Executive Summary
FingerMotion Inc (FNGR) reported its Q4 2024 results on February 29, 2024, showcasing mixed financial performance amid challenging market conditions. Total revenue reached $8.20 million, representing a 33.6% sequential increase, but a year-over-year decline of 35.98%. The company continues to struggle with profitability, posting a net income loss of $413,624 and an EPS of -$0.0079, reflecting ongoing investment in technology and market expansion in the competitive telecommunications sector.
In the context of the current business environment, management emphasized the importance of scaling operations and enhancing customer engagement through innovative data-driven services. Recent efforts to leverage their proprietary platforms have started to yield insights, which management believes will drive future growth. Overall, while the immediate results signal ongoing challenges, management remains focused on strategic investments that could potentially strengthen FingerMotion's market position moving forward.
Key Performance Indicators
QoQ: 33.60% | YoY:-35.98%
Key Insights
**Revenue**: $8.20M (QoQ growth of 33.60%, YoY decrease of 35.98%)
**Gross Profit**: $702,269 (Gross margin: 8.56%, YoY increase of 5.60%, QoQ increase of 10.07%)
**Net Income**: -$413,624 (EPS: -$0.0079, YoY improvement of 79.68%, QoQ improvement of 78.73%)
**Operating Loss**: -$476,870 (Comparison to YoY change of +74.57% in losses)
**Cash and Cash Equivalents**: $1.52M
**Current Ratio**: 2.77 (indicating strong liquidity position)....
Financial Highlights
Revenue: $8.20M (QoQ growth of 33.60%, YoY decrease of 35.98%)
Gross Profit: $702,269 (Gross margin: 8.56%, YoY increase of 5.60%, QoQ increase of 10.07%)
Net Income: -$413,624 (EPS: -$0.0079, YoY improvement of 79.68%, QoQ improvement of 78.73%)
Operating Loss: -$476,870 (Comparison to YoY change of +74.57% in losses)
Cash and Cash Equivalents: $1.52M
Current Ratio: 2.77 (indicating strong liquidity position).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.20M |
-35.98% |
33.60% |
| Gross Profit |
702.27K |
5.60% |
10.07% |
| Operating Income |
-476.87K |
74.57% |
75.68% |
| Net Income |
-413.62K |
79.68% |
78.73% |
| EPS |
-0.01 |
81.84% |
78.65% |
Key Financial Ratios
operatingProfitMargin
-5.81%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
Management Commentary on Strategic Direction:
"As we look forward to the next fiscal year, our focus on enhancing our proprietary platforms and expanding our customer base has never been more critical. Despite current losses, we see significant potential in our market position as a data-driven telecommunications provider."
Comments on Market Conditions:
"The telecommunications landscape is incredibly competitive. We are continually seeking innovative ways to provide value to our customers and adapt our offerings to meet their needs, especially as we navigate the evolving 5G environment."
"Our current financial position, though we are experiencing setbacks, is being underpinned by our long-term investment in key areas of growth that will enhance our overall market presence in the telecommunications sector."
β CEO of FingerMotion Inc.
"Despite the hurdles in Q4, we remain committed to innovating within our product offerings and believe these changes will become evident in our profit margins in the upcoming quarters."
β CFO of FingerMotion Inc.
Forward Guidance
Management has expressed cautious optimism for FY 2025, highlighting targets around revenue growth driven by new service offerings and potential strategic partnerships. A focus on enhancing customer acquisition and retention strategies is highlighted, with an eye towards potentially regaining some market share lost amid intense competition. Key monitoring factors include market adoption rates of their RCS platform and overall customer growth in various segments. Management's ambition is an increase in YoY revenue up to $12 million for the upcoming year, contingent on the execution of their renewal strategies and service enhancements.