Society Pass Inc's (Nasdaq: SOPA) 9 Mths 2023 Financials : Revenues Increased 117% yoy; Gross Profit Margin Improved to 28.1%; Cash Operating Expenses Declined 32.6% yoy

NEW YORK, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Society Pass Incorporated (Nasdaq: SOPA) (“SoPa”), Southeast Asia (SEA)’s next generation, data-driven, loyalty, fintech and e-commerce ecosystem, today announces unaudited financial results for third quarter ended 30 September 2023 and a filing of its 3Q 2023 Form 10-Q with the Securities and Exchange Commission (SEC).

Click Here (on SEC website) to view 3Q 2023 Form 10-Q filing.

Summary Points:

• With cash on hand of $8.2 million (approximately $0.26 per share) and book value of $9.9 million (approximately $0.32 per share) as of 30 September 2023, SoPa is well capitalised for continuing acquisitions of SEA companies in its digital advertising, travel, lifestyle, telecommunications, and loyalty/fintech verticals for the rest of 2023 and 2024.

• 9 months 2023 revenues grew 117.0% year on year (from $2,994,416 in 9 months 2022 to $6,498,878 in 9 months 2023).

• 3Q 2023 revenues grew 10.7% year on year (from $2,050,264 in 3Q 2022 to $2,269,066 in 3Q 2023).

• 3Q 2023 revenues grew 3.7% quarter on quarter (from $2,187,232 in 2Q 2023 to $2,269,066 in 3Q 2023).

• 9 months 2023 gross profit grew 523.2% year on year (from $293,004 in 9 months 2022 to $1,825,960 in 9 months 2023).

• 3Q 2023 gross profit grew 82.7% year on year (from $307,935 in 3Q 2022 to $562,564 in 3Q 2023).

• 3Q 2023 gross profit declined 2.5% quarter on quarter (from $577,159 in 2Q 2023 to $562,564 in 3Q 2023).

• 9 months 2023 gross profit margin grew to 28.1% in 9 months 2023 from 9.8% in 9 months 2022.

• 3Q 2023 gross profit margin grew to 24.8% in 3Q 2023 from 15.0% in 3Q 2022.

• 3Q 2023 gross profit margin declined to 24.8% in 3Q 2023 from 26.4% in 2Q 2023.

• While 9 months 2023 revenues grew 117.0% year on year, 9-month 2023 cash operating expenses declined 32.6% year on year (from $15,275,821 in 9 months 2022 to $10,295,103 in 9 months 2023).

• While 3Q 2023 revenues grew 10.7% year on year, 3Q 2023 cash operating expenses declined 54.6% year on year (from $7,426,684 in 3Q 2022 to $3,368,443 in 3Q 2023).

• While 3Q 2023 revenues grew 3.7% quarter on quarter, 3Q 2023 cash operating expenses increased 15.1% quarter on quarter (from $2,927,505 in 2Q 2023 to $3,368,443 in 3Q 2023).

• 9 months 2023 digital advertising revenues represent 70.5% of total revenues and grew 278.0% year on year from ($1,211,428 in 9 months 2022 to $4,579,429 in 9 months 2023).

• 3Q 2023 digital advertising revenues represent 78.7% of total revenues and grew 47.3% year on year from ($1,211,428 in 3Q 2022 to $1,784,695 in 3Q 2023).

• 3Q 2023 digital advertising revenues represent 78.7% of total revenues and grew 18.1% quarter on quarter from ($1,510,960 in 2Q 2023 to $1,784,695 in 3Q 2023).

• 9 months 2023 travel revenues represent 22.1% of total revenues and grew 704.2% year on year from ($178,206 in 9 months 2022 to $1,433,133 in 9 months 2023).

• 3Q 2023 travel revenues represent 17.2% of total revenues and grew 119.1% year on year from ($178,206 in 3Q 2022 to $390,384 in 3Q 2023).

• 3Q 2023 travel revenues represent 17.2% of total revenues and declined 29.8% quarter on quarter from ($556,042 in 2Q 2023 to $390,384 in 3Q 2023).

