- U.S.-based FingerMotion has been pursuing opportunities to provide text and multimedia message services in China, whose population is expected to exceed 1.4 billion people this year
- FingerMotion is expanding into a third channel of operations with the development of its trademarked big data platform Sapientus, and expects revenues from the tech platform to eventually exceed its SMS and MMS message services
- The company recently reported its Q2 financials, noting a 25 percent YOY quarterly growth in revenues attributed to SMS and MMS services, and an overall quarterly revenue growth to $5.39 million
- China is encouraging development of its insurance industry services, providing increased opportunities for leading global insurers such as Pacific Life
- Pacific Life Reinsurance finalized a contract with FingerMotion for Sapientus’ services earlier this year, strengthening FingerMotion’s position in supporting the insurtech industry
Communications and big data technology platform builder FingerMotion (OTCQX: FNGR) is welcoming signs of growth in its newly released Q2 report. The China-focused enterprise reported quarterly revenue of $5.39 million, which included a 25 percent year-over-year quarterly growth in its short and multimedia messaging (SMS and MMS) business revenue of $0.73 million.
“Growth continues unabated with the SMS texting due to our optimized prepayments of bulk inventory purchases. Contributing to the growth and margin expansion was from the subscription plan and the mobile phone sales,” CEO Martin Shen stated in a news release about the financial filing (https://ibn.fm/cU7KK). “These optimized purchase programs and hardware sales and service improved gross profit from 7% to 13%. The Company is seeing strong demand in SMS from our corporate clientele.”
Despite the positive news regarding texting and multimedia services, FingerMotion remains committed to improving its bottom line through the development of its trademarked Sapientus big data platform. The company noted a sharp increase in general and administrative expenses tied to research and development as the company continues to build up SMS, MMS and big data services simultaneously.
“We are pleased at the strength of our balance sheet which hit a milestone of over $5.0 million in shareholders’ equity. This quarter was more of a transition to greater profitability as more of our initiatives started contributing to gross margin,” Shen stated. “This is the third consecutive quarter of Big Data revenues and we expect it to continue and eventually outpace our existing revenue streams.”
During Q1, FingerMotion secured a landmark agreement with Pacific Life Re-insurance to provide Sapientus’ big data prowess as a tool for Pacific Life’s efforts to build its insurance offerings among China’s consumers.
China’s population is expected to exceed 1.4 billion people this year, creating the potential of a world-leading base for economic activity. And the country’s leadership has been encouraging further development of the insurance industry, as noted in the China Banking and Insurance Regulatory Commission’s recent statement urging insurers to accelerate their offerings for gig-economy delivery workers, elderly people and children with congenital diseases and medical conditions (https://ibn.fm/nhWPu).
But the country’s insurance risk and credit risk evaluation infrastructure is still underdeveloped, which poses a challenge for companies like Pacific Life — one of the world’s top five Insurance companies with $1.1 trillion in life insurance policies and $171 billion in assets (https://ibn.fm/6jhnI).
Sapientus delivers predictive algorithms that help clients such as Pacific Life Reinsurance gain insights into consumer activity and risk potential.
“This trend will continue and revenue should ramp as the insurtech business starts to develop,” Shen stated.
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
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