LOS ANGELES--(BUSINESS WIRE)--SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, is providing unaudited financial results for Q4 of 2020 today, March 29th, 2021.
Fourth Quarter 2020 and Recent Operational Highlights and Guidance
- Revenue for Q4 of $4.5M up 316% year-over-year, 74% sequentially quarter-over-quarter, exceeding previous guidance.
- Full-year revenue guidance increased from $17M - $18M to $23M - $25M
- Sequire bookings of $4.8M and $10M for Q4 and 1Q, respectively
- 8 consecutive quarters of Sequire SAAS growth
- Currently holding approximately $23.8M worth of publicly listed securities
- 183 public companies/partners have subscribed to Sequire, up 92 since our Q3 release
- Sold position in TI Health (SRAXmd) for $8M
- Sequire revenue to be recognized from existing contracts in 2021: $16.5M as of this release.
- Second Quarter revenue guidance of $7M
- BIGtoken share exchange completed. BIGtoken now listed under TICKER:FPVD
Three months ended December 31, 2020
- Total Revenue was $4.5M, an increase of 316% as compared to the same period in prior year.
- Gross Margin was 73%, as compared to 44% in the same period last year.
- Operating Expenses were $5.3M as compared to $4.8m in the same period last year.
- EBITDA increase of $3M, ($739K) vs ($3.7M) in Q4 2019
- SRAX less BIGtoken Pro forma EBITDA of $255K as compared to ($500K)
- Net Income of $200K compared to Net loss of $4.4M in the same period last year.
Full Year Ended December 31, 2020
- Total Revenue was $8.7M, an increase of 141% as compared to the same period in prior year.
- Gross Margin was 70%, as compared to 53% in the same period last year.
- Operating Expenses were $17.7, a decrease of $2.1M, or 11% as compared to the same period last year.
- EBITDA was -$8.4M as compared to -$15.5M last year.
- Net Income was -$14.7M compared to -$16.9M in the same period last year.
“We are making great progress with our platform and we are seeing continued adoption of the products that we are building for issuers. We had another record quarter of bookings for Sequire. In the first quarter of 2021 we have closed over $10 million in contracts. This momentum is not slowing down and we are growing the business to accommodate this demand,” said Christopher Miglino, Founder and CEO of SRAX. “Our team did an amazing job in delivering a number of cutting-edge technological improvements to the platform and they have laid the foundation for some amazing enhancements that we will bring to market throughout the rest of this year. I could not be more proud of the hard work and dedication that the team has demonstrated as our sales continue to skyrocket,” added Miglino.
Video Call:
Management will review the results on a video call, with a live question and answer session, March 29th, 2021 at 1:30 pm PT/4:30 pm ET.
To register for the live webcast and presentation, please sign up here: http://srax-earnings-call.mysequire.com
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: 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.
SRAX less BIGtoken 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 and excluding the results from the BIGtoken carved-out entity.
About SRAX:
SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit 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, 2019, 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 SRAX and are difficult to predict. SRAX undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SRAX SEGMENT OPERATING RESULTS:
