NEW YORK, NY / ACCESSWIRE / September 26, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company update on Net Element, Inc. (NASDAQ: NETE).
The note is available here: NETE September 2017 Update Note.
Highlights of the note as follows:
- 2Q17 revenues grew by 18% YoY to reach $16.1mn, versus $13.7.2mn in the year-ago period. 1Q17 revenues were up 19% YoY to reach $29.7mn.
- The performance was driven by growth in the company's largest segment, NA Transactions, which management attributed to higher volume levels.
- Net Income to common shareholders in 2Q17 was ($1.6mn), with a loss per share of ($0.09), versus a loss of ($0.46) in 2Q16.
NA Transaction revenues rise by 31% YoY
NETE revenues climbed by 18% in 2Q17, coming in at $16.1mn in the period. Results were driven by the continued strong performance of the NA Transactions segment, which grew by 31% YoY to reach $13.6mn, due to growth in underlying volume processed on the platform. NA Transactions includes Unified Payments, a provider of comprehensive turnkey, payment processing solutions, as well as Aptito, a cloud based Software-as-a-Service ("SaaS") restaurant management solution.
Online Solutions expands into US
NETE's Online Solutions segment also exhibited robust growth from a small base. Online Solutions revenue reached $2.0mn in 2Q17, versus $1.5mn in 2Q16, representing growth of 33%. Year to date the Online Solutions business is up 28%. NETE recently launched the PayOnline platform to support electronic commerce in the United States, which management is hopeful will help drive continued growth in this segment. By contrast, the company's Mobile Solutions segment shrank to $0.5mn from $1.8mn in 2Q16; management has stated that this business line is no longer a key focus area for investment by the company, and hence our expectations are that the segment continues to decline from this small base.
NETE receives update from Nasdaq CM on listing status
NETE received an update regarding its listing status on the Nasdaq Capital Market. The company has been given until October 20, 2017 to regain compliance. Currently, NETE shares trade below the minimum bid and also the company's shareholders' equity is less than the $2.5mn minimum requirement. Management stated that it is working with the Nasdaq to present a case to regain compliance. We would expect these activities to include a capital raise and possibly a reverse share split, depending on market prices as the deadline approaches.
Please review important disclosures on the company's website at www.seethruequity.com.
About Net Element, Inc.
Net Element (NASDAQ: NETE) is a global payments-as-a-service, technology provider with an integrated mobile and transactional services platform serving millions of emerging market clients. Its wholly owned subsidiary, TOT Group operates Unified Payments, a U.S. focused transaction processing and value-added services brand, Aptito, a next generation, cloud-based point of sale payments platform and TOT Money, a leading mobile payments service provider that is gaining significant traction in the mobile payments market in Russia and for two consecutive years, has been ranked in the Top 3 mobile payments providers by Beeline, Russia's second largest telecommunications operator.
Further information is available at www.netelement.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.
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SOURCE: SeeThruEquity