SURG - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to the SurgePays' Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Doug Lane, Investor Relations at SurgePays. Sir, the floor is yours.

Doug Lane

Thank you, operator, and good afternoon, everyone. Third Earnings SurgePays' Call. and the to Quarter Webcast XXXX Conference Welcome Executive Evers, date and Brian SurgePays Chief XXXX, November Cox, and the and Today's XX, from on is Financial Chief Officer. call today President Officer; Tony are

results certain everyone could of I'd forward-looking differ may the are XXXX. to they defined These remind as cause Securities Private to this under call statements Before we the those to risks Litigation from that that expressed begin, statements. are like forward-looking actual and contain uncertainties statements Reform materially subject Act in

uncertainties, For release the see events that a Relations statement are discussion made expectations of press such this forward-looking no after Investor website, All ir.surgepays.com. occur we most risks today with any Copies and obligation filings and reflect our of update today's current please accessible only, to recent the statements call. SurgePays' reflect SurgePays' on SEC. undertake to

available will Chief to Investor call Form Brian I'd ended like to be turn quarter SurgePays' XX-Q Cox. website. Officer, now Relations and President also the addition, over In for And XX, on Executive the September XXXX, SurgePays'

Kevin Cox

our to you our trust in excited your joining progress today's continued connectivity Thank Today, since I'm in out call for SurgePays. the strategy in May. for and core advancing affordable ran business share program

been on is company. that ACP-only discussed we landscape last our ACP never an we optimism there as call, have While not may political resume the allows, when are and

as to cash possible. toward of new becoming segments. quickly been strategy we as This revenue hands opportunity a core growth a and across aligning and transformative sales, our we're recalibrate, quarter, challenging anticipated quarter, mission our focused, and every seized into all With our an generate channeled advancing we've phase. of all business ourselves it for flow reset, of and intensely deck, member on as streams positioning each energy to team accelerate. integration, It's goal our positive We realizing third

a setup, long-term but sustainable setback, a wasn't priming growth. for quarter This us

plan We flywheel business point takes a business hold. where the and are our with at effect our now turning summary aligns

next few that and drives our each of and recurring revenue. business create the growth Over expect improvement, segments months, generating a scalable to we synergistic momentum continuous X

model investors. our relatable expand footprint, increasingly becomes to our we business As

those high-need to seamlessly demand platform, both needs we strategically markets. tailored we and powerful customer while X revenue live, model. a underserved solutions growth telecom-based fintech shareholder growth. with nationwide, hubs bodegas, telecommunications single potential delivering SurgePays prepaid convenience stores, value. in wireless As to By products, foresee financial through for blending engineered and we create unlocking that technology shop, primary is meet business enormous and mission climbs, We an financial and forefront. work. new meets to mutual and our pioneering local are valuations, on and serve and technology and where one telecommunications This revenue enhance At building SurgePays at people financial services, retail for reoccurring experience access the connectivity a diverse operates core, and customer unified sector, a point-of-sale an is advanced segments,

or directly backbone With most. to need that Sale synergy SurgePays incremental connectivity Here's Number Number bodegas, both not building Mobile. to communities We're yet to essential and and segment SaaS. brand, or platform Network Mobile we is here our of neighborhood of This that the how includes we two, Point wins. Telecommunications, segment maximize as Virtual services. financial wireless services. nationwide software wireless scale. LinkUp a retail a do and network Each one, includes integrate Operator it. prepaid and top-ups, and locations, MVNO. subsidized them stores, convenience redefines access our software, We're bring ClearLine independently This prepaid Service a robust, for products

our how MVNO our to ecosystem. continuity our areas, of retain business the growth MVNO until facilitating X ending, fastest our within preserve on across to in ACP. funding and shift, SurgePays' customer profitability and directly customers. and concluded temporarily while Lifeline, ACP a we many enabling trajectory. hard-earned advancements focus to a chose initiatives immediate With to customers our balance operations, these the traction, channel sheet, fueling to funding prioritizing ACP transition connectivity, funding as through self-fund government-subsidized Leveraging our and long August was strategic solid a for subsidized and substantial partner has choice onboard this we a customers billion economic the us made positions By Lifeline April responsible aiming to connectivity affordable response From XXX,XXX to returns, us In demonstrated FCC-backed low-income economic we to maintaining our strategic in these inception be the the the MVNO run. action we we our and socially of $X.XX made expect generated migrate in accelerate XXXX provider, largely as customer-centered we've long-term seamless While program. in another revenue, with financially took possible XXXX, that decision for both astute one customers,

licensed our actively Our In reigniting at pivotal Lifeline, point-of-sale convenience teams growth This a a subsidy alternative subscribers with allows are step. customers, our SurgePays provider, recent service steady now master leveraging capabilities engaging partnership agreement and us tandem, stores. establishing platform to new XXX,XXX channel. to TerraCom, Lifeline Inc., a initiatives, migrate represents sales

