Surge Holdings Inc (OTCQB:SURG) revealed Wednesday that preliminary unaudited fourth-quarter revenue soared nearly 263% to approximately $13.4 million driven by strength across its business.
The Memphis, Tennessee-based company noted that it is on track to report its full year audited financial results for 2019 within the prescribed reporting period, on or before May 14, 2020 following the company’s extended filing deadline.
For the three months ended December 31, 2019, Surge posted unaudited fourth quarter revenue which increased 263% to around $13.4 million, compared to nearly $3.7 million for the same period a year earlier.
Similarly, for the twelve months ended December 31, 2019, preliminary unaudited revenue increased nearly 69% to approximately $25.7 million, compared to around $15.2 million for the same period a year earlier.
In a statement, Surge Holdings CEO Brian Cox described 2019 as a “transformative year” for the company, as reflected by a 69% increase in sales for the full year, and a dramatic 263% jump in sales for the fourth quarter.
“I am especially pleased to report sales of approximately $13.4 million for the fourth quarter of 2019, which puts us at a revenue run rate of more than $50 million at year end,” added Cox.
The Surge Holdings boss said that during 2019, the company invested "heavily in the future," which sets the stage for “long-term growth and profitability.”
“Specifically, we laid the foundation for our SurgePays Marketplace, which serves as an efficient web-based platform to directly connect our nationwide network of independent retailers with regional manufacturers,” said Cox.
The SurgePays Marketplace Network provides products to the underbanked through convenience stores, bodegas and community markets. It also provides manufacturers with cost savings by cutting out distributors and giving them an efficient platform to access independent retailers to sell their products on better terms.
“In 2019, we also completed the acquisition of ECS, which adds approximately 9,800 retail locations to our network. Importantly, we have now begun to up-sell and cross-sell a wide array of high margin, value-added products and services to these and other locations through the SurgePays Marketplace,” said Cox.
“We continue to gain traction with our Surge Logics subsidiary, due in part to our investments into developing the Intake Logistics CRM software as well as expansion of CenterCom Global BPO. Overall, factoring in the nationwide release of our branded LocoRabbit wireless products, I believe we are extremely well positioned and 2020 has the potential to become a breakout year,” he added.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive