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ZW Data Action Technologies Reports First Quarter 2022 Unaudited Financial Results
BEIJING, May 17, 2022 (GLOBE NEWSWIRE) -- ZW Data Action Technologies Inc. (Nasdaq: CNET) (the "Company"), an integrated online advertising, precision
About this update from Zw Data Action Technologies Inc.
[{"type":"text","content":"BEIJING, May 17, 2022 (GLOBE NEWSWIRE) -- ZW Data Action Technologies Inc. (Nasdaq: CNET) (the \"Company\"), an integrated online advertising, precision marketing, data analytics and other value-added services provider serving enterprise clients, today announced its unaudited financial results for the three months ended March 31, 2022. Financial Highlights Gross profit of $0.13 million for the first quarter of 2022, compared to a gross loss of $0.72 million for the same period last year;Gross profit margin improved to 1.8% for the first quarter of 2022, compared to -8.5% for the same period last year; Working capital of $10.92 million as of March 31, 2022, compared to $11.10 million as of December 31, 2021. First Quarter 2022 Financial Results Revenues For the first quarter of 2022, revenues decreased by $0.74 million, or 8.9%, to $7.65 million from $8.40 million for the same period last year. The decrease in revenues was primarily attributable to the decrease in revenues from our Internet advertising and related services business segment, as a result of the regional COVID-19 rebound in many provinces in China during the first quarter of fiscal 2022, which affected business of most of our small medium enterprises (“SMEs”) clients. Cost of revenues Total cost of revenues decreased by $1.60 million, or 17.5%, to $7.52 million for the first quarter of 2022 from $9.11 million for the same period last year. The decrease in cost of revenues was primary attributable to the decrease in costs associated with distribution of the right to use search engine marketing service we purchased from key search engines and cost related to providing Internet advertising services at our ad portals, which was in line with the decrease in the related revenues. Gross profit (loss) and gross profit (loss) margin Gross profit was $0.13 million for the first quarter of 2022, compared to a gross loss of $0.72 million for the same period last year, which was primarily attributable to the increase of gross margin rate of our main stream of service revenues, i.e. the distribution of the right to use search engine marketing services. Overall gross profit margin rate was 1.8% for the first quarter of 2022, compared to a gross loss margin of 8.5% for the same period last year. Operating expenses Sales and marketing expenses increased by $0.04 million, or 146.4%, ...