- 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://ibn.fm/l5nBO). 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://ibn.fm/xXHUR),
as well as through increased adoption of the company’s innovative BIGtoken
Lightning Insights platform (http://ibn.fm/ibTmf).
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://ibn.fm/tfKtt). “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://ibn.fm/TTTGN). 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://ibn.fm/SRAX
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