Net Element, Inc. (NASDAQ: NETE), for the three months ended March 31, 2017, enjoyed over 20% growth in revenues to $13,561,941, versus $11,261,059 for the same period a year earlier. North America Transaction Solutions, one of three operating segments of the global financial company, drove the firm’s growth, generating 81% of total sales compared to 70% during the same period of the prior year.
Net Element is a financial technology group that processes global transactions in an omni-channel environment in what is becoming a world of cashless transaction processing. The company processes electronic payments from point-of-sale and mobile devices.
Net revenues for the company were generated principally by payment processing fees in North America, where transactions jumped 40%, exhibiting organic growth, according to Zacks SCR Digest (http://nnw.fm/mTJ49). In 2016, Net Element recorded a 54% jump in North America to $42.1 million. That accounted for about 78% of total company sales for the year.
In the first quarter of 2017, North American Transactions increased their dominance of company sales — contributing 81% of Net Element sales. At the same time, the North American segment maintained its gross margin performance — contributing 14% for the first quarter of 2017 versus 15% during the same period of the prior year.
As the North American segment was cementing its hold on company revenues, mobile solutions continued their decline. In the first quarter of 2016, mobile solutions contributed 18% of company sales; that number fell to just 6% in the first quarter of 2017. Its sales dropped from $1,993,504 in 2016 down to $856,993 in the first quarter of 2017.
As a result of that performance, Oleg Firer, CEO of Net Element, said in a news release, “We are undertaking several strategic changes in the mobile solutions segment, which should yield results in the third-quarter of this year.”
SeeThruEquity, in an April 12, 2017, updated research report (http://nnw.fm/fFPV7), projects the company’s sales in FY 2017 at $62.9 million.
For more information, refer to www.NetElement.com
