Company Overview - Society Pass Inc. is a data-driven loyalty, fintech, and e-commerce ecosystem founded in 2018, operating in fast-growing Southeast Asian markets including Vietnam, Indonesia, Philippines, Singapore, and Thailand, which collectively represent over 80% of the SEA population [3] - The company operates six interconnected verticals: loyalty, digital media, travel, telecoms, lifestyle, and food & beverage, connecting millions of registered consumers and hundreds of thousands of merchants across various product and service categories [3][5] - Society Pass went public in November 2021, trading on Nasdaq under the ticker SOPA [4] Business Model and Growth Strategy - Society Pass focuses on acquiring fast-growing e-commerce companies to expand its user base and integrate these businesses through its Society Pass fintech platform and universal loyalty points system, Society Points, which is in beta testing and expected to launch broadly in early 2023 [5] - The company has over 3.3 million registered consumers and more than 650,000 registered merchants and brands, supported by proprietary IT architecture developed over two years [5][6] - Society Pass operates several key subsidiaries, including Thoughtful Media Group, NusaTrip, VLeisure, Gorilla Global, Leflair.com, Pushkart.ph, and NextGen Retail, enhancing its service offerings across various sectors [6] Future Plans and Market Potential - In October 2023, Society Pass announced plans to spin off two of its businesses, Thoughtful Media Group Inc. and NusaTrip Inc., through IPOs in 2024, which are expected to create significant value for shareholders and act as key growth catalysts in 2025 [7] - The company is currently trading at a market capitalization of approximately $7 million, with an equivalent amount in cash, indicating that its shares and business are significantly undervalued [7] - Ascendiant Capital Markets has raised the 12-month price target for Society Pass to $15 from $14, reflecting a positive outlook based on a net present value analysis, which suggests substantial upside potential from the current share price [7]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $1,473,504, a decrease of 20.2% from $1,847,079 in the same period of 2024[266] - Digital marketing segment revenue decreased from $1,552,420 in Q1 2024 to $1,183,217 in Q1 2025, reflecting increased competition[267] - Online ticketing and reservations revenue increased from $264,574 in Q1 2024 to $287,397 in Q1 2025 due to partnerships with more vendors[267] - Revenue from the Lifestyle sector for the three months ended March 31, 2025, was $2,660, a decrease from $20,728 in the same period of 2024[305] - Telecommunications revenue generated was $230 for the three months ended March 31, 2025, down from $4,566 in the same period of 2024[308] - Revenue from ancillary services, including insurance commissions and refund margins, was $287,397 for the three months ended March 31, 2025, up from $264,574 in 2024, reflecting an increase of about 8.6%[326] Net Loss and Financial Position - The net loss for the three months ended March 31, 2025, was $1,845,648, compared to a net loss of $2,839,224 in Q1 2024, indicating a reduction in losses[266] - Net loss improved to $1,845,648 in Q1 2025 from $2,839,224 in Q1 2024, primarily due to decreased G&A expenses[275] - For the three months ended March 31, 2025, the net loss attributable to Society Pass Incorporated was $1,841,088, compared to a net loss of $2,839,925 for the same period in 2024[343] - The diluted net loss per share for the three months ended March 31, 2025, was $(0.44), compared to $(1.21) for the same period in 2024[343] Customer and Revenue Concentration - Customer A accounted for 40.16% of total revenues in Q1 2025, generating $588,481[269] - Revenue for Customer A was $906.12 million, representing a 9.06% increase, while Customer B generated $278.74 million, a 5.09% increase[270] Expenses and Cost Management - Cost of revenue increased to $1,354,430 for the three months ended March 31, 2025, compared to $1,007,877 in 