Aug 06, 2018

SeeThruEquity Issues Update on Net Element, Inc.

Current Investor Presentation

NEW YORK, NY / ACCESSWIRE / August 6, 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 August 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:

We are updating coverage of Net Element following multiple company announcements since our last note, including updates on company transaction volume, the launch of the company's Netevia platform, and a deal in which the company acquired a transactional services portfolio from partner Universal Payment Systems ("UPS"), a Garden Grove, CA-based provider of bankcard payment processing services and value added solutions. Highlights of the recent events are as follows:

  • Net Element acquires transactional services assets from UPS. NETE announced that had acquired certain transactional services assets from partner UPS on July 31, 2018, for $2.7mn.
  • Deal expected to add $5mn+ in gross profits. Net Element management stated that the deal, which was executed through its Unified Payments subsidiary, is expected to add over $5mn in gross profits over the next four years, with continued profit contribution thereafter.
  • Transaction dollar volume rises by 37% in 1H18. Net Element reported that transaction dollars processed on its platform increased by 37% in the first half of the year to reach $1.62 billion, versus $1.18 billion the first half of 2017.
  • The total number of transactions processed on Net Element's platform also increased robustly. The company processed 50.2mn transactions in 1H18, up more than 40% from 35.7mn processed in the first half of 2017, according to the company.
  • On June 12, 2018, Net Element announced that it had extended the capabilities of its new multi-channel payments platform for small and medium-sized businesses, Netevia, to include a smart solution for enabling secure business-to-business (B2B) vendor payments. According to the company statement, Statista's 2017 B2B Ecommerce report estimates that global B2B sales were $7.7 trillion. Net Element management believes it is positioned to compete in this market as the vendor payment solution operates via a web-friendly and mobile platform which can work with existing accounting systems and does not require complex integration.

No change to target following results

The price target remains unchanged for Net Element following recent announcements. NETE's announcements suggest the company continued to identify growth initiatives, as evidenced by growth in transaction volume, new product enhancements, and the UPS deal announcement. We see the company as a high risk, high growth company in the mobile electronics space. 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. (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

SOURCE: SeeThruEquity

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