NASDAQ$FNGR

Fingermotion Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a sequential topline revenue increase despite headwinds from Chinese lockdowns.

FingerMotion reported a 2.5% sequential increase in topline revenue, reaching $4.98 million, despite challenges from Chinese lockdowns. The company experienced strong growth in both the mobile recharge and big data divisions. Operations are returning to pre-lockdown levels, with expectations of resumed growth.

  • Topline revenue grew to $4.98 million, a 2.5% increase over the preceding quarter.
  • Mobile recharge and big data divisions experienced strong growth.
  • General and administrative expenses decreased by 12% due to lower consulting expenses and wages.
  • Research and development expenses increased by 37% due to higher data access and usage fees.

Headline financials

Total Revenue

$4.98M

Previous: $5.39M-7.5%
EPS (adj)

-$0.04

Previous: -$0.04+0.0%
Capital Expenditures

-$4.12K

Previous: -$12.6K+67.4%
Free Cash Flow

-$3.79M

Previous: -$3.53M-7.5%
Net Income

-$1.54M

Previous: -$1.46M-5.6%
Operating Income

-$1.49M

Previous: -$1.39M-7.6%
Gross Profit

$418K

Previous: $697K-40.0%
Cash & Equivalents

$1.98M

Previous: $878K+126.0%
Total Assets

$10.5M

Previous: $9.38M+11.5%
Stock-Based Comp

$344K

Previous: $422K-18.5%

Revenue & EPS history

Fingermotion · Revenue · Quarterly

$4.98M

Q2 2023-7.5%vs Q2 2022
Beat estimate in 2 of 11 quarters(18%)
ActualEstimate

Forward guidance

The device protection business is nearing the end of its test phase, with a full launch anticipated by the end of the year. The company is optimistic about notable growth in mobile phone sales and subscriptions, as well as Big Data.

Tailwinds

  • Operations are turning back to pre-lockdown levels and are expected to resume their growth.
  • Company was able to redistribute resources normally allotted for SMS business toward the mobile recharge business
  • Focus is to increase revenue while at the same time optimizing the product mix to maximize margins.
  • Starting to see revenue from mobile phone sales and subscriptions.
  • Device protection business is nearing the end of its test phase and the Company anticipates a full launch by the end of this year

Headwinds

  • SMS & MMS business was soft due a number of lockdowns that impacted the demand for SMS messages from corporate customers.
  • General and administrative expenses were partially offset by increased rent and travel expenses.
  • Research and development expenses increased due to higher data access and usage fees charged by the telecom companies.

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 2023

Historical avgQ2 2023

-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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