Stran & Company, Inc. Q2 FY2022 earnings call

• Record revenue of $14.8 million achieved, with 72.5% year-over-year growth and 49.4% organic revenue growth. - Fully integrated G.A.P. Promotions, which brought top-tier beverage and consumer good customers and expertise in point-of-sale display racks. - Announced acquisition of Trend Band Solutions to expand geographic presence, particularly in the Houston area. - Invested in infrastructure and sales/marketing initiatives, including a new lead generation team and aggressive digital marketing strategy. - Maintained a strong balance sheet with over $28 million in cash and cash equivalents and no long-term debt. - Repurchased approximately 1 million common shares under the share repurchase program.

For the three months ended June 30, 2022, Stran & Company reported revenue of $14.8 million, a 72.5% increase from $8.6 million in the same period of 2021. Gross profit was $3.8 million, or 25.4% of sales. Operating loss for the quarter was $472,000, and net loss was approximately $447,000. The company had $28.2 million in cash and cash equivalents as of June 30, 2022, with no long-term debt.

• Expect $30 million in bookings to be fulfilled by the end of 2022. - Plan to continue executing on growth strategy, including geographic expansion, entering new verticals, and identifying accretive acquisition targets. - On track to launch Oracle's NetSuite ERP system in the third quarter and be fully integrated by year-end. - Senior management purchased approximately $75,000 worth of common stock personally.

• Uncertainties in future economic, competitive, and market conditions that could impact business performance. - Risks associated with identifying and integrating accretive acquisition targets, including ensuring cultural fit and achieving expected synergies. - Potential challenges in executing on growth strategies and achieving expected profitability.

Q: How much hiring is planned for the marketing team by the end of the year and impact on G&A?

A: The lead gen team is a small number of experienced individuals, with hope that revenue generated will offset expenses, and the impact on G&A should be manageable as revenue is expected to be associated with their efforts