2024, primarily due to digital marketing expenses[271] - Gross income decreased to $465,627 in Q1 2025 from $492,649 in Q1 2024, with gross income margin improving to 32% from 27% due to higher revenue from online ticketing[272] - Sales and marketing expenses significantly reduced to $45,749 in Q1 2025 from $127,135 in Q1 2024, attributed to planned cost reductions[273] - General and administrative expenses decreased to $2,272,879 in Q1 2025 from $3,243,671 in Q1 2024, mainly due to lower professional fees and cost restructuring[274] Cash Flow and Financing Activities - Net cash used in operating activities was $4,033,502 in Q1 2025, compared to $2,361,485 in Q1 2024, reflecting a higher net loss and changes in working capital[280] - Net cash provided by financing activities was $3,439,479 in Q1 2025, resulting from the issuance of convertible notes and share issuance for ATM[285] - The company expects to continue relying on cash generated through financing for operations and future acquisitions, indicating a focus on growth strategy[279] Acquisitions and Business Expansion - The company has made several acquisitions to expand its e-commerce ecosystem, including the acquisition of Nusatrip Group, enhancing its presence in the travel sector[251] - The company acquired NusaTrip Group, expanding its reach into the SEA regional travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[304] Digital Marketing and Technology - The loyalty platform allows consumers to earn Society Points, which are used to increase sales through data aggregation and customer re-targeting[254] - The company operates a telecommunications reseller platform under the brand name "Gorilla," utilizing Web3 technology to offer mobile data services[256] - The digital marketing platform, TMG, has uploaded over 675,000 videos with over 80 billion views, enhancing the company's advertising reach[258] - The company has developed a digital marketing platform, TMG, which has uploaded over 675,000 videos with over 80 billion views, enhancing its e-commerce ecosystem[301] - The company operates a telecommunication reseller platform, "Gorilla," which allows customers to convert unused mobile data into digital assets[300] Assets and Liabilities - As of March 31, 2025, cash and cash equivalents totaled $7,142,266, with accounts receivable at $858,801 and inventories at $163,185[277] - The company's inventories amounted to $163,185 as of March 31, 2025, compared to $157,734 as of December 31, 2024[288] - The Company’s contract liabilities balance was $1,234,875 as of March 31, 2025, down from $1,426,901 on December 31, 2024, representing a decrease of approximately 13.5%[330] - Contract assets balance was $336,129 as of March 31, 2025, slightly up from $333,188 on December 31, 2024, reflecting a marginal increase of about 0.6%[328] Regulatory and Compliance - The Company adopted ASC Topic 842 for leases, impacting the recognition of operating lease right-of-use assets and liabilities[345] - The FASB issued ASU No. 2023-07, effective for annual periods beginning after December 15, 2023, which improves reportable segment disclosure requirements, with no material impact on the financial statements as evaluated by the company[359] - ASU No. 2023-09, effective for annual periods beginning after December 15, 2024, introduces standard categories for effective tax rate reconciliation and requires additional disclosures, with the company currently evaluating its impact[361] - The company maintains disclosure controls and procedures designed to provide reasonable assurance for timely reporting, although these controls are not effective at the reasonable assurance level as concluded by management[364] - There were no changes in the company's internal control over financial reporting during the period ended March 31, 2025, that materially affected its internal control[365]

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Paymentus (PAY) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.Paymentus is one of 270 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank ...

