LOS ANGELES, Aug. 14, 2019 /PRNewswire/ -- SRAX, Inc. (Nasdaq: SRAX), a digital marketing and consumer data management and distribution technology platform company, reported results for the three months ended June 30, 2019.

"We continue to build our data assets through increasing adoption of our verticals and BIGtoken," stated SRAX's CEO and Founder Christopher Miglino. "These proprietary platforms are positioned to generate long-term revenue and value. During the quarter, we made substantial technology advancements in the SRAX IR platform and BIGtoken. SRAX IR is a perfect example of the type of platform that we believe will deliver long term recurring revenue, while building one of the most valuable data sets in the financial markets. 

"BIGtoken is the leading edge of the new data economy. Our global and diverse BIGtoken subscriber base experienced viral growth in April and reached 15.9 million users as of this week.  During the third quarter, we began to monetize our BIGtoken users, as we engaged with brands and several marketing agencies. Now, we are focused on increasing scale within certain data segments in specific countries. In addition, our discussions with advertisers and agencies have uncovered new revenue opportunities that leverage our high-quality user data. Through building what we predict will be one of the most valuable opt-in data sets in the world, we are well positioned to generate long-term revenue and value for shareholders.

Financial Highlights for Second Quarter 2019 

• Grew Q2 2019 total revenue 53%, compared to Q1 2019. 
• Increased total gross margin to 55% in the second quarter, compared to 42% in Q1 2019.

Operating Highlights:

• BIGtoken, the first digital exchange of transparent and verified consumer data:
• Signed agreement with one of India's largest conglomerate groups, Yash Birla Group, to launch BIGtoken India.
• Partnered with several high-profile non-profit association to provide BIGtoken users the ability to donate their earnings. They include
• American Heart Association, the nation's oldest and largest voluntary organization dedicated to fighting heart disease and stroke;
• HealthCorps, founded by Dr. Mehmet Oz, dedicated to helping high-school students make better choices about their health and physical fitness; and
• ALS Association, which recently launched its Challenge Me campaign in observance of the fifth anniversary of the ALS Ice Bucket Challenge.
• Introduced the ability for users to receive gift cards in exchange for giving brands access to their anonymized data.
• Formed a strategic partnership with LiveXLive, a global digital media company focused on live entertainment, to increase each platform's user base while generating data-based insight.
• Signed an agreement with Blue Chip, integrated marketing agency, to activate anonymized self-attested, transaction, location, and social media data.
• Introduced a feature for users to earn points with popular travel, grocery, and retail loyalty/rewards programs.
• Verticals:
• Enhanced SRAX IR features, adding real-time trading data, warrant management and the ability for companies to access shareholder contact data, including email, phone number and social media links.
• Launched SRAX Lux, in June, to target and reach luxury consumers at luxury retail stores, high-end art, music, film, fashion, and sports events, across all consumer devices.
• Corporate:
• Changing the company name to SRAX to better reflect the positioning.
• Raised $1 million at $5 per share in a private placement to support the launch of BIGtoken across Asia.
• Raised $7.8 million: $6.7 million from a registered direct offering and $1.1 million from warrant conversion.
• Raised $5.5 million from a registered direct offering, subsequent to quarter end.
• Options trading became available for SRAX.

Conference Call:Management will review the results on a conference call with a live question and answer session today, August 14, 2019, at 4:30 p.m. ET/1:30 p.m. PT.

• If calling from the U.S. or Canada, please dial 1-877-451-6152 to access the live call and 1-844-512-2921 for the replay, code 13691889 available until Wednesday August 28, 2019.
• If calling internationally, please dial 1-201-389-0879 to access the live call and 1-412-317-6671 for the replay, code 13691889.
• The call will be webcast over the Internet and accessible at the company's website at https://srax.com/investors/ for at least 90 days.

Non-GAAP Measures:To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measure:  Adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

• Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, changes in the fair-value of derivative and warrant liabilities, other non-cash charges related to financing activities and certain additional one-time charges.

About SRAX SRAX, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management technology company. SRAX's technology unlocks data to reveal brands core consumers and their characteristics across marketing channels. Through our BIGtoken platform, SRAX has developed a consumer-managed data marketplace where people can own and earn from their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX's tools deliver a digital competitive advantage for brands in the CPG, automotive, investor relations, luxury, and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.

Safe Harbor Statement This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to increase our revenues, satisfy our obligations as they become due, report profitable operations and other risks and uncertainties as set forth in our Annual Report on Form 10-K for the year ended December 31, 2018, and our subsequent Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Social Reality and are difficult to predict. Social Reality undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:Kirsten Chapman/Mary Magnani, LHA Investor Relations, +1 415 433 3777, srax@lhai.com

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