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SRAX Inc. (NASDAQ: SRAX) Reports Record Second Quarter; Announced $10 Million Share Buy-Back Alongside $0.23/Share Special Dividend
September 21, 2021

SRAX Inc. (NASDAQ: SRAX) Reports Record Second Quarter; Announced $10 Million Share Buy-Back Alongside $0.23/Share Special Dividend

  • SRAX has recently reported its 2Q 2021 results, with revenues rising +557% YoY and +41% QoQ
  • The company recently upped their full-year revenue guidance to $32 million, from $30 million previously
  • The company simultaneously announced a $10 million share buy-back as well as a special dividend approximating $6.5 million or $0.23/share
  • The special dividend will be paid in the form of preference shares, which will be distributed to the company’s shareholders of record as of September 20th.
  • The preference shares will hold $6.5 million of SRAX clients’ shares, with proceeds distributed periodically to preference shareholders as the underlying share holdings are sold

SRAX (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, has announced, following its recent Q2 2021 results, that it will be issuing a one-time special dividend to its shareholders of record on the 20th of September 2021.

SRAX has seen its financial returns go from strength to strength over the past year. For the second quarter of fiscal 2021, the company reported Q2 revenues of $7.7 million, up 557% year-over-year and rising by 41% quarter-on-quarter. The company also seized on the opportunity to update their corporate revenue, noting a Q3 guidance of $8.3 million, which would represent at least a +7.7% quarter-on-quarter increase whilst increasing their full year revenue target to $32 million, up from $30 million previously (https://ibn.fm/4DGCb).

SRAX simultaneously revealed that they had seen 2Q Sequire bookings rise to $11.4 million, a considerable uplift with the unit having previously reported booking of $4.8 million and $10 million for the fourth quarter of 2020 and first quarter of 2021, respectively, at a time when they had seen Sequire’s corporate subscriber base swell to 225 publicly listed companies (versus 183 publicly listed companies last quarter and 92 companies as of their Q3 2020 update) (https://ibn.fm/4Pymx). 

Following their strong earnings report, SRAX announced that they would be carrying out a $10 million stock buy-back program alongside a one-time special dividend which will be issued to shareholders of record as of September 20th with an approximate value of about $0.23 per common share. The special dividend will be in the form of an issuance of non-tradable preferred shares, which will have an approximate notional value equivalent to $6.5 million worth of Sequire clients’ stock (which have previously been received by SRAX from customers as payment-in-kind for various services) and will be distributed to shareholders of record as of September 20. As the underlying shares are sold, the proceeds will be distributed to the preferred shareholders on a periodic basis.

SRAX’s corporate action announcements come amidst a period of strong growth for the company. The company recently launched Microcaps.com, a news website designed to aggregate data surrounding the microcap equity sector. Moreover, SRAX also recently announced that it will be hosting the upcoming 2021 LD Micro Main Event, both, in-person in Los Angeles as well as virtually via its Sequire Virtual Events platform, on October 12-14, 2021. The three-day event will mark a return to an in-person format for the LD Micro Conference after nearly two years, whilst also representing yet another example of the value-added services provided by Sequire to the platform’s network of over five million influential, forward-thinking investors and shareholders (https://ibn.fm/4Gvvo).

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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