While of revenue is team Lifeline built distracting The ACP is ACP from platform supported our remains for the customers daily thousands business program. channel enrolling and subsidized uncertain, without core now Lifeline our by robustly focus.

market prepaid a brand, LinkUp In to anticipated, secure coming a we the direct our had country, quickly generate agreement network announce weeks, with to Mobile, opportunity hundreds the overwhelmed which with scale go onboarding Lifeline will subscribers to margins. moved has in the of largest believe us and to us carrier We significant We to partnership be at new highest our department subscribers a integration share, The market a more this a employees Meanwhile, team. this initially wireless for enable matter the maximum sales of the Mobile our establish can team has will planned a thousands far outpace ACP retail anticipate enable subscriber to proved total. a QX prepaid on full-featured somewhat As of formidable imminent to enhanced we've and full-scale been and is presence additional space. rollout and XXXX. hire plans soft in and early capture transformative we'll than LinkUp decisively already fact, connection. with launch wireless in the working as

LinkUp growth is On the software platform top-up as critical store Mobile element prepaid activations. our exponential front, in experiencing a readiness SurgePays for

stores our platform, also monthly revenue monthly in a continue X facilitates activations, we has XXX% link-up expect $X.X to or top-ups. This in revenue, prepaid which just growth reloads reaching prerequisite million join a will over as As nearly market channel's trend the demand surged months, intensifies.

and code satisfaction, actionable By the dynamic per emerging and and enrollment, POS marketing high-potential platform enhancing interactions, customer-facing insights ClearLine traditional asset application replacing offers tools. This supports ClearLine's loyalty customer with redefines interactive by SaaS effectively redemptions. a for transforming is SurgePays. Our point-of-sale customer QR terminals campaigns, and and driving in-store patent-pending as store retailers revenue posters within smart advanced coupon loyalty. advertising in-store QR growth elevating instant experience code ClearLine platform TVs screens into engagement

for channels for market solution and brings appeal As wireless SurgePays. valuable revenue a new generator in pathways opens SaaS has will across reoccurring become ClearLine own our its It compatible strong various revenue a and stream. devices,

XXXX. by of market meaningfully QX will it is to years for it development, revenues contribute as Following ready traction, consolidated ClearLine now gains And deployment. we anticipate

new and growth. While we investing project over rapid, Recently, our sales a Nearly we continue outsourced in across XXX are employees, and experienced XXXX, opened channels, making across growth sales, laying for expertise product X launches. full-time dedicated $X.X third the This SurgePays maximizing essential Positioned a bringing all In full set channels, to for it and continuity since support by business a for and first a in now team strategy, enhancing hub and previously funding in verticals. long-standing sales of growth to operations is central for relationships the from ambitious our up and Salvador, all center strategic sustainable our our we're our also customer market. outsourcing and year pivotal into XXXX, facility SurgePays the marks the business in expectations of ACP move anticipation X reported El robust products foundation mid-XXXX. be a opportunities with integral members expansion without a launching efficiencies. as will aligning our quarter million Hispanic evolution quarter

segment to million, an momentum. funding anticipated Our Meanwhile, $XX Platform quarter, showcasing last was sales Prepaid to our same growth compared surged reflecting in $XX,XXX MVNO frame XX% million time the revenue shift. $X.X significant Service in

XX leadership. pivotal this it fully returns, as capture eventually While growth. rewarding approach disciplined financials days believe foundational substantial advancements, a not our I our will build we was of strategic toward market yield shareholders may quarter's

the to turn today's over Now call Tony summarizing financial results call. I'll Tony? before review to our

