SRAX - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to SRAX's Fourth Quarter and Full Year 2018 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, that this conference is being recorded. I would now like to turn the call over to your host, Kirsten Chapman, LHA Investor Relations. you. Thank

begin. may You

Kirsten Chapman

our presentation, Miglino; see With Christopher us at Good SRAX's the I'd of Michael CFO, end fourth call slides. call. operator. you XXXX Malone, to all management download Nelson website This SRAX's To Shopper, webcast being to quarter is and Stella. webcast from VP are afternoon srax.com/investors. visit you, please or CEO, and today like COO everyone. Khristoffer welcome conference the Thank and year George

As provide today detail and update, the call many our will open will on discussing review and early will open Miglino management the XXXX Stella will vision Chris Malone George BIGtoken SRAX’s Shopper IR SRAX’s will we XXXX our Chris have Miglino Mike financials review Miglino close questions. Investors the asked, with provide our and accomplishments. and with Then Company's more offerings. will for with the verticals and Nelson Chris Social. Khris

turn forward-looking Before could, believe, contain they I relate anticipated by that SRAX should, and you may expressions risks differ from call those SRAX. could to the slide estimate, be materially anticipate, similar by expect, that enable, will, forward-looking this the to two, cause intend, Investors management, would indicated words like at are that project on time. which cautioned statements uncertainties potential, to remind I as could statements over all to and involve may actual call results this

be are U.S. with reviewed risks www.sec.gov. described filings the addition, SRAX's which more in fully other can public at SEC, In

SRAX's that and its release measures in SRAX to for performance measures. full and one-time depreciation on of excludes financial results. to note stock-based reconciliation a press from call today's please comparable refer measures GAAP amortization non-GAAP management which financial refer items the certain its expenses to other Please compensation, most GAAP non-GAAP Finally, will make

CEO, SRAX's please ahead, over to the go pleasure turn my Chris it’s sir. Miglino. call to Now, Chris,

Christopher Miglino

Good Thank you, everyone. us Kristen. joining Thanks for afternoon today.

lot a on ground bit going last different do As to mentioned we’ve done few things calls. and we’re of today the to we cover little want than

We’re more with. slide along there’s if detail on, out our that bit that’s the and you of PDF And screen products also that the we’re as move on. going we so along you’re share, follow which on if deck call you’re to into to on you follow great, the get little know each slide numbers we’ll using along, following and

first So, on slide four.

datasets executing through We’re specifications focus. to integrated strategy to the areas build

news significantly from way it – that today can segments. as individual each verticals, data Friday, data BIGtoken, social grown with data the media newest dramatically. subscribers, day. to our BIGtoken, the out March want that for data the had point to is we At submitted see XX. each the webcast subscriber number relates our on our viewing there in time work presentation consumer has the of and you growing is XXX,XXX the First, I as that our We you're product. base also the Notably, businesses

conversion provide data those of insight to marketers these the them. to important each we become we can and and social, slide and areas each expert you up areas the the that's that products in that break an SRAX’s we the data then on of a auto, are and verticals; So and help specific for see into expertise core, investor, into shopper, that comes create

or buying buy In understand it’s more to shopper who it’s stock. a to to purchases So, important public area store investor of people in is important for the drive the product. companies the area, drive to stock

of for the is car interested provide who in buying a of automotive business bunch the it’s and dealers a around understand side car important Within to that. services

and datasets of we our the very with how stands. in data those acquire the we’re each – specific market that target with with we those So,

for greater XXXX. major slide call. can our see during and XXXX each Moving early in detail one you I’ll on the and provide five, to accomplishments I’ll some address highlights

sold XX% you business expense made SRAX which from free. in million we our that for debt many our the company debentures As MD capital our proceeds cash We and in working plus ownership our to pay the the fund $XX.X and of convertible know, reduced use business. off interest a

Throughout book. SRAX also our sales off the we SRAX’s launched Social paid investor proceeds product, product Boost also Auto use to verticals, payables technology had that including on $X enhancing and infrastructure and around million we We the shopper broaden our in our IR product. our the improve our year and launched

