The following is a summary of the SurgePays, Inc. (SURG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• SurgePays reported Q1 revenues of $31.4 million, a decrease of 10% due to operational changes.

• Gross profit increased by 6% to $8.2 million, with gross margin improving to 26% from 22.1% in the first quarter of last year.

• The company reported a net income of $1.2 million for the first quarter, and had approximately $43 million in cash at the end of March 2024.

Business Progress:

• SurgePays launched its prepaid wireless company, LinkUp Mobile, which is projected to replace or duplicate all Affordable Connectivity Program revenue within a year.

• SurgePays and LinkUp Mobile are working together to provide innovative solutions to underserved markets.

• SurgePays is expanding the ACP customer base using their store base, and making plans for conversion to low-cost value plans if ACP funding ceases.

• The Management is considering potential acquisitions to strengthen their existing business model.

• The company is focused on its Phase 2 plan to capitalize on a value-focused market online and expects to have all phases rolled out by Q3 2024.

• SurgePays is planning to divest their vested interests in LogicsIQ to gain immediate cash access.

• In case the ACP does not get refunded, the company plans to switch to the LinkUp Mobile model to replace the ACP revenue.

More details: SurgePays IR

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