Why the price went up today

  • Nextplay Technologies Inc (NASDAQ: NXTP) stock price rose more than 25% ahead of market today. That’s why it happened.

Nextplay Technologies Inc (NASDAQ: NXTP) stock price – a digital commerce ecosystem for digital advertisers, consumers, video gamers and travelers – is up more than 25% pre-market today. Investors are reacting positively to NextPlay Technologies’ third quarter results for fiscal 2022 ended November 30, 2021.

Fiscal Third Quarter Financial Highlights

— Achieved record quarterly revenues of $4.2 million, up 59% from the previous quarter. This compares very favorably to revenue of $0 at the same time last year.

— Gross margin totaled $2.2 million, with consolidated gross margin improving to 53.5% from 51.9% in the previous quarter.

— Assets totaled $121.0 million.

— Cash, cash equivalents and restricted cash totaled $21.4 million, up from $8.9 million at the end of the previous quarter following a share issue carried out in course of the quarter.


“The increase in our revenues in the third quarter and the significant increase in our gross margin demonstrate that we have reached a major inflection point in our growth and development strategy as we gradually and successfully integrate several components of synergistic acquisitions to transform our business. This is the first full quarter that has shown 100% contribution from these acquisitions, and we believe it represents the foundation for future growth and expansion. We are now focusing on refreshing operational and commercial efficiency by deepening the integration of operations and selling new products across divisions.

“During the quarter, our digital interactive media division, NextMedia, delivered Blockbuster 2048, its first in-house casual game, of the 16 games currently in the pipeline that are expected to release in the fourth quarter of fiscal 2022 and the first quarter. 2023, on iOS. and Android app stores. At the same time, we have now launched HotPlay 2.0, our next generation in-game advertising platform for our internal teams. It will provide real-world ads and rewards in video games without disrupting gameplay, providing new revenue streams for publishers and advertisers. With the continued development of the HotPlay platform and the integration of the MakeItGames AI animation platform, we expect the platform to introduce disruptive and game-changing capabilities for gaming, virtual reality, metaverse and other games. more immersive experiences as we begin releasing HotPlay 2.0 to select partners through the first half of this calendar year and beyond. We also worked on integrating HotPlay deeper into other parts of our ecosystem to enable digital advertisers and brands to use HotPlay to reach a broad global consumer base.

“Our Fintech division includes our insurance, reinsurance, online banking and crypto portal operations. Led by successful insurance and banking industry leaders, the Fintech division markets a diverse set of fintech solutions that will offer asset banking, asset management, mobile payments and a range of retail banking services to customers around the world. NextBank welcomes blockchain industry participants and is focused on providing enabling capabilities to customers in the DeFi, NFT and exchange verticals.We expect NextBank to make significant contributions to earnings and cash flow beginning in the first quarter of fiscal 2023. Our Longroot crypto portal is actively trading with a number of potential customers (issuers) targeting issuances by the second and third quarters of FY202 3. We also plan to issue our own digital insurance tokens, which allow customers to purchase any of our insurance products, as well as a series of stablecoins to facilitate funds transfer services that NextBank will provide. We see tremendous synergies between NextBank’s services and our Longroot crypto portal services in meeting the financial and operational needs of blockchain-centric businesses, providing a range of services to players in the blockchain industry.

“During the third quarter of the fiscal year, our fintech division received conditional approval of its application for general insurance and reinsurance licenses from the Labuan Financial Services Authority (Labuan FSA). licensing advances our mission to push the boundaries of insurance and reinsurance innovation with a product portfolio that will be unique in the industry, and it keeps us on track to launch our first two products in blockchain insurance in the second and third quarters of fiscal 2023.”

“Our travel division is in the process of integrating NextPlay’s NextTrip ConNextions booking engine with a number of online travel agencies (OTAs). Several are already in the process of being certified, which is the last step before OTAs have access to our travel inventory through their platforms. Our global inventory of vacation rental properties offers many new accommodation options to OTAs around the world. We expect these integrations to help increase our booking volumes as the resurgence of the travel and tourism industry continues following the pandemic-related shutdowns. »

“The significant equity issue we completed during the quarter strengthened our balance sheet and supported our many growth initiatives. We launched an expense reduction program to eliminate redundant systems and processes due to acquisitions. Certain one-time expenses related to post-merger activities incurred during this quarter are not expected to recur in the future. For these reasons, we expect a significant reduction in SG&A expenses and progress towards positive cash flow by the end of the second half of fiscal 2023.”

“We have scheduled a special meeting of shareholders on January 28, 2022 and we encourage all shareholders to vote. We are seeking shareholder approval to complete the previously announced acquisition of certain gaming industry intellectual properties from Fighter Base Publishing Inc. and certain distributed ledger intellectual properties from Token IQ Inc. Both entities are majority-owned by NextPlay’s Chief Technology Officer, Mark Vange, who is a visionary leader in both industries.

“We expect the addition of Token IQ technology to become the core of our products and services, our Longroot asset-based cryptocurrencies, our digital insurance tokens and in-game HotPlay tokens, future NextBank fintech services and NextTrip medical tourism offers. Token IQ also brings valuable technology and software development talent to support technology integration between our platforms and partners, as well as to continue our IP development. We believe that Fighter Base Publishing’s AI-based animation technology will bring unique capabilities to our HotPlay platform and significant cost reduction for our game studio operations.

“As we complete our final quarter of fiscal 2022 ending in February, we expect to be exceptionally well positioned for growth across all three divisions: interactive digital media, fintech and travel. We expect near-term revenue growth and margin expansion to be further fueled by new HotPlay rollouts and Longroot cryptocurrency offerings, and we believe these developments will move us steadily towards cash flow and a solid profitability.

— Co-CEO of NextPlay, Nithinan ‘Jessie’ Boonyawattanapisut

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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