We also platform. completed the a launched beta but on XXXX. general long been And developed we're really we growth seeing BIGtoken available We XXXX. [ph] big really that undergoing process, now in in subscriber which an has

six. slide to on Moving

been efforts on Our expanding sales focused had infrastructure by fueling our and technology. growth

growth at of expand it force the sales XXXX believe months to grown strengthen and four speed. QX to sales get was development. to & six SRAX of team in SRAX XXXX end and takes the to our We’ve QX six brought salespeople new We sales of We’re January the typically XX the in people as beyond. resources from will of reinvesting up XXXX drive today. to fund our sales majority The proceeds in staff sales MD members

with opportunity industries return. near-term the for on focusing We’re greatest

really, to point So, want now. starting kick-in out the here see I on salespeople this particular just really to slide, we’re

close lot lot a getting RFPs, of a business. of We’re

to on into now going next salespeople. give up insight has we’re so pipeline you And the some that slide built the been the by

QX a can of of sales million see pipeline. $X worth to on slide around pipeline that the year of in are this And have we so you in that moving seven,

to only Now had the compared in year $X.X this we last time, worth sales at of million that pipeline.

about opportunity have going propensity as identified to the that’s Doesn’t a an it be Now be an but that means have opportunity. our salespeople that things to just sale. high pipeline that mean means clear It to means. for what it’s close,

the year than this as of So, we in second we pipe have the quarter times in did almost year, last quarter a of the lot more second much. in opportunity eight

million is Now, for now. the year right $XX.X our around looking pipeline

as spectacular growth So really the see into we that million margins that's from maintaining XX% comfortable reiterate that XX%. and are you'll the we’re $XX $XX numbers margins in higher of is But as range. year. we’re get driving up much continuing that and conservative but the side XX% for to million sale margins between are why But that, than and to with our the guidance here some trending actually being gross entire

MD though we’re So great SRAX the business the out moved to continuing even of margins has family. maintain

and business and the this improvements of the engineers model on some the and the We’ve fantastic teams engineering how operational side of we side structured. made Moving on to are slide eight; year. redesigned are our engineering R&D how managed entire

which growth that we’re Our product data other And shopper is first advanced seeing our right we revenue team BIGtoken management for is We technology based advertising products IR launched platform to launched team. accommodate recurring our people. now. monthly and product. SRAX been which entire scale plus SaaS And the XX we auto. infrastructure that We and our number of the consumer around enable some made changes has fantastic

the we’ve that BIGtoken to five ready and SRAX patents also that IR things file for around relate platforms. build around We’re separate the

bit how we’re revenue our about little a verticals how we’re talk generate in and bit what them. a and do you of going some of deeper bit more is few to to explain look work they they about you phone dive going little a experts come deeper little give of have each a Now them of these and a little of at and areas a and the the each on into

So, has of the we’re going let marketing, a to our long history Shopper first is shopper cover for going but phone who George I’ll George bring on is be to Stella of him that Marketing. to you. President Vice person the

So, George, call. welcome the to

George Stella

been George Chris. SRAX everyone. XX digital media. digital the XX years, space head Stella, of media, XX the past Thanks for shopper I’ve within Yes, in Hey that in media last in years of those I’m and Shopper.

to and slide into drive online in-store enables in engage digital So, XX, on Shopper, them that to is both Shopper stores reviewing with moving SRAX marketers shoppers a on ad. platform through SRAX and

we’ll is indexing for the social as well web all of as data Our behavior ads such customized, XX, to and industry our data, shoppers, simple path try ads and digital simply most we unique actually very review from are we’re point that offer purchase outperforming multiple these that differentiator location based accomplishments. feel ability On high native well match and build is as text- publishers seeing unique and offering the These recent of in three click more interactions, to of the marketers. SRAX call to action. in Shopper into through online to detailer the by important the activity really all slide channels to product data call Xx. both what’s as as singular look that shopping. out standards very market these to some rates for We And the one aggregate

So, some agencies. the We Walmart, I’m to our well Gamble as veterans. & really, amazing really of recently shopper our media industry further big SRAX brought excited the at from shopper growth, side drive marketing members Procter and we’ve as hired the Shopper team. about shopper team marketing

to and in massive of will we Walmart. which our have under member relationship, some in the off proposal the dives team is deep Shopper It’s also Arkansas experts, SRAX & intimate and veteran strategies, with the which some knowledge join there their shopper into Bentonville, product insiders decide or a and that to down ground hood business that the prospecting tremendously. Take headquarters the really invaluable We world. we partnership creation at huge these Walmart actually marketplace Walmart from Walmart, a to gold and and at look on Gamble the the pay Procter are believe testament near validation standards on marketing community have massively

