FingerMotion (NASDAQ: FNGR), a mobile services and data company, has released a supplemental corporate update that outlines revenue mix, recognition of revenue and the transition to increasing gross margins. The information was released in a shareholder letter from FingerMotion CEO Martin Shen. According to the letter, the majority of FingerMotion revenue is currently derived from its Telecommunication Products and Services division, which has consisted primarily of Top-Up and Recharge services but is evolving to include other endeavors. The letter discussed the following service offerings within this category: Top Up and Recharge, which includes Top Up and Recharge services offered to consumers nationwide; subscription plans, which includes new customer acquisition by offering packaged telecommunication subscription plans; mobile phone, which includes portal sales of mobile phones to online consumers; and cloud services, a new effort for FingerMotion that provides data storage, processing servers and databases over the internet.
Shen explained that quarterly revenue recognition was sporadic by nature, making it difficult to issue revenue and earnings guidance. These quarterly revenue swings make it paramount to look at the company’s long-term trends versus short-term quarterly fluctuations, Shen explained, noting that, as an example, gross profit for the nine months ending Nov. 30, 2023, was $3.1 million versus $1.7 million in the nine months ended Nov. 30, 2022, a strong marker of the company’s growth. “In summary, while we faced certain challenges and fluctuations in Q3 of fiscal 2024, we believe our diverse portfolio and adaptive strategies position us well for future growth,” said FingerMotion CEO Martin Shen in the letter. “We feel investors should focus on the long-term prospects of the company, like our insurtech and big data initiatives, rather than a revenue recognition anomaly. There is likely to be a spill-over effect with regards to revenue and gross margins positioning the Company for a record year. We remain committed to maximizing opportunities like the launch of our new lifestyle app across all segments and look forward to continuing our positive trajectory.”
To view the full press release, https://ibn.fm/m5pZy
About FingerMotion Inc.
FingerMotion is an evolving technology company with a core competency in mobile payment and recharge platform solutions in China. As the user base of its primary business continues to grow, the company is developing additional value-added technologies to market to its users. The vision of the company is to rapidly grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative applications. Developing a highly engaged ecosystem of users would strategically position the company to onboard larger customer bases. FingerMotion eventually hopes to serve more than 1 billion users in the China market and eventually expand the model to other regional markets. For more information about the company, please visit 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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