- The stock price of Nextplay Technologies Inc (NASDAQ: NXTP) increased by over 20% today. This is why it happened.
The stock price of Nextplay Technologies Inc (NASDAQ: NXTP) – a digital business ecosystem for consumers, digital advertisers, video gamers and travelers – increased by over 20% today. Investors are responding positively to the company’s second-quarter fiscal 2022 results.
These are the financial highlights:
— Revenue totaled a record $2.6 million compared to none in the same year-ago quarter, which was attributed to acquisitions completed approximately mid-quarter only contributing about 60% of their revenue on aggregate. And the contribution will rise to 100% in the current fiscal third quarter.
— Gross profit totaled $1.4 million with consolidated gross margin of 51.9%.
— Assets totaled $103.8 million
— Cash and cash equivalents and restricted cash totaled $8.9 million.
“Our second quarter of fiscal 2022 was a major inflection point for NextPlay, as we transformed our business through several highly-synergistic acquisitions, and laid the foundation for future growth and expansion. This resulted in record revenues of $2.6 million, which we expect to more than double in the current quarter as all of these acquisitions contribute fully. We also anticipate gross margin expansion above the record 51.9% in Q2 as we develop synergies between our divisions.
“This M&A activity included establishing a new Interactive Digital Media division with the acquisitions of the HotPlay in-game advertising platform at the beginning of the quarter and then Zappware’s Connected TV platform about mid-quarter.”
“Zappware’s award-wining entertainment media platform reaches tens of millions of devices across Europe, with this expanding into Latin America, Asia and other parts of the world. HotPlay plugs directly into casual games on set-top boxes, connected TVs, smartphones, tablets and PCs. It seamlessly integrates digital ads into video games without disrupting gameplay, which empowers video game publishers to monetize their IP without compromising game integrity.”
“We are working on the integration of Zappware with HotPlay, which would enable digital advertisers and brands using HotPlay to reach a vast global Pay TV consumer base like never before. We expect the addition of Make It Games to further enhance the HotPlay platform with AI-powered video game development technology and thereby provide a further competitive edge.”
“We also acquired mid-quarter IFEB bank, which we now call NextBank International, that allows us to offer asset banking and management, mobile payments and insurance, as well as provide consumers and businesses with access to cryptocurrency exchanges and digital wallets. NextBank International will additionally support and enhance our other divisions with integrated fintech services and capabilities.”
- NextPlay co-CEO, Bill Kerby
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.