FingerMotion Reports Third Quarter 2022 Financial Results

NEW YORK, NY/ACCESSWIRE/January 18, 2022/ FingerMotion, Inc. (NASDAQ:FNGR) (the “Society” Where “finger movement“), a mobile and data services company, is pleased to report its financial results for the third quarter ended November 30, 2021. For complete financial results, please see the company’s recent 10-q filing at www .sec.gov/edgar/search, which should be read in conjunction with this press release.

Third quarter 2022 financial summary (results expressed in US$ unless otherwise indicated):

  • Reported quarterly revenue of $5.9 million, an increase of $1.02 million or 21% over the third quarter of 2020 (includes SMS & MMS, Telecom Products & Services business and Big Data);
  • Reported quarterly year-over-year growth in telecommunications products and services revenue of $2.8 million or 580% compared to the third quarter of 2020;
  • Quarterly revenue loss from the SMS and MMS business of $1.78 million or 40% compared to the third quarter of 2020;
  • Did not report any revenue in Big Data;
  • Reported gross profit of $967,075, an increase of $346,532 or 56% over Q3 2020;
  • Reported quarterly cost of revenue of $4.93 million, an increase of $0.67 million or 16% from Q3 2020;
  • Reported quarterly net loss of $1,037,172, an increase of $0.33 million or 47% from Q3 2022;
  • Basic and diluted loss per share of $0.02;
  • As of November 30, 2021, FingerMotion had $1,116,448 in cash, excess working capital of $5,489,655 and positive shareholders’ equity of $5,667,780;
  • Total assets were $9.95 million, total current liabilities were $4.28 million, and total liabilities were $4.28 million; and
  • 42,482,260 common shares were issued and outstanding as of November 30, 2021.

Strong profitability emerged in the quarter as we set a new gross profit record of $967,075.

“The third quarter ended strongly with revenue of $5.9 million and an acceleration of our complementary businesses,” said Martin Shen, CEO of FingerMotion. “During the quarter, we were aggressive in rolling out our collaboration with China Mobile in Fujian Province. We had to reallocate our resources to telecoms, which slowed the dramatic SMS revenue growth we had experienced in the past. Although there was no revenue from big data in the current quarter, considerable time was spent pursuing discussions with Pacific Life Re, the global life reinsurance company.

General and administrative expenses increased by $727,564 or 92% during the quarter, which is mainly attributable to the increase in the salaries of consultants and staff which is the consequence of the simultaneous development of our 3 business lines. Marketing expenses increased by $103,339 or 75% due to the cost of promoting our product offerings on a variety of our platforms. Research and development expenses increased to $158,055 during the quarter, an increase of 27% due to high data access and usage fees charged by telecommunications companies.

“Our balance sheet continues to strengthen with over $5.6 million in equity,” Martin Shen said. “This quarter posted record profitability as gross margin continued to grow. We expect this gross margin trend to continue and revenue to increase as the insurtech business begins to grow. During the last quarter, the company announced the creation of two new brands to provide mobile device protection in China. Beta testing is ongoing and may start contributing to revenue in the current quarter. The company anticipates this could be a significant revenue stream in the next fiscal year. »

AAbout FingerMotion, Inc.

FingerMotion is an evolving technology company with core competency in mobile payment and recharge platform solutions in China. As the user base of its core business continues to grow, the company is developing additional value-added technologies to market to its users. The company’s vision is to grow the user base rapidly through organic means and grow this growth into an ecosystem of users with high engagement rates using its innovative applications. Developing an ecosystem of highly engaged users would strategically position the company to integrate broader customer bases. FingerMotion hopes to eventually serve over a billion users in the Chinese market and eventually expand the model to other regional markets.

Company Contact:

FingerMotion, Inc.
For more information, email: [email protected]
Phone: 718-269-3366

Contact with Investor Relations:

Skyline Business Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: [email protected]

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements give our current expectations regarding predictions of future events. All statements other than statements of current or historical facts contained in this release, including statements regarding our future financial condition, business strategy, new products, budgets, liquidity, cash flow, projected costs, our regulatory approvals or the impact of any applicable law or regulation on us, and management’s plans and objectives for future operations, are forward-looking statements. The words “anticipate”, “believe”, “continue”, “could”, “should”, “estimate”, “expect”, “hope”, “intend”, “may”, ” plan”, “project”, “will” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations regarding future events. Although we believe these expectations to be reasonable, these forward-looking statements are inherently subject to risks and uncertainties, many of which are beyond our control. Our actual future results may differ materially from those discussed or implied in our forward-looking statements for a variety of reasons. Factors that could contribute to such differences include, but are not limited to: general international, national and local economic and market conditions; Demographic changes; the Company’s ability to support, manage or forecast its growth; the Company’s ability to manage its LIFE policies; the Company’s ability to maintain its relationships and licenses in China; negative publicity; competition and evolution of the Chinese telecommunications market; fluctuations and difficulty in predicting operating results; business interruptions, such as technology failures and/or cybersecurity breaches; and other factors discussed in the Company’s periodic reports which are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. We undertake no obligation to update these statements or to publicly announce the results of any revisions to these statements to reflect future events or developments.

THE SOURCE: finger movement

See the source version on accesswire.com:
https://www.accesswire.com/684193/FingerMotion-Reports-Q3-2022-Financial-Results

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