- SRAX recently provided the market with its 2022 revenue forecast, guiding of $46-48 million in top-line revenues which surpassed street estimates of $42.52 million
- The company also seized upon the opportunity to update investors on their preferred shares, each of which would be eligible for a cash payment of $0.01, payable in January 2022
- Simultaneously, SRAX also revealed that they had repurchased 155,000 common shares over the last quarter as part of their enhanced shareholder returns initiative
SRAX (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, recently updated the market on its guidance for the upcoming financial year as well revealing details on its ongoing shareholder payout schedule.
SRAX guided that the company was forecasting revenues of $11.5 million for the first quarter of 2022, with full year revenues of $46-48 million. The numbers follow a strong series of recent results, with SRAX reporting $8.3 million in third quarter revenues, with street analysts forecasting top-line sales to further increase to $10.05 million in the fourth quarter. Fourth quarter results for 2021 are expected to be published on Monday, April 4th, 2022. (https://ibn.fm/O89sI).
“Our team did excellent work in 2021, meeting and exceeding our guidance. The nature of our annual contracts provides us exceptional visibility into revenue,” stated Christopher Miglino, Founder and CEO of SRAX. “We are projecting that we will have our largest quarter ever in Q1 of 2022. With an acceleration in sales at the end of Q4, we are very comfortable in providing a full-year, 2022 guidance of $46-$48M,” added Miglino (https://ibn.fm/rG1wi).
According to the analysts at Zacks Investment Research, SRAX are expected to report full year sales of $31.48 million for the 2021 fiscal year, with current analyst estimates ranging from $31.43 million to $31.53 million. Meanwhile, the company’s recently published guidance of $46-48 million in revenues for the 2022 fiscal year compare favourably to analyst estimates, with Zacks Investment Research recently forecasting the company to report sales of $42.52 million for the current year.
Following the Company’s second quarter earnings report, SRAX had announced that they would be carrying out a simultaneous $10 million stock buy-back program as well as paying a one-time special dividend to its shareholders of records as of 20th September 2021. The special dividend, which would bear an approximate value of $0.23 per common share or $6.5 million in total, would be in the form of an issuance of non-tradeable preferred shares, which would hold a notional value of approximately $6.5 million worth of Sequire’s clients’ stock. As the underlying shares were sold, the proceeds would be distributed to the preferred shareholders on a periodic basis.
SRAX have now revealed that they had sold approximately $380 thousand in notional value of the underlying shares over the course of the last quarter, entitling holders of the company’s preference shares to a cash payment of $0.01 per share payable by January 30th, 2022. Simultaneously, SRAX have also sought to boost their shareholders’ returns through their ongoing share buyback program, with the Company announcing that they had repurchased approximately 155,000 common shares over the course of the last quarter; at an average price of $4.15 per share, the repurchases amounted to approximately $800 thousand in net outlays (https://ibn.fm/Aozdq).
“We continue to optimize our cap table and return value to our shareholders,” said Christopher Miglino. “This quarter we re-filed our already existing shelf. This allowed us to eliminate our At the Market filing (‘ATM’) and the costs associated with it. We will continue to look for opportunities to reward our shareholders.”
For more information, visit the company’s website at www.SRAX.com.
NOTE TO INVESTORS: The latest news and updates relating to SRAX are available in the company’s newsroom at http://ibn.fm/SRAX
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