Bartlett, Tenn., November 14, 2022 -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a technology and telecommunications company focused on the underbanked and underserved, today announced its financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Operational and Financial Highlights
- Revenue of $36.2 million in the third quarter, an increase of 149% compared to the third quarter of 2021
- Gross profit of $1.9 million in the third quarter, an increase of 1% compared to the third quarter of 2021
- Net loss of $(1.5 million) in the third quarter compared to a net loss of $(1.7 million) in the year ago period
- Surpasses Year end Goal of 200,000 subscribers
- Appoints Jeremy Gies, President of SurgePays Fintech to drive increases in the number of stores using SurgePays software and revenue per store
- Integrate ACP into SurgePays Fintech Platform to enable in store enrollments
CEO Commentary and Outlook
Chairman and CEO Brian Cox commented on third quarter results, “The third quarter for SurgePays was about disciplined growth while maintaining a velocity resulting in a 2.5X revenue increase and surpassing our 2022 year-end goal of 200,000 mobile broadband (wireless) subscribers. We continued our growth curve without dilutive capital raises through planning and discipline. In a turbulent economy, our team is successfully forging ahead focused on defined targets of subscribers, stores on our network, and revenue.
“By adding ACP enrollments to our SurgePays platform for convenience stores, we can accelerate our growth goals due to being the only company we are aware of offering ACP at the community stores where the underbanked most frequently shop. These stores accept SNAP(EBT), a qualifying program. At the register, the clerk can quickly submit customer data needed for our compliance specialists to activate the customer. By adding this offering to our suite of prepaid products for the store owner, we should see rapid growth in our total store count.
Mr. Cox concluded: “I have been very open about not measuring our company by quarters, but the trajectory to hit subscriber and revenue goals while improving the Cap Table. We are executing with real-time results in the middle of a land grab. I believe we have barely scratched the surface and will continue to refine our sales and operating practices to maximize the rapid scaling of our sales and revenue.”
Conference Call and Webcast Information
SurgePays will host a conference call today to review its results and discuss its performance at 5:00 p.m. ET / 2:00 p.m. PT. Participants may join the conference call by dialing 1-877-270-2148 (United States) or 1-412-902-6510 (International). A telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 pm ET on November 28, 2022, by dialing 1-877-344-7529 (United States) or 1-412-317-0088 (International) and entering the replay pin number: 1557657.
A live webcast will be available on SurgePays, Inc Investor Relations site under the Upcoming Event section at http://ir.surgepays.com and will be archived online upon completion of the conference call.
About SurgePays, Inc.
SurgePays, Inc. is a technology and telecommunications company focused on the underbanked and underserved communities. SurgePhone Wireless provide mobile broadband to low-income consumers nationwide. SurgePays blockchain fintech platform utilizes a suite of financial and prepaid products to convert corner stores and bodegas into tech-hubs for underbanked neighborhoods. Please visit SurgePays.com for more information.
About Non-GAAP Financial Measures
The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used to evaluate companies on the basis of operating performance and leverage.
EBITDA is not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Income (loss) from Operations to EBITDA” in the financial tables included in this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Although we believe that the expectations reflected in these forward-looking statements such as regarding our market potential along with the statements under the heading Business Outlook are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Investor Relations
Brian M. Prenoveau, CFA
MZ Group – MZ North America
SURG@mzgroup.us
561 489 5315
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Operations
SurgePays, Inc. and Subsidiaries
Consolidated Balance Sheets
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Reconciliation of Net Income (loss) from Operations to EBITDA
