Moxian, Inc. (NASDAQ:MOXC) Sees Revenue from OEM, Distribution, and Licensing as Key to Winning in Chinese Market

NetworkNewsWireNew York, New York, 08:30 EDT May 11, 2017 (NetworkNewsWire) – Moxian, Inc. (NASDAQ:MOXC) is projected to have a breakout year in FY 2018, when SeeThruEquity projects it will reach $24.1 million in revenues and a net income of $4.5 million ( This performance is expected based on the massive size of the online-to-offline (O2O) market in China, estimated to reach $48 billion in 1H17, according to investor materials provided by Moxian.

The China-based high technology company has offered free beta-platform apps for its 30,000 small and medium-sized enterprise (SME) users on its Moxian+ app. To its 300,000 consumer customers, it offers the Moxian User app with social sites. Now, it is converting to paid Moxian+ and Moxian User apps, changing these free user service sites to paid subscriber status.

But there is more to Moxian’s marketing plan than subscriber conversions from free to paid. The company is also anticipating licensing, OEM, and distribution revenues that will be significant. As SeeThruEquity’s analysis mentions, Moxian may find a challenge converting some of the current no-charge users of its Moxian+ business app and Moxian User consumer apps to paid subscribers, but Moxian hopes to gain transaction fees and subscription revenue from the conversions and is adding sales staff, hoping to also add additional new SME and consumer paid subscribers to its platforms who have not been on the apps in the past.

SeeThruEquity is optimistic about Moxian’s aggressive growth strategy, but added a note of caution, saying, “they must win new customers from scratch, which may be more difficult than anticipated.” Nevertheless, Moxian sees a special revenue stream opportunity in its OEM, distribution, and license fees.

Moxian projects a greater than 163% jump in year-over-year revenue growth from 2017 to 2018. Moxian management sees merchant transactions generating the lead amount of sales in 2017 in the revenue mix at 36.8%. OEM, distribution and license fees were seen as only generating 31.6% by comparison. By 2018, however, the estimated mix changes dramatically. OEM, distribution and license fees are projected to account for 48% of revenues within the mix, doubling the sales of mobile advertisements and towering over the contribution of 28% by merchant transactions. Further, OEM, distribution and license fees projections exhibit a 300% year-over-year growth from 2017 to 2018, from $3 million in 2017 to $12 million in 2018 — tripling the YOY growth of either merchant transactions or mobile advertisements.

Moxian management believes it can achieve cash flow break even by the end of 2017. This is, in part, because the company is anticipating high 70% gross margins on its own direct sales and high margins, too, from mobile advertisements on its sites.

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