NASDAQ$FNGR

Fingermotion Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

FingerMotion reported challenging market conditions across all business segments, with improved gross margins despite revenue headwinds.

FingerMotion faced a challenging market environment in Q3 2024, impacting all business segments. Despite these challenges, gross margins improved. The company is adapting to regulatory changes and focusing on long-term growth through innovation and diversification.

  • Experienced challenging market conditions in all business segments.
  • Gross margins improved from 7.5% to 10.4% compared to Q3 2023.
  • General and administrative expenses increased by $620,385.
  • Research and development expenses decreased by 2%.

Headline financials

Total Revenue

$6.14M

Previous: $11.4M-46.2%
EPS (adj)

-$0.04

Previous: -$0.06+33.3%
Capital Expenditures

-$379.00

Previous: -$67.8K+99.4%
Free Cash Flow

-$6.95M

Previous: -$5.67M-22.7%
Net Income

-$1.94M

Previous: -$2.52M+22.9%
Operating Income

-$1.96M

Previous: -$1.86M-5.3%
Gross Profit

$638K

Previous: $859K-25.7%
Cash & Equivalents

$1.93M

Previous: $11.9M-83.7%
Total Assets

$17.6M

Previous: $21.9M-19.8%
R&D Expense

$176K

No prior period
Stock-Based Comp

$298K

Previous: $913K-67.3%

Revenue & EPS history

Fingermotion · Revenue · Quarterly

$6.14M

Q3 2024-46.2%vs Q3 2023
Beat estimate in 2 of 11 quarters(18%)
ActualEstimate

Forward guidance

FingerMotion anticipates potential revenue improvements from new business segments and aims for profitability, while acknowledging ongoing market challenges and regulatory impacts.

Tailwinds

  • Exciting new business segments are underway in the current quarter.
  • Potential to improve revenues.
  • Potential to improve margins.
  • Aiming to get close to the goal of profitability.
  • Building the business for the long term.

Headwinds

  • Experienced a challenging market in all its business segments.
  • Regulatory climate has had a notable impact on the SMS and MMS business.
  • Missed the cutoff for positive cash flow from diversification into new business segments by the end of the quarter.
  • The numbers do not reflect the optimism that management sees going forward.
  • Adapting its approach to regulatory changes to uncover alternative revenues for growth in this business segment.

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 Q3 2024

Historical avgQ3 2024

-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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