Anthony Evers

Thank Brian, and overview begin financial I third the of afternoon, will good you, my everyone. results. quarter's

as XXXX, the to ACP For XX%. of Gross and a management. compared to to model, of in of received of and million the transition platform subsidized $XX.X federal a decrease the shutdown of our is decrease million sales quarter funding which Lifeline. million XXXX, due This strategic the to direct $X.X revenues $X.X second our the the we to distribution XXXX first third as ACP shutdown nonsubsidized of same compared sheet On a of business The note, XXXX, XXXX. XXXX swung service funding another protect a in to $X.X for Similar million we ACP ceased of year. the services $XX.X MVNO previous profit million period hired changes third result strong in in new base Mobile, $X.X over from LinkUp in to director program, a utilize while we of same profit by lead generation the earlier received to to revenues increase the of in balance decision either due the year-ago June QX or third the the our quarter period representing from versus quarter, was quarter $X.X reported the loss program third again, million our subscriber was the base network the in a for operational our no result million the of of quarter XXXX. primarily and revenue positive into period

by lower profits for in Additionally, segment was well. to of resulted lead our business compensation additional agreements deemphasis gross increased increase due late stock relates This the management. as to SG&A stock compensation generation in signed in noncash employment The XXXX. expenses XX% year-over-year. that primarily

with at additional the the for several contractors to also for engage had to consultants We in provide to period. was terminal. continued the advisory level operations compared from shareholder overhaul a company fees. investment value. the relations of our transaction allow the store to the in quarter contractor during a to conversion identify to The company platform profit expenses also The engaged and on opportunities Loss tablet-based $XX.X $X.X to consultant third VeriFone million outdated increase financial specifically services, the million area year-ago to

net share loss share loss. reported million were per per loss $X.XX and Our and $XX.X

by loss loss Our were funded ACP. primarily of the ending the and share per federally adversely impacted

Turning to sheet, liquidity cash the flow. balance and

were cash, Our compared second of September XXXX, the quarter. balances the to and end collectively at of $XX.X equivalents, million as $XX.X cash million investment XX,

the Accounts the at increased the federally end was by quarter of in to the for servicing the third $XXX,XXX from winding $X.X the XXXX. of second a million large third quarter operations third receivable from cash Our the used the in swing continued quarter versus $X.X and of used down our in slightly subscribers quarter. of ACP negative $XX,XXX funded quarter, million second the to million due $XX.X

Lifeline capital remarks. Given LinkUp closing the structure, continued LinkUp financing of our either emphasis our the call transition allocation brand. Mobile for back balance is of now or Brian cash subscribers priority will some and cash and I the to in establishing pass our our to Mobile

Brian Prenoveau

only cash, wireless, in seasoned distribution million most tap $XX X We're pillars and market precision. I of proprietary as to investments of our team, channels, and vast SurgePays, XXXX, beginning strategy in what by funding. market-leading prepaid we're positioned distribution, opportunity. Tony. With suite, product and a to a September believe driven is Thanks, cash product, equivalents, team collectively At the into execute success: XX, growth with we're

on built is and us foundation Our solid expansion. for aligning infrastructure, products, all partnerships, a rapid strategic diversified

and quality potential, fintech, an telecommunications, immense in sectors guided high-growth on focus Our a solutions underserved targets retail by services communities. to mission deliver with to market affordable

needs to you lasting for Our to a so time in value by unique is our creating enduring edge. is meeting dedicated SurgePays moat, can't. essential Thank approach way today. problem-solving your much a others competitive that

questions. Operator? call now open the will We to

Operator

[Operator Instructions] from Water Curtis Shauger first Research. coming from Tower question Your is

Curtis Shauger

now and here yielding of ACP. very the any converting the think back give the I to folks you're investors then terms details Lifeline efficiency of path what against is a backdrop see main Can cash are, Do is, enough getting in of to experience around when initiatives, the breakeven? tough the renewed terms flow us in what you the kind on see what new impetus exciting costs in all can cost return more expectations associated what staffing of to also breakeven? with to to you have about

