SRAX Reports Vertical Sales Growth of 132% for Q1 19

Date : 05/15/2019 @ 9:25PM
Source : PR Newswire (US)
Stock : Social Reality, Inc. (SRAX)
Quote : 4.48  0.0 (0.00%) @ 12:00PM

SRAX Reports Vertical Sales Growth of 132% for Q1 19

Social Reality Inc. (NASDAQ:SRAX)
Historical Stock Chart

3 Months : From Apr 2019 to Jul 2019

Click Here for more Social Reality Inc. Charts.

LOS ANGELES, May 15, 2019 /PRNewswire/ -- Social Reality, Inc. (Nasdaq: SRAX), a digital marketing and consumer data management and distribution technology platform company, reported results for the three months ended March 31, 2019.

SRAX (PRNewsfoto/SRAX)

"We continue to build valuable data sets that benefit our customers across all our businesses," stated SRAX's CEO and Founder Christopher Miglino. "Our BIGtoken platform is poised to take advantage of the recent exponential growth to 15.6 million registered users, as we begin to monetize data. Strategic agency partners and several large, internationally known consumer brands are interested in leveraging our BIGtoken data for digital advertising and for innovative opportunities.  Further, there is a growing trend of cross pollination between BIGtoken and our verticals, which are serving as sales channels for the data collected through BIG.

"Our verticals grew 132% for the first quarter of 2019 as compared to last year, reflecting our increased sales resources. Combined with our strong sales pipeline, we expect significant revenue growth in the second half of the year," concluded Miglino.

First Quarter 2019 Key Metrics

  • Increased sales infrastructure grew Q1 2019 vertical revenue 132% compared to Q1 2018.

 

Revenue

Three Months Ended March 31,



$ in 000s

2019


2018


Y-o-Y% Change

Verticals Revenue

$

592


$

255


132%

SRAXmd & Other Revenue


-



1,856


-100%

Total Revenue

$

592


$

2,111


-72%

 

  • Q1 2019 net loss of $5.8 million included a charge of $2.0 million related to non-cash warrant valuation. Q1 2018 net income $11,000 included a benefit of $3.7 million related to non-cash warrant valuation as well as operations from SRAXmd and Reach, which were sold or discontinued, respectively.

 

GAAP Net Income / (Loss)


For the Three Months Ended March 31,


$ in 000s


2019


2018
As Restated


GAAP Net Income / (Loss)


$

(5,785)


$

11



Adjusted EBITDA


For the Three Months Ended March 31,


$ in 000s


2019


2018


Total


$

(3,841)


$

(2,464)


BIGtoken



(695)



(294)


Discontinued Products



-



350


Continuing Ops.


$

(3,146)


$

(2,515)


2019 Guidance
For 2019, the company reiterates full year revenue guidance to be between $20 million and $25 million with gross margins between 45% and 55%.

Operating Highlights:

  • Corporate:
    • Raised $8.8 million after the quarter end: $6.7 million from a registered direct offering, $1.1 million from warrant conversion and $1.0 million dollars from a private placement for the BIGtoken Asian expansion.
    • Options trading became available for SRAX.
  • BIGtoken, the first digital exchange of transparent and verified consumer data:
    • Receives $1 million investment to launch BIGtoken Asia, which will increase access to over 1 billion internet users that want to own and earn from their data.
    • Integrated mobile banking applications from some of the largest banks in the United States.
    • Introduced a feature for users to earn points with popular travel, grocery, and retail loyalty/rewards programs enabling them to earn more for the activities they already participate in on a regular basis.
    • Attracted more than 15.6 million registered users as of May 15, 2019.
  • Verticals:
    • Began selling SRAX IR, the investor relations software as a service (SaaS) platform that analyzes stock buyer behavior and trends for issuers of publicly traded companies.

Conference Call:
Management will review the results on a conference call with a live question and answer session today, May 15, 2019, at 4:30 p.m. ET/1:30 p.m. PT.