| For the Three Months Ended December 31, (Unaudited) | ||||||||||||||||||||||||||
Sequire |
BIGToken |
Corporate and Other |
Consolidated |
|||||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||
| Sequire platform revenue | 2,970,000 |
46,000 |
- |
- |
- |
- |
2,970,000 |
$ | 46,000 |
|
||||||||||||||||
| Conference revenue | 506,000 |
- |
- |
- |
- |
- |
506,000 |
- |
|
|||||||||||||||||
| BIGtoken revenue | - |
- |
996,000 |
987,000 |
- |
- |
996,000 |
987,000 |
|
|||||||||||||||||
| Other | - |
- |
- |
- |
52,000 |
55,000 |
52,000 |
55,000 |
|
|||||||||||||||||
| Total Revenue | 3,476,000 |
46,000 |
996,000 |
987,000 |
52,000 |
55,000 |
4,524,000 |
1,088,000 |
|
|||||||||||||||||
| Cost of Revenue | 888,000 |
7000 |
309,000 |
600,000 |
5,000 |
-2,000 |
1,202,000 |
605,000 |
|
|||||||||||||||||
| Gross profit | 2,588,000 |
39,000 |
687,000 |
387,000 |
47,000 |
57,000 |
3,322,000 |
483,000 |
|
|||||||||||||||||
| margin % | 74.5 |
% |
84.8 |
% |
69.0 |
% |
39.2 |
% |
90.4 |
% |
103.6 |
% |
73.4 |
% |
44.4 |
% |
||||||||||
| Operating expenses | 1,501,000 |
174,000 |
1,444,000 |
2,471,000 |
2,394,000 |
2,114,000 |
5,339,000 |
4,759,000 |
|
|||||||||||||||||
| Operating Income | $ | 1,087,000 |
-135,000 |
-757,000 |
-2,084,000 |
-2,347,000 |
-2,057,000 |
-2,017,000 |
-4,276,000 |
|
||||||||||||||||
| Year ended December 31, (Unaudited) | ||||||||||||||||||||||||||
Sequire |
BIGToken |
Corporate and Other |
Consolidated |
|||||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||
| Sequire platform revenue | 5,781,000 |
87,000 |
- |
- |
- |
- |
5,781,000 |
$ | 87,000 |
|
||||||||||||||||
| Conference revenue | 503,000 |
- |
- |
- |
- |
- |
503,000 |
- |
|
|||||||||||||||||
| BIGtoken revenue | - |
- |
2,140,000 |
3,228,000 |
- |
- |
2,140,000 |
3,228,000 |
|
|||||||||||||||||
| Other | - |
- |
- |
- |
223,000 |
268,000 |
223,000 |
268,000 |
|
|||||||||||||||||
| Total Revenue | 6,284,000 |
87,000 |
2,140,000 |
3,228,000 |
223,000 |
268,000 |
8,647,000 |
3,583,000 |
|
|||||||||||||||||
| Cost of Revenue | 1,783,000 |
7,000 |
800,000 |
1,613,000 |
6,000 |
61,000 |
2,589,000 |
1,681,000 |
|
|||||||||||||||||
| Gross profit | 4,501,000 |
80,000 |
1,340,000 |
1,615,000 |
217,000 |
207,000 |
6,058,000 |
1,902,000 |
|
|||||||||||||||||
| margin % | 72 |
% |
92 |
% |
63 |
% |
50 |
% |
97 |
% |
77 |
% |
70 |
% |
53 |
% |
||||||||||
| Operating expenses | 3,412,000 |
462,000 |
5,933,000 |
10,751,000 |
8,310,000 |
8,521,000 |
17,655,000 |
19,734,000 |
|
|||||||||||||||||
| Operating Income | $ | 1,089,000 |
-382,000 |
-4,593,000 |
-9,136,000 |
-8,093,000 |
-8,314,000 |
-11,597,000 |
-17,832,000 |
|
||||||||||||||||
SRAX STATEMENT OF OPERATIONS
| For the Years Ended December 31, | For the Three Months Ended December 31, | ||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| in $ | 2020 |
2019 |
$ CHG |
|
% CHG |
|
2020 |
|
2019 |
|
$ CHG |
|
% CHG |
||||||||||||||
| REVENUE | |||||||||||||||||||||||||||
| Total Revenue | $ | 8,647,000 |
|
$ | 3,584,000 |
|
$ | 5,063,000 |
|
141 |
% |
4,522,000 |
|
1,087,000 |
|
3,435,000 |
|
316 |
% |
||||||||
| Cost of revenue | 2,589,000 |
|
1,680,000 |
|
909,000 |
|
54 |
% |
1,201,000 |
|
605,000 |
|
596,000 |
|
99 |
% |
|||||||||||
| GROSS PROFIT | 6,058,000 |
|
1,904,000 |
|
4,154,000 |
|
218 |
% |
3,321,000 |
|
482,000 |
