$NETE Net Element, Inc. (Nasdaq CM: NETE)
April 12, 2017
Highlights of the note are as follows:
FY2016 revenues grew by 35% YoY to reach $54.3mn, versus $40.2mn in 2015
Revenue was driven by the performance of the company's largest segment, NA Transactions which experienced revenue growth of 54% to reach $42.1mn.
NETE reported a non-GAAP, management-adjusted loss of ($7.9mn) during 2016, or ($0.60) per share, versus ($11.3mn), or ($1.77) per share, in 2015 on the same basis.
NETE revenues up by 35% in 2016
NETE reported strong revenue growth in 2016. Revenues climbed by 35% to reach $54.3mn, versus $40.2mn in 2015. GAAP EPS was ($1.03), versus ($2.32) in 2015. The growth was underscored by an increase in the volume of transactions processed on NETE's platform, which rose by 40% versus 2015, to reach $2.45 billion.
NETE continued to experience success in its North American Transactions group. The segment consists of the business assets of 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. NA Transactions grew to $42.1mn, an increase of 54% over 2015. Key areas of success in NA transaction include solutions for small and medium sized businesses. NETE's online solutions segment also performed well, rising by 63% to reach $6.2mn, largely due to 2015 being a partial year. On the top line, the only area of concern was the Mobile Solutions segment, which continues to experience declines, falling by 34% in 2016 to $6mn. We do not expect a recover in this segment in the near future.
Balance sheet an area to watch
NETE ended the year with $0.6mn cash on its balance sheet with current assets of $9.2mn, and total assets of $23.3mn. The company had total liabilities of $19.3mn, including $4.6mn of financial debt. We continue to see the balance sheet as an area to watch for NETE, as access to capital has been a swing factor in the performance of the stock, and the company requires more than $5mn to fund its plan over the next twelve months, according to comments in its Form 10K. Additionally, NETE is managed for growth, and requires capital to fund its aggressive growth strategy until it reaches a scale that throws off cash on a recurring basis.
April 12, 2017
Highlights of the note are as follows:
FY2016 revenues grew by 35% YoY to reach $54.3mn, versus $40.2mn in 2015
Revenue was driven by the performance of the company's largest segment, NA Transactions which experienced revenue growth of 54% to reach $42.1mn.
NETE reported a non-GAAP, management-adjusted loss of ($7.9mn) during 2016, or ($0.60) per share, versus ($11.3mn), or ($1.77) per share, in 2015 on the same basis.
NETE revenues up by 35% in 2016
NETE reported strong revenue growth in 2016. Revenues climbed by 35% to reach $54.3mn, versus $40.2mn in 2015. GAAP EPS was ($1.03), versus ($2.32) in 2015. The growth was underscored by an increase in the volume of transactions processed on NETE's platform, which rose by 40% versus 2015, to reach $2.45 billion.
NETE continued to experience success in its North American Transactions group. The segment consists of the business assets of 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. NA Transactions grew to $42.1mn, an increase of 54% over 2015. Key areas of success in NA transaction include solutions for small and medium sized businesses. NETE's online solutions segment also performed well, rising by 63% to reach $6.2mn, largely due to 2015 being a partial year. On the top line, the only area of concern was the Mobile Solutions segment, which continues to experience declines, falling by 34% in 2016 to $6mn. We do not expect a recover in this segment in the near future. Balance sheet an area to watch
NETE ended the year with $0.6mn cash on its balance sheet with current assets of $9.2mn, and total assets of $23.3mn. The company had total liabilities of $19.3mn, including $4.6mn of financial debt. We continue to see the balance sheet as an area to watch for NETE, as access to capital has been a swing factor in the performance of the stock, and the company requires more than $5mn to fund its plan over the next twelve months, according to comments in its Form 10K. Additionally, NETE is managed for growth, and requires capital to fund its aggressive growth strategy until it reaches a scale that throws off cash on a recurring basis.
