Q1 2024 Surgepays Inc Earnings Call Transcript
Key Points
- Surgepays Inc has successfully launched its own prepaid wireless company, LinkUp Mobile, which is expected to significantly contribute to revenue growth.
- The company has strategically shifted focus to more profitable and scalable business verticals, leading to a 6% increase in gross profit and a 4% increase in gross margin.
- Surgepays Inc has a strong cash position with approximately $43 million in the bank, providing ample liquidity for future growth and potential accretive acquisitions.
- The company has established partnerships with over nine master nationwide dealers for the distribution of LinkUp Mobile and prepaid top-up business, enhancing its market reach.
- Despite uncertainties around ACP funding, Surgepays Inc is proactively diversifying its revenue streams and is not solely reliant on ACP for its business operations.
- Revenue for Q1 2024 decreased by 10% year-over-year due to operational changes and the discontinuation of the lead generation services.
- The company faces significant uncertainty regarding the continuation of funding for the Affordable Connectivity Program (ACP), which could impact future revenues.
- SG&A expenses increased by 115% year-over-year, primarily due to non-cash stock compensation and additional expenses related to acquisitions.
- The company experienced a decrease in net income from operations, dropping from $4.6 million in Q1 2023 to $1.8 million in Q1 2024.
- The ACP stopped accepting new subscribers as of February 2024, which could potentially reduce the customer base and impact revenue growth.
Greetings and welcome to the SurgePays Q1 2024 earnings. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Quinn Callanan. Thank you. You may begin.
Thank you, operator, and good afternoon, everyone. Welcome to the SurgePays first quarter 2024 earnings webcast and conference call. Today's date is May 13, 2024. And on the call today from surge periods are Brian Cox, President and Chief Executive Officer, and Thony Evers, Chief Financial Officer.
Before we begin, I'd like to remind everyone that this call may contain forward looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties.
Please see search-based most recent filings with the SEC. All forward-looking statements made today
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