- SRAX reports strong FY2019 results, with continuing product revenues showing 19% year-over-year increase
- While the company saw clients defer their marketing spends in Q1 2020, this translated into strong start to Q2
- SRAX announces rebrand of its investor intelligence platform, online IR forum enjoying sharp increase in subscribers amid highly volatile markets
SRAX Inc. (NASDAQ: SRAX), a digital marketing pioneer focused on providing consumer data management services, reported its results for the fiscal year ending December 31, 2019 as well as the first quarter ending March 31, 2020. During a largely tenuous time for the industry, SRAX reported strong FY2019 annual results with revenues rising by 3% year-over-year while continuing product revenue growth (excluding discontinued services) increased 19% (http://nnw.fm/Mhbw4). The robust results are a testament to SRAX’s dynamic product portfolio, as clients leverage the company’s various platforms to gain insights into rapidly evolving consumer mindsets.
The company was equally nimble in responding to the onset of the global pandemic in the first quarter. As of March, SRAX had implemented cost-saving measures resulting in the elimination of over $3 million in annualized expenses while simultaneously identifying a further $600,000 in cost cuts to be implemented in the coming months. Separately, the company entered into a debt financing agreement with B. Riley Financial Inc. to further safeguard their balance sheet liquidity while also announcing that they had obtained a $1.1 million Paycheck Protection Program (PPP) loan at the beginning of May.
Although the first quarter habitually marks a seasonal low for the company, SRAX reported that they had witnessed a disproportionately large number of customers opting to defer their media spend to the second quarter. Hence the company enjoyed a strong start to April, as several clients introduced new media campaigns by taking advantage of SRAX’s recently announced Stock for Ads Program (http://nnw.fm/hTvX4), as well as through increased adoption of the company’s innovative BIGtoken Lightning Insights platform (http://nnw.fm/7OaeU). This newly introduced service enables SRAX’s clients to harness the collective insights of the BIGtoken platform’s 16.7 million registered users, providing brands with a deeper understanding as to their consumer mindset-related queries.
SRAX also seized the opportunity to announce the rebranding of its investor intelligence platform, transitioning SRAX IR to Sequire. The investor relations platform, which enables companies to monitor their shareholders’ buying and selling behavior and carry out virtual investor meetings among other services, announced that it had gained 59 corporate subscribers as of the end of 2019 – a remarkable 64% increase relative to the quarter ending Sept 30, 2019.
“We are thrilled to announce the new brand, giving the platform its own identity separate from SRAX,” SRAX CEO and founder Christopher Miglino noted in a news release regarding the rebranding announcement (http://nnw.fm/pnP8S). “It’s also arriving an at opportune time as we are developing new intelligent technologies to further provide public companies the tools to reach and engage their shareholders.”
Investor relations has increasingly gone digital as companies find themselves unable to meet with their investors in person as a result of ongoing ‘shelter at home’ orders. Bank of America Corp shifted their upcoming annual healthcare conference to take place exclusively online while a number of other conferences have already been hosted on virtual platforms. However, the shift to digital mediums has been juxtaposed against record trading volumes, with monthly equity transactions hitting historic highs across a multitude of global stock exchanges in the first quarter (http://nnw.fm/iUh0A). As investors have sought to gain greater clarity on corporate prospects during these uncertain times, virtual IR platforms such as SRAX Inc’s Sequire have found themselves in greater demand than ever before.
For more information, visit the company’s website at www.SRAX.com
NOTE TO INVESTORS: The latest news and updates relating to SRAX are available in the company’s newsroom at http://nnw.fm/SRAX
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