FingerMotion, Inc. (FNGR) provides mobile payment and recharge platform solutions in the U.S. The company aims to increase its user base organically and create an ecosystem of engaged users that will eventually help it attract a larger customer base.
Let us have a look at FingerMotion’s recent Q2 fiscal 2022 financials and understand what has changed in its key risk factors that investors should know.
FigerMotion’s Q2 revenue increased to $5.39 million from $3.62 million a year ago. This jump in revenue is attributable to a 25% increase in SMS & MMS business and a 142% increase in Telecommunications Products & Services business.
Despite this top-line growth, higher operating expenses widened the net loss of the company by 51% to $1.45 million. Net loss per share came in at $0.04.
The CEO of FingerMotion, Martin Shen, said, “Growth continues unabated with the SMS texting due to our optimized prepayments of bulk inventory purchases.
“This quarter was more of a transition to greater profitability as more of our initiatives started contributing to gross margin. This trend will continue and revenue should ramp as the insurtech business starts to develop.” (See Insiders’ Hot Stocks on TipRanks)
According to TipRanks’ Crowd Wisdom tool, investor sentiment for FingerMotion shares is very positive despite a 31% drop in the share price so far this year.
Now, let’s look at what’s changed in the company’s key risk factors profile.
According to the new Tipranks’ Risk Factors tool, FingerMotion’s primary risk category is Legal & Regulatory, which accounts for 37% of the total 38 risks identified for the stock. In its recent Q2 report, the company has added one key risk factor under the Macro & Political risk category.
FingerMotion highlights that the present political and international trade tensions, primarily between the U.S. and China, may negatively impact the company’s business and financials.
Rising political tensions can lead to reduced levels of trade, investments, exchange of technical know-how and other economic activities. Regulations such as Article 177 of the PRC Securities law can result in delays or a failure by FingerMotion in fulfilling requests to provide relevant documents or materials by the regulatory authorities.
The Macro & Political risk factor’s sector average is at 12%, compared to FingerMotion’s 16%.
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