Business
ZW Data Action Technologies Reports Full Year 2020 Financial Results
BEIJING, China, April 13, 2021 (GLOBE NEWSWIRE) -- ZW Data Action Technologies Inc. (Nasdaq: CNET) (the "Company"), an integrated Internet advertising,
About this update from Zw Data Action Technologies Inc.
[{"type":"text","content":"BEIJING, China, April 13, 2021 (GLOBE NEWSWIRE) -- ZW Data Action Technologies Inc. (Nasdaq: CNET) (the \"Company\"), an integrated Internet advertising, precision marketing, data analytics and other value-added blockchain services provider serving enterprise clients, today announced its audited financial results for the year ended December 31, 2020. Full Year 2020 Financial Highlights For the Year Ended December 31,($ millions, except per share data) 2020 2019 % ChangeRevenues $38.41 $58.08 -33.9%Gross profit $0.63 $5.50 -88.5%Gross margin 1.6% 9.5% -7.8 pp*Loss from operations ($5.70) ($1.69) 237.7%Operating loss margin -14.8% -2.9% -11.9 pp*Net loss attributable to CNET ($5.22) ($1.26) 313.6%Loss per share ($0.24) ($0.07) 242.9%*pp: percent points Revenues decreased by 33.9% to $38.41 million for the year ended December 31, 2020, primarily due to the decrease in revenues from our Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the COVID-19 outbreak during the first fiscal quarter of 2020, which resulted in complete shutdown of our business operations after the Chinese New Year in early February until mid-April; slow resuming of business activities afterwards due to travel restrictions and quarantine measures adopted by the local governments where we have operations; and decrease in advertising investment budgets of our small and medium-sized enterprises (SMEs) clients due to uncertainties associated with the future developments of the pandemic.Gross profit was $0.63 million with a gross margin of 1.6% for the year ended December 31, 2020. Loss from operations was $5.70 million for the year ended December 31, 2020, compared to $1.69 million for the prior year, primarily attributable to the decrease in gross profit, which was partially offset by the decrease in operating expenses. Net loss attributable to CNET was $5.22 million, or loss per share of $0.24, for the year ended December 31, 2020, compared to $1.26 million, or loss per share of $0.07, for the prior year. “Despite the negative impact on our business brought by the COVID-19 breakout in the first fiscal quarter of 2020 and the subsequent slow recovery of the business environment. We managed to improve the gross margin of our Internet advertising and data service sector significantly from 7% ...