Apr 10, 2018

SeeThruEquity Issues Update on Net Element, Inc.

Current Investor Presentation

NEW YORK, NY / ACCESSWIRE / April 10, 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. (NETE).

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

Net Element, Inc. (NASDAQ: 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 full-year 2017 results on April 2, 2018, during which the company recapped recent performance and provided an update to its strategic initiatives. Highlights of the announcement are as follows:

  • 2017 revenues surpass $60mn. Net Element reported 2017 full year revenues of $60.1mn, which represented an increase of approximately 11% versus $54.3mn in 2016.
  • Revenue growth was driven by strong execution in the company's North America Transactions Solutions business segment, which grew by 21.3% YoY.
  • Transaction volume grows. The company reported transactions processed on its platform increased by 14% to reach $2.8 billion in 2017, versus $2.45 billion during 2016. Transaction dollars processed in the company's North American markets grew by 18% and reached $2.3 billion.
  • NETE reported a Net Loss of ($9.9mn), versus a loss of ($13.5mn) in 2016. NETE reported GAAP EPS of ($5.04) in 2017, with average shares outstanding of 2.0mn.
  • Balance Sheet Improves. NETE ended the year with cash on hand of $11.3mn, and total financial debt of $7.0mn. The company raised $7.6mn of new capital during 4Q17, which is pegged for investments in new blockchain and organic growth initiatives.
  • In the announcement, NETE noted that the company was able to maintain Nasdaq CM listing compliance and also that the company was named as one of the fastest growing companies in North America on Deloitte's 2017 Technology Fast 500™.
  • Net Element launched its new multi-channel payments platform, Netevia, which the company stated 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.
  • NETE also named two new members to its Board of Directors, CNBC host Jon Najarian as well as 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, with NETE showing from double-digit growth and an improved balance sheet, with further growth potential from its new blockchain initiatives. We would look to re-evaluate the target as the company updates investors on its progress and 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. (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.



SOURCE: SeeThruEquity

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