Business
Surge Holdings Provides Year-End Business Update; Annual Revenue Increases 68.9% to $25.7 Million for 2019 Versus $15.2 Million for 2018
Reports favorable outlook for continued revenue growth and cash flow in 2020 Memphis, TN, May 13, 2020 (GLOBE NEWSWIRE) -- Surge Holdings, Inc. (“Surge”)
About this update from Surgepays, Inc.
[{"type":"text","content":"Reports favorable outlook for continued revenue growth and cash flow in 2020\nMemphis, TN, May 13, 2020 (GLOBE NEWSWIRE) -- Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), today provided a business update and reported financial results for the twelve months ended December 31, 2019.\n Brian Cox, Chairman and CEO of Surge Holdings, commented, “While the 69% increase in sales for 2019 is clear confirmation of our accomplishments, our true progress was marked by the dramatic transformation of the business, as we laid the foundation for accelerated growth in 2020. In the fourth quarter, we generated $13.4 million in sales, which puts us at a revenue run rate of more than $50 million at year end— substantially above our full year 2019 results. For the year, revenue associated with our SurgePays™ Marketplace increased more than three-fold to $4.2 million; revenue from Surge Logics increased eighteen-fold to $7.2 million; and we added $10.7 million in new revenue via the fourth quarter acquisition of ECS. Heading into 2020, we expect each of these business lines will continue to be significant contributors to our growth. With the addition of 9,800 ECS retail locations to our network, we have a significant opportunity to cross-sell additional products to these stores. These products include our newly launched Loco Rabbit Brand “Grab-n-Go” Phones and other targeted consumer products, which we believe will help drive further growth through the SurgePays™ Marketplace. Importantly, 2019 was a year in which we invested heavily in software development, our infrastructure, and new initiatives, which temporarily impacted our profitability. More recently, we added key members to our management team, such as Tony Evers as CFO and Tod Farnan as National Sales Director for SurgePays™. We look forward to seeing all these initiatives take hold in 2020, with the expectation of driving meaningful increases in both revenues and cash flow. We will also be looking at additional strategic acquisitions to bolster our network and prepaid wireless base. I am more encouraged than ever in the outlook for our business and look forward to reporting our first quarter results in the coming weeks.” For the twelve months ended December 31, 2019, revenue increased approximately 69% to approximately $25.7 million, compared to approximately $15.2 million for the same perio...