  • If calling from the United States or Canada, please dial 1-877-451-6152 to access the live call and 1-844-512-2921 for the replay, code 13690722 available until May 29th.
  • If calling internationally, please dial 1-201-389-0879 to access the live call and 1-412-317-6671 for the replay, code 13690722.
  • The call will be webcast over the Internet and accessible at the Company's website at https://srax.com/investors/ for at least 90 days.

Non-GAAP Measures:
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: Adjusted net income (loss) and Adjusted EBITDA The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

Adjusted net income (loss) is defined as net income (loss) less non-cash equity-based compensation and the accretion of warrants. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, changes in the fair-value of derivative and warrant liabilities and certain additional one-time charges.

About SRAX
Social Reality, Inc. (SRAX) is a digital marketing and consumer data management technology company. SRAX's technology delivers the tools to unlock data to reveal brands core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIGtoken, SRAX has developed a consumer-managed data marketplace where people can own, verify and sell access to their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX's technology and tools deliver a digital competitive advantage for brands in the CPG, automotive, sports and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.

Safe Harbor Statement
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to increase our revenues, satisfy our obligations as they become due, report profitable operations and other risks and uncertainties as set forth in our Annual Report on Form 10-K for the year ended December 31, 2018, and our subsequent Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Social Reality and are difficult to predict. Social Reality undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Kirsten Chapman/Mary Magnani, LHA Investor Relations, +1 415 433 3777, srax@lhai.com

SOCIAL REALITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS



March 31,


December 31,


2019


2018


(unaudited)



Assets




Current assets:




Cash and cash equivalents

$

17,672


$

2,784,865

Accounts receivable, net


550,857



1,828,940

Prepaid expenses


492,231



466,823

Other current assets


300,898



387,085

Total current assets


1,361,658



5,467,713







Non-current Assets:






Property and equipment, net


196,996



192,065

Goodwill


15,644,957



15,644,957

Intangible assets, net


1,805,283



1,762,605

Right-of-Use Asset


505,278



Other assets


107,454



51,153

Total non-current assets


18,259,968



17,650,780

Total assets

$

19,621,626


$

23,118,493







Liabilities and stockholders' equity






Current liabilities:






Accounts payable and accrued expenses

$

3,421,911


$

3,574,926

Debenture warrant liability


5,901,089



4,323,499

Leapfrog warrant liability


830,507



622,436

Derivative liability


672,155



496,260

Total current liabilities


10,825,662



9,017,121

Non-current liabilities:






Lease Obligation - Long Term Portion


359,112



Total non-current liabilities


359,112



Total liabilities


11,184,774



9,017,121







Commitments and contingencies












Stockholders' equity:






Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at March 31, 2019 and December 31, 2018, respectively






Class A common stock, authorized 250,000,000 shares, $0.001 par value, 10,109,530 and 10,109,530 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively


10,109



10,109

Class B common stock, authorized 9,000,000 shares, $0.001 par value, no shares issued or outstanding at March 31, 2019 and December 31, 2018, respectively




Common stock to be issued




Additional paid in capital


32,990,496



32,869,611

Accumulated deficit


(24,563,753)



(18,778,348)

Total stockholders' equity


8,436,852



14,101,372

Total liabilities and stockholders' equity

$

19,621,626


$

23,118,493

 

SOCIAL REALITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2019 AND 2018

(Unaudited)




March 31,


March 31,




2019


2018






As Restated








Revenue


$

591,755


$

2,110,850


Cost of revenue



342,347



818,105


Gross profit



249,408



1,292,745


Operating expense:








General, selling and administrative expense



4,490,961



4,108,093


Operating expense



4,490,961



4,108,093


Loss from operations



(4,241,553)



(2,815,348)










Other income (expense):








Interest expense



(67,988)



(434,785)


Amortization of debt issuance costs





(435,666)


Total Interest Expense



(67,988)



(870,451)


Gain on sale of Assets



472,479



(22,165)


Exchange Gain or Loss



13,509



(4,664)


Loss on settlement








Change in Fair Value of Warrant Liability



(1,961,851)



3,723,696


Other non operating income / (expense)



(1,475,863)



3,696,867


Total other income / (expense)



