The following is a summary of the SurgePays, Inc. (SURG) Q4 2023 Earnings Call Transcript:

Financial Performance:

• SurgePays recorded a record net income of $20.6 million and EBITDA of $22.3 million in 2023.

• Annual revenue was $137.1 million, which is an 11% increase from 2022. Q4 revenues alone were $32.3 million.

• Gross profit saw a 165% rise to reach $35.6 million for the year, with Q4 accounting for $7.4 million. The gross margin also improved from 18.1% to 23.0% in Q4.

• SG&A expenses increased by 30.7%, primarily due to compensation expenses.

• Operational income swung to a profit of $18.9 million from a loss of $0.6 million in 2022.

• The company reported a year-end cash balance of $14.6 million, up from $7 million in 2022, and accounts receivable increased by $306,000 to $9.5 million.

Business Progress:

• SurgePays launched Linkup Mobile in combination with Clearline technology, providing the company a competitive edge.

• The growth strategy hinges on in-house and indirect sales channels and distribution.

• Installation of customer-facing touchscreen tablets at the registers of all network stores is underway for real-time marketing.

• The company has made key hires to fortify its team for future growth.

• A cash influx of $15 million was obtained from an equity raise in January 2024, and the company witnessed a positive response to its 2021 warrants.

• The company targets to drive 2024 revenue growth through organic sales, strategic hires, and possible synergistic and accretive acquisitions.

• SurgePays anticipates maintaining liquidity for future expansion and intends to invest the $15 million raised from a secondary offering and the $8.6 million from exercising warrants into this.

More details: SurgePays IR

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