Core Viewpoint - Society Pass Incorporated (SOPA) reported a quarterly loss of $0.48 per share, which was better than the Zacks Consensus Estimate of a loss of $0.61, marking an earnings surprise of 21.31% [1] - The company’s revenues for the quarter ended September 2024 were $1.68 million, missing the Zacks Consensus Estimate by 32.01% and down from $2.27 million a year ago [2] Financial Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - The stock has lost approximately 78.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.7% [3] Future Outlook - The earnings outlook for Society Pass Incorporated is mixed, with the current consensus EPS estimate for the coming quarter at -$0.44 on revenues of $3.17 million, and -$2.84 on revenues of $9.16 million for the current fiscal year [7] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Society Pass Incorporated belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Duos Technologies Group, Inc. (DUOT), is expected to report a quarterly loss of $0.25 per share, with revenues projected to be $2.8 million, reflecting an 83% increase from the year-ago quarter [9][10]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $1,675,894, a decrease of 26.1% from $2,269,066 in the same period of 2023[308]. - Revenue for the nine months ended September 30, 2024, was $5,233,483, down 19.5% from $6,498,878 in the same period of 2023[308]. - Revenue from the Lifestyle sector for the three months ended September 30, 2024, was $4,931, a significant decline from $87,201 for the same period in 2023, representing a decrease of approximately 94.4%[360]. - For the nine months ended September 30, 2024, revenue in the Lifestyle sector was $29,360, down from $456,972 in the same period in 2023, indicating a decrease of approximately 93.6%[360]. - Revenue from grocery and food delivery services was $0 for the three months ended September 30, 2024, compared to $54,762 in 2023, marking a 100% decrease[368]. - For the nine months ended September 30, 2024, grocery and food delivery revenue was $0, down from $88,847 in 2023, also a 100% decline[368]. - Telecommunications revenue for the three months ended September 30, 2024, was $106, a decrease of 96.4% from $2,977 in 2023[369]. - For the nine months ended September 30, 2024, telecommunications revenue was $4,849, down 79.5% from $23,648 in 2023[370]. - Digital marketing revenue for the three months ended September 30, 2024, was $1,461,480, compared to $1,784,695 in 2023, reflecting an 18.1% decrease[379]. - For the nine months ended September 30, 2024, digital marketing revenue was $4,542,073, slightly down from $4,579,429 in 2023, a decrease of 0.8%[379]. Operating Expenses and Losses - Gross income for the three months ended September 30, 2024, was $365,646, compared to $562,564 in the same period of 2023, reflecting a decrease of 35.0%[308]. - Total operating expenses for the three months ended September 30, 2024, were $1,540,260, a significant reduction from $4,705,069 in the same period of 2023[308]. - Net loss for the three months ended September 30, 2024, was $1,380,578, compared to a net loss of $3,918,046 in the same period of 2023, indicating an improvement[308]. - The net loss for Q3 2024 was $1,380,578, a reduction from $3,918,046 in Q3 2023, primarily due to decreased G&A expenses[318]. - For the three months ended September 30, 2024, the net loss attributable to Society Pass Incorporated was $1,377,885, compared to a net loss of $3,861,929 for the same period in 2023, indicating an improvement of approximately 64.3%[419]. - The net loss per share for the nine months ended September 30, 2024, was $2.25, a significant improvement from $6.70 for the same period in 2023[419]. Cash and Financing Activities - As of September 30, 2024, cash and cash equivalents totaled $4,220,371, an increase from $3,628,670 at the end of 2023[319][320]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $1,178,148, significantly lower than $9,817,965 for the same period in 2023[324][325]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $1,786,943, compared to a net cash outflow of $650,525 in 2023[329]. - The company expects to continue relying on cash generated through financing for operations and future acquisitions[323]. Acquisitions and Market Operations - The Nusatrip acquisition has onboarded over 1.2 million registered users and connected with over 80 million unique visitors[300]. - The company has made several acquisitions to expand its e-commerce ecosystem, including online grocery and food delivery platforms in the Philippines and Vietnam[288][289]. - The acquisition of NusaTrip Group expanded the Company's reach into the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[358]. - The company scaled back operations in the food and beverage delivery market in 2024[293]. - The company’s telecommunications platform, Gorilla, ceased local mobile data service