Anthony George Evers, the Chief Financial Officer of SurgePays, Inc. (NASDAQ:SURG), recently sold 36,667 shares of the company's common stock. The transaction, completed on November 1, 2024, was valued at approximately $58,667, with shares sold at a price of $1.60 each. This sale was conducted to cover taxes associated with the vesting of restricted share awards, as noted in the filing. Following this transaction, Evers retains ownership of 251,590 shares in the company.
In other recent news, SurgePays, Inc. has reported a significant downturn in its third-quarter revenue for 2024, with earnings dropping by 86% to $4.8 million from the previous year's $34.2 million. This decline is primarily due to the cessation of the Affordable Connectivity Program (ACP) funding. Despite this, SurgePays is actively transitioning its 280,000 MVNO subscribers to the Lifeline program and enhancing its prepaid wireless brand, LinkUp Mobile, through a new partnership.
The company also reported a 69% increase in platform service revenue, reaching $4.7 million, and a 400% growth in monthly revenue for its prepaid top-ups platform. SurgePays aims to reach 200,000 Lifeline subscribers by year-end to approach cash flow breakeven. The company is focusing on expanding its telecommunications and retail solutions in underserved markets.
It is important to note that SurgePays reported a loss from operations at $14.3 million, compared to a $7.1 million profit in the same period last year. However, the company is experiencing growth in its platform service revenue and prepaid top-ups. These are the recent developments surrounding SurgePays, Inc.
InvestingPro Insights
In light of Anthony George Evers' recent stock sale, it's crucial to consider the broader financial context of SurgePays, Inc. (NASDAQ:SURG). According to InvestingPro data, the company's market capitalization stands at $32.18 million USD, reflecting its current market valuation. This relatively small market cap aligns with the company's recent financial performance and market position.
InvestingPro Tips highlight some concerning trends for SurgePays. The company is not profitable over the last twelve months, and analysts anticipate a sales decline in the current year. This outlook is further supported by the fact that net income is expected to drop this year. These factors may contribute to the stock's significant price decline over the last year, with a 6-month price total return of -62.0%.
Despite these challenges, SurgePays holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial positioning could provide some stability as the company navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for SurgePays, providing a deeper understanding of the company's financial health and market position.
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