Business
ZW Data Action Technologies Reports Second Quarter and First Half 2023 Unaudited Financial Results
BEIJING, Aug. 21, 2023 (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, Aug. 21, 2023 (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 and six months ended June 30, 2023. Second Quarter 2023 Financial Results Revenues For the second quarter of 2023, revenues increased by approximately $2.88 million, or 41.4%, to $9.82 million from $6.95 million for the same period last year. The increase in revenues was primarily attributable to the increase in our main stream service revenues, i.e. distribution of the right to use search engine marketing services as a result of the end of the peak infection wave of COVID-19 in the first fiscal quarter of 2023 where business activities and performance are gradually getting back to normal in the second fiscal quarter; and a portion of our clients’ ad consumption shifts from using our ad portal placement services to using our search engine marketing service. Cost of revenues Total cost of revenues increased by approximately $2.91 million, or 41.3%, to $9.93 million for the second quarter of 2023 from $7.03 million for the same period last year. The increase in cost was related to cost associated with distribution of the right to use search engine marketing service we purchased from key search engines, which was in line with the increase in the related revenues. Gross loss and gross loss margin Gross loss was approximately $0.11 million for the second quarter of 2023, compared to $0.08 million for the same period last year. Overall gross loss margin rate was 1% for both the second quarter of 2023 and 2022. Operating expenses Sales and marketing expenses was approximately $0.05 million for the second quarter of 2023, compared to $0.08 million for the same period last year. The decrease in sales and marketing expenses was mainly attributable to the gradual downsize of the sales team in our Hubei office during the period, as part of management’s cost reduction plan in fiscal 2023. General and administrative expenses decreased by approximately $1.32 million, or 52.8%, to $1.18 million for the second quarter of 2023 from $2.50 million for the same period last year. The decrease in general and administrative expenses was mainly attr...