SRAX stock gains in Pre-Market: Let’s find out why

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SRAX stock announced its fourth quarter and full-year 2020 results after which the SRAX stock saw a boom of 17.39% to reach $5.40 a share in today’s pre-market at the time of this writing. SRAX stock also gained in the previous trading session and was up by 8.49% at closing. Let’s have a look at the financial results.

Fourth-Quarter Results:

SRAX stock marked $4.5 million revenue in the fourth quarter of 2020 which represents a whopping increase of 316% as compared to the same period in the previous year and a 74%  increase in comparison to the third quarter of 2020. Gross margin represents the growth of 73% while it was 44% in the same tenure of the prior year. Operating expenses were also increased in the fourth quarter to $5.3 million from $4.8 million in the fourth quarter of 2019.SRAX recorded a net income of $200K in the last three months of 2020 while it suffered a net loss of $4.4 million in the same period of last year.

Fiscal Year 2020 Results:

Revenue of SRAX stock reached $8.7M million in 2020 representing a surge of 141% over the year. Gross margins were moved from 53% in the prior year to 70% in 2020.$17.7 million Operating expenses were recorded in 2020 which represents a decrease of $2.1 million or 11%as compared to operating expenses of 2019.EBITDA in 2020 was -$8.4 million while it was -$15.5 million in 2019.Net income of SRAX for 2020 was -$14.7 million while it was -$16.9 in 2019.

Financial Guidance of SRAX stock:

SRAX projected its revenue for the fiscal year 2021 in the range of $23M – $25M while $7 million revenue for the second quarter of 2021 is estimated. Sequire, the SaaS platform of SRAX, has been gaining much popularity over time as 183 public companies bought its subscription of it. The subscription rate increased by 92% since SRAX released its third-quarter income of 2020.$16.5 million revenue of Sequire from the existing contracts in 2021 is recorded so far.

In a Nutshell:

SRAX stock has been hot among investors after the release of its positive financial results. SRAX Inc has shown significant progress over the year and it seems that momentum is already created for SRAX. Management is deeply focused on meeting the customer demand and adoption of new technologies. Hence SRAX stock can be a good bet for investors in the future.

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