Kevin Cox

one. for Yes. appreciate the Curtis, you thank I a it's and good question. it

least on navigate the as cash of point we be that priority on Lifeline and to my me one. customers and to positive utilize put built flow platforms best a maximize to to them And resistance purpose that had of we to to back hopefully at able those do stressed those of already the the things through to be that. as that over as subscribers. those of the That's to couple do possible. able are ACP make getting fast was look do lens because we There migrate retaining Let and points

this got we're to a is what had day in reached new opted over. existing I out that going. of that we that referenced and we've And to now, are than have mix days previous ACP migrating more We've into some also right release seeing, press So a between customers some subscribers. Lifeline think that's and X,XXX online ads X,XXX a

certain now with them in because we matter but about have last $X. Again, reload $X.XX. XX%. another states the to revenue that hopefully, revenue a ads of have XX% to is we'll California's revenue additional Lifeline actually We're to states five At per be is to that customer, an $X, very to with some is there As going help a in XX% it people over got are $X.XX. seven back and average average over expecting be of have be the looking money, coming for enrolled But of next customers, touch the spot in we goal to down in over put ACP, additional good for number. successful you've why California got XX,XXX us. perspective, similar which to to right so. And also to fact, you in been week $X get that Lifeline. is do To or math, We've cost was range I obviously, wanted our the of as base in those have be shut going the a It's simple that our initial had that sales. $X.X we online we're if going needed legacy getting XXX, to the my at if XX,XXX is folks California. we're people time, so to week Lifeline. average we on to earlier, immediate seeing reload, actually the about get talked XXX you're this to

blocks sat LinkUp if Mobile. the and So shape, talked didn't at and about covering company goal a possible. look of the as who to things be questions, are these fast to XXX,XXX master there for folks. if market. activations especially over is We in be couple of and month. their tens get of our And it it, of as And simple you XXX,XXX, the about flow-wise, other Mobile, that thousands were colors, have listened portability, could that of mean then should kick LinkUp folks kind needs, and perspective, in the to in we which responsible a cash ask we new we agents a it, again, example, to porting our we number to from talked number get for prepaid a divisions as overhead. access would anything thing didn't that we prepaid stacking listened room as I Historically, your to as

numbers. now before. Now that get have to didn't to people keeping are more does digitally inclined their We it because capability starting

We will here have shortly. that

business. So ACP many significantly of of to more what #X, Lifeline left going customers, like are those have and we're gum than not few a the there's in there were actors shrimp, customers. reason The the bubble to people types and lead the long likely good a where us are kind is Lifeline believe, It's more like time, the things most not players ACP, people good been woodwork. a everywhere of Lifeline for out is coming the business. that's in only around business

are a we less are a lost So who that in in, look great us. lot for we service we about, there like now of talked ACP kicking people subscribers, start potential And choice, LinkUp for the and subscribers there's as January. their feel of then

what going go. subscriber what of would going number closer that end have We're some can I'm to is embed look in I up. think the we to some counts at, I you breakeven And start announcements that But believe, those have But So, year these about, look point, spot, the that we coming of to would we that for at from from to give talking flow should as really the by number right perspective. closer sweet to I in and get you're my that be be XXX,XXX. XXX,XXX us getting a there. Lifeline black building then can cash close to to we

Operator

SLS. is Scott next question Your from coming from Andrew

Andrew Scott

same question The to question asked was exact I going before that was the me the gentleman ask.

And Lifeline. to comment, So, but upcoming is releases. from on much put doing going think what We I the you're loss won't focused metrics how on to your out I minimize can press operations. some you with how everybody too up time, you're hold see last

you're track street help I think that's to making. going progress the the

to but or things worst that. future it you you like you're that you you're what do up. go looking the in you with progress. behind going say I seems And be other and and I'm making the is supporting guidance sounds But we are So yet, comfortable Any encouraging out know lining don't forward it like it and now should for? if

Kevin Cox

Andrew, we the questions fund we get Yes. to lot who and valuation folks sophisticated I build shareholders, on and what future. the the and talk model calls, be we of these own that often question where then address a the of managers, in No, from about we their are, opportunity appreciate to look as can

been And almost year focuses fact my that through past in in is so market of the one or two who stock thinking that's deals the or the works banked. is everybody

normally. So, on with the the that see opportunity, market underbanked that basis. part world market a of the problems not not familiar And is something daily a the they they're in is

will about our the be of week say, we while so, focus, a not that and there's phraseology some you that forward, about have of touch of or rewrites to out that moving was can to talking that about one we're we things four be I'd So, the will more more plan segments. continue our forward, in and that where so confusion talking do. start talk use start with moving value putting so until you there even shareholders going points When up shareholder last better, shifting we consistently -- we're our the consistent that the we what business

