Business
SurgePays Announces Full Year 2021 Financial Results
BARTLETT, Tenn., March 24, 2022 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a technology and telecommunications company
About this update from Surgepays, Inc.
[{"type":"text","content":"BARTLETT, Tenn., March 24, 2022 (GLOBE NEWSWIRE) -- 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 year ended December 31, 2021. Full Year 2021 Financial Highlights Revenue of $51.1 million in 2021 compared to $54.4 million in 2020Gross profit of $6.2 million in 2021 compared to $2.5 million in 2020. Gross margin improved to 12.1% in 2021 compared to 4.5% in the prior year.Net loss of SurgePays of $(13.5) million in 2021 compared to a loss of ($10.7) million in 2020.Adjusted EBITDA loss of $(3.9) million in 2021 compared to a loss of ($8.1) million in 2020.Strong balance sheet with unrestricted cash and cash equivalents of $6.3 million as of December 31, 2021. Commenting on the progress in the business, Chairman and CEO Brian Cox stated, “I’m extremely proud of the work we accomplished in 2021 including our capital raise and uplist to the Nasdaq Market. We made strategic decisions in 2021 to rationalize our customer base and product offering to focus on profitable customers rather than driving a higher store count. This is evident in 2021 revenue that was slightly down but improved margins. “Additionally, we seized upon the opportunity presented to us by the Affordable Connectivity Program (ACP), to connect millions of Americans with affordable mobile broadband access. The significant investments made to establish this program required upfront equipment purchases, but we are now producing positive cash flow from our subscriber base. We expect the growth of this program to drive significant revenue growth, substantially higher margins and produce positive EBITDA in 2022. The growth in this business was extraordinary in the five months it was live in 2021 and we expect the momentum to continue throughout 2022.” Mr. Cox Continued: “As we have enhanced our offering to include wireless broadband along with a comprehensive suite of value-driven financial service products for the underbanked, our ability to attract mobile broadband subscribers, increase store count and grow market share has significantly increased.” Business OutlookFor the full year 2022, the Company expects to achieve the following financial targets: Total revenues of at least $130 million.Adjusted EBITDA is expected to ...