SurgePays, Inc.

Greetings. Welcome to SurgePay's fourth quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mike McCormick, Investor Relations at SurgePay. Mike, you may begin.

Thank you, Operator, and good afternoon, everybody. Welcome to the SurgePay's fourth quarter 2024 earnings webcast and conference call. On the call today from SurgePay is our Brian Cox, President and Chief Executive Officer, and Tony Evers, Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For discussion of such risks and uncertainties, please see SurgePay's most recent filings of the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect events that occur after this call. Copies of today's press release are accessible on SurgePay's investor relations website, ir.surgepays.com. In addition, SurgePay's Form 10-K for the year ended December 31, 2024, is also available on the Surge Pays Investor Relations website. With that, I'll turn it over to Brian. Thank you, Mike.

Good afternoon, everyone. Thank you for joining us. Today, we will cover our 2024 results, but more importantly, I want to focus on where we're going and why we're confident. Investments over the last couple of years have positioned Surge Pays for the most significant revenue acceleration in our history. with a clear path to sustainable positive cash flow in the next 12 months. From August 2021 through April 2024, we capitalized on the Federally Funded Affordable Connectivity Program, or ACP. During that period, we generated over $250 million in revenue, acquired more than 285,000 wireless subscribers, and built a retail distribution network of nearly 9,000 convenience and community stores nationwide. At the same time, we fortified our balance sheet, not just to sustain that momentum, but to build for what comes next. And make no mistake, we believe we have built and positioned our company for this next bigger and greater phase. Even with the advent and sunset of ACP, our mission hasn't changed. connecting and serving underserved communities where they live, shop, and work. The ACP experience sharpens two truths. First, seize opportunities. Second, never rely on a single revenue stream. Today, we're a more efficient and diversified company, and we're entering a period when the revenue opportunity far exceeds what we generated previously. Let's talk about how. SurgePays operates across two primary segments, wireless and our point-of-sale POS software platform. On the wireless side, we are a mobile virtual network operator, or MVNO, operating across three key channels. LinkUp Mobile is our prepaid brand. Torch Wireless is our government-subsidized offering. And Wholesale Airtime. providing wireless access to third-party companies through our MVNE platform. LinkUp Mobile is now launching nationwide, and we expect to share more updates soon as growth accelerates. Torch Wireless, supported by the Lifeline program, continues to enroll new customers daily. When ACP ended, we chose to self-fund this transition, not only to preserve connectivity for our customers, but to retain the base we've built. This was both a responsible move and a strategic one. And we've unlocked an entirely new revenue engine as a mobile virtual network enabler, an MVNE. Thanks to our AT&T partnership, we can now provide wireless infrastructure, billing, provisioning, and SIMs to other wireless companies who don't have direct carrier access. These wholesale relationships are highly profitable and scale with minimal incremental costs. We expect this to be a significant cash flow driver. Our point of sale software platform is the core of our retail distribution and a major differentiator. Thousands of stores nationwide already use it for top ups and product activations. Our top-up platform saw over 300% revenue growth from Q1 to Q4 in 2024. That's not just strong revenue, it's activation readiness. Every store joining our POS platform becomes a distribution point for LinkUp Mobile. The synergy between wireless and POS is the power of our model. It's a self-reinforcing ecosystem that we believe no competitor in our space can replicate. We're not just in wireless. We're not just in fintech. We are a platform built for underserved communities, built to scale, and built for growth. In November, we announced a multi-year agreement with AT&T, providing our customers with full access to the nation's largest wireless network. 4G LTE, and 5G coverage coast to coast. This has been a decade-long goal. I'm proud to share that the integration is complete. We launch April 1st. Our soft launch in March exceeded expectations. Over 30,000 SIMs deployed. 200,000 more SIMs just arrived, and another 250,000 SIMs are already on order. Based on current demand, We expect to ship 250,000 to 300,000 SIMs per month moving forward. We've strengthened our leadership team to drive this growth. Mark Garner was promoted to EVP, brings nearly 30 years of telecom experience to managing our software platforms. Allison Seiler, now VP of Sales, is executing across direct, partner, and reseller channels. Our infrastructure, operations, and software stack are now in place. Now we scale. Tony will take you through the 2024 numbers in a moment. Looking ahead, we expect Q1 of 2025 revenue to track closely with Q4 2024. But starting in Q2, we turn the corner. We expect over $200 million in revenue over the next 12 months, and with this ramp, We expect to exit 2025 cash flow positive and entering 2026 with momentum. With that, I will turn it over to Tony.