and really and we industry all with great the these into differentiators QX by some are take year. business valuable there shopper run and the Mattel Cincinnati prove the allow is been we in these market is resonating advantage Bentonville, recognition very developed and are as that us unique very and world’s growing to and are significant market much agents That’s around this and that Nestle, story works at to outperform of continuing these point. Shopper brand each in consolidation to So SRAX key biggest The we some programs Danone, really of like in key benchmarks, part work this able offering actually us growth some Chicago, with the well. marketers marketplace good in of for

is a lot XX point. are we now. in slide like real business our going on at to feel tipping Turning right We there this

really we’re the year out about of point far resulted right biggest with two advertising daily bursting XX So on and one seeing over a some world’s brands. [Indiscernible] proposals XXX RFPs this to meetings This at we’ve basis. now, done over in this

on activity close we revenue of working it based against to forecasted apply So, million around we’re industry to have this million this rate tipping move we’re so really that we’re in around Currently, here point. finishing ramping all sort this are this at of standards start $X.X see and point we we in XX% $X.X opportunities the the at year side revenue shopper far forward. identified When on equals expecting and just for QX. that really

So exciting. that’s really

Shopper see solid we our really can year. I'm in opportunity business. niche of this ton SRAX and movement the about guys you a marketplace We’ve had have definitely the excited in As a

to Chris. thank So, all. back I’ll you call And the turn

Christopher Miglino

you, Thank George.

little and be who you our look about And companies to I’m issuer product out data and publicly that revenue the only that over IR in reach the ways. company about understand to Now It brings also we is tool what It’s to provide data, to the of investing against investors do their is infrastructure their cannot in product. in people our to We the DTC able create at going starts to products. a get individual different SaaS use few that do investors. traded but a opportunity to public a SRAX platform analyze are our allows those talk trends company, ad been that technology in first to aggregated information IR those to investing our of then time. we’ve bit build that SRAX can

analyze different we process. data. we have We So, the do three steps that in the

into the bringing in we’re data platform. So

in We’re shareholder bringing data.

different datasets. creating We’re the DTC trends each to the showing we’re issuers and changes see giving from the that And then on insights market. opportunity those we’re bringing to their patterns in different for of data. Then in

you used for contact different might investor creates show platform a on if every you just need you at individual tool One for we all you create issuers information. that can people Then call in, tell management then, those public IR bringing a thing the centralized or have create market. what’s of to the process that able each bring So issuer events that has against need you all to effectiveness that of what's public many of it our that an firms the an working you opportunity on that the hire company of help idea with, be in for platform. as we’re be if that going those or road And data. into of that people help this monitor. permissions go is a we’re executing to and database of able their against do names to CRM your you IR of to firms issuers And to and that allows to a access all investors

So firm. access give IR to can you your

You your can give access CFO. to

CEO access the give Finance; different itself. access different can the or can different many have VP permissions platform of features to You to people within

pins platform data can can upload to can we Now we pins of and those the the numbers. name into platform an phone get of that the methods in a market. which We We target the also into on do address we display. and the by ad once the and to platform, reverse the take our information can reverse is emails. When ability mobile [ph] do that individuals on and from we issuers determine it provide

and traded companies our investors through individuals So know that our start we serving platform. as publicly we to can

We specialist programs out then do that the of those to hyperally individuals ads ad also of and companies local list to our to those the have to targeted help to with ability team market individuals. put [ph] work together them

that it’s who Now the data invaluable, about that are investing the companies. valuable is data traded is investor individuals in inside that long-term opportunity are publicly is platform the here very these

this sales who market from the that’s access Jaguar, companies. sharing list Cardia, high-end Mercedes-Benz, can reach And that the platform retailer Now, and to revenue Tiffany, marketers those we’re out then being creating are reach back to wants those marketers data we’re which those that the that name with generated Rolex, individual want those by a and public individuals. to the ad you

we a opt through the data So, as in marketplace. only taxes SaaS the back basis, platform but our provide the platform is money the not platform pays monthly a to to of on on that public they our issuer then company as sale

So it company. can actually for stream become a the revenue-generating

So we’re really excited about this.

up year. the our a Our platform the goal is past. to by of have And revenue XXX companies is access end a been $X,XXX a recurring in different the ongoing which business an to month model, onto platform. it's than little It’s signed fee the the has

So we’re excited very about that.

