Social Reality (SRAX) Tops Q4 EPS by 2c, Miss on Revenues

Note: EPS may not be comparable

Social Reality (NASDAQ: SRAX) reported Q4 EPS of $0.02, $0.02 better than the analyst estimate of $0.00. Revenue for the quarter came in at $6.5 million versus the consensus estimate of $14 million.

Financial Results: Fourth Quarter 2017 Compared to Fourth Quarter 2016

• Gross revenue was $6.5 million, compared to $11.5 million in the fourth quarter of 2016, which included revenue from a large, non-recurring SRAX Reach customer that was partially offset by an increase in revenue from SRAX buy-side and sell-side clients as well as continuing growth in SRAXmd.
• Gross profit was $5.5 million, increasing from $4.7 million in the fourth quarter of 2016. Gross margin was 85%, compared 41% in the fourth quarter of 2016, reflecting the focus on high-margin revenue and the impact of several one-time year-end adjustments.
• Operating expenses were $5.6 million, compared to $5.6 million in fourth quarter of 2016. The 2017 cost levels reflect first quarter cost management measures offset by product development costs related to the BIG platform.
• Loss from operations decreased to $67,000, up from $849,000 the fourth quarter of 2016.
• Other income improved to $244,000, compared to other expense of $494,000 in the fourth quarter of 2016.
• Net income improved to $178,000, or $0.02 per share, compared a net loss of $1.3 million, or $0.22 per share in the fourth quarter of 2016.
• Adjusted EBITDA gain improved to $1.2 million, compared to a gain of $581, 000 in the fourth quarter of 2016.
• Cash and cash equivalents were $1.0 million at December 31, 2017, compared to $216,000 at September 30, 2017 and $1.0 million at December 31, 2016. Working capital at December 31, 2017 was positive $1.1 million, improved from negative $8.3 million.

For earnings history and earnings-related data on Social Reality (SRAX) click here.

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