SRAX Reports Vertical Sales Growth of 132% for Q1 19

LOS ANGELES, May 15, 2019 /PRNewswire/ -- Social Reality, Inc. (Nasdaq: SRAX), a digital marketing and consumer data management and distribution technology platform company, reported results for the three months ended March 31, 2019.

"We continue to build valuable data sets that benefit our customers across all our businesses," stated SRAX's CEO and Founder Christopher Miglino. "Our BIGtoken platform is poised to take advantage of the recent exponential growth to 15.6 million registered users, as we begin to monetize data. Strategic agency partners and several large, internationally known consumer brands are interested in leveraging our BIGtoken data for digital advertising and for innovative opportunities.  Further, there is a growing trend of cross pollination between BIGtoken and our verticals, which are serving as sales channels for the data collected through BIG.

"Our verticals grew 132% for the first quarter of 2019 as compared to last year, reflecting our increased sales resources. Combined with our strong sales pipeline, we expect significant revenue growth in the second half of the year," concluded Miglino.

First Quarter 2019 Key Metrics

• Increased sales infrastructure grew Q1 2019 vertical revenue 132% compared to Q1 2018.

• Q1 2019 net loss of $5.8 million included a charge of $2.0 million related to non-cash warrant valuation. Q1 2018 net income $11,000 included a benefit of $3.7 million related to non-cash warrant valuation as well as operations from SRAXmd and Reach, which were sold or discontinued, respectively.

2019 Guidance
For 2019, the company reiterates full year revenue guidance to be between $20 million and $25 million with gross margins between 45% and 55%.

Operating Highlights:

• Corporate:
• Raised $8.8 million after the quarter end: $6.7 million from a registered direct offering, $1.1 million from warrant conversion and $1.0 million dollars from a private placement for the BIGtoken Asian expansion.
• Options trading became available for SRAX.
• BIGtoken, the first digital exchange of transparent and verified consumer data:
• Receives $1 million investment to launch BIGtoken Asia, which will increase access to over 1 billion internet users that want to own and earn from their data.
• Integrated mobile banking applications from some of the largest banks in the United States.
• Introduced a feature for users to earn points with popular travel, grocery, and retail loyalty/rewards programs enabling them to earn more for the activities they already participate in on a regular basis.
• Attracted more than 15.6 million registered users as of May 15, 2019.
• Verticals:
• Began selling SRAX IR, the investor relations software as a service (SaaS) platform that analyzes stock buyer behavior and trends for issuers of publicly traded companies.

Conference Call:
Management will review the results on a conference call with a live question and answer session today, May 15, 2019, at 4:30 p.m. ET/1:30 p.m. PT.

• If calling from the United States or Canada, please dial 1-877-451-6152 to access the live call and 1-844-512-2921 for the replay, code 13690722 available until May 29th.
• If calling internationally, please dial 1-201-389-0879 to access the live call and 1-412-317-6671 for the replay, code 13690722.
• The call will be webcast over the Internet and accessible at the Company's website at https://srax.com/investors/ for at least 90 days.

Non-GAAP Measures:
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: Adjusted net income (loss) and Adjusted EBITDA The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

Adjusted net income (loss) is defined as net income (loss) less non-cash equity-based compensation and the accretion of warrants. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, changes in the fair-value of derivative and warrant liabilities and certain additional one-time charges.

About SRAX
Social Reality, Inc. (SRAX) is a digital marketing and consumer data management technology company. SRAX's technology delivers the tools to unlock data to reveal brands core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIGtoken, SRAX has developed a consumer-managed data marketplace where people can own, verify and sell access to their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX's technology and tools deliver a digital competitive advantage for brands in the CPG, automotive, sports and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.

Safe Harbor Statement
This press release 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 1995. 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.

Contact Information:
Kirsten Chapman/Mary Magnani, LHA Investor Relations, +1 415 433 3777, srax@lhai.com

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