Stran & Company (SWAG) Summer 2024 Investor Summit Virtual-MicroCap Forum summary

Company overview and industry context

• Celebrating 30 years in business, operating in the $26 billion promotional products industry with consistent growth and a strong market position, ranked 20th by PPAI and 34th by ASI.

• Achieved nearly $76 million in revenue last year, with a 28.7% growth from 2022 to 2023 and a 25% CAGR over the past five years.

• Operates as a program manager, offering branded merchandise, technology platforms, and international fulfillment to support client marketing goals.

• Differentiates through innovation, technology, and a comprehensive client service team, managing over 280 online stores for clients.

• Maintains a strong balance sheet with $18.5 million in cash and short-term investments as of June.

Growth strategy and acquisitions

• Growth driven by both organic expansion and strategic acquisitions, with five acquisitions completed since going public in 2021.

• Acquisition targets include geographically diverse and smaller distributors, with a focus on leveraging company resources to accelerate their growth.

• Recent acquisitions include GAP, Trend, Premier NYC, and T.R. Miller, structured with low upfront costs and performance-based earn-outs.

• Acquisitions expand capabilities in packaging, loyalty, decoration, and event trade show services.

• The company aims to continue this acquisition strategy to further consolidate the fragmented industry.

Technology and competitive advantages

• Invested in both front-end (Magento) and back-end (Oracle NetSuite) technology to streamline order processing and reduce manual labor.

• Offers a flexible, innovative approach with a global supply chain and a strong culture, enabling superior customer experiences.

• Focuses on program management for clients, integrating technology and creative services to maximize marketing ROI.

• Competitive landscape includes online e-retailers, franchise models, office supply companies, and small local distributors, with the company positioned as a scalable, tech-driven leader.

• High customer satisfaction reflected in a Net Promoter Score of 74, comparable to top global brands.