operations to refocus on overseas internet data[297]. Cost Management - Cost of revenue decreased to $1,310,248 in Q3 2024 from $1,706,502 in Q3 2023, and for the nine months, it decreased from $4,672,918 to $3,910,883[311]. - Sales and marketing expenses decreased significantly to $40,263 in Q3 2024 from $236,874 in Q3 2023, reflecting a strategic redesign[314]. - General and administrative expenses dropped to $1,486,362 in Q3 2024 from $4,455,546 in Q3 2023, attributed to improved cost control[316]. - Advertising expense for the nine months ended September 30, 2024, was $311,096, compared to $466,252 for the same period in 2023, reflecting a decrease of approximately 33.3%[401]. Assets and Liabilities - As of September 30, 2024, the right of use asset recorded by the company was $917,836, down from $1,407,956 as of December 31, 2023, indicating a decrease of approximately 34.7%[426]. - The Company reported no allowance for doubtful accounts as of September 30, 2024, indicating effective credit management and collection practices[343]. - Inventories decreased to $294,487 as of September 30, 2024, from $431,483 as of December 31, 2023, reflecting a reduction of approximately 31.7%[344]. - Contract liabilities increased to $1,326,384 on September 30, 2024, from $1,265,753 on December 31, 2023, indicating a growth of 4.8%[393]. - The Company has uninsured bank deposits of $3,989,977 as of September 30, 2024, with a previous amount of $3,262,161 as of December 31, 2023, indicating an increase of approximately 22.3%[340]. Regulatory and Compliance - The Company follows ASC 850 for related party disclosures, which includes affiliates, management, and other parties that can significantly influence operations[429]. - The Company assesses loss contingencies related to legal proceedings and unasserted claims, accruing estimated liabilities when probable and estimable[433]. - The Company maintains disclosure controls and procedures but concluded they are not effective at the reasonable assurance level[445]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the period ended September 30, 2024[446]. - The Company does not anticipate that ongoing legal proceedings will have a material effect on its financial condition or results of operations[448]. Future Outlook and Changes - The company is evaluating the impact of ASU No. 2023-01 on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[440]. - ASU No. 2023-07, effective after December 15, 2024, aims to improve reportable segment disclosures, which the Company is currently evaluating[442]. - ASU No. 2023-09, effective after December 15, 2024, requires additional disclosures for income tax reconciliations, which the Company is assessing[443].

Group 1 - Society Pass Incorporated (SOPA) reported a quarterly loss of $0.73 per share, which was better than the Zacks Consensus Estimate of a loss of $0.84, and an improvement from a loss of $1.80 per share a year ago, resulting in an earnings surprise of 13.10% [1] - The company posted revenues of $1.71 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 26.57%, and a decline from year-ago revenues of $2.19 million [2] - Society Pass Incorporated shares have decreased by approximately 76.5% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [3] Group 2 - The earnings outlook for Society Pass Incorporated is mixed, with the current consensus EPS estimate for the coming quarter at -$1.05 on revenues of $2.93 million, and -$3.34 on revenues of $10.92 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Revenue for the three months ended June 30, 2024, was $1,710,510, a decrease of 21.7% compared to $2,187,232 for the same period in 2023[249]. - Revenue for the six months ended June 30, 2024, was $3,557,589, down 16.0% from $4,229,812 in the same period of 2023[249]. - The decrease in revenue was primarily due to reduced sales from the travel vertical, attributed to platform system upgrades and increased competition[249]. - Revenue for the three months ended June 30, 2024, was $963,208, representing a 56.31% increase compared to $1,074,406 for the same period in 2023[250]. - Revenue from the Lifestyle sector for the three months ended June 30, 2024, was $3,701, a significant decrease from $57,407 in the same period of 2023[288]. - For the six months ended June 30, 2024, the Company generated $0 in revenue from telecommunications, compared to $88,847 in the same period of 2023, representing a decline of 100%[293]. - During the three months ended June 30, 2024, telecommunications revenue was $177, a decrease of 97.2% from $6,369 in the same period of 2023[295]. - For the six months ended June 30, 2024, the Company generated $3,080,593 from online ticketing and reservation services, an increase of 10.3% from $2,794,734 in the same period of 2023[301]. - The Company’s revenue from hotel technology platform software services for the six months ended