SRAX, Inc (SRAX) Misses Q3 EPS by 12c, Revenues Beat

SRAX, Inc (NASDAQ: SRAX) reported Q3 EPS of ($0.45), $0.12 worse than the analyst estimate of ($0.33). Revenue for the quarter came in at $2.6 million versus the consensus estimate of $1.95 million.

Third Quarter 2020

• Total Revenue was $2.6M, an increase of 161% as compared to Q3 2019 and up 124% from Q2 2020.
• Gross Margin was 66%, as compared to 68% in the same period last year.
• Operating Expenses were $4.2M, a decrease of $1.2M, or 22% as compared to the same period last year.
• EBITDA was -$1.9M as compared to -$4M in the same period last year.
• Net Income was -$6.6M compared to $1.4M in the same period last year. This includes a one-time $3.3M in non-cash financing costs related to our convertible debenture financing, and $800K in non-cash mark-to-market adjustment on our publicly listed securities. The prior year net income includes a $6.3M derivative liability gain on the valuation of our warrants.

“As the Sequire platform continues to grow and adapt to customer needs, we are seeing a tremendous increase in our recurring revenue stream. Sequire is changing the way public issuers interact with and engage their investors, and it shows. We are pleased to report our first quarter of positive EBITDA from our Sequire segment,” said Chris Miglino, Founder and CEO of SRAX.

“The whole company is very proud of everything we’ve accomplished this quarter and is excited about the momentum we have going into quarter four. We acquired LD Micro, moved BIGToken to its own public company, and successfully sold our remaining MD asset, which was not on our balance sheet. Additionally, as we are seeing continued addition of our Sequire platform, SRAX is providing guidance of $4M in revenue for the fourth quarter,” Miglino added.

For earnings history and earnings-related data on SRAX, Inc (SRAX) click here.

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