CEO of Society Pass Inc. Struggles to Explain Remarkable 1Q Financial Results, Asks “Can We Change the Subject?”
C.S. Lewis: Mr. CEO, congratulations on your company’s outstanding financial performance for the first quarter of 2023. However, I’m a bit skeptical about your reported numbers. Can you tell me exactly how your company achieved 358% year-on-year revenue growth and a 33.5% gross margin improvement?
CEO: Thank you for your question, C.S. Lewis. Our success this quarter is due to our acquisitions-focused business plan in Southeast Asia. We have been aggressively expanding our next-generation digital ecosystem and loyalty platform, bringing in millions of registered consumers and merchants/brands onto our platform. We have diversified our revenue streams and have been investing heavily in our digital advertising, travel, and lifestyle verticals, particularly through our subsidiaries Thoughtful Media Group and NusaTrip.
C.S. Lewis: I understand that, but can you elaborate on the specific measures you’ve taken to achieve such phenomenal growth and margin improvement? It’s hard to believe that your company has achieved this level of success in just a year.
CEO: Well, we have been working hard to establish partnerships with major brands and merchants in Southeast Asia, building a robust network of product offerings and services that appeal to a broad range of customers. We have also been investing in cutting-edge technology to improve our platform’s functionality and user interface. Additionally, we have been making strategic acquisitions of companies in key verticals to expand our footprint and strengthen our competitive advantage.
C.S. Lewis: I see. But what about your cash operating expenses? They only grew by 20% year-on-year, while your revenue surged by almost 360%. That’s an immense growth differential. How did you manage to keep costs under control while still achieving such phenomenal growth?
CEO: That’s a great question, C.S. Lewis. We have been very vigilant about our expenses, focusing on optimizing our cost structure and maximizing efficiencies across our operations. We have been streamlining our processes and investing in automation to reduce manual labor. Additionally, we have been negotiating aggressively with vendors and suppliers to reduce costs wherever possible.
C.S. Lewis: Right. But can you explain how your company managed to generate $1.3 million in digital advertising revenues in just one quarter, when you had none in the same period last year?
CEO: Our success in digital advertising is due to a combination of factors. We have been leveraging our network of registered merchants/brands to offer targeted advertising campaigns to the right customers at the right time. We have also been investing in data analytics and machine learning to better understand customer behavior and preferences, allowing us to deliver more relevant and personalized ads. Finally, we have been partnering with major players in the advertising industry to expand our reach and generate more revenue.
Original Release: https://www.globenewswire.com/news-release/2023/05/11/2666974/0/en/Society-Pass-Inc-Nasdaq-SOPA-Reports-Outsized-Revenue-Growth-and-Margin-Expansion-for-1Q-2023-Financial-Results.html