Loading...
•
Aug 31, 2021
Fingermotion Q2 2022 Earnings Report
Reported solid revenue growth driven by Telecommunications Products & Services and SMS & MMS texting service.
Key Takeaways
FingerMotion reported a solid second quarter with revenue of $5.39 million, driven by growth in Telecommunications Products & Services and SMS & MMS texting service. Gross profit margin improved from 7% to 13% due to optimized purchase programs and hardware sales. The company secured a contract with Pacific Life Re to monetize its predictive algorithms for the insurance industry.
Generated revenue of $5.39 million.
Experienced continued year-over-year revenue growth.
Gross profit margin increased from 7% to 13%.
Secured a contract with Pacific Life Re for insurtech business.
Fingermotion
Fingermotion
Forward Guidance
The company expects continued revenue ramp-up as the insurtech business develops and more initiatives contribute to gross margin.
Positive Outlook
- Insurtech business development expected to drive revenue.
- Continued contribution to gross margin from new initiatives.
- Strong demand in SMS from corporate clientele.
- Optimized prepayments of bulk inventory purchases.
- Subscription plan and mobile phone sales contributing to growth and margin expansion.
Challenges Ahead
- General and administrative expenses increased due to consulting and staff salaries.
- Research and development expenses increased due to high data access and usage fees.
- Reliance on Chinese telecommunications market.
- Fluctuations and difficulty in forecasting operating results.
- Business disruptions, such as technological failures and/or cybersecurity breaches.