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Nov 30, 2023
Fingermotion Q3 2024 Earnings Report
FingerMotion reported challenging market conditions across all business segments, with improved gross margins despite revenue headwinds.
Key Takeaways
FingerMotion faced a challenging market environment in Q3 2024, impacting all business segments. Despite these challenges, gross margins improved. The company is adapting to regulatory changes and focusing on long-term growth through innovation and diversification.
Experienced challenging market conditions in all business segments.
Gross margins improved from 7.5% to 10.4% compared to Q3 2023.
General and administrative expenses increased by $620,385.
Research and development expenses decreased by 2%.
Fingermotion
Fingermotion
Forward Guidance
FingerMotion anticipates potential revenue improvements from new business segments and aims for profitability, while acknowledging ongoing market challenges and regulatory impacts.
Positive Outlook
- Exciting new business segments are underway in the current quarter.
- Potential to improve revenues.
- Potential to improve margins.
- Aiming to get close to the goal of profitability.
- Building the business for the long term.
Challenges Ahead
- Experienced a challenging market in all its business segments.
- Regulatory climate has had a notable impact on the SMS and MMS business.
- Missed the cutoff for positive cash flow from diversification into new business segments by the end of the quarter.
- The numbers do not reflect the optimism that management sees going forward.
- Adapting its approach to regulatory changes to uncover alternative revenues for growth in this business segment.