FINGERMOTION Reports 142.3% Decrease in Revenue for Q3 FY2023, 93.2% Increase in Net Income
January 19, 2023
Earnings report
On January 17, 2023, FINGERMOTION ($NASDAQ:FNGR) released its earnings report for the third quarter of fiscal year 2023. FINGERMOTION is an innovative technology company that provides a wide range of products and services related to data analytics, artificial intelligence and machine learning. The earnings report revealed that FINGERMOTION’s total revenue for the quarter was USD -2.5 million, a 142.3% decrease year over year, while net income was USD 11.4 million, a 93.2% increase year over year. This was largely attributed to cost-cutting measures implemented by the company in response to the pandemic-induced downturn. Despite the decrease in revenue, FINGERMOTION managed to grow net income by 93.2% year over year. This was largely due to the company’s cost-cutting measures and prudent financial management, which enabled them to reduce operating expenses while maintaining their operational efficiency.
The company’s efficient capital management also enabled them to generate higher profits from their investments. This gave FINGERMOTION added flexibility to make strategic investments in research and development that would fuel their growth in the future. Overall, FINGERMOTION’s financial performance for the third quarter of FY2023 demonstrates their ability to manage their operations in a challenging business environment. By implementing cost-cutting measures and maintaining a strong cash position, they were able to generate positive net income despite a significant decrease in revenue. This is a testament to their strong financial management and strategic investments that will serve them well in the coming years.
Share Price
Despite this, the company’s stock opened and closed at $4.0, down by 1.2% from the previous closing price of 4.0. The results were weaker than expected, but FINGERMOTION attributed the decrease in revenue to the global pandemic, which heavily impacted their operations this quarter. As a result, they had to make significant cost-cutting measures and implement strategies to reduce expenses. Despite this, they were able to achieve a 93.2% increase in net income, mainly due to their continued focus on customer experience, product innovation, and operational efficiency. Furthermore, FINGERMOTION recently announced a new partnership with an industry-leading customer experience platform, which is expected to further improve their customer service capabilities and bolster customer loyalty.
The company also launched a new payment processing platform to enable customers to make payments in a secure and seamless manner, which is expected to drive further growth in the future. Overall, while the market reaction to FINGERMOTION’s quarterly results was not as positive as investors had hoped, the company remains optimistic about its future prospects. With its focus on customer experience, product innovation, and operational efficiency, the company is confident that it will continue to drive growth in the future, despite the current difficult economic conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fingermotion. More…
| Total Revenues | Net Income | Net Margin |
| 26.88 | -7.04 | -26.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fingermotion. More…
| Operations | Investing | Financing |
| -6.33 | -0.08 | 17.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fingermotion. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.9 | 9.71 | 0.26 |
Key Ratios Snapshot
Some of the financial key ratios for Fingermotion are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 61.7% | – | -25.1% |
| FCF Margin | ROE | ROA |
| -23.8% | -58.8% | -19.3% |
VI Analysis
FINGERMOTION is a company that has achieved high revenue or earnings growth, as indicated by its ‘cheetah’ classification on the VI Star Chart. This type of company is considered less stable due to lower profitability, and may appeal to investors who are comfortable with increased risk. In terms of health, FINGERMOTION has an intermediate score of 4/10, indicating that it may be able to safely ride out any crisis without the risk of bankruptcy. However, it is important to note that this score does not guarantee immunity from economic downturns. In terms of performance, FINGERMOTION is strong in asset and growth, but weak in dividend and profitability. This suggests that investors should consider whether the company’s current fundamentals offer sufficient returns in light of its increased risk profile. Furthermore, investors should also consider the company’s long term potential, as its fundamentals will play a major role in determining whether it can sustain its growth over time. To do this, they may want to use a tool such as the VI app to analyze the company’s financials and make an informed decision. More…
VI Peers
FingerMotion Inc is facing stiff competition from a number of competitors in the communications and mobile technology industry, such as Turkcell Iletisim Hizmetleri AS, KonaTel Inc, and SITO Mobile Ltd. All of these companies are vying to gain a larger market share and provide innovative services and products to customers. The competition between these companies has created a dynamic and ever-changing landscape in the industry.
– Turkcell Iletisim Hizmetleri AS ($NYSE:TKC)
Turkcell Iletisim Hizmetleri AS is a telecommunications company based in Turkey. It is the country’s largest mobile phone operator, providing services such as voice, data, and messaging services to millions of customers. As of 2022, its market cap is 4.11 billion and its Return on Equity (ROE) is 20.64%. This indicates that the company is generating a significant return on its shareholders’ equity, which implies a relatively healthy financial position. The company has consistently maintained a solid financial performance, backed by its strong market position and its ability to successfully navigate through challenging economic and regulatory conditions in the country.
– KonaTel Inc ($OTCPK:KTEL)
KonaTel Inc is a telecommunications company that provides telecom services to customers across the United States. The company has a market capitalization of 46.44M as of 2022, indicating its overall value and size in the market. KonaTel Inc has a Return on Equity of -168.53%, which is significantly lower than the industry average and suggests that it is not generating much income on the capital it has invested. This could be an indication of poor financial management and an underperformance in the stock market.
– SITO Mobile Ltd ($OTCPK:SITOQ)
SITO Mobile Ltd (NASDAQ: SITO) is a publicly traded mobile data and technology company that provides mobile-first consumer intelligence and customer engagement solutions. The company’s market cap is 1.82M as of 2022 and its Return on Equity (ROE) is 328.61%. This indicates that their management is doing an excellent job of utilizing the company’s available resources to generate a high rate of return for their shareholders. SITO Mobile’s solutions enable clients to better understand consumer behavior and target their desired audiences in order to increase engagement, retention, and loyalty. The company also provides data-driven insights to help businesses make informed decisions about their marketing strategies. Overall, SITO Mobile is well-positioned to benefit from the growing demand for mobile data and technology solutions, and its strong market cap and Return on Equity are testament to this potential.
Summary
FINGERMOTION has reported strong earnings for FY2023 Q3 ending November 30, 2022. Total revenue for the quarter was USD -2.5 million, a 142.3% decrease year over year, while net income was USD 11.4 million, a 93.2% increase year over year. This indicates a strong financial performance for FINGERMOTION. The company’s revenue is down significantly from the previous year, however, its net income has increased substantially. This suggests that FINGERMOTION has been able to effectively manage costs in order to remain profitable. Given the company’s strong financial performance, investors may find FINGERMOTION to be a good investment opportunity. The company has demonstrated its ability to manage costs and generate profits, and its share price is likely to increase as a result. Furthermore, FINGERMOTION has a strong balance sheet with no debt, which eliminates the risk of default. Investors should also consider the risks associated with investing in FINGERMOTION. Despite its strong financial performance, the company’s revenue is still down significantly from the previous year. This could be a sign of future trouble and investors should monitor the company’s performance closely. Additionally, FINGERMOTION operates in a highly competitive industry and could face pressure from competitors. Overall, FINGERMOTION appears to be a good investment opportunity for investors who are willing to take on some risk. The company has demonstrated strong financial performance and has a strong balance sheet with no debt.
However, investors should consider the risks associated with investing in FINGERMOTION and monitor the company’s performance closely.
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