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ZW Data Action Technologies Inc. (CNET+4.29%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $13.19 million from $25.32 million in the same quarter the previous year. This decrease is attributed to a decline in the distribution of the right to use search engine marketing services.
Cost of revenues for the quarter was $12.74 million, compared to $25.75 million in the same quarter of the previous year. This decrease aligns with the decline in related revenues.
The company reported a gross profit of $0.46 million for the quarter, compared to a gross loss of $0.43 million in the previous year, with the improvement attributed to better gross margin rates in its main service revenues.
Operating expenses for the quarter were $3.67 million, slightly down from $3.83 million in the previous year. This includes sales and marketing expenses of $0.21 million and general and administrative expenses of $3.46 million.
Net loss for the quarter was $2.99 million, compared to $4.066 million in the previous year. The decrease in net loss is attributed to reduced operating expenses and improved gross profit.
Cash used in operating activities was $1.23 million, while cash provided by investing and financing activities was $0.65 million and $0.88 million, respectively.
As of September 30, 2024, ZW Data Action Technologies had cash and cash equivalents of $1.12 million and a working capital of $3.88 million.
The company plans to optimize its cost investment strategy and improve accounts receivables management to enhance cash flows from operations.
The filing also discusses the potential impact of the Holding Foreign Companies Accountable Act on the company's stock listing and outlines the risks associated with the PCAOB's ability to inspect auditors in China and Hong Kong.
ZW Data Action Technologies does not anticipate cash dividend payments to stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ZW Data Action Technologies Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.