|
2,839,000 |
|
589 |
% |
|||||||||||
| Gross profit margin | 70 |
% |
53 |
% |
73 |
% |
44 |
% |
|||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||||||
| Employee related costs | 7,895,000 |
|
8,656,000 |
|
(761,000 |
) |
-9 |
% |
2,489,000 |
|
1,926,000 |
|
563,000 |
|
29 |
% |
|||||||||||
| Marketing and selling expenses | 2,675,000 |
|
2,454,000 |
|
221,000 |
|
9 |
% |
1,044,000 |
|
252,000 |
|
792,000 |
|
314 |
% |
|||||||||||
| Platform Costs | 1,667,000 |
|
1,738,000 |
|
(71,000 |
) |
-4 |
% |
486,000 |
|
579,000 |
|
(93,000 |
) |
-16 |
% |
|||||||||||
| Depreciation and amortization | 1,303,000 |
|
1,164,000 |
|
139,000 |
|
12 |
% |
341,000 |
|
330,000 |
|
11,000 |
|
3 |
% |
|||||||||||
| General and administrative | 4,115,000 |
|
5,750,000 |
|
(1,635,000 |
) |
-28 |
% |
958,000 |
|
1,681,000 |
|
(723,000 |
) |
-43 |
% |
|||||||||||
| Total operating expenses | 17,655,000 |
|
19,762,000 |
|
(2,107,000 |
) |
-11 |
% |
5,318,000 |
|
4,768,000 |
|
550,000 |
|
12 |
% |
|||||||||||
| LOSS FROM OPERATIONS | (11,597,000 |
) |
(17,858,000 |
) |
6,261,000 |
|
-35 |
% |
(1,997,000 |
) |
(4,286,000 |
) |
2,289,000 |
|
-53 |
% |
|||||||||||
| Other income (expense) | |||||||||||||||||||||||||||
| Financing Costs | (12,150,000 |
) |
(725,000 |
) |
(11,425,000 |
) |
1576 |
% |
(6,810,000 |
) |
(366,000 |
) |
(6,444,000 |
) |
1761 |
% |
|||||||||||
| Interest income | 9,000 |
|
(9,000 |
) |
-100 |
% |
- |
|
9,000 |
|
0 |
% |
|||||||||||||||
| Gain (loss) on sale of assets | 7,873,000 |
|
658,000 |
|
7,215,000 |
|
1097 |
% |
7,873,000 |
|
263,000 |
|
7,519,000 |
|
2859 |
% |
|||||||||||
| Other gain (loss) | - |
|
- |
|
n/a |
|
(8,000 |
) |
(14,000 |
) |
6,000 |
|
-43 |
% |
|||||||||||||
| Exchange gain or loss | 12,000 |
|
(12,000 |
) |
-100 |
% |
- |
|
354,000 |
|
0 |
% |
|||||||||||||||
| Gains from marketable securities | 874,000 |
|
- |
|
874,000 |
|
n/a |
|
1,158,000 |
|
- |
|
n/a |
|
|||||||||||||
| Change in fair value of derivative liabilities | 321,000 |
|
1,045,000 |
|
(724,000 |
) |
-69 |
% |
- |
|
(345,000 |
) |
345,000 |
|
-100 |
% |
|||||||||||
| Total other income (loss) | (3,082,000 |
) |
999,000 |
|
(4,081,000 |
) |
-409 |
% |
2,213,000 |
|
(99,000 |
) |
2,312,000 |
|
-2335 |
% |
|||||||||||
| Loss before provision for income taxes | (14,679,000 |
) |
(16,859,000 |
) |
2,180,000 |
|
-13 |
% |
216,000 |
|
(4,385,000 |
) |
4,601,000 |
|
-105 |
% |
|||||||||||
| Provision for income taxes | (26,000 |
) |
(26,000 |
) |
n/a |
|
(26,000 |
) |
- |
|
(26,000 |
) |
n/a |
|
|||||||||||||
| Net income (loss) | $ | (14,705,000 |
) |
$ | (16,859,000 |
) |
2,154,000 |
|
-13 |
% |
190,000 |
|
$ | (4,385,000 |
) |
4,575,000 |
|
-104 |
% |
||||||||
SRAX BALANCE SHEET
| Balance Sheets | |||||||
| (Unaudited) | |||||||
| In dollars | 31-Dec-20 | 31-Dec-19 | |||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash | 451,000 |
32,000 |
|||||
| Accounts receivable, net | 2,608,000 |
805,000 |
|||||
| Securities held for sale | 367,000 |
- |
|||||
| Prepaid expense | 8,447,000 |
715,000 |
|||||
| Other current assets | - |
306,000 |
|||||
| Total current assets | 11,873,000 |
1,858,000 |
|||||
| Notes receivable | 893,000 |
- |
|||||
| Property and equipment, net | 118,000 |
191,000 |
|||||
| Goodwill | 23,351,000 |
15,645,000 |
|||||
| Intangible assets, net | 2,409,000 |
1,966,000 |
|||||
| Right-of-Use Asset | 366,000 |
456,000 |
|||||
