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SRAX Inc. (NASDAQ: SRAX) Reports Record Third Quarter; Raises Fourth Quarter Top-Line Guidance
December 6, 2021

SRAX Inc. (NASDAQ: SRAX) Reports Record Third Quarter; Raises Fourth Quarter Top-Line Guidance

  • SRAX reported their 3Q21 quarterly results on November 15, 2021
  • The company reported 3Q21 revenues of $8.3 million, +219% YoY and +8% QoQ
  • SRAX also reported that their 3Q21 EBITDA net loss narrowed to -$790k, with the company simultaneously revealing that their gross margin had widened to 78% 
  • SRAX’s investor intelligence platform, Sequire announced that their subscribers had swelled to 250 companies as of 3Q21, up from 225 companies at the end of the second quarter

SRAX (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, recently published its third quarter 2021 quarterly results on Monday, November 15th (https://ibn.fm/vC1PH). SRAX reported third quarter revenues of $8.3 million, a figure which was up 219% year-over-year and 8% on a quarter-on-quarter basis. The company also seized on the opportunity to update their corporate revenue guidance, guiding for $10.1 million in Q4 revenues, whilst simultaneously re-affirming their fiscal year 2021 guidance and raising their target to $31.5 million. 

SRAX’s stellar third quarter continue a trend which has seen the company’s financial returns go from strength to strength over the past year. The company comfortably met their revised Q3 revenue guidance of $8.3 million, which had been upgraded following the release of Q2 results, whilst concurrently announcing Sequire’s 3Q21 bookings of $8.9 million, with Q4 set to rise to a record $12.5 million as of date. SRAX management revealed that they were projecting a further $4 million in Sequire bookings during the fourth quarter, a target which would drive the division’s total booked revenue in Q4 to $16.5 million and extend a run which has seen Sequire report twelve consecutive quarters of revenue growth. 

SRAX’s results also contained further indications of the company’s voyage towards sustainable profitability. The company reported third quarter gross margins of 78%, up from 67% in the same period last year, with their EBITDA loss declining to a mere -$790 thousand, narrowing from -$1.9 million in the third quarter of 2020. 

Christopher Miglino, Founder and CEO of SRAX elaborated on the results, “Our team continues to innovate on product, sales, and marketing; and this is translating into increased revenue. We will hit the high end of our 2021 guidance and are well positioned to close out 2021 strong, with an amazing 2022 on the horizon.”

However, the positive earnings highlights were not limited to revenue growth alone. SRAX’s management have displayed impressive financial acuity, with cash at hand of over $34.2 million and receivables valued at $2.17mn due within 12 months (https://ibn.fm/K1yo0). With $14.3 million more liquid assets than total liabilities, the surplus suggests that the company – which boasts a net cash balance sheet, should be able to eliminate its debt without too much difficulty should it opt to do so.

SRAX’s earnings announcement comes amidst a period of strong growth for the company. SRAX revealed that their Sequire investor intelligence platform had seen their number of subscribers swell to 250 public companies, a dramatic increase relative to the 225 companies on their platform in the second quarter and up from a mere 92 subscribers as of their Q3 2020 results. Moreover, and over the course of the past three months, SRAX have also launched their IR Website Builder, their SMS communication platform as well as VIRA, an IR-powered chatbot. SRAX and Sequire have also sought to provide additional value-added services to its legions of subscribers and followers with the company having successfully hosting the recent flagship and in-person LD Micro Event, an event which attracted over 750 in-person attendees and 12,000 virtual attendees.

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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