Exclusive: Srax CEO Tells Benzinga He Expects Big Data Firm To Beat High End Of Guidance

SRAX Inc SRAX offers data-powered technology that enables public companies to track investor movements and engage current and potential investors.

"We built a platform that allows issuers to understand who is buying and selling their stock at any given time," Srax founder and CEO Christopher Miglino told Spencer Israel on Benzinga's "Power Hour" YouTube show Wednesday.

"A lot of people don't see all of the data that a public company puts out. We provide a bunch of tools that help those public companies manage everything they need to from a public company perspective," Miglino said. 

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What's Ahead For Srax: In September 2020, Srax aquired LD Micro, a data, event and conferencing company that holds two of the largest micro-cap conferences throughout the year.

Srax issued a press release on Tuesday listing the conferences that are planned for 2021. 

Srax did $10 million in sales in the first quarter and raised its guidance for 2021 from $16 million to $23-$25 million.

The second quarter is already off to "an incredible start," Miglino said Wednesday. 

With the company's current trajectory, the CEO said he expects to "well outpace" the high end of the guidance. 

More About Srax: Srax has about 200 clients and owns stock in most of its client companies, he said.

Srax has about $30 million in cash and stock and keeps a close watch on all of its clients, Miglino said.

Srax is able to see each individudal shareholder invested in a company, the CEO said. 

For example, when Srax started working with Genius Brands GNUS it had 3,000 shareholders and now has close to 400,000, Miglino said. 

The shareholder information available includes names, addresses, phone numbers and social media accounts, he said. 

A company can license the platform from Srax in order to gain access to this data. The software allows the investor information to be accessed in real-time.

It's a much different approach than looking at which institutions owned a specific company quarter-to-quarter, Miglino said. 

Benzinga's Israel asked about a potential correlation between retail interest in the market and demand for a product like the one Srax offers.

Miglino said the product has "grown substantially over the last year," expanding from 50 to 200 issuers in about a year. 

SRAX Price Action: Srax shares gained 2.9% Wednesday, closing at $4.96. 

Image by Gerd Altmann from Pixabay.