getting the our the capture better something the even and We've should new beef to the able that's models our There had be are segment, in telecommunications can subsidized. and of our this you can once what where prepaid market models our we've prepaid, name to five are that we're into rates understands. utilize have actually a than four a the years, especially in more ability market be contract become of where start to better prepaid build we people the QX got capabilities and service once We which space. and past in people going or around. there,

where be get traction. we will that think I So,

the end when customers, the On phone wallet our that the Internet, that end-user talk segment, people at that the look you the retailer, of customer the That's smartphone, the point our their segment -- customer convenience users, hand, the that Bodega, are use station. in for in segment. that their communications. Platform store, access holding our from everything other customers a on people the our Software sale, to is that our the In gas store, telecom

able about their about software, talking familiar that we're to which utilizing, terms. to those can now start that we're going they're that, I phrases talk You're think building be see us point-of-sale again, people because with now model

You're though in a going lose in words reduction people, it. think lose I to on that those is we community, because we our true of I use this underbanked types to even see of think people

from revenue going our prepaid and the to Software-as-a-Service through So, from on our subsidized contracts subscribers start really messaging then wireless a focusing store. we're standpoint, and subscriptions reoccurring from and point-of-sale

in some segments hydra. a But center a they're grow From Salvador, like operational market we're get we going siloed see have -- increases op all revenue, leadership off. our especially showing an this pushing And and feedback that, I are showing from traction think synergy incremental the we through some El good that. that together. they some from So hopefully from have because perspective, the in in that look, start profitability, to way, and in can it's perspective, X we then as almost

up you we store example, sign call heard on by For default, earlier, they're doing the Well, top-ups. link-up as one to activations. do

They they and also now owner X our almost in Now products. segments have of Any with you help it. segments whole get of really the also ClearLine that a different your could app, you like to door, one you lower deploy be which to suite It's draw those different or could X foot the X other with bridge, marketing have could codes are in, qualify the come people store. can access store helpful who to X Lifeline.

things, that's on behind that since time call to together. was going in said today existence side methodology the business for of we've what kind been we the I the summary. meant on back of first that the entire when plan in And public our plan early this XXXX business our matches when the business So put we

though what to went it way what So had And to on. that's call. QX financially, the pop we be paved knew we're for you we're about why able it see hopefully, But to was that was to the the to what going this even really was, that now knew what do do team. and we hood on with

it's So of interesting. kind

-- team doing been have. about a It's I've attached Our it. calls and and level in the this of whole financials never excited we everything you to on put where has around we're that's energy that top talent like talk team the got that then QX, pretty right exciting. Outside lot of associated now you of a

Operator

is Group. from next Your question Diana Mike from coming Maxim

Michael Diana

Yes.

So you you busy. incredibly have prepaid stores been do now? how Starting platform. with right About the convenience many guys have

Kevin Cox

to ClearLine, and what's now, deck based that more a should right on number year just top-ups. perspective on exponentially still we're And next this About LinkUp, now X,XXX on range. of X,XXX with the with hovering from what's at be that prepaid time deck growth,

So also that is acquisitions on nothing top-ups companies or one as move and then heavily very very, thing of international that be but some coming potential top-ups. that forward, do we should

Michael Diana

was $X.X All that all right. million revenue in from top-ups? And the prepaid,

Kevin Cox

It yes. top-ups, was mostly

Michael Diana

Or And up run in like $X.X million that lot? you're a a expect top-ups. now? go mentioned that rate to you doing that you a also Is do month

Kevin Cox

$XX I alone to networks. that's bring their that going the -- top-ups keep are million top-ups, be as to those start of get then month million it December kind $X also And masters continue bringing later doing mind you I in who million now, expect compounding you a and you of as to these from one more on but to year now over No, our we run that not get it's right because X it's stores. our expect over the that that's second, for but will up store in million well, a to because that mean $XX up forever every add and momentum. top-ups, point year where that go -- LinkUp on products this well, we're now you doing the rate we're in next reasons won't revenue it add the Mobile. growth I that $XX month, doing continue continue see when but to is years only

Michael Diana

you're the Is $XX by to million million end So 'XX. saying $XX a month expect you of in top-ups that?