SRAX launched Social. called Social on we moving SRAX Boost. Now IR, to mean Within Auto I a SRAX product

tool a of social Now channels. this is automates the on advertising buying

media come marketers that to is how buy our certain around if here set criteria happens want what specific they into happen. up and platform So they things

or five post say, on about things. the staff this media the buy event or views five shares post as video post these as individual that And set a comments I could then media in how gets that okay, automatically to times, platform the criteria a but likes event we gets those it like want two on this And buyer gets many It's XX in can itself. against having this against this launches. in post. or you of So set you it’s one up criteria somebody

Put the in then programmatic rest through the and about all do we’ll need is a you worry do media content buying the methodology. So to content. up the

and for doing an revenue it are – as far only becomes providing the recurring So ongoing know this we as stream and us. this service ones we’re that

out providing up So of we’re happening. sell setting by of the having instead service a the campaign to individual taking and of piece go rules campaign, by that’s each and campaign media the infrastructure

market And Khris product. today have happening what's said our excited going earlier I today, here. an Now, of is we to the in bringing be getting We’ve talk about to product is we’re this Like Nelson last the proven that’s speaking thing piece BIGtoken a done to be a have platform. to is more in team his a amount enormous you today. couldn’t we’re it been and job good next going having on place happening can product where really who that instrumental has scale growth this that we it about fantastic time this watching and grow.

over go so give turn the to and he about can to ahead it you Khris, BIGtoken. more going some I’m details So,

Kristoffer Nelson

to appreciate pleasure I a afternoon. Chris. of It’s this you, Thank you be all with that.

we it earlier reached had complete mentioned just call on when Chris the this and XXX,XXX filed registered we users. Friday, As on presentation

about that and can to-date see conversation so To the the make hope application I that. XX they shared and growth of a today and that into you richer having On over deeper of of around what We’re a amazing is in we've examples the it weekend. saw excited control the growth news you all the the earn This had this our centered bit data, little can you is of uses screens see application. some experience. the its slide transparency value it. from consumers ground their

people If I the go are See about. haven’t App Google experience you today and excited Store the or play you what hope download to yourself, it. so application many

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weeks I two was the a of Act. SRAX confront they’re to platform market couple we’re there’s operated time Consumer about are advantage the recognition Privacy view. we didn’t Leadership industry front, going are while last of to the occurring where an a ago, of drumbeat. large talked been California what’s to of the regulatory the in over confronting. At years. longer the spent just going position The GDPR no. in will its the the IAB and BIGtoken a couple challenges the steady on of for that no challenges advertising there model Over market to in years point digital We amount ecosystem good Conference personally modern tech challenge our This and and and marketers next ad be at publishing enormous fits leadership, incumbent the

During majority that and happen address to advertisers a answers group was research in going concerned don't regulation shows that presented and of they Bentonville those. what’s solution to or or that are technology from about have presentation marketers the yet

led IAB of Our Data our leadership recognition BIGtoken, transparency, rights, with consumers SRAX the industry us, this consumer points those of privacy inclusion Policy the area, Board. has in of in area here in at one for to just multiple consumer

like Data Acxiom. table data the the companies companies with digital and at the Neustar the creators data incumbent like Equifax And like and resellers, are really companies large Google. entire ecosystem. We large

around last attention a and digital We and way driver ecosystem. that two a now has more conversation the over from key facilitates There’s a privacy consumer and media the member in of for rights years. that been more robust advertising initiatives consumer are

weeks more more you way two the the thing apps without I York company articles. how it Here ago on XX, last these for this a not, or Consumers few said location one in highly Newsom, presented a op points be private. in are tech One could BIGtoken applications taxes. ad compensation. a and doing an and has their led of key published just wonderful the solution public. things and and to he about for publication collection the over profile is addressed data to achieve Times are data aware, are human are how for state control, and see can that and more We transparency and is consumers back can key aware paid Gavin proposal more we’ve monitoring consumers consumer's that view just responded great recent California we slide article created for get using compensated should can this. that achieve here This driving and the privacy more rights datapoints show job in Union consumers high new economist December the in building you’re order as possibly Well, control. that People am providing Facebook retax Wonderfully, you New the this. in data. to media be consumer to control discussing to years have market. whether out people this how and see application the demand achieve becoming two these sharing have the The and of

Here data. applications we’ve different BIGtoken privacy, most sizing most consumers statements. business business more learned you in months. consumers value of Newsom's more last want a is BIGtoken, over a different few platforms. to the California that response surveys of in control, To Consumers understand consumers the in [ph] into the want then see of and Gavin quite dig

If upfront. environment, pay you for application you application at look any the either

utilize You might to application. download and an pay subscription

utilize application Or refer an or or an purchasing application you or content game your platform that. utilize could products. may you for e-commerce You like a and news

