Recognises 348% Year on Year Revenue Growth for 1H 2023;
Gross Margin Increases to 29.9% in 2Q 2023 from -1.6% in 2Q 2022
NEW YORK, NY - 
(NewMediaWire) - August 10, 2023 - 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 second quarter ended 30 June 2023 and a filing of its 2Q 2023 Form 10-Q with the Securities and Exchange Commission (SEC).
Click Here (on SEC website) to view 2Q 2023 Form 10-Q filing.
Summary Points:
• With cash on hand of $10.8 million (approximately $0.38 per share) and book value of $12.7 million (approximately $0.45 per share) on 31 March 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.
• 1H 2023 revenues grew 348.0% year on year (from $944,152 in 1H 2022 to $4,229,812 in 1H 2023).
• 2Q 2023 revenues grew 338.3% year on year (from $499,062 in 2Q 2022 to $2,187,232 in 2Q 2023).
• 2Q 2023 revenues grew 7.1% quarter on quarter (from $2,042,580 in 1Q 2023 to $2,187,232 in 2Q 2023).
• 1H 2023 gross profit grew to $1,263,396 from a 1H 2022 gross loss of $14,931.
• 1H 2023 gross margin improved to 29.9% from 1H 2022 gross margin of -1.6%.
• 2Q 2023 gross profit grew to $577,159 from a 2Q 2022 gross loss of $138.
• 2Q 2023 gross margin improved to 26.4% from 2Q 2022 gross margin of 0.0%.
• While 1H 2023 revenues grew 348.0% year on year, 1H 2023 cash operating expenses declined 28.0% year on year (from $7,864,068 in 1H 2022 to $5,663,264 in 1H 2023).
• While 2Q 2023 revenues grew 338.3% year on year, 2Q 2023 cash operating expenses declined 51.9% year on year (from $4,891,352 in 2Q 2022 to $2,350,345 in 2Q 2023).
• While 2Q 2023 revenues grew 7.1% quarter on quarter, 2Q 2023 cash operating expenses declined 29.1% quarter on quarter (from $3,312,918 in 1Q 2023 to $2,350,345 in 2Q 2023).
• 1Q 2023 digital advertising revenues represent 62.9% of total revenues and grew 17.7% quarter on quarter from ($1,283,774 in 1Q 2023 to $1,510,960 in 2Q 2023).
• 1Q 2023 travel platform revenues represent 23.8% of total revenues and grew 14.2% quarter on quarter from ($486,707 in 1Q 2023 to $556,042 in 2Q 2023).
• SoPa completed the following acquisitions in 2Q 2023: VLeisure, Vietnam’s leading provider of hotel management and payment solutions; and Newave, an Indonesia-based KOL management agency. In addition, SoPa announced the acquisition of PT Inetindo Infocom, a subsidiary of Story-I Limited, a leading Indonesia-based retailer of Apple products, for a total consideration of approximately $1.85 million. Management expects the PT Inetindo Infocom acquisition to close in September 2023.
• Since inception, SoPa has onboarded approximately 3.3 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 six verticals in SEA: digital advertising, travel, lifestyle, loyalty, food & beverage delivery and telecommunications,
• SoPa operates in five SEA countries: Singapore, Vietnam, Indonesia, Philippines and Thailand.
• SoPa employs approximately 225 people throughout SEA.
Raynauld Liang, Society Pass Inc Chief Financial Officer, explains, “Our continuing breakneck revenue growth and exceptional profit margin expansion, as evidenced in the Company’s second quarter 2023 financial performance, substantiate our acquisitions-focused business plan to build the next generation digital ecosystem and loyalty platform here in SEA. Despite 1H 2023 revenues growing 348% year-on-year in the five largest economies of SEA, our 1H 2023 cash operating expenses DECLINED by 28%. Just as importantly, our profit margins are dramatically improving on a year-to-year basis. We realized 29.9% gross margins in 1H 2023, up from a negative 1.6% grow margins in 1H 2022.”
Mr Liang elaborates, “I note that our two main subsidiaries, Thoughtful Media and NusaTrip, were only acquired in 2H 2022. Yet, in just under 12 months, both subsidiaries now contribute more than 90% of SoPa’s revenues. I expect both subsidiaries to materially contribute to the Group’s revenues and profits in 2H 2023. Our third biggest subsidiary, NextGen Retail, announced the acquisition of a large retailer of Apple products in Indonesia. I expect NextGen Retail to grow much quicker in 2H 2023. Finally, with the Singapore launch of our SoPa Loyalty App Launch in June 2023, we have put the final piece of the puzzle in building out our business plan. The synergies generated between our loyalty platform and our subsidiaries will translate into significant revenue generation going forward. With the continuing performance in our three big verticals, we confidently project attaining cash profitability sometime in 2H 2023.”
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 Angeles, Bangkok, Ho Chi Minh City, Jakarta, Manila, and Singapore, Society Pass Incorporated (Nasdaq: SOPA) is an acquisition-focused holding company operating 6 interconnected verticals (loyalty, digital media, travel, telecoms, lifestyle, and F&B), 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 3.3 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, 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; Pushkart.ph, a popular grocery delivery company in Philippines; and NextGen Retail, a Indonesia-based 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.
| Period y-o-y ended June 30, US$ | 1H 2023 | 1H 2022 | |||||
| Total operating expenses | $ | (8,866,045 | ) | $ | (14,215,836 | ) | |
| Amortisation and depreciation | 935,531 | 1,614,617 | |||||
| Goodwill Impairment | 0 | 528,583 | |||||
| Stock-based compensation for services | 2,267,250 | 4,208,568 | |||||
| Cash Operating Expenses | $ | (5,663,264.00 | ) | $ | (7,864,068.00 | ) | |
| Quarter y-o-y ended June 30, US$ | 2Q 2023 | 2Q 2022 | |||||
| Total operating expenses | (3,415,813.00 | ) | (7,616,112.00 | ) | |||
| Amortisation and depreciation | 71,614.00 | 868,687.00 | |||||
| Goodwill Impairment | - | - | |||||
| Stock-based compensation for services | 993,853.50 | 1,856,073.00 | |||||
| Cash Operating Expenses | (2,350,345.50 | ) | (4,891,352.00 | ) | |||
| Quarter q-o-q ended June 30, US$ | 2Q 2023 | 1Q 2023 | |||||
| Total operating expenses | (3,415,813.00 | ) | (5,450,232.00 | ) | |||
| Amortisation and depreciation | 71,614.00 | 863,917.00 | |||||
| Goodwill Impairment | - | - | |||||
| Stock-based compensation for services | 993,853.50 | 1,273,396.50 | |||||
| Cash Operating Expenses | (2,350,345.50 | ) | (3,312,918.50 | ) | |||
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 as well as anticipated sales growth in Indonesia and the growth of the Indonesian economy. 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 Contacts:
Rokas Sidlauskas
Chief Marketing Officer
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