NASDAQ$FNGR

Fingermotion Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported solid revenue growth driven by Telecommunications Products & Services and SMS & MMS texting service.

FingerMotion reported a solid second quarter with revenue of $5.39 million, driven by growth in Telecommunications Products & Services and SMS & MMS texting service. Gross profit margin improved from 7% to 13% due to optimized purchase programs and hardware sales. The company secured a contract with Pacific Life Re to monetize its predictive algorithms for the insurance industry.

  • Generated revenue of $5.39 million.
  • Experienced continued year-over-year revenue growth.
  • Gross profit margin increased from 7% to 13%.
  • Secured a contract with Pacific Life Re for insurtech business.

Headline financials

Total Revenue

$5.39M

Previous: $3.62M+48.8%
EPS (adj)

-$0.04

Previous: -$0.03-33.3%
Capital Expenditures

-$12.6K

Previous: -$115K+89.0%
Free Cash Flow

-$3.53M

Previous: -$1.33M-164.4%
Net Income

-$1.46M

Previous: -$961K-51.5%
Operating Income

-$1.39M

Previous: -$895K-55.1%
Gross Profit

$697K

Previous: $258K+169.7%
Cash & Equivalents

$878K

Previous: $420K+109.2%
Total Assets

$9.38M

Previous: $9.06M+3.5%
Stock-Based Comp

$422K

Previous: $50K+742.6%

Revenue & EPS history

Fingermotion · Revenue · Quarterly

$5.39M

Q2 2022+48.8%vs Q2 2021
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Forward guidance

The company expects continued revenue ramp-up as the insurtech business develops and more initiatives contribute to gross margin.

Tailwinds

  • Insurtech business development expected to drive revenue.
  • Continued contribution to gross margin from new initiatives.
  • Strong demand in SMS from corporate clientele.
  • Optimized prepayments of bulk inventory purchases.
  • Subscription plan and mobile phone sales contributing to growth and margin expansion.

Headwinds

  • General and administrative expenses increased due to consulting and staff salaries.
  • Research and development expenses increased due to high data access and usage fees.
  • Reliance on Chinese telecommunications market.
  • Fluctuations and difficulty in forecasting operating results.
  • Business disruptions, such as technological failures and/or cybersecurity breaches.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.2%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-5.9%

Avg return

30 days after

39%

14 / 36 earnings

Positive

+30.4%

Q3 2020

Best reaction

-18.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.1%+13.4%
Q3 2026+5.2%-6.0%-2.6%
Q2 2026+0.6%-11.6%-26.7%
Q1 2026-5.7%-10.9%-18.9%
Q4 2025+0.0%-17.2%-32.8%
Q3 2025+6.2%+4.4%+3.5%
Q2 2025-4.2%-12.4%-8.2%
Q1 2025-18.7%-19.5%-18.1%
Q4 2024+0.3%-5.8%-18.5%
Q3 2024-13.3%-15.1%-14.9%
Q2 2024-1.4%-4.7%-25.8%
Q1 2024-9.5%-26.4%-9.3%
Q4 2023+7.9%-4.0%+92.1%
Q3 2023-10.4%-6.9%-30.3%
Q2 2023+18.0%+43.5%+4.1%
Q1 2023-12.1%-17.0%-27.7%
Q4 2022-1.3%-1.9%-12.3%
Q3 2022-1.8%-2.0%-44.1%
Q2 2022+6.1%+17.1%+18.2%
Q1 2022-6.0%-5.6%-12.5%
Q4 2021-6.0%-2.1%-7.6%
Q3 2021+9.1%+3.0%+11.4%
Q2 2021+1.2%+4.4%-16.4%
Q1 2021+1.7%-1.2%-6.4%
Q4 2020-1.3%+0.0%-32.0%
Q3 2020+30.4%+29.0%+23.2%
Q2 2020-6.7%-14.4%-48.0%
Q4 2019+2.4%+4.9%+65.9%
Q1 2020+2.4%+4.9%+65.9%
Q3 2019+0.0%+0.0%-9.3%
Q2 2019+0.0%+0.0%-0.3%
Q1 2019+0.0%+0.0%-0.3%
Q4 2018+0.0%+0.0%-5.2%
Q3 2018+0.0%+0.0%-29.2%
Q2 2018+0.0%+0.0%-29.2%
Q1 2018+2.2%+2.2%-5.6%
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2014
Q2 2014
Q1 2014

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