Society Pass Inc. (
Nasdaq: SOPA)
(“
SoPa” or the “
Company”),
Southeast Asia’s (SEA) next generation, data-driven, loyalty,
fintech and e-commerce ecosystem announces that Maxim Group LLC
(“
Maxim”) has issued equity research update.
Click Here (on Society Pass
website) or Here (on Maxim website) to view the
full Maxim Equity Research Report.
Summary Points:•
Valuation: SOPA trades at an EV/revenue multiple
of 0.1x Maxim’s 2024 revenue estimate vs. the peer average of 2.4x.
Maxim’s target valuation equates to 1.3x 2024 revenue estimate.
Maxim’s positive outlook is supported by the attractive SE Asian
markets and opportunities to consolidate smaller companies.
• 3rd Quarter 2023 Results Beat
Estimates: 3Q 2023 results showed
revenues of $2.3M, up from $2.1M in the prior year quarter and
$2.2M in 2Q 2022. Revenue was inline with our estimate of $2.3M.
Digital marketing accounted for 79% of quarterly revenue at $1.8M,
followed by NusaTrip online ticketing and reservation at $0.4M (17%
of revenue) and Leflair, online goods at $0.1M (4% of revenue).
3Q23 adjusted EBITDA loss of ($2.6M) was narrower than our estimate
of ($2.9M) and consensus of ($3.4M) and improved from a loss of
($7.1M) in the prior year quarter. The restructuring of several
businesses is expected to improve revenue and profitability and is
focused on the relatively higher margin segments. Operating
expenses were down 55% year on year.
• Outlook: Maxim believes many
of the businesses can be expanded geographically. Maxim also has
not factored in any contributions from Society Points, which
launched in June 2023 and could provide upside if it gains
traction, given it should be a relatively high and potentially its
highest margin segment. Maxim expects narrower EBITDA losses in
2023 and 2024 due to cost-cutting, restructuring, and higher
margins from mix shift and launch of loyalty, online travel, and
social media segments. For 2024, Maxim lowers revenue target to
$12.9M up 45%, y/y from $44.3M, and narrow our 2024 adjusted EBITDA
loss to ($3.1M), from ($3.6M). Maxim projects adjusted EBITDA
improving to breakeven in 4Q24. M&A is a big focus of
management's strategy.
• Balance
Sheet: The company ended 3Q23 with
unrestricted cash of $8.2M (close to the entire market cap of $9M),
down from $10.8M at the end of 2Q23, and immaterial amount of debt.
3Q23 cash flow from operations was an outflow of ($2.9M). In
October, SOPA entered into a $40M equity line of credit. With
expense reduction plans and newer businesses along with the launch
of the Loyalty program, Maxim expects the cash burn to
decline and that current levels of cash should be sufficient to
fund organic growth through 2024.
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/.
Cautionary Note Concerning
Forward-Looking StatementsThis 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
SidlauskasChief Marketing Officerrokas@thesocietypass.com
Society Pass (NASDAQ:SOPA)
Historical Stock Chart
From Jul 2024 to Aug 2024
Society Pass (NASDAQ:SOPA)
Historical Stock Chart
From Aug 2023 to Aug 2024