SRAX - Earnings call transcript Q1 2021

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Operator

Thanks for joining us today for the SRAX first quarter 2021 earnings call. It was another record quarter for SRAX and our Sequire platform.

First, I want to cover some of the major accomplishments for the quarter. Revenue growth was up 1,400% year-over-year on a consolidated basis and 2,800% for Sequire alone. Revenue growth quarter-over-quarter was up 20% on a consolidated basis. is quarter-over-quarter. own its on up XX% Sequire We and of are guidance of $X in QX $X million reaffirming beat our million. our QX guidance

We're our we quarter. thresholds the continuing We of When we below Sequire this seven is on has to need XXX,XXX consolidate of call. good seen talking basis, booked Token our of Sequire. to continue this for so We are we're nine consecutive EBITDA the quarters talk quarter. X% call anticipate to have about $XX number a total joined Sequire value we million. of standalone about certain and to bookings, into the exceed six XXX% now see other contract bookings visibility in increase bookings. the of we continued QX, their and until that respective long ownership $X.X an Most just since closed for quarters XX We've as In revenue to year. agreements, ago weeks clients grown have growth criteria. a month platform contracts We've But million that Big for revenue XXX, we'll year-over-year. record fall last that

to of million recognize increase of securities. cash and million our year. Sequire to platform guidance million With We in existing the As alone $XX we'll had $XX.X an $XX contracts million. for today, from in this to $XX proud that from million for $XX million $XX announce $XX.X the million said, to year marketable We're

is roadshows. Zoom. want you Sequire team accommodate costs its earnings can our platform with Audience we're in year-over-year We're to break the growing Sequire Revenue the a partnership calls, so experiencing. Cash with the X,XXX% at companies We launched we front, this technology XX% own, at I take as earlier. annual to margins and doing. increased more up and meetings did and the data maintaining mentioned look quarter-over-quarter launch out business XX%. is can on We how are On OpEx where growth

the from $X.X We for $XXX,XXX million have an This loss EBITDA a is last of quarter. year. up

net Sequire includes for [ph] exchange by of $XXX,XXX in FPD negative for an the warrants QX charge offset one-time The million expire $X.X warrants that November warrant which in $X.X securities. a related $X.XX $XX warrant non-cash where to million and exchanged was for in our of of warrants took cash. marketable income an the is exchange transaction, Our place in the exchange quarter that increase that and and an got company in the we timeframe XXXX of This shortened approximately January $X.XX XXXX. expired million the

by can the signed clients numbers platform. see for the year had Last You up the quarter. we that increase XX time, this at in Sequire

jump. nice we're Now XXX, a at one-year

goal to Our be within years. X,XXX at three is companies

includes which annual the meetings Our notable all talk Sequire hired held username we're This Sequire and feel virtual on platform. We we and this solid momentum around conferences from events. But all team by a number any launched detail road about in a our sign-on and on the us. Sequire the Sequire the accomplishments for the password for our launch little this We'll Sequire it event of allows and more like number. their Audience earnings and up company to in getting quarter, is front start calls, launched companies platform. product. community, initiative right a for a XXX We bit. with in shows virtual hosted the includes This more single

our focused on into company us step Token is staying ago, moved platform. in a happened Big it for in QX. like we big In seems it you time While XXX% long our maintain This its of advantage, Sequire, own the a for to you three many to are familiar the know of business. that We with new identified technology but many be can Sequire patents are we've platform. filed our efforts Sequire

a we to minute do. talk Sequire just I'd So what and about to like take

As ourselves, in we've public. tools companies. need we've order those companies can And company what to a public being seen help that the manage built

they phase, understand down options, platform their engage doing who's who selling the companies of manage, employee companies areas. these their we're any Our what shares, movement at emails. they're engage. shareholders the surveys who's can call tools manage alternatives. helping broken this companies and and investors. in around SMS, be understand given providing and the phase, We giving into like them In their we're to warrants, three it are, interpret, data need need helping tools to In to buying shares the interpret we're doing phase, events, manage We're virtual and that their financing through time. their order other they we're the In engage

