SurgePays(US:SURG)2022-08-13 20:02Financial Data and Key Metrics Changes - Revenue for Q2 2022 reached $28 million, a 146% increase compared to $11.4 million in Q2 2021, primarily driven by subscriber growth in the mobile broadband business [8][27] - Gross profit increased by 65% to $2.2 million from $1.3 million year-over-year [28] - Loss from operations narrowed to $847,000 from a loss of $1.4 million in the same quarter last year [29] - Net loss for Q2 2022 was $973,000, or a loss of $0.07 per share, compared to a net loss of $214,000, or a loss of $0.07 per share in Q2 2021 [29] Business Line Data and Key Metrics Changes - The mobile broadband business surpassed 150,000 subscribers, with a target of 200,000 by year-end [9] - Accounts receivable increased from $3.2 million at the end of 2021 to $8.3 million at the end of Q2 2022, reflecting growth in wireless subscribers [14][31] Market Data and Key Metrics Changes - The Affordable Connectivity Program (ACP) is estimated to have 30 million to 50 million eligible households, indicating significant market potential for subscriber growth [10][25] - The company is positioned to serve underbanked and underserved communities, which have been overlooked by larger corporations [25][26] Company Strategy and Development Direction - The company aims to build a successful organization providing mobile broadband and financial services to underserved communities, with a long-term goal of reaching $1 billion in annual sales [26][34] - Strategic acquisitions, such as Torch Wireless and a CRM platform, are intended to enhance growth opportunities and operational efficiency [15][17][19] Management's Comments on Operating Environment and Future Outlook - Management believes that the current economic environment may increase the potential customer pool due to more individuals qualifying for their services [49][52] - The company is focused on long-term growth rather than short-term gains, emphasizing the importance of strategic investments [19][35] Other Important Information - The company is close to obtaining a receivables financing line, which will support subscriber growth with less dilution [21][22] - The CRM platform, rebranded as ShockWave, can be licensed out, providing an additional revenue stream [18] Q&A Session Summary Question: Confidence in future subscriber growth - Management expressed confidence in subscriber growth due to observed demand in underserved communities, where sales efforts have shown significant interest [38][40] Question: Impact of economic uncertainty on business - Management indicated that economic challenges could increase the potential customer pool, allowing the company to help more individuals in need [48][49] Question: Long-term supply chain and inflation impacts - Management stated that access to capital would allow for advance purchases of tablets, mitigating supply chain issues and potentially lowering costs [54][56]