Sarment Holding Limited Announces Third Quarter 2018 Financial Results
Consolidated Revenue increased 12.5% year-over-year toUS$5.4 million
KEYYES user base Increase by 91% to 1,017 Members versus Q2 2018
TORONTO, November 21, 2018
Sarment Holding Limited (formerly Sarment Holding Pte. Ltd.) (“Sarment” or the “Company”), a leader in global luxury lifestyle management and the pre-eminent marketplace for the high net worth and ultra-high net worth individuals market segment announced today its third quarter 2018 financial results for the period ended September 30, 2018.
For the three-month period ended September30, 2018, total revenue increased 12.5% to US$5.4 million compared to US$4.8 million for the same period in 2017. Gross profit for the quarter increased 11%to US$1.6 million, or 30.0% as a percentage of revenue versus US$1.4 million or30.0% as a percentage of revenue during the comparative period in 2017.
Total revenue for the three months ended September 30, 2018 included digital marketplace sales from the KEYYES platform in the amount of approximately US$35,000, which increased from approximately US$23,000 for the quarter ended June 30, 2018. Registered members on the platform increased by 91% to 1,017 members, compared to 533 members at June 30, 2018. The Company achieved an average revenue per transaction of US$286 and US$278 for the quarter ended June 30, 2018 and September 30, 2018, respectively. Average revenue per active user (defined as a customer who makes at least one purchase through our digital marketplace per month) showed significant growth from US$636 in the second quarter of 2018 to US$763 in the third quarter of 2018. These results have shown a very promising start and Sarment will work to fully migrate its client base to the digital platform throughout the balance of 2018.
Operating expenses increased by 106.8% to US$9.1 million during the quarter primarily due to the hiring of additional staff in the Customer Experience Management Platform (“CEM”) division. The number of full time employees increased from 17 in September, 2017 to 61 in September, 2018, which contributed to the increase in staff costs from the three months ended September 30, 2017 as compared to the corresponding period in 2018. The expansion in the CEM division had also contributed to a decrease in technology and logistics expenses in 2018 as the development of Sarment’s digital marketplace was largely performed by Sarment employees as opposed to being outsourced to third parties in 2017.
“The third quarter was indeed a very busy period for us as we concentrated our efforts on completing the IPO. Despite these types of initiatives, we completed the IPO during the third quarter and once again showed year-over-year growth in revenues and, most notably, key new metrics which are associated with user growth and average spend per user,” noted Quentin Chiarugi, Chief Executive Officer of Sarment. “We have very promising and exciting quarters ahead of us as we accelerate our growth efforts to expand our proven digital ecosystem and partnerships across key cities in Asia, Europe and North America.”
On August 21, 2018, the Company completed an initial public offering and received net proceeds of US$13.5 million. The Company’s shares are now trading on the TSX Venture Exchange (“TSXV”) under the symbol SAIS.
Sarment is Singapore-based and operates a luxury marketplace focused on offering curated luxury goods and services to High-Net-Worth and Ultra-High-Net-Worth individuals. Sarment’s AI-based digital ecosystem provides intelligent personal services focusing on creating unique luxury experiences. Sarment’s objective is to become the leader in global luxury lifestyle management and the preeminent marketplace for this market segment. Since its establishment in 2012, Sarment has expanded throughout Asia and is now seeking global expansion.
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Certain statements contained in this press release contain “forward-looking information” (“forward-looking statements”) within the meaning of Canadian securities laws. These forward-looking statements represent Sarment's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Sarment’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Sarment does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Sarment to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Sarment’s final prospectus, dated July 26, 2018, filed with the applicable Canadian securities regulatory authorities. The risk factors and other factors noted in Sarment’s final prospectus could cause actual events or Sarment’s actual results to differ materially from those contained in any forward-looking statement.
# # #Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
+65 6424 0417