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into is model them built the business generation. monetizing web. value segments lot then placing acquiring of those created has segments else a this on on this and everyone And So consumers,

Here is what of growth XX. created on see a really and We sensation slide engagement. community

BIGtoken has past incredible by driven the increases. to the this few Over weeks day And day been community. we’ve seen

data extracted showing users they’ve posting Youtube, people value. videos and created on own from how have that We value their

have We’ve We sign and people up placed people third with sharing posting their inviting Instagram, sharing people with experience. BIGtoken on Facebook, on Twitter in referral personal their LinkedIn users seen and ad code. BIGtoken party story their to systems with on

still the to grateful creating about posted around BIGtoken. community this for walking for community on our driven. New twitter in being All up of someone in something we people York are signing saw It’s those. yesterday, truly incredible, neighborhood and I

their of That this we we'll our have And brands for served through first a on with opportunity the lines and took and is brand their to know their the refine assist through action. help if We our community the in business. we based advertisers system other advertising opportunities system kinds and will if attribution. many advertising ad an As was with understanding of consumer know a further data, ability we effectiveness expands to messaging. consumer

As opted an party and for brands again, is. highly data with measurement. for sponsored guys. in gold the standard how data measured beyond consumer accurate speaking third and for the that opportunity as against. grows. standard becomes content partnerships the pleasure BIGtoken understand develops you accurate Helping Other all that correction their become community data platforms, data brand Once brands we we'll their and developed community opportunities been a also through this have is it's

to excited and that, going are our back so are hand so the Miglino, here CEO. BIGtoken about its We With grateful that to to system everyone happening Chris what's with growth. call and the I’m

Christopher Miglino

join great you and team Thanks like to truly you've it. do CFO into accomplished BIGtoken. now call Chris the for and is and job us. I been company having board is fantastic the It's truly January job year. joining Malone. to call here pleasure with SRAX. Mike's first a of Mike proud our with -- this the has at what since the us He in today We're done a joining Mike of Mike bring

is team Mike us. having for on the his value thank we're to proud and creating addition of significant very So board

welcome Mike for SRAX’s please to call. first the time Malone So the

Michael Malone

I'm financials, expense current on shortly other we're just point. note here. that [ph] point therefore providing only update at to hope excited to revenues still I Thank fourth be finalizing quarter this and include out our basis We be we'll the you, And this move and with year an to into business. full finalized and EBITDA hereafter. really of that I'd for a like the MD have Chris. operations to to and to XXXX accounting operations wanted I and before some provide from reach results comparison SRAX income

of financial products. these out have We results the discontinued broken

discontinued million, XXXX revenues Gross million I'll financial revenue provide $X.X QX slide $X.X to included is products. XXXX XX, on highlights. this gross was compares Now $X.X from which million

high XX% included XXXX expense XXXX we which from included XX% business. of relatively has in from versus SRAX quarter expenses maintain Operating QX XQ products. XX%. $X.X margins were improved in million discontinued million For $X.X in high margins compared which million XQ gross of the XXXX, $X.X This to MD and

products. Our reflects EBITDA sales in XXXX to included of adjusted $X.X continued our million was million compares investment OpEx discontinued $X.X our loss this which QX increase million, $X.X BIGtoken to positive EBITDA and organization. Adjusted attributable

to which the MD XXXX. reflects products. in from up revenue the $X.X Now from gross from products million million notably of performance. EBITDA moving in was $X.X XXXX. margin reach shift million to EBITDA on from $X.X five from million attributable value want cash full consisting $X.X reach. Gross select million revenue look $XX.X redeem and to the million ahead to debentures discontinued quarter prior out $X seven XXXX and loss loss I'll was which million $XX.X adjusted to the Adjusted This M.D $X we sheet. paid to million point and This to margin five was that year. remaining compared redemption. of at discontinued compares of million SRAX year XXXX XX% of with balance in our a to included $XXX,XXX dollars of be debentures lower outstanding And higher attributable point million included And XX, XXXX and margin $X.X XX%, compares This which I $X.X six business. in which improvement were five SRAX revenues provide included at Cash $XXX,XXX the the able to from dollars million updates in few equivalents December reach products. included point a costs associated face the million dollars convertible million approximately gross

want back ahead, out As XXXX like of were of shares that for December XX% the in XX, to $XX between I'd our And on X.X to guidance compared outstanding and approximately based with prior year? And there revenues I it between $XX gross Chris. our point margins million XXXX million in to reiterating XX.X confident moving we're XX%. to million outlook million sales turn to

