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.