Social Reality (NASDAQ: SRAX) reported Q3 EPS of ($0.29), versus ($0.05) reported last year. Revenue for the quarter came in at $4.7 million versus the consensus estimate of $6.49 million.

• Gross revenue was $4.7 million, compared to $5.9 million in the second quarter of 2017, which included high volume, low-margin revenue.
• Gross margin was 72%, compared to gross margin of 56% in the year ago quarter.
• Operating expenses were $5.4 million, compared to $3.3 million, reflecting a one-time $860,000 non-cash consulting fee paid in stock and ongoing headcount additions.
• Net loss was $3.0 million, which, in addition to the aforementioned consulting fee, included a one-time $267,000 charge associated with certain registration obligations, or $0.29 cents per share, compared to $394,000, or $0.05 cents per share in the second quarter of 2017.
• Adjusted EBITDA loss was $798,000, compared Adjusted EBITDA gain of $221,000 in the second quarter of 2017.
• Cash and cash equivalents were $41,000 at June 30, 2018, compared to $1.0 million at December 31, 2017. The company renewed its $4 million credit facility with FastPay in April. And, subsequent to quarter end, the company received $33.5 million in gross proceeds from the sale of SRAXmd.

SRAX's CEO and Chairman Christopher Miglino, stated, "As promised, 2018 is turning out to be pivotal. Proving our strategy of building and monetizing data verticals, we successfully completed the sale of our healthcare vertical, SRAXmd, for up to $52.5 million in total consideration. Most significantly, we retained a 31% ownership stake in the new SRAXmd entity through $10 million in preferred shares. MD is a great business that has built a solid foothold in healthcare. And, we believe with its recapitalization, MD will flourish and continue to return value to shareholders.

"Now, using our same successful formula, we are investing our sale proceeds in the continued development of our other verticals and our blockchain initiative BIGtoken.com. We are very excited about BIG, a consumer-powered data marketplace, that will enable people to own, verify and sell access to their data, providing the Internet ecosystem with choice, transparency and compensation to manage and access verified data. We believe BIG's data and media transparency offers a tremendous differentiator and increases the growth potential of our other verticals. We expect BIGtoken.com to revolutionize the consumer view of their data with the possibility that it becomes our first billion-dollar business.

"Ultimately, we believe our verticals and BIGtoken.com, could all achieve valuations similar to SRAXmd, if not greater. Overall, we are in the strongest position we have ever been, and now we are well capitalized to drive product growth and achieve significant shareholder value," concluded Miglino.

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