(1,543,851)



2,826,416


Income / (Loss) before provision for income taxes



(5,785,404)



11,068










Provision for income taxes






Net income / (loss)


$

(5,785,404)


$

11,068










Net income / (loss) per share, basic and diluted


$

(0.57)


$

0.00










Weighted average shares outstanding








Basic



10,109,530



10,037,905


Diluted



10,109,530



10,037,905


 

SOCIAL REALITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTH PERIOD ENDED MARCH 31, 2019 AND 2018

(Unaudited)



March 31,


March 31,


2019


2018




As Restated





Cash flows from operating activities




Net Income (loss)

$

(5,785,404)


$

11,068

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:






Stock based compensation


120,884



166,130

Amortization of debt issuance costs




93,639

Accretion of debenture discount and warrants




342,026

Gain/Loss on valuation of warrant derivatives


1,961,852



(3,723,696)

Gain on sale of SRAXmd


(472,479)



Provision for bad debts


356



(425)

Depreciation expense


15,968



9,441

Amortization of intangibles


237,075



166,185

Changes in operating assets and liabilities:






Accounts receivable


1,277,728



2,614,671

Prepaid expenses


(25,408)



(72,416)

Other assets


29,886



(3,445)

Accounts payable and accrued expenses


(299,479)



(178,022)

Net cash used in operating activities


(2,939,021)



(574,844)







Cash flows from investing activities






Proceeds from SRAXmd


472,479



Purchase of equipment


(20,899)



(20,793)

Development of software


(279,752)



(231,774)

Net cash (used in) provided by investing activities


171,828



(252,567)







Cash flows from financing activities






Net cash provided by financing activities










Net increase / (decrease) in cash and cash equivalents


(2,767,193)



(827,411)

Cash and cash equivalents, beginning of period


2,784,865



1,017,299

Cash and cash equivalents, end of period

$

17,672


$

189,888







Supplemental schedule of cash flow information






Cash paid for interest

$

55,931


$

340,684

Cash paid for taxes

$


$

Supplemental schedule of noncash financing activities






Recorded Right of Use Asset and Operating Lease Obligation

$

505,278


$

Vesting of common stock award

$


$

150,000

Issuance of common stock to be issued

$


$

869,500

 

SOCIAL REALITY, INC.

Reconciliation of GAAP to Non-GAAP results

(Unaudited)




For the three months ended



March 31,



2019


2018
As Restated

Net Income / (Loss)


$

(5,785,404)


$

11,068

Plus:







Equity based compensation



120,884



166,130

   Accretion of beneficial conversion feature



-



-

   Accretion of debenture discount and warrants


-



9,885

Adjusted net income (loss)



(5,664,520)



187,083

Interest (income) expense



67,988



870,451

Depreciation and amortization



253,043



175,626

Change in Fair Value of Warrant Liability



1,961,851



(3,723,696)

Gain on Sale



(472,479)



22,165

Other income (loss)



13,509



4,664

Adjusted EBITDA


$

(3,840,608)


$

(2,463,707)

 


For the three months ended March 31,


As Reported - GAAP


Less: Disc. Products


Excl. Disc Products

($s in '000s)

2019

2018

% chg


2019

2018

% chg


2019

2018

% chg

Net Revenue

592

2,111

-72%



1,856

-100%


592

255

132%

Cost of revenue

342

818

-58%


44

633

-93%


298

185

61%

Gross Profit

250

1,293

-81%


(44)

1,223

n/a


294

70

321%

Margin %

42%

61%

112%


n/m

66%

104%


50%

27%

243%













Operating expense

4,090

3,766

9%


10

1,262

-99%


4,107

2,504

64%













EBITDA

(3,841)

(2,474)

n/a


(54)

(39)

n/a


(3,787)

(2,434)

n/a













Net Income

(5,785)

11

n/a


(133)

(85)

n/a


(5,652)

96

n/a

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/srax-reports-vertical-sales-growth-of-132-for-q1-19-300851042.html

SOURCE SRAX

Copyright 2019 PR Newswire

Latest SRAX Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.