ZW Data Action Technologies Reports Third Quarter and First Nine Months 2023 Unaudited Financial Results

About this update from Zw Data Action Technologies Inc.

BEIJING, Nov. 20, 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 nine months ended September 30, 2023. Third Quarter 2023 Financial Results Revenues For the third quarter of 2023, revenues increased by approximately $1.97 million, or 27.2%, to $9.18 million from $7.22 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 decline in the peak COVID-19 wave during the first fiscal quarter of 2023 leading to a gradual return to normal business activities and performance in the second fiscal quarter. Additionally, some of our clients shifted their advertising consumption from our ad portal placement services to our search engine marketing service. Cost of revenues Total cost of revenues increased by approximately $1.92 million, or 26.4%, to $9.19 million for the third quarter of 2023 from $7.27 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 $0.004 million for the third quarter of 2023, compared to $0.05 million for the same period last year. Overall gross loss margin rate was 0.04% for the third quarter of 2023, compared to 0.7% for the same period last year. Operating expenses Sales and marketing expenses were approximately $0.06 million for the third quarter of 2023, compared to $0.07 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 $0.10 million, or 6.3%, to $1.55 million for the third quarter of 2023 from $1.65 million for the same period last year. The decrease in general and administrative expenses was mainl...

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