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$NETE SeeThruEquity Issues Update

NEW YORK, NY / May 24, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update on Net Element, Inc. (NASDAQ: NETE).

The note is available here: NETE May 2018 Update Note.

Net Element, Inc. (Nasdaq CM: NETE, “Net Element”) is a global financial technology and value-added solutions company that supports payment technology solutions, online payments and value-added transactional services in emerging countries and in the United States. The company is headquartered in Miami Beach, Florida.

Highlights from the update include:

 

Net Element reported first quarter FY 2018 results on May 14, 2018. Results were highlighted by strong growth in transaction volume, particularly in North America, and narrowing losses. Highlights of the announcement are as follows:

 

  • 1Q18 revenues grew by 18% YoY. Net Element reported 1Q18 revenues of $16.0mn, which which represented an increase of approximately 18% versus $14mn in the year-ago period.

 

  • Revenue growth was again driven by strong execution in the company’s North America Transactions Solutions business segment, which grew by 27% YoY to reach $14mn. International Transactions, which represents a much smaller portion of revenues, declined by 22% YoY to $2mn.

 

  • Transaction dollar volume rises by 51% in 1Q18. Net Element reported that transaction dollars processed on its platform increased by an impressive 51% to reach $839mn in 1Q18 versus $557mn in 1Q17.

 

  • Total number of transactions also increased to 30mn, versus 27mn during 1Q17. This represented an increase of 11% YoY.

 

  • NETE reported a Net Loss of ($1.6mn) in 1Q18, versus a loss of ($2.5mn) in 1Q17. The company benefitted from lower G&A, professional fees and rent during the period.

 

  • NETE reported GAAP EPS of ($0.42) in 1Q18, versus ($1.51) in 1Q17. Average shares outstanding during 1Q18 was $3.9mn.

 

 

  • Net Element launched its new multi-channel payments platform during 1Q18, Netevia. According to the company, Netevia is a new platform that connects and simplifies payments across a number of channels through a single integration point – including POS, e-commerce, and mobile devices. The company is also integrating new technology into Netevia, which will make it a decentralized blockchain technology solution.

 

  • During the quarter NETE named two new members to its Board of Directors, CNBC host Jon Najarian and Bank of America veteran and fintech executive Jonathan Fichman. Both new members will serve on the company’s Audit, Nominating and Corporate Governance, and Compensation Committees.

 

No change to target following results

The price target remains unchanged for Net Element. NETE has demonstrated double-digit growth and an improved balance sheet, with additional growth potential from new blockchain initiatives. We would look to re-evaluate the target as the company updates investors on its progress and clarifies expectations for blockchain in 2018-2019.

Please review important disclosures in the report and on our website at www.seethruequity.com.

About Net Element, Inc.

Net Element, Inc. (Nasdaq: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise (“SME”) in the U.S. and selected emerging markets. In the U.S. it aims to grow transactional revenue by innovating SME productivity services such as its cloud based, restaurant and retail point-of-sale solution Aptito. Internationally, Net Element’s strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions. Net Element was ranked as one of the fastest growing companies in North America on Deloitte’s 2017 Technology Fast 500™ and South Florida Business Journal’s 2016 fastest growing technology companies. 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 approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.

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.

Contact:
SeeThruEquity
info@seethruequity.com

Thursday, May 24th, 2018 Uncategorized
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