in vendor and stuff like that and they’re coming to SpringBig, and then we’re upgrading them, and we’re certainly going deeper and expanding our relationship with the larger MSOs. In terms of your question on churn, Scott, definitely, particularly at the lower end of the spectrum with smaller retailers, obviously, given the market conditions and the challenges, there is quite a reasonable amount of churn there. In dollar terms, it’s not huge, but in terms of number of clients, this churn happening at the moment.

Scott Fortune: Appreciate it and I assume, obviously, looking out to ’24, you’ll continue to be within that range of adding anywhere from 80 customers to 120 customers. As it seems, new store licenses, new states will really start to come on board in ’24. But just using that customer base, last question is, can you dig deeper, maybe Jeff, into kind of the recent launch of Subscriptions by SpringBig? Who did you launch it to? That kind of business — that potential opportunity, just kind of metrics around that, and you’re excited around that opportunity to drive more loyalty, consumer base from that standpoint?

Paul Sykes: Yes. The exciting thing about Subscriptions by SpringBig is that it’s another toll by which our retail clients can get even greater leverage and buy-in from their most loyal customers because these are customers who are going to pay a dollar subscription on a monthly or an annual basis, like exists in many retail sectors, and they are going to get for that subscription, VIP status, which will give them additional discounts, additional perks, and from the retailer’s perspective, will result in them ideally spending more dollars in the store. We only launched it late in June, and we’ve already got about eight different retail clients have signed up to launch the program. Obviously, there’s a little bit of a lag between sign-up and actually getting the program live.

We’ve got two programs already live and in the first couple of weeks, we’ve got about 200 consumers already signed up. So it’s going to take time to get traction and have a significant impact on our revenues. But I think the signs from the first month or two months in the market are incredibly encouraging.

Scott Fortune: I appreciate the color, and congrats on your pathway to get to EBITDA positive.

Paul Sykes: Thank you, Scott.

Operator: Thank you. And I see no further questions in queue at this time. I will now turn the call back over to Mr. Paul Sykes for any closing remarks.

Paul Sykes: Thank you. And thank you to everyone for attending today’s call and for your continuing support of SpringBig. I think we’re making good progress, particularly along our path towards profitability and I very much look forward to being able to update you on this continuing progress in our call next quarter. Thank you, and good evening.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

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