Christopher Miglino

there's more platforms hearing new more personal the There continuous. you're of -- that been day Every a and or everyday some Mike. is breach concerns are consumer’s trust data. about Thanks big

XXXX, transparency had with of that a have industry time January and clearly solution and since the data lot. we the consumers, a management to we are puts ripe market January of So markets to accomplished hands In for control provide into leading of the for Track the solutions. a six only changing decade, we've spending and accurate evolved where people, and back business the data marketers. provide

BIGtoken armed we've already the long term XXXX. And of enhanced social data reached are the believe better with will XX finally, before value. we're synergies Overall, products user to have million solutions. continue industry media over half trained summer to we acquisition, data shareholder driving creates we that our Now specific that quarter users parts people verticals sales and milestones a drive second great and

and at said, the any we'll Conference the questions. Before a XXth We'll like Trickle I few at on and questions, be to XXnd at Xnd. investor the Vegas Conference I'd in in us With operator Las to Riley Mountain turn Research Microevent if on Rocky that XX. B Denver events. open the at be Xth call it at the I'd May could for plant be We'll to April May Microcap to like you know [ph] May to see over

Operator

At Crawford a you. time, FBR. Instructions] question-and-answer be this Riley your proceed Mike of B question. comes Thank conducting question we'll line session. Our with from first [Operator the with Please

Mike Crawford

light outstanding more see when from bit shine RFPs advertising could tie just Thank to you, little campaign attributable and that I revenue was the you a these we you're pipeline to and could on and data platform, BIGtoken? BIGtoken the this collecting that back Chris. hoping directly

Christopher Miglino

if is verticals. -- the -- is pipeline there break those platform. is everything different associated into the in the that So not associated questions. with That big – today The only two separate I could with that

it's is business. it's core IR, our shopper, it So

within that business everything as it's social So well. is our

So that's in everything the that's pipeline.

transactions are the out that you or booked those and process. proposals are know So in are have

our loaded just data getting get As is ready far to as BIGtoken sale. goes, systems for that into

the we know amount and shifted the of what prioritizing when. few is some growth has last seen So just getting that built around you amazing priorities been we've we weeks had has and -- that

are to out that have that pipes date that we the take all marketplace and ingest ready to to it. the different mobilized buyers. it out pushing now, and start sell to to being the data all teams are So the But start

that that to the But latter we'll guidance we gave So from I does that start include be probably any towards of just see the clear part that of want big. coming in second money the quarter. to not

even guidance. with we're without, the coming in, without comfortable money even So big that

Mike Crawford

users it's users? you. XXX,XXX that or further for BIGtoken Thank XXX,XXX any where registering increase three you to to is the platform or the months dramatic add point two in or four days four Okay. then would another to could users are And get five -- there explain now things five

Christopher Miglino

Yes.

reward social consumers day. -- you I to it everywhere. for pay It's to I platform. we the all to data. got everywhere getting consumers. a how viral. did ad asking for about the their on an we was you over completely And was kid it over. BIGtoken. go. People built to just sign was up went you’ll I started mean mean, I search for some sign asking me for you use know rapidly So are the I just other word up all reward pull everything ready out, the code And -- people shifted we his know and really that their were the it they YouTube use and a BIGtoken code see I spreading

the own, the a people on I its So mean, the than this even know this this submitted of it's morning. did we you community their stuff, submitted today, when know of press value release taken realizing of number and that you higher is data. are

Mike Crawford

very you Thank much. Okay.

Christopher Miglino

Yes.

Operator

question. from proceed question of with with Lavigne next Our comes Please Research. the David Trickle your line

David Lavigne

you guys, how Hi, are doing?

Christopher Miglino

Hi, you? Dave, are how

David Lavigne

Good.

were terms sort revenues number of in that in I some remember kind So the Chris, to don't they again and Because big, I it reached point place? get at uptake in to of sort those numbers, used I metrics but still that know the but were, we things. to you remember that what – of of what mean might hoping you'd in those you the don't past time. seems metrics Are just already remember a you've some of and kind me in the

Christopher Miglino

it's and accelerating quickly. Yes. Yes,

consumers our when month and and So maximized. that think somewhere a we between $X model value a have $X of

we is that revenue like. that baseline know you is -- and the a -- for we U.S. what in the at they range. beginning you to Snapchat just consumers have around we And that in estimates good were put sign XX,XXX out that investors the gives for good us early people telling you were that obviously we numbers might seeing know look thought before And what a for friends had So a they gives ups day XX,XXX that of Snapchat, some baseline get. could you were and were

we're of seeing those And excited about numbers kind so here, and we're it. really

keeping continuing a leveraging and just that growth, viral. of it's leveraging, matter going the community Now it

never happen. to to You go something just purpose It has viral. can create on

on. doing that to So can everything we we're it keep now that going has

think we're consumers there's in obviously this well we value so lot And there value a of -- data see well. the and as

