Society Pass Reports $1.47 Million Revenue in Q1 2025, 20.2% Decline Year-Over-Year

Society Pass Incorporated reported a net revenue of $1.47 million for the first quarter of 2025, a decline of 20.2% from $1.85 million in the same period of 2024. The decrease in revenue was primarily attributed to a significant drop in sales from the digital marketing segment, which fell from $1.55 million to $1.18 million, reflecting increased competition and internal project milestones. The company also experienced a reduction in online ordering revenue, which dropped to $2,660 from $20,728, while online ticketing and reservations saw a slight increase from $264,574 to $287,397.

The company's gross income for the quarter was $465,627, down from $492,649 a year earlier, with a gross margin of 32% compared to 27% in the previous year. This improvement in gross margin was driven by higher revenue from online ticketing and reservations, which have no associated cost of revenue. Operating expenses decreased significantly to $2.33 million from $3.38 million, largely due to reduced general and administrative costs, which fell from $3.24 million to $2.27 million. As a result, Society Pass reported a net loss of $1.85 million, an improvement from the $2.84 million loss recorded in the prior year.

In terms of operational metrics, the company reported a cash and cash equivalents balance of $7.09 million as of March 31, 2025, down from $7.63 million at the end of 2024. Total current assets increased to $16.15 million, driven by a rise in deposits, prepayments, and other receivables, which grew to $7.65 million from $5.19 million. However, total liabilities also increased slightly to $23.79 million from $23.69 million, primarily due to a rise in accounts payable.

Strategically, Society Pass has been focusing on expanding its digital ecosystem through acquisitions and partnerships. The company has made several acquisitions in recent years, including online grocery and food delivery platforms, digital marketing services, and travel agencies, which have helped to diversify its revenue streams. The company continues to evaluate potential funding alternatives to support its growth strategy and operational needs, although it acknowledges the uncertainty surrounding its ability to achieve these goals.

Looking ahead, Society Pass aims to enhance its revenue base and control expenditures, although it cautions that there are no guarantees of success. The company plans to leverage its existing platforms and partnerships to maximize sales volume and margins while continuing to monitor its capital structure and operational plans. The ongoing geopolitical tensions and supply chain disruptions have not significantly impacted the company's operations to date, but management remains vigilant regarding potential future risks.