SOS (NYSE:SOS) stock closed up nearly 40% higher today after reporting its full-year 2021 results. So what do you need to know?
Well, this morning SOS reported its financial results for the year that ended Dec. 31, 2021. The company announced revenue of $357.8 million, representing a 612% year-over-year (YOY) increase from 2020. Its gross profit jumped to $21.1 million, up from $13 million in the year prior.
Investors likely know that SOS generates revenue from call center operations, software-as-a-service solutions, cryptocurrency mining and commodity trading.
Unfortunately for the company, it had to shut down its crypto mining operations in China last July due to regulatory actions against digital assets. As part of its 2021 update, SOS announced that it launched its U.S. mining operations in Wisconsin in April 2022.
SOS Stock Climbs Despite Widening Net Loss
One negative from the results is that SOS reported a substantially larger net loss than in 2020. Based on generally accepted accounting principles (GAAP), the company lost $43.9 million last year, a far cry from 2020’s net profit of $4.9 million. The company offered an explanation for the reversal.
“The loss resulted from increased expenses related to increased operating expenses, legal and consulting fees and share-based compensation expenses. Gross margin dropped to 6% in FY 2021 from 26% in the prior year driven by the significant growth in the lower margin commodity trading business, increased operating expenses and the interruption of crypto-mining operations.”
Despite widening losses, investors could seemingly care less. Today’s massive jump surely comes as a refreshing change of pace for SOS investors. In the year to date, SOS stock is down nearly 30%.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.