David Lavigne

carved you out. when So

one time. the consolidate out when at portion in So so understand a off you and with to the point was SRAX users, of spun of come future kind retain just they in BIGtoken I portion in will some for revenues at in. BIGtoken of BIGtoken that's there’s then portion there's that then point when a those carved time will What well shareholders

Christopher Miglino

Yes.

platform. we security the So to from filed consumers allow participating that creation for everybody BIGtoken an S-X of benefit would the in a

we the have that's filed. that S-X So

their revenue is that is can back it data. that there. wants go being in anybody take We shared our have to you share owners if collective XX% will We consumers. and of of revenue upto that interest what XX% So and see an that read consumers of the with think intention

by today. is paying benefit that no get people we the we buy we're from the Now, that longer that data media or

variety Acxiom and other Experian a buy data we currently, of from So sellers. and

of the being And So their of an them into becomes the getting platform is data consumer helping that goods our cost identity the instead we're of because for. it consumer benefit they sold, online themselves. from cost are and a rewarded receiving create delivering a well, goods as they're them sold

David Lavigne

last Okay. question. One

build this of bit way like that of that Europe mean sort you those going SRAX a in know although issue on a can going going around of can the what's paying consumers filed around Facebook that out and this data good and you that's given this you there going that California magnitude you if that? data. IP of this sounded could that daily But of some and talked all aggregating any you said given hearing on some little know forward it. do or there, protect of in the that, of I notion state all with we're -- And and some I what's it So, patents, for is some about mode IR. in this may on there and space, about terms Is you were having

Christopher Miglino

the users definitely mean, I is Yes. mode the themselves.

a community the So scale. the ability to mode, definitely is user

many with not system systems say weeks, it's Now held work and over keep the job. to trivial that last we're of of has a and you managing of what the couple proud is running know so with and we're we platform, so to team good they but which lot without that really were sign and technology and able not done a really you The managing a the interacting many up the up people is able task. maintained people know up is infrastructure

that the don't all But this actually point. we of time presentation to things have we of don't a had bunch of we it we -- at patents want all do broken want So to first out. the specify was like the that

sharing those the on going saying off actually we're we to those and with that they we'll and later out like ended process. everybody get now So do as up in back taking further right along

David Lavigne

Thanks. Great.

Christopher Miglino

Dave. Thanks

Operator

Our the next from proceed Larson question. Instructions] Matthew question [Operator line Please of National with your comes Securities. with

Matthew Larson

Hey Chris, how doing? you are

Christopher Miglino

are how Hey you Matt?

Matthew Larson

balance that, in was your occurred, on X% that I I million can sheet little sort some there break at have assets other and Hey. your there thanks. that recall year some Good, We confirm earn moneys other you other balance on could end of you if for end. sheet. more out you the the sort on or us? if SRAX And year asset believe the end. achieved certainly you of wondering was figures a of Since year these sale you metric the assets your in addition, have for balance got discussed. that weren't But, you preferred a represent outs to an besides There based on the know was, million yield realize of I simply really that sheet. part would of you $XX was roughly disclosed a has would cash had some some there has you on $XX which that the of

Christopher Miglino

basis it's We we it have value even they had though in business, called and from on scratch, it was sheet, the way same other were on the there these indicated asset it to balance the no never a there from that's before. an of get a the that because Yes scratch balance that's in businesses our auditors that -- have that that doesn't business created basis creating sheet. out

carry forced a we're So value balance on it a at to zero sheet. being

us the to we in just you business know our to ever to if instead was were if dividends going would balance if value income So recognized the or sell then it on out to gets the in money of put if that company that future, come as an sheet. against it that

people and that a yes, the preferred year of got in we of piece we take that know last MD own position an some longer So that that on the -- other of and business. ownership business, you this X% with

$XXX,XXX So, every year on they're looking worth of around that. preferred position at

that -- still… that So

Matthew Larson

preferred there's off continues every and be to then SRAXmd to the it that would reason flow income believe perform, the If secure. that

XX XX% but So would bottom Would part million of gross million you're to overall not trading them to it's that currently. there capitalization. second fall time you your one for do at your in significant with because on guidance take margins account that any means a any Is is year almost of My that that XX much -- line the to revenues indication the I question your guess roughly, for of XX%. that's judgment? of

Christopher Miglino

what break is just that even clear XX the to just get to position -- XX your million question? So us EBITDA so if a million the I'm

Matthew Larson

Yes, yes, absolutely.

