New York, Aug 10, 2023 – (ACN Newswire) – Society Pass Incorporated (Nasdaq: SOPA) (“SoPa”), Southeast Asia (SEA)’s next generation, data-driven, loyalty, fintech and e-commerce ecosystem, today announces unaudited financial results for second quarter ended 30 June 2023 and a filing of its 2Q 2023 Form 10-Q with the Securities and Exchange Commission (SEC).
Click Here (on SEC website) to view 2Q 2023 Form 10-Q filing.
Summary Points:
• With cash on hand of $10.8 million (approximately $0.38 per share) and book value of $12.7 million (approximately $0.45 per share) on 31 March 2023, SoPa is well capitalised for continuing acquisitions of SEA companies in its digital advertising, travel, lifestyle, telecommunications, and loyalty/fintech verticals for the rest of 2023.
• 1H 2023 revenues grew 348.0% year on year (from $944,152 in 1H 2022 to $4,229,812 in 1H 2023).
• 2Q 2023 revenues grew 338.3% year on year (from $499,062 in 2Q 2022 to $2,187,232 in 2Q 2023).
• 2Q 2023 revenues grew 7.1% quarter on quarter (from $2,042,580 in 1Q 2023 to $2,187,232 in 2Q 2023).
• 1H 2023 gross profit grew to $1,263,396 from a 1H 2022 gross loss of $14,931.
• 1H 2023 gross margin improved to 29.9% from 1H 2022 gross margin of -1.6%.
• 2Q 2023 gross profit grew to $577,159 from a 2Q 2022 gross loss of $138.
• 2Q 2023 gross margin improved to 26.4% from 2Q 2022 gross margin of 0.0%.
• While 1H 2023 revenues grew 348.0% year on year, 1H 2023 cash operating expenses declined 28.0% year on year (from $7,864,068 in 1H 2022 to $5,663,264 in 1H 2023).
• While 2Q 2023 revenues grew 338.3% year on year, 2Q 2023 cash operating expenses declined 51.9% year on year (from $4,891,352 in 2Q 2022 to $2,350,345 in 2Q 2023).
• While 2Q 2023 revenues grew 7.1% quarter on quarter, 2Q 2023 cash operating expenses declined 29.1% quarter on quarter (from $3,312,918 in 1Q 2023 to $2,350,345 in 2Q 2023).
• 1Q 2023 digital advertising revenues represent 62.9% of total revenues and grew 17.7% quarter on quarter from ($1,283,774 in 1Q 2023 to $1,510,960 in 2Q 2023).
• 1Q 2023 travel platform revenues represent 23.8% of total revenues and grew 14.2% quarter on quarter from ($486,707 in 1Q 2023 to $556,042 in 2Q 2023).
• SoPa completed the following acquisitions in 2Q 2023: VLeisure, Vietnam’s leading provider of hotel management and payment solutions; and Newave, an Indonesia-based KOL management agency. In addition, SoPa announced the acquisition of PT Inetindo Infocom, a subsidiary of Story-I Limited, a leading Indonesia-based retailer of Apple products, for a total consideration of approximately $1.85 million. Management expects the PT Inetindo Infocom acquisition to close in September 2023.
• Since inception, SoPa has onboarded approximately 3.3 million registered consumers, approximately 650,000 registered merchants/brands and approximately 10,000 influencers onto its ever-expanding next generation digital ecosystem and loyalty platform in SEA.
• SoPa operates six verticals in SEA: digital advertising, travel, lifestyle, loyalty, food & beverage delivery and telecommunications,
• SoPa operates in five SEA countries: Singapore, Vietnam, Indonesia, Philippines and Thailand.
• SoPa employs approximately 225 people throughout SEA.
Raynauld Liang, Society Pass Inc Chief Financial Officer, explains, “Our continuing breakneck revenue growth and exceptional profit margin expansion, as evidenced in the Company’s second quarter 2023 financial performance, substantiate our acquisitions-focused business plan to build the next generation digital ecosystem and loyalty platform here in SEA. Despite 1H 2023 revenues growing 348% year-on-year in the five largest economies of SEA, our 1H 2023 cash operating expenses DECLINED by 28%. Just as importantly, our profit margins are dramatically improving on a year-to-year basis. We realized 29.9% gross margins in 1H 2023, up from a negative 1.6% grow margins in 1H 2022.
Mr Liang elaborates, “I note that our two main subsidiaries, Thoughtful Media and NusaTrip, were only acquired in 2H 2022. Yet, in just under 12 months, both subsidiaries now contribute more than 90% of SoPa’s revenues. I expect both subsidiaries to materially contribute to the Group’s revenues and profits in 2H 2023. Our third biggest subsidiary, NextGen Retail, announced the acquisition of a large retailer of Apple products in Indonesia. I expect NextGen Retail to grow much quicker in 2H 2023. Finally, with the Singapore launch of our SoPa Loyalty App Launch in June 2023, we have put the final piece of the puzzle in building out our business plan. The synergies generated between our loyalty platform and our subsidiaries will translate into significant revenue generation going forward. With the continuing performance in our three big verticals, we confidently project attaining cash profitability sometime in 2H 2023.”
 2Q/1H 2023 Financial Results Illustrate Continuing Breakneck Revenue Growth and Exceptional Profit Margin Expansion; Confidently Forecasts Achieving Cash Profitability in 2H 2023){kind=link}