- FingerMotion just announced a 37% annual revenue growth from $6.24 million in 2021 to $22.93 million for the 2022 financial year
- Big Data posted the most significant growth at 297%, followed by Telecommunications Products & Services at 170% and SMS & MMS at 5%
- The company looks to keep pushing gross margins higher by leveraging the optimization of its product offerings
FingerMotion (NASDAQ: FNGR) just released its financial results for the year ended February 28, 2022, which was an incredible year for the company. Annual revenue rose from $6.24 million in 2021 to $22.93 million in 2022, representing a 37% growth. This maintains the company’s upward trajectory, having posted an 82% revenue growth from FY 2020 (https://ibn.fm/J3Suj).
During the release of the FY 2021 financial results, Martin Shen, FingerMotion’s Chief Executive Officer (“CEO”), noted that the company’s biggest challenge at the time was access to non-dilutive capital. However, he maintained his optimism that the company would reach profitability soon.
“We have been able to steadily increase our margins by optimizing our product mix between Top-up and SMS,” he noted.
“While our biggest challenge continues to be access to non-dilutive capital, we remain steadfast in our belief that we will reach profitability in the near future,” he added (https://ibn.fm/aCNhp).
For the FY 2022, FingerMotion inched closer to achieving this goal, having posted gross profits of $2.81 million, representing a 71% increase from the previous year. This was mainly achieved through the growth of the SMS & MMS business, which posted a 5% year-over-year (“YOY”) growth, as well as Telecommunications Products and Services, which posted a 170% revenue growth from 2021.
However, the sector that posted the highest growth was Big Data. Revenue for this sector grew by 297% from the previous year, carrying on the momentum initiated in 2021. When releasing the FY 2021 results, Mr. Shen was keen to note that Big Data showed incredible potential for growth. As such, he projected that by the end of the 2021 calendar year, the company will have closed multiple contracts relating to its Insurtech products, ultimately allowing for the growth of this sector.
“The company is rapidly evolving, and we saw the first indication of revenue, albeit small, from the Big Data Insights division and from our new venture selling subscriptions and mobile phones,” noted Mr. Shen.
“We are a technology company and believe our future lies in the Big Data Insights division,” he added.
The annual cost of revenue for the 2022 financial year stood at $20.11 million, up from $5.08 million in 2021. The annual net loss was $4.94 million, up from $0.56 million in 2021. As of the close of the financial year, FingerMotion had $461,993 in cash and cash equivalents, a working capital surplus of $4.93 million, and a positive shareholders’ equity of $5.09 million.
Total assets for the company were $10.37 million, with total current liabilities at $5.28 million. Lastly, 42,627,260 common shares were issued and outstanding as of the close of the 2022 financial year.
In addition to growth in financial performance, Mr. Shen also acknowledged the company’s NASDAQ uplisting as a critical milestone. He also noted that the company achieved over $5.0 million in shareholders’ equity, another significant milestone.
Going forward, Mr. Shen noted that the company will keep pushing gross margins higher, which will be influenced by the optimization of the company’s product offerings. In addition, FingerMotion plans to follow through with its mobile protection program, whose rollout is on schedule, which, it is confident, will play an integral role in the company’s growth for the current financial year.
For more information, visit the company’s website at 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