Kevin Cox

that be to about top-ups, I year, next are where in we yes. expect December

Michael Diana

to people ACP how qualify Lifeline. Lifeline? -- many many on How compared Moving to here, for

Kevin Cox

a low-income to That's that as probably the a script. it's pension, whether who's identical food an I good if Medicaid, just of question. of in government form approximately receiving it put plan, should it sister same and assistance, And EBT lunches. people. be have will, stamps, number It's school you that, would anyone the already veterans any backdrop be

ACP. your was the same Now for states primary, different there are be to some that have few a primary ones, but going that's which

Michael Diana

because wasn't big would before mean, like it on you it make logically, as it. couldn't ACP. have Otherwise, much big as guess as people I I And money been

Kevin Cox

me that devices, California, do already Lifeline. paid business It'd already it way? on to commissions, certain strong starting and a historical as month Does Kansas, $X customer be ROI. No, that to there go ROIs that's out we've no since be for making to commission, that and retaining it's able and and ACP, a not able and X, we're so about money was to retain come the make that $X device, sense customers them customer, ROI back Lifeline that had pay if we've and kickstart bypass right of from we're since to business go the providers Even ask pocket, difficult. those is we're able we're X, -- very today, as make is in a build much paid buy go We're why that's states to while out the migrating did question. over, and and as to opposed on And a ROI, you we But have a that. to maybe get that we today money. extra back that month money. do a to making good no value important you states Oklahoma, were customer, ROI I were because to X, Lifeline by would There able like if Kentucky, going may we going

Michael Diana

using number it provide for think month cost I is how much per the then service the been last roughly And to years the few you $XX. you've

your your what's $XXX. assume it lower new carrier $XXX is direct to going So I deal to to with

Kevin Cox

sensitive to into subscriber maintained deal. weeds, have carriers Yes. We are underlying been but to for Yes, don't to base. the fact we also new their the our credit have And the carriers. all subscribers then the good that get

fact they the by opened should for below that same direct have where reduce $X to plans that enable retain them, ultimately, ways paid save January our to But and connects us money. us carrier other that other and deliver cost yes, we So $X.XX. up product we get

be year QX by margins I'm double February our So going not -- should higher. should substantially to but next say

Michael Diana

Higher $X? from than -- I mean double

Kevin Cox

No, our which $X. hair cost margin put $X our should would be above that at gross just a closer point, to

Michael Diana

that? this have yet? before you really direct connection carrier So you for your Or that are started LinkUp, waiting you do

Kevin Cox

I was into our meetings, by then and the we some the and a for come think the tapped for saved we've us well be just it. and numbers there then started I with XX,XXX we go a out could a if heard most to massive can opportunity. and certain we it to go customers, between want to the that. But start when immediately you're you be got No, brakes. got on LinkUp, to actually going systems likely the We we've a those didn't there was will, beyond throttling unable you locked there definitely something are test saved we things, And and sitting some in you're brings that get to we And able masters we and somebody because do your when significant loaded. but corner. to out to wireless and door to and some said, the wanted labeled store, is those first impression. somewhere it month. And that I saved XX,XXX bringing on relegated we pulls LinkUp allowed boom. folks activations And smaller said XXX,XXX We of and if internally. Like ahead fireworks, traction get be some We

the It's carrier. ship to to right is XX,XXX our don't that to payments, now communicate activate, out things do SIMs, our certain proving to proving to with deactivate, we the throttle is ability to the ability like So take have systems. data what customers But level And there after numbers to on about. able we a are brands amount of compete X certain at port need go with that as see the things head-to-head TV. you we are those to that to highest be and talked

Michael Diana

So I your going assume cost to same is be Lifeline. LinkUp as for the for

much to main it cost plans get can you How down plan? $X. LinkUp your about say You are to going your

Kevin Cox

$X.XX going plans question. will be good to LinkUp be little be and will The a our selling there. more, plans the us revenue, than Yes, actually profitable plans now they out considerably not cost Lifeline. we're more should And but bit

$XX, $XX, $XX, You're going at looking $XX. and $XX, to $XX be

of in company, One have and all payments to about we things competitors. payments, of of millions unique dollars the millions the our our for see ability

