Net Element Inc. (NETE) Zacks Report

© Copyright 2017, Zacks Investment Research. All Rights Reserved. Net Element Inc. (NETE-NASDAQ) Current Price (11/16/17) $4.03 Valuation $24.00 OUTLOOK SUMMARY DATA Risk Level High Type of Stock Small-Growth Industry Internet Commerce Net Element is a software and services company for global online and mobile payments. It operates a merchant processor in the US with an attractive merchant offering with its Aptito front-end solution, and a mobile payment processor, PayOnline, operating primarily in Russia but expanding worldwide. NETE has shown extraordinary growth in the US and continues progress toward profitability, but needs to reach cash flow break even to stop equity dilution. 52-Week High $10.00 52-Week Low $2.73 One-Year Return (%) -55.6 Beta 1.1 Average Daily Volume (sh) 111,281 Shares Outstanding (mil) 2.5 Market Capitalization ($mil) $9.9 Short Interest Ratio (days) 1 Institutional Ownership (%) 19 Insider Ownership (%) 28 Annual Cash Dividend $0.00 Dividend Yield (%) 0.00 5-Yr. Historical Growth Rates Sales (%) 117 Earnings Per Share (%) N/M Dividend (%) 0 P/E using TTM EPS N/M P/E using 2017 Estimate N/M P/E using 2018 Estimate N/M ZACKS ESTIMATES Revenue (in millions of $) Q1 Q2 Q3 Q4 Year (Mar) (Jun) (Sep) (Dec) (Dec) 2015 5.5 A 6.9 A 12.7 A 15.1 A 40.2 A 2016 11.3 A 13.7 A 14.0 A 15.3 A 54.3 A 2017 13.6 A 16.1 A 14.9 A 17.5 E 62.1 E 2018 73.6 E Earnings per Share (Non-GAAP EPS before non-recurring items) Q1 Q2 Q3 Q4 Year (Mar) (Jun) (Sep) (Dec) (Dec) 2015 -$3.58 A -$6.43 A -$42.4 A -$2.19 A -$15.3 A 2016 -$1.32 A -$1.00 A -$1.15 A -$1.63 A -$6.05 A 2017 -$1.15 A -$0.85 A -$0.84 A -$0.26 E -$2.87 E 2018 -$1.16 E Zacks Projected EPS Growth Rate - Next 5 Years N/A Small-Cap Research Lisa Thompson 312-265-9154 lthompson@zacks.com scr.zacks.com 10 S. Riverside Plaza, Chicago, IL 60606 November 17, 2017 NETE: Despite Setbacks, Net Element Continues Progress Toward Profitability Using an industry average of EV/trailing GM of 7.0X the stock could be worth $24.00 per share by next year if NETE could reach profitability.

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