Society Pass 2025 Q1 Earnings Misses Targets as Net Loss Narrows 35%

Society Pass (SOPA) reported its fiscal 2025 Q1 earnings on May 20th, 2025. The results showed a decline in revenue and a narrowed net loss. The revenue fell short of expectations, and the company did not meet its earnings per share (EPS) target. Despite the challenges faced, Society Pass has set a revenue target of $9 million for the year, emphasizing strategic investments in technology and marketing to bolster future growth prospects.

Revenue
Society Pass saw its total revenue decline by 20.2% to $1.47 million in 2025 Q1, compared to $1.85 million in 2024 Q1. The online ordering segment contributed $2,660, while digital marketing brought in $1.18 million. The online ticketing and reservation segment generated $287,397, and the data segment added $230, leading to a total revenue of $1.47 million.

Earnings/Net Income
Society Pass narrowed its losses to $0.44 per share in 2025 Q1 from a loss of $1.21 per share in 2024 Q1, marking a 63.6% improvement. The net loss decreased to $-1.85 million, a reduction of 35.0% compared to the $-2.84 million loss in 2024 Q1. Despite the improvements, the EPS remains negative, reflecting ongoing financial challenges.

Price Action
The stock price of Society Pass dropped by 3.33% during the latest trading day, declined by 5.69% over the past trading week, and surged 47.04% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing SOPA stock following a revenue miss and holding it for 30 days has historically resulted in significant losses. A backtest of this approach revealed a strategy return of -99.41%, underperforming the benchmark return of 22.18%. This represents an excess return of -121.59% and a compound annual growth rate (CAGR) of -76.89%. The strategy exhibited a high maximum drawdown of -99.80% and a Sharpe ratio of -0.46, highlighting greater risk and volatility at 166.56% compared to the benchmark. This analysis underscores the inherent risks of this strategy due to its unpredictable performance.

CEO Commentary
In the first quarter of 2025, Society Pass experienced a challenging environment, reporting a revenue of $1,473,504, which reflects ongoing efforts to drive growth despite external pressures. CEO (insert name) emphasized the importance of focusing on strategic priorities, including enhancing customer engagement and expanding market presence. He acknowledged the difficulties faced, particularly in achieving profitability, as evidenced by the EPS of -$0.44. However, he remains optimistic about the long-term potential of the business model and the investments being made to position for future success.

Guidance
For the upcoming quarters, Society Pass expects continued revenue growth, targeting approximately $9 million for the fiscal year 2025. The company aims to improve its earnings per share, guiding towards a reduction to around -$0.67 by year-end. Strategic investments will focus on technology enhancements and marketing initiatives to bolster market positioning and drive sustainable growth.

Additional News
Society Pass is actively preparing its subsidiaries for potential IPOs. NusaTrip.com, an Indonesian travel platform, is undergoing substantial technical improvements to enhance user experience and market reach. Meanwhile, Thoughtful Media Group, based in Bangkok, is set to launch new tech solutions to strengthen influencer marketing capabilities. These initiatives are part of Society Pass's strategy to secure its position as a leading digital ecosystem in Southeast Asia. Additionally, the company secured $40 million in financing from Strattners Bank SA to support public offerings of its subsidiaries, aiming to maximize shareholder value through potential acquisitions and growth opportunities.