SRAX Announces Preliminary Revenue Results For Q4 and Full Year 2020

Rhea-AI Summary

SRAX, a financial technology company, announced preliminary revenue results for Q4 and FY 2020, reporting net revenue of approximately $4.5 million for Q4, marking a 320% year-over-year increase and a 75% rise from Q3 2020, exceeding expectations. Total revenue for 2020 reached around $8.7 million, up 142% compared to 2019. The company anticipates a full-year 2021 revenue of $17-$18 million. SRAX has shown consistent growth with four consecutive quarters of revenue growth and a 22% increase in issuers on its Sequire platform.

Positive

• Q4 2020 net revenue expected at $4.5 million, up 320% YoY and 75% QoQ.
• 2020 total revenue around $8.7 million, a 142% increase over 2019.
• Guidance for 2021 full-year revenue of $17-$18 million.
• Q1 2021 revenue guidance of $5 million, a $4.7 million increase YoY.
• 153 issuers on Sequire, a 22% increase since the last report.
• Gross margins of approximately 69% for the year and 73% for Q4.

Negative

• None.

SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, is providing unaudited preliminary revenue results for Q4 and Fiscal year 2020.

• For the three months ended December 31, 2020, the Company expects to report net revenue of approximately $4.5 million, surpassing the company's guidance for the quarter. Revenue is expected to be up approximately 320% year-over-year and up 75% from Q3 2020, exceeding analyst expectations.

• 2020 revenue of approximately $8.7 million, up approximately $5 million and 142% over 2019.

• Four consecutive quarters of revenue growth and seven quarters of consecutive Sequire growth.

• Guidance for full-year 2021 of $17-$18 million.

• Q1 2021 Revenue Guidance of $5 million representing a $4.7 million increase over Q1 2020.

• 153 issuers have joined the Sequire platform, a 22% increase since our last report.

• Marketable Securities of approximately $16 million currently on hand.

• Gross Margins of approximately 69% for the year and 73% for the quarter.

“We continued to see significant demand for our Sequire platform in Q4 and this growth has continued into the first month of 2021. On the product front, we are continuing to add new features to the platform to enhance the value to our clients,” said Christopher Miglino, Founder and CEO of SRAX. “We have a vision of delivering a platform that will be an essential part of every public company. We are well on our way to accomplishing this goal and think that this year will validate our leadership position in the market,” added Miglino.

About SRAX

SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com and mysequire.com.

The preliminary operating results set forth above are based solely on currently available information, which is subject to change. Readers are cautioned not to place undue reliance on such preliminary operating results, which constitute forward looking statements.

Cautionary Statement Regarding Forward Looking Information:

This news release contains "forward-looking statements" made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in our business, and our need for future capital. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in SRAX's periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005128/en/

FAQ

What were SRAX's revenue results for Q4 2020?

SRAX expects to report net revenue of approximately $4.5 million for Q4 2020.

How much did SRAX's revenue grow in 2020?

SRAX's total revenue for 2020 was around $8.7 million, which is a 142% increase compared to 2019.

What is the revenue guidance for SRAX in 2021?

SRAX has provided a revenue guidance of $17-$18 million for the full year 2021.

How many issuers are currently on SRAX's Sequire platform?

Currently, there are 153 issuers on the Sequire platform, representing a 22% increase.

What are the gross margins reported by SRAX for 2020?

SRAX reported gross margins of approximately 69% for the year 2020 and 73% for Q4.