via NewMediaWire –
Society Pass Inc.
(Nasdaq: SOPA) (“SoPa”), Southeast Asia (SEA)’s
next generation, data-driven, loyalty, fintech and e-commerce
ecosystem, today announces unaudited financial results for first
quarter ended 31 March 2023 and a filing of its 1Q 2023 Form 10-Q
with the Securities and Exchange Commission (SEC).
Click Here (on SEC website) to
view 1Q 2023 Form 10-Q filing.
Summary Points:• 1Q 2023
revenues grew 358% year on year (from $445,090 in 1Q 2022 to
$2,042,580 in 1Q 2023).
• 1Q 2023 digital advertising revenues totaled
$1,283,774, up from $0 in 1Q 2022.
• 1Q 2023 travel platform revenues totaled
$486,707, up from $0 in 1Q 2022.
• 1Q 2023 gross profit grew to $686,237 from
gross loss of $14,793 in 1Q 2022.
• 1Q 2023 gross margin improved to 33.5% from 1Q
2022 gross margin of -3.3%.
• 1Q 2023 gross margin improved to 33.5% from 4Q
2022 gross margin of 25.5%.
• While 1Q 2023 revenue grew 358%, 1Q 2023 cash
operating expenses grew only 20% year on year (from $2,817,348 in
1Q 2022 to $3,385,759 in 1Q 2023).
• With cash on hand of $13.7 million and book
value of $15.6 million on 31 March 2023, SoPa is well capitalised
for the expected roll out of the Society Pass loyalty platform in
2Q 2023 and continuing acquisitions of SEA companies in its
loyalty, lifestyle, food & beverage delivery,
telecommunications, digital advertising, and travel verticals for
the rest of 2023.
• Since inception, SoPa has onboarded
approximately 3.3 million registered consumers and approximately
650,000 registered merchants/brands onto its ever-expanding next
generation digital ecosystem and loyalty platform in SEA.
• SoPa now operates six verticals in SEA:
loyalty, lifestyle, food & beverage delivery,
telecommunications, digital advertising, and travel.
• SoPa currently operates in five SEA countries:
Singapore, Vietnam, Indonesia, Philippines and Thailand.
• SoPa currently employes approximately 250
people throughout SEA.
Raynauld Liang, Society Pass Inc. Chief
Financial Officer, explains, “Our outsized first quarter 2023
financial performance validates our acquisitions-focused business
plan here in SEA. For 1Q 2023, we achieved year-on-year revenue
growth of 358%, whilst recognising year-on-year cash operating
expenses increase of only 20%. In other words, despite growing at
breakneck pace in the five largest economies of SEA, the growth of
our revenues is far outstripping the growth of our expenses by
almost eighteen times. Just as importantly, our margins are
dramatically improving on a quarter-to-quarter basis. In 1Q 2023,
we realized 33.5% gross margins, which compares favourably to 4Q
2022 gross margins of 25.5%.
“We continue to invest heavily in our digital
advertising, travel and lifestyle verticals. For example, our
Thoughtful Media Group subsidiary has expanded to Vietnam and
Indonesia in addition to its home base of Thailand. TMG and
NusaTrip now comprises 62.9% and 23.8% of SoPa’s revenues,
respectively. With the continuing performance in our three big
verticals, we confidently project attaining cash profitability
sometime in 2023.”
About Society Pass Inc.Founded
in 2018 as a data-driven loyalty, fintech and e-commerce ecosystem
in the fast-growing markets of Vietnam, Indonesia, Philippines,
Singapore and Thailand, which account for more than 80% of the SEA
population, and with offices located in Angeles, Bangkok, Ho Chi
Minh City, Jakarta, Manila, and Singapore, Society Pass
Incorporated (Nasdaq: SOPA) is an
acquisition-focused holding company operating 6 interconnected
verticals (loyalty, digital media, travel, telecoms, lifestyle, and
F&B), which seamlessly connects millions of registered
consumers and hundreds of thousands of registered merchants/brands
across multiple product and service categories throughout SEA.
Society Pass completed an initial public
offering and began trading on the Nasdaq under the ticker SOPA in
November 2021. SOPA shares were added to the Russell 2000 index in
December 2021.
