Mix and Match Stock: Net Element, Inc. (NASDAQ: NETE)

On 24 Jan 2020, Net Element, Inc. (NASDAQ: NETE) spotted trading -50.35% off 52-week high price. On the other end, the stock has been noted 13.33% away from the low price over the last 52-weeks. The stock changed -1.45% to recent value of $3.4. The stock transacted 16595 shares during most recent day however it has an average volume of 34.89K shares. The company has 3.98M of outstanding shares and 3.44M shares were floated in the market.

Net Element, Inc. (NETE) recently reports its financial results for the third quarter ended September 30, 2019, and provides a business update.

Highlights for the third quarter 2019 financial results as contrast with the third quarter of 2018 include:

Total transaction processing volume increased 14% to about $954M, 20% of the total transaction volume is attributed to value-added solutions which increased 103% over the same comparable period last year

Net revenues of about $16.82M, a decrease of 2.4% as contrast to $17.24M for the same period last year

North American Transactions Solutions revenue increased to $15.92M a slight increase from $15.59M for the same comparable period

International Transaction Solutions revenue reduced to about $900,000 from $1.65M for the same comparable period. Transaction processing revenues in this section have shown an improvement of over 29% over the second quarter of this year

Operating expenses were $3.6M, a raise of about 5.9% as contrast to $3.4M for the same comparable period, primarily driven by a raise in depreciation and amortization expense from $500,000 to $800,000

Gross margin of about $2.74M or 16.3% of net revenue, a slight increase from $2.68M or 15.6% of net revenue for the same comparable period

Value-added solutions attributed $572,000 of net revenues for the quarter, up 58% over the same comparable period last year and $226,000 of gross margin or 39.5% of net revenues, a raise of 47% over the same comparable period

Net loss per share increased to $0.24 from $0.23 for the same comparable period

“Our quarterly results demonstrate a demand for our suite of value-added payment acceptance solutions, fueled by the continued growth in transactions processed utilizing our proprietary Netevia platform,” commented Oleg Firer, CEO of Net Element. “Despite the challenges we have experienced as part of the industry changes and wind-down of certain merchant category codes we serviced, in addition to the loss of revenue in our International Transaction Solutions section, we have demonstrated a continued increase in gross margin for our North America Transaction Solutions section and our ability to replace lost business. We continue to execute our strategy with a focus on delivering long term value to our shareholders, as such we will be exploring planned alternatives for certain markets in our International Transaction Solutions section.”

Its earnings per share (EPS) expected to touch remained 74.70% for this year while earning per share for the next 5-years is expected to reach at # ref. NETE has a gross margin of 16.40% and an operating margin of -9.50% while its profit margin remained -8.00% for the last 12 months. The price moved ahead of -1.97% from the mean of 20 days, -6.46% from mean of 50 days SMA and performed -21.46% from mean of 200 days price. Company’s performance for the week was -8.60%, -2.30% for month and YTD performance remained 5.92%.

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