Loading...
01/10 20:11
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report reveals significant operational losses, a drastic decline in revenue, and cash flow issues, primarily due to the cessation of ACP funding. Despite some growth in platform service revenue, the overall financial health is concerning, with increased SG&A expenses and a substantial net loss. The Q&A section highlights uncertainties in revenue projections and market strategies. No concrete shareholder return plans were announced, and management's unclear responses further exacerbate investor concerns. These factors suggest a strong negative impact on stock price.
Revenue $60.9 million (decrease of 56% year-over-year) due to the shutdown of the ACP federal funding and discontinuation of lead generation services.
Platform Service Revenue $17.4 million (increase of 54% year-over-year) driven by the hiring of a new sales director.
Gross Loss $14.3 million (compared to a gross profit of $35.6 million in 2023) primarily due to the end of ACP funding and the transition of subscribers.
SG&A Expenses Increased by 57% year-over-year due to additional non-cash stock compensation and contractor/consultant fees.
Loss from Operations $41.8 million (compared to a profit of $18.9 million in 2023) impacted by the end of ACP funding.
Net Loss $45.7 million, with a loss per share of $2.39, adversely affected by the ending of federally funded ACP.
Cash from Operations $21.3 million used in 2024 (compared to a source of $10.3 million in 2023) due to the winding down of ACP.
Cash, Cash Equivalents, and Investments $12.8 million at the end of 2024 (down from $23.7 million at the end of Q3 2024) reflecting the impact of ACP shutdown.
Accounts Receivable Decreased by $3 million to $9.5 million at the end of 2024, indicating a reduction in outstanding receivables.
New Product Launch: Linco Mobile is now launching nationwide, with expectations to share more updates soon as growth accelerates.
Point of Sale Software Growth: Our top-up platform saw over 300% revenue growth from Q1 to Q4 in 2024.
Market Expansion: We built a retail distribution network of nearly 9,000 convenience community stores nationwide.
Partnership with AT&T: In November, we announced a multiyear agreement with AT&T providing our customers with full access to the nation’s largest wireless network, 4G LTE, and 5G coverage coast to coast.
Operational Efficiency: We expect to ship 250,000 to 300,000 SIMs per month moving forward.
Cost Management: We chose to self-fund the transition to preserve connectivity for our customers and retain the base we built.
Strategic Shift: We are entering a period when the revenue opportunity far exceeds what we generated previously.
Diversification Strategy: We are a more efficient and diversified company, operating across two primary segments: wireless and point of sale software.
Earnings Expectations: SurgePays, Inc. reported an EPS of $-0.93, missing expectations of $-0.27, indicating financial performance risks.
Revenue Decline: Revenue decreased by 56% from $137.1 million in 2023 to $60.9 million in 2024, primarily due to the shutdown of the Affordable Connectivity Program (ACP) federal funding.
Operational Losses: The company reported a loss from operations of $41.8 million in 2024, compared to a profit of $18.9 million in 2023, highlighting operational risks.
Cash Flow Issues: Cash from operations was a negative $21.3 million in 2024, a significant decline from a positive $10.3 million in 2023, indicating liquidity risks.
Increased SG&A Expenses: SG&A expenses increased by 57% year-over-year, primarily due to non-cash stock compensation and contractor fees, which could impact profitability.
Dependence on Federal Programs: The cessation of ACP funding has created a reliance risk on transitioning subscribers to alternative revenue streams, such as Linco Mobile or Lifeline.
Market Competition: The company faces competitive pressures in the wireless and fintech sectors, particularly as it attempts to scale its operations and maintain market share.
Revenue Acceleration: SurgePays, Inc. is positioned for significant revenue acceleration, expecting over $200 million in revenue over the next twelve months.
Subscriber Growth: Acquired more than 285,000 wireless subscribers and built a retail distribution network of nearly 9,000 convenience community stores.
Partnership with AT&T: Announced a multiyear agreement with AT&T providing access to 4G LTE and 5G coverage, with a successful soft launch.
New Revenue Engine: Unlocked a new revenue engine as a mobile virtual network enabler (MVNE) through partnerships, expected to drive significant cash flow.
Point of Sale Software Growth: Top-up platform revenue grew over 300% from Q1 to Q4 in 2024, enhancing distribution capabilities.
Q1 2025 Revenue Expectations: Expect Q1 2025 revenue to track closely with Q4 2024.
Future Cash Flow: Expect to exit 2025 cash flow positive and enter 2026 with momentum.
Financial Projections: Expect to ship 250,000 to 300,000 SIMs per month moving forward.
Shareholder Return Plan: The company emphasized a commitment to increasing shareholder value through strategic investments and operational improvements, although no specific share buyback or dividend program was mentioned.
The company demonstrated strong financial performance with significant revenue growth and reduced operational losses. Despite cash reserve concerns, the optimistic guidance and strategic expansion plans, especially in retail distribution and the MVNE platform, indicate potential for further growth. The Q&A section revealed positive feedback from stakeholders and confidence in overcoming market challenges. The lack of unclear management responses further supports a positive sentiment. While cash reserves are low, the overall outlook and strategic initiatives suggest a positive stock price reaction in the near term.
The earnings call presents a mixed picture. Revenue growth and reduced losses are positive, but cash flow constraints and gross profit losses are concerning. The AT&T partnership and strategic focus on Lifeline provide optimism, yet slow market adoption and operational scalability issues persist. The Q&A reveals cautious optimism but lacks detailed guidance, suggesting uncertainty. Overall, the sentiment is neutral as positive developments are offset by ongoing challenges and financial risks.
The earnings call reveals significant challenges: a sharp revenue decline due to ACP funding cessation, a substantial net loss, and cash burn issues. Despite optimistic guidance about future revenue from MVNE partners and the AT&T partnership, competitive pressures and supply chain challenges persist. Financing activities suggest financial strain, and management's vague responses in the Q&A add uncertainty. Positive aspects, like reduced SG&A expenses and platform service revenue growth, are overshadowed by broader financial and operational risks, leading to a negative sentiment.
The earnings report reveals significant operational losses, a drastic decline in revenue, and cash flow issues, primarily due to the cessation of ACP funding. Despite some growth in platform service revenue, the overall financial health is concerning, with increased SG&A expenses and a substantial net loss. The Q&A section highlights uncertainties in revenue projections and market strategies. No concrete shareholder return plans were announced, and management's unclear responses further exacerbate investor concerns. These factors suggest a strong negative impact on stock price.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