| Other assets | 3,000 |
118,000 |
|||||
| Total Assets | 39,013,000 |
20,234,000 |
|||||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses | 3,561,000 |
2,442,000 |
|||||
| Derivative liabilities | - |
4,397,000 |
|||||
| Other current liabilities | 8,711,000 |
537,000 |
|||||
| Payroll protection loan - current portion | 747,000 |
- |
|||||
| OID convertible debentures - current portion | 6,016,000 |
- |
|||||
| Total Current Liabilities | 19,035,000 |
7,376,000 |
|||||
| Right-of-Use liability - long term | 243,000 |
352,000 |
|||||
| Payroll protection loan, less current portion | 379,000 |
- |
|||||
| OID convertible debentures, less current portion | - |
||||||
| Deffered Tax Liability | 131,000 |
||||||
| Total Liabilities | 19,788,000 |
7,728,000 |
|||||
| Stockholders' equity | 19,225,000 |
12,506,000 |
|||||
| Total liabilities and equity | 39,013,000 |
20,234,000 |
|||||
SRAX STATEMENT OF CASH FLOWS
| STATEMENT OF CASH FLOWS | ||||||
| (Unaudited) | ||||||
| For the Years Ended December 31, | ||||||
| in dollars | 2020 |
|
|
2019 |
||
| Cash Flows From Operating Activities | ||||||
| Net Cash Used in Operating Activities | (6,489,000) |
(15,350,000) |
||||
| Cash Flows From Investing Activities | ||||||
| Proceeds from the sale of securities held for sale | 984,000 |
|||||
| Proceeds from sale of SRAXmd, net | - |
570,000 |
||||
| Acquisition of LD Micro, net of cash received | (697,000) |
(73,000) |
||||
| Development of software | (1,205,000) |
(1,292,000) |
||||
| Other assets | 32,000 |
|||||
| Net Cash Used by Investing Activitities | (886,000) |
(795,000) |
||||
| Cash Flows From Financing Activities | ||||||
| Proceeds from OID notes payable, less issuance costs | 13,268,000 |
|||||
| Redemption of OID notes payable | (6,980,000) |
|||||
| Proceeds from issuance of short term notes payable less issaunce costs | 960,000 |
|||||
| Repayment of short term notes payable | (100,000) |
|||||
| Proceeds from payroll protection program | 1,084,000 |
|||||
| Proceeds from the issuace of notes payable | 2,130,000 |
|||||
| Repayment of notes payable | (2,500,000) |
|||||
| Proceeds from the sale of common stock units | 12,197,000 |
|||||
| Proceeds from the exercise of warrants | 1,196,000 |
|||||
| Net Cash Provided by Financing Activities | 7,862,000 |
13,393,000 |
||||
| Net increase (decrease) in Cash | 487,000 |
(2,752,000) |
||||
| Cash, Beginning of Period | 32,000 |
2,784,000 |
||||
| Cash, End of Period | $ | 519,000 |
$ | 32,000 |
OPERATING RESULTS SRAX LESS BIGTOKEN
| Three months ended December 31, 2020 | |||||||||
| (Unaudited) | CONSOLIDATED SRAX | BIGTOKEN CARVE-OUT | SRAX - LESS BIGTOKEN CARVE - OUT | ||||||
| ($'s) | 2020 |
2019 |
|
2020 |
2019 |
|
2020 |
2019 |
|
| TOTAL REVENUE | 4,524,000 |
1,088,000 |
994,000 |
986,000 |
3,530,000 |
102,000 |
|||
| Cost of Revenue | 1,202,000 |
605,000 |
309,000 |
600,000 |
893,000 |
5,000 |
|||
| Gross Profit | 3,322,000 |
483,000 |
685,000 |
386,000 |
2,637,000 |
97,000 |
|||
| Margin % | 73% |
44% |
69% |
39% |
75% |
95% |
|||
| Cash OPEX | 4,062,000 |
4,132,000 |
1,680,000 |
3,536,000 |
2,382,000 |
596,000 |
|||
| EBITDA | (740,000) |
(3,649,000) |
(995,000) |
(3,150,000) |
255,000 |
(499,000) |
|||
| Non cash OPEX | 1,277,000 |
627,000 |
759,000 |
561,000 |
518,000 |
66,000 |
|||
| Operating Income | (2,017,000) |
(4,276,000) |
685,000 |
386,000 |
(2,702,000) |
(4,662,000) |
|||