Christopher Miglino

planned the But spent on BIGtoken. money. around where to originally to for a we marketing get lot had are BIGtoken get of $XX,XXX would we've to depends only marketing we And spend So on with today that it BIGtoken. for cost

So, up. now we're that model and our shifting changing around

bunch to So money I a those showing much there before to, you, we're as we as still it bit paying but thought a I be of redo for to numbers that can we little question BIGtoken spend a for of but would. answer out look marketing loss need feel, with we're doesn't I I going previously like need would for

Matthew Larson

Thanks great. it. a Okay Appreciate lot.

Christopher Miglino

Sure.

Operator

question question. next Snipper [ph] your comes Stonebridge proceed investments. with the Steve of with from line Our Please

Unidentified Analyst

doing? are Chris, you Hey how

Christopher Miglino

are how doing? you well, Doing

Unidentified Analyst

Two okay. Doing questions.

question, from the do on buyback? the SRAXmd sale? update up do earnout prior expect Following stock know to the the when And second, you you on on any have

Christopher Miglino

received haven't supposed So financials. and March -- But on were SRAXmd XXst by audited that that they we gotten, to not have we have to us yet.

So for we're week hoping numbers. those We're we're in that looking it. happens or of next but here top on the so,

businesses. with As BIGtoken as we're these we're better in business. by far that investing for poised and the And buyback the rabbit we goes, tail a where obviously, here of we have that piece growing think focused where on

it it the company place I business. money yes if stock want the know money. if to better beginning I came down when that's a did coming you at other the better the we down that, into up situated buy spend think reinvesting insiders but can do the if the I'd like is ends rather to

Unidentified Analyst

a behind be you in couple get follows payment that? earnout right the should or And you -- numbers when the days out, the earn those get what's on the itself of which hopefully timeframe when that on like

Christopher Miglino

the that's it's why numbers. for Yes, be, looking we're supposed to

Unidentified Analyst

Okay. Thank you.

Operator

your with question. next from Our Capital. comes proceed Marc Steinberg with question the Westpark line of Please

Marc Steinberg

Yes. Hi.

you as often to do increase updated to be? that the even You mentioned as and users to with we you those. more that can the far you expect, reported, you than the reported continue know be when what How increase XXX,XXX in expect BIGtoken it's users

Christopher Miglino

keep know. when hit We'll in keep Well levels -- everybody which to we we those up numbers. date key don't on choose to

it many and key letting through so as where the has growth as certainly amount seeing a We've haven't the program catches let where that know. as, just, milestones We now had And I just continue see. it’s there maintain platform. gaze, user defined we'll be the do base are, the really users everybody we're on. to it's interested it I know for right and hit think mean, far but invites go everybody we of will market and we that

haven't BIGtoken with into it. if friends just on there go you -- the all that's And we that are is long. BIGtoken and many people key how invites can platform signing see into yet, up people day use inviting can you inviting up metric the I plot, for are in to system signed are the and determine know So for a using cranking you to how And participate this. you for friends their

that you answer key. as some be would obviously people that your we're doesn't really would million we'll numbers But be about, give some stuff a we hit proud So question.

Marc Steinberg

in about that I prior question the see. the And share buyback.

rather is company, open, you'd the shares. that still correct? window saying the You're in buyback then But invest

Christopher Miglino

we If know Yes. that to still opportunity but We that still scale you -- grow. here is I we have think use scale the continue BIGtoken. And wanted buyback have really to it, have there. then the

Marc Steinberg

Okay. Well, congratulations my answering for and thanks questions.

Christopher Miglino

Thank you very much.

Operator

like And so the turn closing Chris queue. to questions back no the further left to over in call would Miglino for comments. I

Christopher Miglino

appreciate today. call joining I the everybody really

through have is the us or our decks. you for you directly touch on information and us questions our all can with If of any IR get firm, in

you download have website, might as dig questions can answer from that that to additional happy and we’d numbers start any the you you to through our be So here.

your support. very much. So you appreciate We thank

Operator

conference. This concludes today's

lines for this you You time. your may now at Thank participation. disconnect your

SRAX (SRAX) 1 Apr 192018 Q4 Earnings call transcript