- SinglePoint Inc. reported Q12020 financial results with revenue increase of 309% to $1,075,222
- Solar subsidiary Direct Solar America was key driver for sales with company amassing record pipeline of solar bookings
- SinglePoint’s Hemp cigarette brand, 1606 Original Hemp, witnessed skyrocketing sales, with revenues rising 133% QoQ in Q1 2020
- Along with strong operational results, the company is taking steps to strengthen balance sheet
In this largely turbulent time for global markets, strategic thinking is necessary for survival. SinglePoint (OTCQB: SING), a publicly traded company dedicated to acquiring businesses focused on emerging technologies, recently published its quarterly financials for the period ending March 31, 2020—which, due to the company’s forward and innovative thinking, showed its continued growth (http://cnw.fm/A6GOy).
SING announced record revenues, with first quarter sales rising by 309% year-over-year to $1.075 million. The results further revealed that first quarter gross profit had also risen by 309% to $309.6 thousand, with SinglePoint maintaining its gross margin. Nevertheless, the company cautioned that its various business units had begun to witness the effects of disruptions caused by the COVID-19 pandemic late in the first quarter and expected its second quarter results to be impacted as a result.
Direct Solar America, a residential solar energy solutions broker purchased by SinglePoint in May 2019, was a key catalyst for the company’s strong first quarter growth (http://cnw.fm/Kq1cc). The solar power company amassed a record pipeline of solar bookings through the fourth quarter of 2019 and the beginning of 2020, the majority of which were installed during Q12020, enabling the company to recognize the revenues in its quarterly results. While sales were slower than anticipated in March due to the operational disruptions caused by nationwide ‘shelter at home’ orders, Direct Solar was able to rapidly pivot its business model to respond to the crisis. Remarkably for a business where previously “90 to 95 percent of closed sales had an in-person meeting of some sort”, Direct Solar was able to shift its sales and marketing efforts into an entirely virtual endeavor with the company recently revealing that it was seeing as many as 40 customers a week through its online channels (http://cnw.fm/rWrO5).
Separately, the company also went on to announce that it had expanded its presence to 30 states as of March 31, 2020—a substantial increase from the 8 states in which they were operational only 10 months prior.
SinglePoint’s hemp subsidiary enjoyed a similarly successful start to the year with the company announcing that its hemp cigarette brand, 1606 Original Hemp, had reported a sales growth rate of 133% in the first quarter relative to the previous three months, while early indications of second quarter sales suggested that revenues had risen by a remarkable 233% month-on-month in May versus April. The pre-rolled organic hemp cigarette brand was launched to much fanfare at last year’s MJBizCon Conference in Las Vegas (http://cnw.fm/BZzd3) and represented SinglePoint’s attempts to break into the combustible hemp segment – a sector which is currently the second fastest growing sub-category within the $4.6 billion industrial hemp market (http://cnw.fm/4w1BE).
1606 Original Hemp has now set its eyes on a new growth phase by expanding its burgeoning distribution network. While the company has already established a distribution channel encompassing over 400 stores across 19 states only a few months after its launch, SinglePoint now expects to increase its sales network within the coming months with an aim to further expand the figure to 2,500 stores in the near future (http://cnw.fm/UA84e). In a statement reaffirming the company’s lofty ambitions, SinglePoint’s management revealed that they anticipated the 1606 Hemp product to generate $2.75 million to $5.5 million in annual sales revenue per 1,000 active accounts (http://cnw.fm/apH9p).
“Direct Solar America and our consumer product 1606 Original Hemp are both gaining traction and revenue growth,” stated Singlepoint CEO and chairman Greg Lambrecht (http://cnw.fm/vf62N0). “We continue to analyze and to take actions to transform and realign our business opportunities, and we remain bullish on the long-term ability for the company to grow revenues, improve the balance sheet and increase shareholder value.”
In addition to its strong operational results, SinglePoint also elaborated on its management’s efforts in positioning the company for future business endeavors. In early April, the company revealed that it had successfully entered into a financing arrangement to raise up to $7 million (http://cnw.fm/X2orx), allowing it to strengthen its balance sheet and pursue further growth opportunities. The move comes after the company reported its successful repayment of a convertible investor note, (the “CVP Note”) dated October 10, 2017, during the first quarter of 2020 in a bid to lower its longer-term liabilities going forward.
For more information, visit the company’s website at www.Singlepoint.com.
NOTE TO INVESTORS: The latest news and updates relating to SING are available in the company’s newsroom at http://cnw.fm/SING
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