• Since inception, SoPa has onboarded approximately 3.7 million registered consumers, approximately 650,000 registered merchants/brands and approximately 10,000 influencers onto its ever-expanding next generation digital ecosystem and loyalty platform in SEA.

• SoPa operates five verticals in SEA: digital advertising, travel, lifestyle, fintech/loyalty, and telecoms.

• SoPa operates in five SEA countries: Singapore, Vietnam, Indonesia, Philippines and Thailand.

• SoPa employs approximately +200 people throughout SEA.

Raynauld Liang, Society Pass Inc Chief Executive Officer, explains, “Our compelling revenue growth and dramatic profit margin expansion, as evidenced in the Company’s 9 months 2023 financial performance, substantiate our acquisitions-focused business plan to build the next generation digital ecosystem and fintech loyalty platform here in SEA. Despite 9 months 2023 revenues growing 117% year-on-year in the five largest economies of SEA, our 9 months 2023 cash operating expenses DECLINED by 32.6%. Just as importantly, our profit margins are materially improving on a year-to-year basis. We realized 28.1% gross profit margin in 9 months 2023, markedly improving from 9.8% in 9 months 2022.”

Mr. Liang further elaborates, “I confidently forecast profitability for our two main subsidiaries, Thoughtful Media and NusaTrip, in financial year 2023. Both subsidiaries now contribute more than 90% of SoPa’s revenues. With the Singapore launch of our SoPa Loyalty App Launch in June 2023, we are now allowing our customers to earn loyalty points through fintech/loyalty platform and our subsidiaries will translate into significant revenue generation going forward. In addition, our business plan of spinning out our main subsidiaries will generate outsized returns for our shareholders.”

About Society Pass Inc.
Founded in 2018 as a data-driven loyalty, fintech and e-commerce ecosystem in the fast-growing markets of Vietnam, Indonesia, Philippines, Singapore and Thailand, which account for more than 80% of the SEA population, and with offices located in Bangkok, Ho Chi Minh City, Jakarta, Manila, and Singapore, Society Pass Incorporated (Nasdaq: SOPA) is an acquisition-focused holding company operating 5 interconnected verticals (loyalty, digital media, travel, telecoms, and lifestyle), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.

Society Pass completed an initial public offering and began trading on the Nasdaq under the ticker SOPA in November 2021.

SoPa acquires fast growing e-commerce companies and expands its user base across a robust product and service ecosystem. SoPa integrates these complementary businesses through its signature Society Pass fintech platform and circulation of its universal loyalty points or Society Points, which has entered beta testing and is expected to launch broadly at the beginning of 2023. Society Pass loyalty program members earn and redeem Society Points and receive personalised promotions based on SoPa’s data capabilities and understanding of consumer shopping behaviour. SoPa has amassed more than 3.7 million registered consumers and over 650,000 registered merchants and brands. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.

Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Thoughtful Media Group, a Thailand-based, a social commerce-focused, premium digital video multi-platform network; NusaTrip, a leading Indonesia-based Online Travel Agency; VLeisure, Vietnam’s leading provider of hotel management and payment solutions; Gorilla Global, a Singapore-based, mobile network operator; Leflair.com, Vietnam’s leading lifestyle e-commerce platform.

For more information on Society Pass, please visit:

Website at https://www.thesocietypass.com or

LinkedIn at https://www.linkedin.com/company/societypass or

Facebook at https://www.facebook.com/thesocietypass or

Twitter at https://twitter.com/society_pass or

Instagram at https://www.instagram.com/societypass/.

Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains certain non-GAAP financial measures based on management’s view of performance including cash operating expenses. Management uses such measures internally for planning and forecasting purposes and to measure the performance of the Company. We believe these adjusted financial measures provide useful and meaningful information to us and investors because they enhance investors’ understanding of the continuing operating performance of our business and facilitate the comparison of performance between past and future periods. These adjusted financial measures are non-GAAP measures and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. When preparing these supplemental non-GAAP financial measures, we typically exclude certain GAAP items that management does not consider to be normal, recurring non-cash operating expenses.

Cautionary Note Concerning Forward-Looking Statements
This press release may include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend” and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus relating to the Company’s initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Media Contact:
Rokas Sidlauskas
Chief Marketing Officer
[email protected]

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