So there we popular already plan most out know payment. a the $XX that is

psychologically, It's all of it's paper. just $XX. Now, it's pieces because believe a X and $XX we

phone You down service. $XX, it there's throw your

$XX. So cost around psychologically, easy an plan that payment. it's should us And $XX to

plan, keep and be about deploy and margins the out ACP your mechanisms the ROI will So pencil almost same. could you because the old if to that most use we will, the you popular

towards out rolling start careful. world we impression really as is a what it's chance. distribution got it's be be really, soon to second wireless and get will We forgiving not first a Again, The you that don't as tested. thing. So there

we're everybody hard we're launching once really as expect a we in here, of that's those going about to full -- the soft the loop definitely talked in January. to should but couple weeks, excited we in we're be I'm of comes So And launching margins actually about this. see. why that because around this throttle And keep

subscriber the by growth. in about then, we should as numbers talking start And black then, talking be to want I So well.

Michael Diana

customers are charging how you much XX,XXX LinkUp, have XX,XXX you to the And the LinkUp that? now,

Kevin Cox

everything sure personally, of take our getting the our from, we're just customers out. $XX are paid focus, able from in coming we're to it's on as government for the whole incoming because not Lifeline product team up, $XX. and coming mind, the My El making keep been set proving LinkUp, the analytics anymore. the a Salvador, all on, in stores lot a customers that plans for getting these getting down on has The adding not it's $XX, just I spending believe, because set time integration on Until January, to up, in guys

wireless to but it payment may earn how mine And service have matter much We month. have it to It less you a every have it's to it. different that be secure than your in approach bill, still And money. we people's doesn't earn customer when is.

we've LinkUp plan. been would whole that. I've the are still to things been same right a at building. yes, now. spending the those I But all you're $XX say lot average $XX time looking with of a thing, ballpark on So the the

Operator

from next Ed Your Woo is coming question from Capital. Ascendiant

Edward Woo

but feel underserved, Or with any which to sense do only since good that dealing elections, a to tough, of What feet these is of from week customers, convenience economy. optimism? end be the are hearing I the your the going little seems still optimism be are you stores, sense kind bit things a Do and bodegas know out in there it's same on about customers? business? the you been of your who ultimately the the you of are for it's underbanked

Kevin Cox

Yes.

of wave on and coming, that folks a I flows that in think below is wave doesn't a below water this affect in going you're our in ebbs market know you the now, That's a years sits when the -- the XX It business you XX% level you represents this ocean and water of the of the which kind almost, of lot. really gosh, being is. whole the market and drop where economy, lot level.

more Those into a may that our thing things value-conscious. are tough, more Now, market. little When value-conscious. get is a more times or get people the tight, people get when transition need interesting people maybe move potential bit little bit help, of

changing opportunities us. save Now their to attention they're That money. care. open wireless subconscious benefits paying Their starts to to

directly we store I -- from and country. want we've that. and And take because, a owners, election the the think jumped now, world out that we offend something in in live week, asked. want to as I mean, could around. never half to while far I obviously, don't to you also political let's that tell would don't not optimism jump the know a as that's And in from see we think convenience talking to not I

to huge that's say to extension the is coming program. how of I would Vance things. got be was the J.D. authored be approach we've was political careful But thing interesting one we So think a senator this, the going I proponent the lead who very that's ACP from the change

those know, had he not was he grew you up that For may of food situations and where on on government stamps sit.

now a So it's huge powerful subsidy these have Republican of proponent types unique who's of people keeping these of you super a and programs connected programs.

product. to us, per be is be cover subsidy going the the an providers from cover. optimism won't Lifeline from We the month and ACP, why customers there's a It Lifeline but going funding come in Lifeline reasons like that enhanced enhanced back doesn't the amount you a will be to that to we've ACP. for extra perspective able there's will it, that lies. move will. to So think to it's provide connectivity be bandwidth optimism similar ours of Chess important of if this it where Lifeline to be and companies It made be an standpoint one traditional will And regulatory

So back or up that go $XX $XXX to could $XX.

not not se, would keep gravy. going bank and And would to we're anything again, We're that's the XXX% on bank and beyond So bank our we're eyes welcome that's going be to to what on that $XXX to that on. company. going what we're going per that fantastic, be but

Operator

That Everyone, completes our concludes event. today's Q&A you. Thank this session.

have You Thank participation. may you for this a time, your at disconnect and day. wonderful

SurgePays (SURG) 12 Nov 242024 Q3 Earnings call transcript