SurgePays, Inc. Q4 FY2024 earnings call

• From August 2021 - April 2024, generated over $250M revenue, acquired 285k+ wireless subscribers, built 9k+ retail stores via ACP. • Transitioned from ACP, self-funded Torch Wireless transition to retain customers, unlocked MVNE revenue engine via AT&T partnership. • Integrated with AT&T for eSIMs, number portability, and device compatibility, enabling wholesale relationships. • POS software platform has over 300% Q1-Q4 2024 revenue growth, with synergy between wireless and POS creating a self-reinforcing ecosystem.

SurgePays, Inc. operates in two primary segments: wireless and point of sale (POS) software platform. On the wireless side, it is a mobile virtual network operator (MVNO) with channels including LinkUp Mobile (prepaid), Torch Wireless (government-subsidized), and wholesale airtime via MVNE platform. Linco Mobile is launching nationwide. The point of sale software platform saw over 300% revenue growth from Q1 to Q4 2024 in its top-up platform. In absolute terms, wireless segment includes various branded offerings and wholesale airtime, while POS platform is core to retail distribution. Revenue contribution: Wireless segment is key, with LinkUp Mobile Prepaid and Lifeline contributing significantly, and POS platform providing activation readiness.

• Q1 2025 revenue to track Q4 2024. • Expect over $200 million in revenue over the next twelve months. • Aim to be cash flow positive by end of 2025.

• Dependence on single revenue streams in the past, though diversified now. • Macroeconomic factors affecting underserved markets. • Challenges in scaling operations and managing cash flow as revenue ramps up.

Q: About SIM cards, when are orders placed, delivery time, and need for physical presence in stores?

A: SIM cards are crucial for activation; eSIMs added for newer phones, but physical SIMs needed in stores. 30k SIMs soft launched in March, 200k arrived last week, 250k on order.

Q: On $200 million revenue target for next twelve months, composition?

A: Majority from wireless segment, over 50% from LinkUp Mobile Prepaid and Lifeline, 13% from wholesale, and 24% from point of sale platform.

Q: Economic outlook for underserved market?

A: Underserved market still exists, and during tight economic times, people look for value, which can drive business.

Q: Conversion of ACP customers to Lifeline and Linco?

A: Converted about one third of 280k ACP customers to Lifeline, not supporting others now, but will use referrals from existing customers for growth.