June 30, 2024, was $6,217, a significant increase from $1,142 in the same period of 2023[308]. Operating Expenses and Losses - Operating expenses for the three months ended June 30, 2024, totaled $2,619,499, a decrease from $3,992,972 in the same period of 2023[249]. - The net loss for the three months ended June 30, 2024, was $1,943,754, compared to a net loss of $3,309,230 for the same period in 2023[249]. - The company has scaled back operations in the food and beverage delivery market in 2024 to refocus on its core business areas[235]. - The company incurred a net loss of $1,943,754 for the three months ended June 30, 2024, an improvement from a net loss of $3,309,230 for the same period in 2023[257]. - For the six months ended June 30, 2024, the net loss attributable to Society Pass Incorporated was $4,778,268, down from $8,610,185 in the same period of 2023, reflecting a 44.5% decrease[331]. - The net loss per share for the three months ended June 30, 2024, was $0.73, compared to $1.77 for the same period in 2023, indicating a 58.8% reduction in loss per share[329]. - The net loss per share for the six months ended June 30, 2024, was $1.91, a significant decrease from $4.67 in the same period of 2023, representing a 59.0% improvement[331]. Strategic Acquisitions and Business Expansion - The company has made several strategic acquisitions, including 100% equity interests in New Retail Experience Incorporated and Dream Space Trading Company Limited, enhancing its online grocery and food delivery services in the Philippines and Vietnam[231]. - The Nusatrip acquisition has expanded the company's presence in the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[241]. - The acquisition of NusaTrip Group expanded the Company's reach into the SEA travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[286]. Financial Position and Cash Flow - As of June 30, 2024, cash and cash equivalents totaled $833,937, with accounts receivable at $776,181[258]. - For the six months ended June 30, 2024, net cash used in operating activities was $3,226,057, a decrease from $6,886,251 for the same period in 2023[260]. - The company expects to continue relying on cash generated through financing activities to support its operations and growth strategy[259]. - As of June 30, 2024, cash and cash equivalents amounted to $833,937, a decrease from $3,628,670 as of December 31, 2023[272]. - Restricted cash was reported at $53,900 as of June 30, 2024, down from $95,312 as of December 31, 2023[273]. Cost Management - The cost of revenue for the three months ended June 30, 2024, was $1,246,205, down from $1,610,073 in 2023, indicating consistent cost management[253]. - General and administrative expenses decreased significantly to $2,461,968 for the three months ended June 30, 2024, from $3,879,049 in 2023, due to effective cost control measures[256]. - The company recorded a gross income of $956,954 for the six months ended June 30, 2024, compared to $1,263,396 for the same period in 2023, reflecting challenges in maintaining gross margins[254]. Shareholder Information - The weighted average common shares outstanding for the three months ended June 30, 2024, was 2,656,697, an increase from 1,878,102 in the same period of 2023[329]. - The weighted average common shares outstanding for the six months ended June 30, 2024, was 2,498,998, compared to 1,842,013 in the same period of 2023[331]. - The Company has issued 454,434 common stock equivalents, which were excluded from the computation of diluted weighted-average shares outstanding due to their antidilutive impact[332]. Accounting Standards and Contingencies - The Company adopted ASC Topic 842 for leases, recognizing operating lease right-of-use assets and liabilities based on the present value of lease payments[333]. - The Company follows ASC Topic 718 for share-based compensation, measuring and recognizing compensation expense for all share-based payment awards at grant-date fair value[338]. - The Company follows ASC 450 for accounting contingencies, assessing potential losses based on future events[344]. - Management believes that current contingencies will not materially affect the Company's financial position, but future changes could alter this assessment[346]. - The Company measures fair value of financial instruments according to FASB standards, prioritizing quoted market prices in active markets[350]. - The Company is evaluating the impact of ASU No. 2023-01 on its financial statements, effective after December 15, 2023[351]. - ASU No. 2023-07, effective after December 15, 2024, will enhance segment expense disclosures for all public entities[352]. - ASU No. 2023-09, effective after December 15, 2024, requires improved disclosures for income tax components and reconciliation[353]. - The Company does not expect other recently issued accounting standards to affect its financial statements[353].

