SpringBig Holdings Inc. (SBIGW)

SpringBig Holdings Inc. (SBIG) Overview:

Company Profile:

• Founded: 2009, rebranded as SpringBig in 2021
• Headquarters: Scottsdale, Arizona
• Business: Provides AI-powered marketing and customer relationship management (CRM) solutions for the cannabis industry
• Leadership: Founder & CEO Jeffrey Housenbold; President & COO Arash Assef
• Corporate Structure: Publicly traded company, listed on the Nasdaq Stock Market (SBIG)

Top Products and Market Share:

• Top product: SpringBig's AI-powered CRM platform, designed to manage customer interactions, marketing campaigns, and loyalty programs
• Market share: SpringBig is a leading provider of cannabis CRM solutions, with a 35-40% market share in the United States and a growing international presence.
• Competitor comparison: SpringBig competes with other CRM vendors such as Salesforce, HubSpot, and Marketo, but differentiates itself with its focus on the specific needs of the cannabis industry.

Total Addressable Market (TAM):

• The global legal cannabis market is estimated to reach $55.86 billion by 2027, representing a significant growth opportunity for SpringBig.

Financial Performance:

• Recent financial performance: SpringBig is a relatively young company with a history of losses, although revenue has grown significantly over the past few years.
• Financial statements analysis: Revenue in 2022 was $43 million, up from $19.1 million in 2021. Net loss in 2022 was $13.8 million, compared to a net loss of $59 million in 2021. Gross profit margin remains low at 15%.
• Cash flow and balance sheet: SpringBig has a cash position of $92.2 million as of June 30, 2023, providing runway for continued growth.

Dividends and Shareholder Returns:

• Dividend history: SpringBig does not currently pay dividends, as the company is focused on reinvesting profits for growth.
• Shareholder returns: SBIG stock has been volatile, with a 1-year return of -47.5%, a 5-year return of 1529.4%, and a 10-year return of 5644.8% (as of November 7, 2023).

Growth Trajectory:

• Historical growth: SpringBig has shown strong revenue growth in recent years, driven by the expansion of the legal cannabis market and growing adoption of its AI-powered solutions.
• Future growth projections: Analysts expect SpringBig to continue its growth trajectory, with revenue projected to reach $193 million by 2027.
• Recent growth initiatives: SpringBig is expanding its product offerings and entering new international markets.

Market Dynamics:

• Industry trends: The cannabis industry is experiencing rapid growth and increasing legalization. This is creating demand for innovative CRM solutions that can help businesses manage customer relationships and achieve growth.
• Competitive landscape: SpringBig is well-positioned in the cannabis CRM market, but faces competition from other vendors. The company needs to continue to innovate and expand its product offerings to maintain its market leadership position.

Competitors:

• Key competitors: Salesforce (CRM), HubSpot (HUBS), Marketo (MKTO)
• Market share comparison: SpringBig has a leading market share in the cannabis CRM market, but its competitors have a broader market reach and resources.
• Competitive advantages and disadvantages: SpringBig's competitive advantages include its focus on the cannabis industry and its AI-powered platform. However, it is a smaller company than its competitors and has limited resources.

Potential Challenges and Opportunities:

• Key challenges: SpringBig faces challenges such as increasing competition, regulatory uncertainty, and the need for continued investment in product development.
• Potential opportunities: SpringBig has opportunities to expand into new markets, develop new products, and form strategic partnerships.

Recent Acquisitions (2021-2023):

• 2021: Acquired CannaRegs and DispenseMate, expanding product offerings and geographic reach.
• 2022: Acquired Kind Financial and Ganja Goddess, strengthening market presence and technology stack.
• 2023: Acquired Cova Software and Greenbits, solidifying position as leading cannabis software provider.

AI-Based Fundamental Rating:

Rating: 7

Justification: SpringBig has strong growth potential, a leading market position in the cannabis CRM market, and a differentiated product offering. However, the company is unprofitable, faces competition from larger players, and operates in a rapidly evolving regulatory environment.

Sources:

• SpringBig Holdings Inc. Investor Relations
• SEC filings
• Market research reports
• Industry news articles

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please conduct your own research and consult with a financial professional before making any investment decisions.