Loading...
•
Aug 31, 2022
Fingermotion Q2 2023 Earnings Report
Reported a sequential topline revenue increase despite headwinds from Chinese lockdowns.
Key Takeaways
FingerMotion reported a 2.5% sequential increase in topline revenue, reaching $4.98 million, despite challenges from Chinese lockdowns. The company experienced strong growth in both the mobile recharge and big data divisions. Operations are returning to pre-lockdown levels, with expectations of resumed growth.
Topline revenue grew to $4.98 million, a 2.5% increase over the preceding quarter.
Mobile recharge and big data divisions experienced strong growth.
General and administrative expenses decreased by 12% due to lower consulting expenses and wages.
Research and development expenses increased by 37% due to higher data access and usage fees.
Fingermotion
Fingermotion
Forward Guidance
The device protection business is nearing the end of its test phase, with a full launch anticipated by the end of the year. The company is optimistic about notable growth in mobile phone sales and subscriptions, as well as Big Data.
Positive Outlook
- Operations are turning back to pre-lockdown levels and are expected to resume their growth.
- Company was able to redistribute resources normally allotted for SMS business toward the mobile recharge business
- Focus is to increase revenue while at the same time optimizing the product mix to maximize margins.
- Starting to see revenue from mobile phone sales and subscriptions.
- Device protection business is nearing the end of its test phase and the Company anticipates a full launch by the end of this year
Challenges Ahead
- SMS & MMS business was soft due a number of lockdowns that impacted the demand for SMS messages from corporate customers.
- General and administrative expenses were partially offset by increased rent and travel expenses.
- Research and development expenses increased due to higher data access and usage fees charged by the telecom companies.