-YoY revenue growth of 22% to $6.4 million in Q1 2022
-66% YoY growth in retail clients in Q1 2022
-Proposed business combination terms include previously announced bonus shares being issued to non-redeeming shareholders
-TCAC shareholders encouraged to vote before 11:59 p.m. ET on Wednesday, June 8, 2022
springbig , a leading provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs to the cannabis industry, today announced financial highlights for its first quarter ended March 31, 2022. Additionally, Tuatara Capital Acquisition Corporation reminds its shareholders of the amendments to the proposed business combination with the Company and encourages shareholders to vote in favor of the business combination, among other matters, at its special general meeting of shareholders (the “Special Meeting”) on Thursday June 9, 2022.
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springbig Q1 2022 Highlights
For the quarter ended March 31, 2022, springbig reported the following financial results:
- Revenue of $6.4 million, an increase of 22% year-over-year, including growth in retail subscription revenue of 43%.
- Gross margin of 71%, an increase of 200 basis points compared to 69% in Q1 2021.
- Category-leading net dollar retention of 107% for the trailing twelve months, driven by strong customer loyalty and increasing demand for springbig’s platform.
- Growth in the number of retail clients by 66% from 890 in Q1 2021 to 1,475 in Q1 2022.
- 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,” said Jeffrey Harris, Chief Executive Officer 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.”
Mr. 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.”
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Enhanced Terms of the Business Combination
As previously announced, TCAC and springbig agreed to amend the terms of the proposed merger agreement that was initially announced on November 9, 2021 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.
Special Meeting Details
The Special Meeting of TCAC shareholders will be held at the offices of Davis Polk & Wardwell LLP, located at 450 Lexington Avenue, New York, NY 10017, or shareholders can attend online via live webcast. Shareholders of record as of March 21, 2022 are entitled to receive notice of and to vote at the Special Meeting. Shareholders are encouraged to vote before 11:59 p.m. ET on Wednesday, June 8, 2022.
If the proposals at the Special Meeting are approved, the parties anticipate that the business combination will close shortly thereafter, subject to the satisfaction of other closing conditions. Upon consummation of the business combination, TCAC intends to change its name to SpringBig Holdings, Inc. and expects its common stock and warrants to remain listed on the NASDAQ Global Select stock market under the new ticker symbols of “SBIG” and “SBIGW” respectively.
