SOS (SOS) H1 2024 earnings summary

Executive summary

• Net revenue for the six months ended June 30, 2024 was $60.5 million, up 47.1% year-over-year, driven by higher sales in commodities trading, especially natural rubber, amid China's economic recovery.

• Commodities trading accounted for 91.7% of total revenue, hosting services 7.8%, and other legacy business 0.5%.

• No revenue from cryptocurrency mining in 2024 due to a temporary halt for mining site upgrades, expected to resume in October 2024.

• GAAP net loss was $10.9 million, nearly flat compared to $10.7 million loss in the prior year period.

Financial highlights

• Gross profit was $2.4 million, with a gross margin of 4.0%, up from 0.2% in the prior year period.

• Operating costs rose 39.3% to $58.1 million, in line with revenue growth.

• Selling expenses increased to $2.2 million from $1.1 million, mainly due to promotional activities.

• General and administrative expenses rose 54.3% to $14.5 million, driven by depreciation from a new subsidiary.

• Basic EPS was $(0.0299), compared to $(0.0031) in the prior year period.

Outlook and guidance

• Mining operations are expected to resume in October 2024 after site upgrades.

• Management expects continued revenue growth from new service lines, international expansion, and increased demand for commodities.