Snipp Interactive, a nano cap technology stock, almost doubles today. The stock price of Snipp Interactive recovers sharply after a period of capitulation.
Last summer, we already suggested that Snipp Interactive was ready for its next bull market. Visibly, we were 7 months too early with our forecast. Nonetheless, our fundamental view on the company was accurate. The proof of that is based on major news that the company released today.
The company for the first time in its history entered a new financial year with a significant number of signed contracts and long term recurring SAAS style revenue streams. Every long-term contract signed each quarter will add to this growing and increasingly predictable revenue stream.
Atul Sabharwal, CEO of Snipp: “This recurring revenue gives us a head start on every quarter, but most importantly, represents very high margin business. Our gross margins grew from 55% in 2015 to approximately 66% in 2016. Our goal is to maintain margins in the 70%+ range as our new offerings gain traction.”
Snipp Interactive has been very busy building its technology in the last 2 years. Two of the most recent product launches (Loyalty in 2016 and Rebates in 2017), carry much higher recurring dollar values than the traditional promotions business. Snipp believes that its financial metrics will continue to improve during 2017.
According to the press release, Snipp would like to highlight the following metrics:
- Expense improvements have been steady over the last four quarters, with the EBITDA loss expected to show more than a 140% improvement over Q4/2015 when audited results are reported for 2016
- Cash flow breakeven is expected to be reached sometime during the second half of 2017
- Q1/2017 revenue are forecast to exceed the revenue for Q1/2016
We still hold our belief that Snipp Interactive will go much, much higher. Today’s volume was unseen before. The company is ready for the next wave in growth. We are excited about Snipp Interactive.
