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Maxim: Society Pass (Nasdaq: SOPA) Raise Estimates on Expected Contributions from M&A, Positive on the South East Asia E-commerce Market

SINGAPORE, Aug 23, 2022 – (ACN Newswire) – Maxim Group LLC (“Maxim”) issues Equity Research Report on Society Pass Inc. (Nasdaq: SOPA) (“SoPa”).

JUST CLICK HERE (on Society Pass website) to see the entire Maxim Equity Research Report.

Summary Points:

– SOPA is in the first stages of creating an online South East Asian company. Luxury store, Leflair, was the principal revenue contributor for 2Q22. Other companies are food and beverage online support, online delivery companies Handycart and Pushkart (bought during 1Q22), and (2Q22), and also Gorilla Networks, a telecom MVNO (early June ’22). SOPA can be starting a loyalty points offering. Maxim believes there must be significant cross-selling opportunities and organic growth later on. Specifically, Maxim believes Thoughtful Media can market the business’s other brands and the meals delivery and luxury brand businesses could be expanded geographically. Maxim includes a positive take on the ocean market given faster-than-expected growth rates, increasing mobile and ecommerce penetration, younger populations, travel opening back up, and the chance to consolidate smaller companies.

– 2Q22 revenue of $445K more than doubled from $8K in the last year quarter, but was below our estimate of $670K. Results were held back because so many of its businesses were very early stage. Virtually all the quarter’s revenue originated from the web ordering segment, which currently includes the business’s online luxury store, Leflair. The expense of internet marketing limited the total amount put to utilize. Hardware and Software segments are not being prioritized. 3Q22 adjusted EBITDA lack of ($4.4M) was wider than our estimate of ($3.3M) and a lack of ($0.1M) in the last year quarter. The variance vs. our estimate is primarily because of 1-time costs linked to capital raises, M&A, higher growth investments, and public company-related costs.

– Healthy cash. SOPA ended June 2022 with $28M in cash no debt. Cash included the $25M, net from November 2021 IPO and $10.7M, net from the February 2022 capital raise. Maxim projects current cash levels to be sufficient to invest in organic growth on the next 2 yrs.

– Maxim raises revenue projections and expect significant growth for another 2 yrs. Maxim expects growth from shelling out for marketing, expansions, and launch of Loyalty Points in mid-2022 and factoring in contributions from all announced acquisitions.

– Maxim projects revenue to improve from $0.5M in 2021, to $12.9M in 2022 (unchanged), and $54M in 2023 ($38.2M prior). The increase is because of the significant expected contribution from acquisitions and organic growth. Maxim projects 2022 adjusted EBITDA loss to widen to ($13.9M) (($12.7M prior), from the lack of ($4.9M) in 2021. The bigger loss is because of onetime costs linked to acquisitions and higher public company expenses. For 2023, Maxim projects the adjusted EBITDA loss narrows to ($2.2M) from ($4.7M) prior.

– Compelling valuation – Maxim believes SOPA is undervalued and trades at a discount to its peer group. SOPA trades at an EV/revenue multiple of 0.4x our 2023 revenues in comparison to a peer group EV/revenue multiple of 2.3x our 2023 revenues. Maxim’s positive outlook is supported by the attractive SE Asian markets and opportunities to consolidate smaller companies. Management has announced plans to spin off Leflair Group also to own it listed on the Nasdaq by the finish of 2022.

About Society Pass Inc

As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand sufficient reason for offices situated in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa can be an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, lifestyle, F&B, telecoms, digital media, and travel), which seamlessly connects an incredible number of registered consumers and thousands of registered merchants/brands across multiple product and service categories throughout SEA.

SoPa’s business design targets analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The Society Pass loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.

SoPa leverages technology to tailor a far more personalised experience for customers in the purchase journey also to transform the complete retail value chain in SEA. SoPa operates, Vietnam’s leading lifestyle e-commerce platform;, a favorite grocery delivery company in Philippines;, a respected Vietnam-based restaurant delivery service; Mangan, a respected local restaurant delivery service in Philippines; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Thoughtful Media Group, a Bangkok-based, a social commerce-focused, premium digital video multi-platform network, and NusaTrip, a respected Jakarta-based online travel agency in Indonesia and across SEA. To find out more, please have a look at:

Media Contacts:

PRecious Communications

Topic:News release summary

Source: Society Pass

Sectors:Media & Marketing, Retail & eCommerce, PE, VC & Alternatives, Digitalization

From the Asia Corporate News Network

Copyright 2022 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

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