In This Article:
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Revenue: Reported a significant decrease of 46% year-over-year to $6.14 million.
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Net Loss: Quarterly loss narrowed by 23% to $1.94 million compared to the same period last year.
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Gross Profit: Decreased by 26% year-over-year, yet gross margins improved from 7.5% to 10.4%.
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Assets and Liabilities: Total assets stood at $17.57 million, with total current liabilities at $4.92 million.
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Share Structure: 52,545,350 common shares were issued and outstanding as of November 30, 2023.
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Cash Position: Cash and cash equivalents were $1.93 million, with a working capital surplus of $12.51 million.
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Earnings Per Share (EPS): Basic and Diluted loss per share improved to $0.04 from a loss per share of $0.06 in Q3 2023.
On January 16, 2024, FingerMotion Inc (NASDAQ:FNGR) released its 8-K filing, detailing the financial outcomes for the third quarter of fiscal year 2024, which ended on November 30, 2023. FingerMotion Inc, a mobile services and data company operating primarily in China, reported a notable decrease in revenue across its business segments, including SMS & MMS, Telecommunications Products & Services, and Big Data. Despite the downturn in revenue, the company saw an improvement in gross margins, indicating more efficient management of its product lines.
Financial Performance Overview
FingerMotion Inc's revenue for the quarter was $6.14 million, a significant decrease from the previous year's third quarter, which saw $5.26 million more in revenue. This 46% year-over-year decline was attributed to decreases across all business segments, with the Telecommunications Products & Services business experiencing a 41% drop and the Big Data and SMS & MMS businesses also reporting reduced revenues. The cost of revenue decreased by 48% to $5.50 million, resulting in a gross profit of $0.64 million, down 26% from Q3 2023.
The company also reported a net loss of $1.94 million, which is an improvement from the previous year's loss, decreasing by 23%. The basic and diluted loss per share improved to $0.04, compared to a loss of $0.06 per share in the same quarter of the previous year. FingerMotion Inc ended the quarter with $1.93 million in cash and cash equivalents, a working capital surplus of $12.51 million, and a positive shareholders' equity of $12.63 million. Total assets were reported at $17.57 million, with total current liabilities at $4.92 million.
Market Challenges and Strategic Adaptations
FingerMotion Inc faced a challenging market environment, impacting all its business segments. Despite these challenges, the company's gross margins improved from 7.5% to 10.4%, reflecting better management of its diversified product line. The regulatory climate, particularly affecting the SMS and MMS business, prompted the company to adapt its approach and seek alternative revenue streams for growth.