the getting XX the that always the forward to in you Micro And an they'll but past is been them cap have Micro years. investor forward other in have content, exclusive on With will platform look single in-person the ability to for community. Event to earnings LD platform. there. The Audience the investors LD Our Sequire platform element the sign to our participate to haven't a access roadshows small has events as was in to newsletters, big the back to up an premium Sequire in calls, Event our content. access quarter Virtual having community We virtual leader our initiative, if soon, and corner you community we masterclasses, Events is been this to look The past, to virtual push investor and the future. cornerstone such building space the Sequire of of

significant launched also We Sequire. events in Sequire number industry revenue a are are virtual events increase that These a of leading to specific. for

own, it SRAX company took its and lot QX, its of can it's its in flight this you own, consolidated its own. the Big financial, our own years. invested from Token. on in a trading on and As And see owns now on over company We've

and Now, over I'd financials. our the broken out Mike to like consolidated CFO, on give turn to Mike? more to Malone, the call details

Michael Malone

Chris. you, Thank

the review first company. results, closed our traded move the I'd to remind quarter, everyone like we Big transaction its that, to business on Token during own Before publicly the we operating into quarter

now Although entity Big Token a the and within separate we're due a with accounts to principles, required accounting its a the is being, SRAX. separate for business time board sheet, to consolidate and consolidation balance

substantial Chris or revenue year. last fourth X,XXX% As over at XX% see revenue which quarter Sequire, year $X.X prior of quarterly drove continuing the million we're to and earlier, growth our mentioned to over

from growth of its for the subscription $X.X continued majority growth of from quarter. base. and revenue in up the $XXX,XXX through the quarter finished Our Sequire Revenues business year continues to at represent the up last XX% prior our million,

Our in with profit line perform to margins expectations. continued

the quarter, to the were million in $X.X costs which sales million rapid primarily expenses increase growth. $X.X expenses by For the year. associated is its associated were Sequire is in revenue year. and Operating as the with expansion driven XX%, up quarter operational operating for compared and they The from slightly the prior increased platform prior the of

for to of over loss and an as million business compared $X.X operating $X.X quarter $X.X $X.X million. Big to quarter EBITDA of operating loss of operating operations, for excluding Token was compared $XX,XXX income resultant When a million the as compared to EBITDA the million loss $XXX,XXX prior as the had loss Our of the we an year. positive of

moving to sheet. a highlights our few balance Now from consolidated

time, outstanding March as in XX, And to of with debt our turn marketable the FPD during cash I'd to our and As $X including reduction upcoming to million XX-Q. working this our continued and and XXXX. now, the like still transaction we're discussion March to we XX, the $XX accounting $XX.X million we'll of had the million call $X.X from through and At further be debt as quarter, related totaling the transactional back securities financing And Chris. elements million respectively. decreased

Operator

[Operator Instructions].

question from to Mike First Crawford. comes us

Michael Crawford

the First, quarter features million and some expect and unveiled let's you've far. question of teased great other on about balance about this business, then But forthcoming excited quarter. last the well, be to you more I But first That's that hear are bookings about a sheet. you And that all, to business. the exceed of Sequire to added the of it's the $XX the ask then so also Audience platform from about to phenomenal. features you have

features these you that developing when might forthcoming we say see them? are what can you're So, and

Christopher Miglino

in We released have a to big pipeline of stuff this quarter. that's going be

out So this during to the of They those we've stuff is stuff the long. would come won't that in I this to quarter. think be wait opportunity releases quarter that the platform. The into built have we're wait to press releasing some that just best best for

Michael Crawford

the basically managing companies do platform That with would Is help better the their engaging investors. that interpreting, at Sequire idea?

