Q4 & FY 2018 Results Conference Call April 1, 2019

Transcription

1 Q4 & FY 2018 Results Conference Call April 1, 2019

2 Safe Harbor Statement This presentation contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to increase our revenues, satisfy our obligations as they become due, report profitable operations and other risks and uncertainties as set forth in our Annual Report on Form 10-K for the year ended December 31, 2018, and our subsequent Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Social Reality and are difficult to predict. Social Reality undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

3 Christopher Miglino CEO

4 SRAX Building & Monetizing Data Sets

5 Major Accomplishments Sold SRAX MD Raised working capital Paid off debt Improved sales and technology Broadened Verticals Enhanced Shopper Launched SRAX IR Launched SRAX Social Auto Boost Developed BIGtoken Completed Beta test Launched Filed S1 for BIGtoken

6 Increasing Sales Infrastructure

7 Pipeline $8.0M $1.6M $16.6M

8 R&D Engineering 2018 Review Redesigned engineering operational model Launched BIGtoken Developed B2C mobile & web app Led early field trials Launched SRAX IR New revenue stream Scalable SaaS product Launched advertising products that enhanced revenue productivity 5 Patents ready to file

9 George Stella VP, SHOPPER

10 SRAX Shopper: What We Are Selling Using digital ads to drive customers into stores and to buy brands Developed unique solution for Shopper marketers aggregating data into one point of contact Providing customized, very simple text based native ads match the look and feel of the publishers Outperforming the market click through by 300% to 500%

11 SRAX Shopper Accomplishments Built solid team with members from agencies, Walmart, and Procter & Gamble Ran successful Q4 programs with Nestle, Danone, and Mattel Story and key differentiators are resonating Name recognition is growing in key markets like Bentonville, AR Taking advantage of market consolidation

12 A Lot Going On - Reaching Tipping Point 200+ meetings 48 proposals out 1-2 RFPs on a daily basis Total closes to date: 160 identified opportunities $4.9M identified opportunities for 2019 $1.6M identified forecasted revenue for 2019

13 Christopher Miglino CEO

14 SRAX IR Key Offerings SRAX IR unlocks stock buyers behaviors and trends for issuers of publicly traded companies Our tools are built to help you understand your shareholder base behavior including who is buying and selling and give you the ability to engage with those investors across marketing channels including programmatic, social, and hyperlocal. Insights Reveal stock buyers behaviors and trends from their company s data sets in real time. Investor Relations Management Manage and monitor return on investment from investor relations programs and corporate communication firms. Data-Driven Marketing Engage current and potential stock buyers at their trading desks, investor events, or at home on both desktop and mobile.

15 Step One: Analyze Discover insights about your shareholders and their contributions to your company. Individual shareholder search Share change and patterns Insights on market makers Search and identify key shareholders to uncover buying and selling behavior. See total outstanding shares, new shareholders, and those in the top 10%, 20%, and 50%. Analyze activity from your market makers and see the biggest gains and losses over periods of time.

16 Step Two: Monitor Gain visibility into where your shareholders are coming from. IR attribution tools Investor contact management Multiple platform permissions Assign acquired shareholder credit to investor relations firms and track ROI for multiple firms. Enter contacts from investor events and conferences to monitor their share growth. Set different permissions for company executives and investor relations firms to see and manage your dashboard.

17 Step Three: Market Grow your shareholder base with precise audience building, targeting, and delivery all designed to secure the interest of investors. Precise targeting and delivery Hyperlocal conference targeting Dedicated team of ad specialists Combine verified and historical stock buyer data to target relevant investors across programmatic and social channels. Track and target visitors at small-, mid-, and large-cap investment conferences across all industries. Benefit from dedicated tools and expertise in key verticals as well as a guided discovery of the data you have and data you need.

18 Christopher Miglino CEO

19 Automate Facebook Campaigns Trigger a social post to automatically launch a campaign based on specific rules such as number of reactions, likes, shares or comments.

20 Deliver Targeted Content To Multiple Audiences Set up multiple rules for each page you manage to deliver targeted content or test different audiences and post types

21 Kristoffer Nelson COO

22 500,000+ Registered Users

23 BIGtoken Platform Experience Mobile and Web app accessing our consumer-managed marketplace where people can get paid for their data.

24 Industry Recognition

25 Invited to Be on the IAB Data Policy Board

26 Media Interest

27 Media Interest

28 Consumer Awareness

29 App Revenue Models Paid (Once) Paid (Sub) Advertising Commerce

30 BIG Business New Model New Category: Indirect Long Term Monetization

31 Key Growth Drivers Users in Segments Average Segments Per User Users in a universe of media -Websites -Apps -Social -Connected Audio -Connected TV

32 BIG Community Total Users 500,000 75K + Per day

33 Future BIG Commercial Opportunities Attribution Measurement Sponsor brand and measurement surveys Data correction

34

35 Financial Overview Michael Malone CFO

36 Fourth Quarter Operating Performance

37 Annual Operating Performance $23.3 $9.9

38 Balance Sheet at December 31, 2018 Cash and cash equivalents of approximately $2.8M at 12/31/2018, compared to $1.1 million at 12/31/2017 Extinguished convertible debentures in Q418 $6.5M in face value (versus $2.9M carrying value on 9/30/2018 balance sheet) $1.0M costs associated with the redemption The remaining ownership position in SRAXmd is not reflected on the balance sheet (approximately 30%)

39 Reiterating 2019 Guidance Management reiterates 2019 guidance: Revenue is expected to be between $20M and $25M Gross margin is expected to be between 45% and 55%

40 Christopher Miglino CEO

41 SRAX Building & Monetizing Data Sets