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SRAX Releases Preliminary FY2016 Results
Internet advertising and platform technology company Social Reality, Inc. (NASDAQ: SRAX) yesterday released certain preliminary unaudited operating results for both the fourth quarter and full year of 2016. Among the highlights, the company reported unaudited gross revenue of $11.5 million for the fourth quarter, which represents a 41 percent year-over-year increase and a 20 percent rise from the third quarter of 2016. Similarly, unaudited gross profits for the three-month period totaled $4.7 million, up 86 percent from the prior quarter. Social Reality attributed this strong performance to an increase in SRAX sell-side clients, as well as the continuing growth of its SRAXmd health care-focused programmatic real-time bidding exchange.
“We wanted to give the market a view into our unaudited financial results for the fourth quarter,” Christopher Miglino, chief executive officer and chairman of Social Reality, stated in yesterday’s update. “We made a focused effort on diversifying our customer base in 2016 and eliminating low margin business. We believe this diversification will serve us well into 2017.”
In line with this sentiment, Social Reality also used yesterday’s release to provide its guidance for the full year of 2017. Management expects total revenues in 2017 to total between $45 million and $50 million, with adjusted EBITDA falling between $2 million and $5 million. For comparison, total revenue for 2016 was reported at approximately $36 million based upon the unaudited preliminary results.
Looking forward to 2017, Social Reality is well-positioned to capitalize on its recent momentum in the booming digital advertising market. The company got the year off to a strong start by completing a successful equity offering of $4 million in January, which resulted in the repayment of all senior secured debt, and these efforts have been echoed by similarly favorable corporate highlights related to Social Reality’s real-time bidding platforms. The recent performance of Social Reality’s SRAXmd exchange has been particularly promising. Unaudited sales related to the product line were up 115 percent in 2016, and January 2017 bookings for SRAXmd were up over 100 percent.
Both CEO Christopher Miglino and CFO J.P. Hannan were on hand at NobleCon13 in Boca Raton, Florida, on Monday to provide some additional insight into Social Reality’s recent performance, presenting a corporate overview and discussing business highlights. A full video webcast of the presentation will be available for viewing at www.NobleConference.com later this week.
For more information, visit www.SocialReality.com