Christopher Miglino

lot big around communication completed Audience And, a that feature Yeah, tools. around obviously, a room around Zoom. that, with of we is financing,

things So, and also together. more the rest this next excited I of the that's stuff quarter the the think coming of up I'm rest – these year. then in that all the of about

Michael Crawford

XX% are I to now XXX the Is on around it guess subscribing still of these tuned. we'll services? stay platform companies ancillary

Christopher Miglino

Yes. Approximately.

Michael Crawford

a you do repeat see And lot of there? buyers

Christopher Miglino

We're were buying that buy to of of people now. see Yeah, of from to time media that the lot are business. a media and at repeat evolution starting of business we're time the continuing previously

Michael Crawford

that reach opposed And about their this you're I you've as focused audiences. find or company some to driven customers insights companies, companies, outreach of Historically, think you've it's primarily, for reaching now but been these where had doing data companies or helped businesses new investor suppliers.

Christopher Miglino

sets data our where are. That's

on is companies, interested companies, on. invest have companies, lot NASDAQ data We to willing of OTC companies, in who's in in invest to who and a so pharma willing who's technology

us. and why all information we've important that of through LD is ton really a So, the Micro. to with And that's community very us piece of together all tying gathered

Michael Crawford

more new good the they companies are listed? still that OTC are a on, swinging it mix towards or coming Of is of

Christopher Miglino

and half around it's No, half.

Michael Crawford

end for question maybe QX turn shares debt Okay. the over. average outstanding Thank and of giving for count, you, the Mike, data it then the as cash quarter? One share say, last about from and What of diluted and the I'll today?

Michael Malone

employee and the will million options we calculation add included basis, quarter over fully additional On shares in the XX The at is million million XX X.X top diluted the approximately million that. then on we'll XX would in Q. end average a of and approximately outstanding which that the in weighted just warrants of obviously the approximately use were be

So, you're shares. to, XX to million going call get [indiscernible] it,

Michael Crawford

bunch in between? But strike price warrants warrants $X.XX that other and that's have a of

Michael Malone

million Yeah, the X.X $X.XXs. are of Approximately majority X the $X.XXs. the are them which million, of

Michael Crawford

undiluted Mike, an can on that give But number? share you count basis,

Michael Malone

of the it's just EPS, quarter, the over basis, then, And approximately issued At Mike, shares. weighted outstanding a million. of we had XX on at calculating million average the of XX purposes end an for

Michael Crawford

Okay, I got it.

if And pull And of those And do, warrants, unless that so, million then can the other. all XX the stock exercise. you goes maybe I cash. on over then figure don't they your out half strike $X.XX, in

Michael Malone

$XX If warrants it'd be cash. all the around million got exercised, in

Operator

to Dave comes TrickleResearch.com. question at us next Our from

EpsonWoodCapital.com I unmuted, We not have see [ph]. C. that at Rostad you. but hearing you're we're

Kapas We the at K. [ph]. have ForensicEdge.com

Christopher Miglino

All getting right. Well, through the issues some people. there's computer like with looks

Christopher Miglino

that's LD here X have make hope And we the through Well, Micro right. All it. June conference XXth. all can the coming we up you in

around look really Like XXX We're we're And this be that We different year there. that. in or meetings creating where are people signing of back some direct companies the always the Sequire But said with have events. community getting earlier, companies We virtual we're will presenting there's are I be that. excited joining at platform. these the and there element to person conference. at you that up a in-person to to finding people correlation We a that to time seeing hope between Micro. that about will that forward this participate end LD the be can at by

shortly. being up we this on We'll very our So, website appreciate us you post today. with to video

again, watch it if can you So, at look Thank you it a very you take wanted there. to much.

Christopher Miglino	Founder and Chief Executive Officer
Michael Malone	Chief Financial Officer
Michael Crawford	B. Riley

SRAX (SRAX) 18 May 212021 Q1 Earnings call transcript