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Aug 31, 2020

Fingermotion Q2 2021 Earnings Report

Reported increased revenues for the second quarter ended August 31, 2020.

Key Takeaways

FingerMotion reported a 77.5% increase in revenues compared to the same quarter in 2019. The company expects this revenue growth to continue throughout the fiscal year, targeting an annual revenue of over $16 million for fiscal year 2021.

Revenues increased by 77.5% compared to the same quarter in 2019.

Revenues for the six-month period ended August 31, 2020, increased by 114% compared to the same period in 2019.

SMS business has become a top revenue generator.

Company is investing in developing and marketing e-commerce platforms, expecting a return on investments by January 2021.

Total Revenue
$3.62M
Previous year: $2.04M
+77.5%
EPS
-$0.03
Previous year: -$0.03
+0.0%
Gross Profit
$258K
Previous year: $207K
+25.0%
Cash and Equivalents
$420K
Previous year: $553K
-24.1%
Free Cash Flow
-$1.36M
Previous year: $411K
-431.2%
Total Assets
$9.06M
Previous year: $6.05M
+49.8%

Fingermotion

Fingermotion

Forward Guidance

FingerMotion anticipates continued revenue growth throughout the fiscal year, aiming for over $16 million in annual revenue for fiscal year 2021.

Positive Outlook

  • Expected continued revenue growth throughout the fiscal year.
  • Targeting an annual revenue of over $16 million for fiscal year 2021.
  • SMS business has become a top revenue generator.
  • Investments in e-commerce platforms expected to yield returns by January 2021.
  • Company anticipates further increasing growth quarter over quarter.

Challenges Ahead

  • Forward-looking statements are subject to risks and uncertainties.
  • Actual future results may differ materially from expectations.
  • International, national, and local economic and market conditions could impact results.
  • Competition and changes in the Chinese telecommunications market pose risks.
  • Business disruptions, such as technological failures and cybersecurity breaches, could affect results.