Springbig released financial highlights for its first quarter ended March 31, 2022. Additionally, Tuatara Capital Acquisition Corporation (NASDAQ:TCAC) revealed amendments to the proposed business combination with the company and encourages shareholders to vote in favor of them at its special general meeting of shareholders on June 9, 2022.
springbig Q1 2022 Highlights
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Revenue of $6.4 million, an increase of 22% year-over-year, including growth in retail subscription revenue of 43%.
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Gross margin of 71%, an increase of 200 basis points compared to 69% in Q1 2021.
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Growth in the number of retail clients by 66% from 890 in Q1 2021 to 1,475 in Q1 2022.
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Strong consumer engagement, with a year-over-year increase of 56% in the number of enrolled consumers.
"We are pleased to report a strong start to the year despite a challenging industry and macroeconomic environment," stated Jeffrey Harris, CEO and co-founder of springbig. "Our rising retail client count and strong consumer reach highlights the growing demand for our differentiated platform and high-touch services across the cannabis marketplace."
Harris added, "We look forward to entering the second half of the year as a public company with our business combination with TCAC expected to close imminently. Moving ahead, the additional funding and access to the capital markets enables us to continue our strong organic growth trajectory through further enhancing our industry-leading SaaS platform with additional functionality to drive highly focused and effective loyalty programs and marketing communication campaigns. We also intend to pursue strategic M&A opportunities as we execute on our vision of building out a leading technology business that plays a pivotal role across the cannabis ecosystem."
Enhanced Terms of the Business Combination
TCAC and springbig agreed to amend the terms of the proposed merger agreement to reflect current market conditions. The amended and restated merger agreement reduces the total enterprise value of springbig to $275 million, representing an 8% reduction in valuation from the initial agreement. In addition, a bonus pool of up to 1 million shares of TCAC common stock will be allocated pro-rata to non-redeeming public stockholders up to a maximum of one bonus share for each share held, effectively reducing their cost basis. TCAC's sponsor will forfeit 1 million shares of TCAC common stock in connection with the proposed business combination.
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