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ZW Data Action Technologies Reports Full Year 2023 Audited Financial Results
CNETZW Data Action Technologies(CNET) GlobeNewswire News Room·2024-06-28 20:30

Financial Performance - For the full year of 2023, revenues increased by 4.35million,or16.64.35 million, or 16.6%, to 30.59 million from 26.24millionin2022,primarilyduetoincreasedadvertisinginvestmentbudgetsfromSMEsfollowingtheliftingofCOVID−19restrictions[2][3]−Totalcostofrevenuesroseby26.24 million in 2022, primarily due to increased advertising investment budgets from SMEs following the lifting of COVID-19 restrictions [2][3] - Total cost of revenues rose by 4.59 million, or 17.4%, to 31.02millionin2023,drivenbyhighercostsassociatedwithsearchenginemarketingservices[2][3]−Grosslossfor2023was31.02 million in 2023, driven by higher costs associated with search engine marketing services [2][3] - Gross loss for 2023 was 0.44 million, compared to a gross loss of 0.19millionin2022,resultinginagrosslossmarginof1.40.19 million in 2022, resulting in a gross loss margin of 1.4% [3][4] - Operating loss decreased to 6.01 million in 2023 from 11.12millionin2022,withanoperatinglossmarginof19.711.12 million in 2022, with an operating loss margin of 19.7% [4][5] - Net loss attributable to the company was 5.97 million, or loss per share of 0.83,comparedtoanetlossof0.83, compared to a net loss of 9.79 million, or loss per share of 1.37,inthepreviousyear[4][5]OperatingExpenses−Salesandmarketingexpensesremainedstableat1.37, in the previous year [4][5] Operating Expenses - Sales and marketing expenses remained stable at 0.27 million for both years [3] - General and administrative expenses decreased significantly by 4.24million,or51.14.24 million, or 51.1%, to 4.06 million in 2023, mainly due to a reduction in allowance for doubtful accounts and general administrative expenses [3][4] - Research and development expenses decreased by 0.21million,or92.60.21 million, or 92.6%, to 0.02 million, attributed to a reduction in headcount in the R&D department [4] Financial Condition - As of December 31, 2023, cash and cash equivalents were 0.82million,downfrom0.82 million, down from 4.39 million in 2022 [6] - Accounts receivable, net was 0.84million,comparedto0.84 million, compared to 1.75 million in the previous year [6] - Working capital decreased to 4.11millionfrom4.11 million from 6.61 million in 2022 [6] - Net cash used in operating activities was 2.01millionfor2023,animprovementfrom2.01 million for 2023, an improvement from 3.19 million in 2022 [6] Company Overview - ZW Data Action Technologies Inc. is an integrated provider of online advertising, precision marketing, and data analytics services, primarily serving enterprise clients in China [7] - The company leverages a fully integrated services platform and proprietary database to deliver customized business solutions for SMEs [7]