SoPa acquires fast growing e-commerce companies
and expands its user base across a robust product and service
ecosystem. SoPa integrates these complementary businesses through
its signature Society Pass fintech platform and circulation of its
universal loyalty points or Society Points, which has entered beta
testing and is expected to launch broadly at the beginning of 2023.
Society Pass loyalty program members earn and redeem Society Points
and receive personalised promotions based on SoPa’s data
capabilities and understanding of consumer shopping behaviour. SoPa
has amassed more than 3.3 million registered consumers and over
650,000 registered merchants and brands. It has invested 2+ years
building proprietary IT architecture to effectively scale and
support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a
more personalised experience for customers in the purchase journey
and to transform the entire retail value chain in SEA. SoPa
operates Thoughtful Media Group, a Thailand-based, a social
commerce-focused, premium digital video multi-platform network;
NusaTrip, a leading Indonesia-based Online Travel Agency; VLeisure,
Vietnam’s leading provider of hotel management and payment
solutions; Gorilla Networks, a Singapore-based, web3-enabled mobile
blockchain network operator; Leflair.com, Vietnam’s leading
lifestyle e-commerce platform; Pushkart.ph, a popular grocery
delivery company in Philippines; and Mangan.ph, a leading local
restaurant delivery service in Philippines.
For more information on Society Pass, please
visit:Website at https://www.thesocietypass.com or
LinkedIn at
https://www.linkedin.com/company/societypass or
Facebook at
https://www.facebook.com/thesocietypass or
Twitter at https://twitter.com/society_pass
or
Instagram at
https://www.instagram.com/societypass/.
Use of
Non-GAAP Financial Measures
In addition to
financial information prepared in accordance with U.S. GAAP, this
document also contains certain non-GAAP financial measures based on
management’s view of performance including cash operating expenses.
Management uses such measures internally for planning and
forecasting purposes and to measure the performance of the Company.
We believe these adjusted financial measures provide useful and
meaningful information to us and investors because they enhance
investors’ understanding of the continuing operating performance of
our business and facilitate the comparison of performance between
past and future periods. These adjusted financial measures are
non-GAAP measures and should be considered in addition to, but not
as a substitute for, the information prepared in accordance with
U.S. GAAP. When preparing these supplemental non-GAAP financial
measures, we typically exclude certain GAAP items that management
does not consider to be normal, recurring non-cash operating
expenses.
Period ended March 31, US$ |
|
2023 |
|
|
2022 |
|
|
|
|
Total operating expenses |
($ |
6,136,469 |
) |
($ |
6,584,931 |
) |
Amortisation and
depreciation |
|
863,917 |
|
|
806,622 |
|
Goodwill Impairment |
|
- |
|
|
528,583 |
|
Stock-based compensation for
services |
|
1,886,793 |
|
|
2,432,378 |
|
Cash Operating Expenses |
$ |
3,385,759 |
|
$ |
2,817,348 |
|
Cautionary Note Concerning
Forward-Looking StatementsThis press release may include
“forward-looking statements,” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other
than statements of historical fact included in this press release
are forward-looking statements. When used in this press release,
words such as “anticipate”, “believe”, “estimate”, “expect”,
“intend” and similar expressions, as they relate to us or our
management team, identify forward-looking statements. Such
forward-looking statements are based on the beliefs of management,
as well as assumptions made by, and information currently available
to, the Company’s management. Actual results could differ
materially from those contemplated by the forward-looking
statements as a result of certain factors detailed in the Company’s
filings with the SEC. All subsequent written or oral
forward-looking statements attributable to us or persons acting on
our behalf are qualified in their entirety by this paragraph.
Forward-looking statements are subject to numerous conditions, many
of which are beyond the control of the Company, including those set
forth in the Risk Factors section of the Company’s registration
statement and prospectus relating to the Company’s initial public
offering filed with the SEC. The Company undertakes no obligation
to update these statements for revisions or changes after the date
of this release, except as required by law.
Media Contacts:Rokas
SidlauskasChief Marketing Officer
rokas@thesocietypass.com
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