Group 1: NusaTrip.com - NusaTrip.com is undergoing a technical re-platforming to enhance platform stability, improve UI/UX, and integrate with leading payment gateways in Southeast Asia, potentially increasing its market size by up to 800% [1] - The platform will offer linguistic localization for over 700 million users in Southeast Asia, aiming to become a leading travel booking platform by market share by 2026 [1][7] Group 2: Thoughtful Media Group - Thoughtful Media Group plans to launch proprietary technical products to support its Multi-Channel-Network and influencer marketing growth in Southeast Asia [2] - The in-house tech solutions will enable efficient identification and collaboration with Key Opinion Leaders, enhancing campaign effectiveness for brands [2] Group 3: Society Pass Inc. - Society Pass Inc. operates a data-driven e-commerce ecosystem across Southeast Asia, focusing on interconnected verticals such as loyalty, digital media, travel, telecommunications, and lifestyle [3][7] - The company is preparing for the IPOs of its subsidiaries, NusaTrip.com and Thoughtful Media Group, to enhance customer engagement and market reach [7][8] - CEO Raynauld Liang emphasized the commitment to becoming the preferred solutions provider for travel and marketing needs in Southeast Asia [8]

Group 1: Company Overview - Society Pass Inc. operates as a data-driven e-commerce ecosystem across Southeast Asia, including Vietnam, Indonesia, Philippines, Singapore, and Thailand, focusing on interconnected verticals such as loyalty, digital media, travel, telecommunications, and lifestyle [5] Group 2: Upcoming IPOs and Subsidiaries - Society Pass is preparing for the IPOs of its key subsidiaries, NusaTrip.com and Thoughtful Media Group, aimed at enhancing customer engagement and expanding market reach [1][4] - NusaTrip.com is a leading travel platform in Indonesia, undergoing significant upgrades to improve platform stability and user experience, potentially increasing its market size by up to 800% [2] - Thoughtful Media Group plans to launch technical products to support its Multi-Channel-Network and Influencer marketing efforts across Southeast Asia [3] Group 3: Strategic Goals and Future Plans - The company aims to position NusaTrip.com as a leading travel booking platform by market share in Southeast Asia by 2026, with linguistic localization available to over 700 million users [2] - Society Pass is focused on implementing changes that will positively impact business operations, clients, and shareholders [4]

Core Insights - Ascendiant Capital reports Society Pass (NASDAQ: SOPA) fiscal Q4 2023 results with adjusted revenue estimated at $10 million, highlighting strong economic expansion and urbanization as growth drivers [1] - Society Pass plans to spin off two businesses, Thoughtful Media Group Inc and NusaTrip Inc, via IPOs in 2024, which are expected to create significant shareholder value [2] - Ascendiant maintains a BUY rating for Society Pass but has lowered the 12-month price target from $41.25 to $21, indicating a substantial upside potential from the current share price [3] Company Overview - Society Pass Inc., established in 2018, operates a data-driven e-commerce ecosystem across Southeast Asia, focusing on interconnected verticals such as loyalty, digital media, travel, telecommunications, and lifestyle [6] - The company aims to innovate and reshape the digital commerce landscape in the region, serving both consumers and merchants/brands [6] Leadership Commentary - CEO Raynauld Liang expressed enthusiasm regarding Ascendiant's positive growth outlook for Society Pass in 2024, emphasizing the importance of the upcoming IPOs for shareholder value [4] - Liang also mentioned the company's strong financing and compliance with Nasdaq as factors contributing to a positive future outlook [5]