ZW Data Action Technologies Reports Full Year 2023 Audited Financial Results

Financial Performance - For the full year of 2023, revenues increased by $4.35 million, or 16.6%, to $30.59 million from $26.24 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 $31.02 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 $0.19 million in 2022, resulting in a gross loss margin of 1.4% [3][4] - Operating loss decreased to $6.01 million in 2023 from $11.12 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, compared to a net loss of $9.79 million, or loss per share of $1.37, 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 $4.24 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 $0.21 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 $0.82 million, down from $4.39 million in 2022 [6] - Accounts receivable, net was $0.84 million, compared to $1.75 million in the previous year [6] - Working capital decreased to $4.11 million from $6.61 million in 2022 [6] - Net cash used in operating activities was $2.01 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]