FingerMotion Reports Q2 2025 Financial Results
SINGAPORE / NEWSFILE / October 16, 2024
/ FingerMotion, Inc. (NASDAQ: FNGR) (the “Company” or “FingerMotion”), a mobile services and
data company, is pleased to report its financial results for the second quarter of fiscal 2025 for the period ended August 31, 2024. To
review the full financial results, please view the Company's recent 10-Q filing at www.sec.gov/edgar/search or on the Company's website
at www.fingermotion.com/investor-relations/financial-information/details, which should be read in connection with this news release.
Q2 2025 Financial Summary (results expressed in US$ unless
otherwise indicated):
- Reported quarterly
revenue of $8.46 million (includes Telecommunications Products & Services, SMS & MMS Business, and Command & Communication),
a decrease of $0.82 million or 9% compared to Q2 of fiscal 2024;
- Reported quarterly decrease in Telecommunications
Products & Services business revenue of $0.77 million or 8% compared to Q2 of fiscal 2024;
- Reported SMS & MMS business revenue of $3,770
compared to $8,192 in Q2 of fiscal 2024;
- Reported quarterly Command & Communication
revenue of $28,730 compared to $0 in Q2 of fiscal 2024:
- Reported quarterly Big Data revenue of $0 compared
to $76,746 in Q2 of fiscal 2024;
- Reported quarterly cost of revenue of $8.16 million,
an increase of $0.72 million or 10% compared to Q2 of fiscal 2024;
- Reported a gross profit of $0.30 million, a decrease
of $1.54 million or 84% compared to Q2 of fiscal 2024;
- Reported quarterly loss attributable to the Company’s
shareholders of $1.69 million, an increase of $1.55 million or 1,159% compared to Q2 of fiscal 2024;
- Reported basic and diluted loss per share of $(0.03)
versus a loss per share of $(0.00) for Q2 of fiscal 2024;
- At August 31, 2024, FingerMotion had $810,284 in
cash and cash equivalents, a working capital surplus of $9,708,861 and shareholders' equity of $9,878,372;
- At August 31, 2024, Total Assets were $30.19 million,
Total Current Liabilities were $20.24 million and Total Liabilities were $20.31 million;
- 52,712,850 shares of common stock were issued and
outstanding as of August 31, 2024.
“While
Q2 2025 presented challenges for our Company, we are encouraged by the continued growth in our Cloud business segment,” stated Martin
Shen, CEO of FingerMotion. “Although our overall gross margin decreased compared to Q2 2024, we saw a positive shift in our product
mix, with increased revenue from our higher-margin Cloud services. We are confident in our ability to optimize our product mix and improve
our gross margin performance in the future.”
Mr.
Shen also stated, “Going forward we expect our cloud-based services and Command & Communication segment to
drive significant revenue growth for the balance of this fiscal year.”
General and administrative expenses decreased
by $86,320 or 5% during Q2 2025, while marketing cost increased by $13,145 or 22%. Share compensation expenses increased by $26,145 or
17%.
About FingerMotion, Inc.
FingerMotion is an evolving technology company
with a core competency in mobile payment and recharge platform solutions in China. As the user base of its primary business continues
to grow, the Company is developing additional value-added technologies to market to its users. The vision of the Company is to rapidly
grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing
its innovative applications. Developing a highly engaged ecosystem of users would strategically position the Company to onboard larger
customer bases. FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other
regional markets.
For more information on FingerMotion, visit: https://fingermotion.com/
Company Contact:
FingerMotion, Inc.
For further information e-mail: info@fingermotion.com
Phone: 718-269-3366
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: info@skylineccg.com
Safe Harbor Statement
Except for the statements of
historical fact contained herein, the information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States securities laws. These statements relate to analysis and other
information that are based on forecasts or future results, estimates of amounts not yet determinable and assumptions of management.
Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not always, using words or phrases such as
“expects”, or “does not expect”, “is expected”, “anticipates” or “does not
anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or
results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. We have based
these forward-looking statements on our current expectations about future events or performance, including expected revenues. While
we believe these expectations are reasonable, such forward-looking statements are inherently subject to risks and uncertainties, many
of which are beyond our control. Our actual future results may differ materially from those discussed or implied in our
forward-looking statements for various reasons. Factors that could contribute to such differences include, but are not limited to:
international, national and local general economic and market conditions; demographic changes; the ability of the Company to
sustain, manage or forecast its growth; the ability of the Company to manage its VIE contracts; the ability of the Company to
maintain its relationships and licenses in China; adverse publicity; competition and changes in the Chinese telecommunications
market; fluctuations and difficulty in forecasting operating results; business disruptions, such as technological failures and/or
cybersecurity breaches; and the other factors discussed in the Company's periodic reports that are filed with the Securities and
Exchange Commission and available on its website (http://www.sec.gov). There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to
in this news release. The forward-looking statements included in this release are made only as of the date hereof. For
forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Report Act of 1995. The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information, future events or otherwise. This news release shall not
constitute an offer to sell or the solicitation of any offer to buy our securities.