- In June of this year, FingerMotion posted a 37% YOY revenue growth for its total annual revenue for 2022
- In the just-released Q1 2023 financial results, the company posted $4.86 million in revenue, a drop from $6 million in Q1 2022, revealing lingering lockdown effects
- Despite the recent lockdown related financial pressures, Mr. Shen has expressed confidence that, as China returns to pre-pandemic levels, growth will rebound
- Mr. Shen, the company’s CEO, noted that going forward one of the critical FingerMotion initiatives would be to keep pushing gross margins higher
Earlier in the year, FingerMotion (NASDAQ: FNGR), an evolving technology company with a core competency in mobile payment and recharge platform solutions in China, released its financial results for the 2022 financial year. Most notably, the company reported a 37% year-over-year (“YOY”) growth in revenue, with the Telecommunications Products & Services business posting the highest growth at 170% (https://ibn.fm/fyNtn).
While making the announcement, Martin Shen, FingerMotion’s Chief Executive Officer (“CEO”), attributed the company’s growth to its aggressive expansion to new markets with its Top Up business in collaboration with its telecom partners. He further expressed his confidence in the company’s Chinese subsidiaries’ ability to maintain profitability throughout the 2023 financial year.
Going forward, Mr. Shen noted that FingerMotion would focus its initiatives on increasing gross margins. “One of our key initiatives is to keep pushing gross margins higher, and we have been quite successful by optimizing our product offerings,” he noted.
He also stated that the company would follow through with the rollout of its mobile protection program, even as it continues to keep upward pressure on gross margins.
FingerMotion just reported a record quarterly revenue of $4.86 million for the first quarter (Q1) of the 2023 financial year. While impressive under lingering lockdown conditions, these earnings are a drop from Q1 2022, where the company posted $6 million in revenue. In addition, general expenses for Q1 2023 increased by $59,803, a 5% growth from Q1 2022. The quarterly cost of revenue stood at $4.48 million, a 17% decrease from the same period the previous year. The reported quarterly loss was $1.44 million, a 58% increase from Q1 2022 (https://ibn.fm/XVsXb).
This drop has been attributed to the “lockdowns” in China, which have, in turn, affected operations significantly. Mr. Shen, however, has expressed his optimism for the future, given that the country is returning to pre-lockdown levels. “One factor that seems to be overriding the softness experienced during the lockdown is the migration to 5G,” Shen noted. “The mobile recharge business has strong underpinnings and is expected to continue its growth trajectory, and a government stimulus plan may provide a boost to revenue as mobile phone sales started trickling in,” he added.
With this, coupled with the recent successful launch of its device protection insurance program, FingerMotion is optimistic that it will keep upward pressure on its gross margins to realize a profit sooner rather than later. In addition, the company is aggressively and successfully optimizing its product offerings and is confident that it will build on the previous year’s performance as the year advances.
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://ibn.fm/FNGR
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