Company’s NWASSA Financial Technology Platform
Increases Revenue by More than 55% Compared to Q4 2021
NEW YORK, May 16, 2022 (GLOBE NEWSWIRE) -- Tingo, Inc, OTC Markets (TMNA) (“Tingo” or the “Company”) filed its quarterly report on Form 10-Q, wherein the Company reported its financial results for the three months ended March 31, 2022.
First Quarter 2022 Operational and Financial Highlights:
- Total Revenue and Operating Income. The Company had $257.1 million and $65.5 million in consolidated revenue and operating income, respectively, during Q1 2022
- Gross Profit. On a quarter-on-quarter basis, gross profit increased by $24.7m from $128.5m for Q4 2021 to $153.2m for Q1 2022, representing growth of 19.2%
- Non-GAAP Adjusted Operating Income. After adjusting to add back share-based compensation payments of $78.4 million, Non-GAAP adjusted Income from Operations for the quarter amounted to $143.9 million.
- Agri-Fintech Revenue Growth from Q4 2021. On a quarter-on-quarter basis, Agri-Fintech revenue, generated through Tingo’s NWASSA Agri-Fintech marketplace platform, increased by $43.6 million from $77.9 million for Q4 2021 to $121.5 million for Q1 2022, representing growth of 55.9%. The principal drivers of this growth were commissions earned on the trade of agricultural produce and loan brokerage fees.
- Agri-Fintech Revenue as an Increasing Component of Overall Revenue. Q1 2022 Agri-Fintech was $121.5 million, or 47.3% of total revenue, with mobile sales and leasing comprising the remainder. By comparison, during 2021, Agri-Fintech revenue was 22.9% of total revenue.
NWASSA comprises the Company’s proprietary Agri-marketplace platform to allow farmers to trade their produce and our Fintech services such as access to airtime top-ups, mobile insurance, utility payments, and brokerage on loans. The Company believes that such growth is a demonstration of the value and impact that its Agri-Fintech services offer the Company’s 9.3 million existing customers. These customers have access to the NWASSA platform on the smartphones that they lease from the Company over three years through the cooperative associations of which they are members. Based on the fees charged for its suite of Agri-Fintech services, the Company estimates that Tingo Mobile processed more than $2.8 billion in Gross Transaction Value on its platform during the first quarter of 2022. That represents approximately 60% of the Gross Transaction Value traded in 2021.
At the operating subsidiary level, Tingo Mobile reported no external debt financing and the generation of strong cash flows that can be used to expand the Company’s business and financial technology services, including an investment in the Company’s recently announced ‘SuperApp’ that will seek to combine NWASSA with its new ‘Tingo Pay’ digital wallet powered with a Visa card, the launch of which is expected in the second quarter of 2022. This combined service will deliver a unique marketplace and financial inclusion service and give millions of rural community access to the national banking ecosystem.
The announcement of the Company’s financial results comes as the Company has announced an agreement to merge with MICT, Inc., a global fintech firm whose shares are traded on the Nasdaq Capital Market. The Company’s strategy is to become Africa’s leading Agri-Fintech business, and now, through the merger with MICT, also broaden its Fintech capabilities and expand into China, Asia and beyond, delivering strong and measurable financial results while also empowering social upliftment, gender equality, and financial inclusion as core objectives.
Commenting on the financial results of the Company for the first quarter of 2022, Dozy Mmobuosi, Chief Executive Officer, stated: “We are very pleased to report strong operating performance for the first quarter of 2022 and the continued growth of our Agri-Fintech business. With the imminent launch of our ‘SuperApp’, and the continued development and expansion of our Agri-Fintech services, we aim to generate more commercial opportunities for our existing customers, as well as incentivize more rural farmers and communities to become subscribers and utilize our marketplace and financial technology platforms. We also look forward to accelerating our expansion throughout Africa, and now into Asia”
Dakshesh Patel, the Company’s Chief Financial Officer, added: “Our results demonstrate the strong level of trust and loyalty that the Company continues to build with its customer base. Importantly, we have seen a significant increase in the level of activity, without compromise of our pricing, confirming the value that NWASSA, our Agri-Fintech platform, delivers to our customers”.
“The substantial growth in revenues from our NWASSA Agri-Fintech platform in the first quarter of 2022, which accounted for 47% of total revenues, has had a significant positive impact on our profitability and cash generation, thanks to the high net margins on these revenues, which exceed 90%”.
About Tingo
Tingo is the leading Agri fintech company operating in Africa, with a marketplace platform that empowers social upliftment through mobile, technology and financial access for rural farming communities. Our unique ‘device as a service’ model allows us to add market leading applications to enable customers to trade, buy top ups, pay bills, access insurance and lending services. With 9.3 million existing customers, Tingo is seeking to expand its operations across select markets in Africa. The Company’s strategic plan is to become the eminent Pan African Agri-Fintech business delivering social upliftment and financial inclusion to millions of SME farmers and women-led businesses. Additional information about the Company can be found at www.tingoinc.com.
Safe Harbor and Forward-Looking Statements
This press release contains certain forward-looking statements regarding possible future circumstances. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, any risks and uncertainties with respect to the Company’s operations, as well as those contained in the Company’s quarterly, annual, and periodic filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statements are material.
Contacts
Corporate and Media Contacts:
Tingo, Inc.
(646) 847-0144
Rory Bowen
Chief of Staff – Tingo Inc
Rory.bowen@tingoinc.com
