Surge Holdings Inc (OTCQB:SURG), a holding company with operations in the fintech, telecommunications and media sectors, announced preliminary first quarter sales numbers on Wednesday revealing revenue that quadrupled year-over-year.
The company saw revenue of $15.8 million in the quarter, a 307% increase year-over-year from $3.9 million in the same period of 2019.
CEO Brian Cox attributed the jolt in revenue to the investments Surge made in infrastructure last year.
“I am pleased to report we have surpassed a $60 million annualized revenue run rate, reflecting a 307% increase in sales versus the same period last year,” Surge CEO Brian Cox said in a statement. “These achievements are a direct result of our 2019 investment into infrastructure, software development, new product creation and development, along with the addition of ECS, which we acquired in 2019.”
Surge Holdings’ subsidiaries provide fintech services to convenience stores and low-cost telecommunications to the often underbanked communities they serve. With the coronavirus (COVID-19) putting even more strain on those communities, Surge’s businesses have remained in operation.
“Our subsidiary business models and clients remain intact and open in the COVID-19 environment as essential services,” Cox said. “While the first quarter of 2020 is moving in the right direction, I am even more excited about growing each subsidiary and watching our LocoRabbit pay-as-you-go wireless brand and other new products gain traction in the market. I look forward to reporting new developments as they unfold and wish everyone health and safety as we open America back up and prosper together.”
To that end, the company’s SurgePays Direct Wholesale Marketplace began supplying urgently needed safety and health-related products to its network of convenience stores, bodegas and community markets last month.
Broadly speaking, the SurgePays Marketplace 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.
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