ZW Data Action Technologies Inc. reported its financial results for the nine months ending September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period. Total revenues for this period were $13.19 million, a substantial decrease from $25.32 million in the same period of 2023. For the third quarter alone, revenues fell to $3.24 million from $9.18 million year-over-year. The decline was primarily attributed to a significant drop in revenue from the distribution of search engine marketing services, which decreased from $24.82 million to $9.74 million for the nine months ended September 30, 2024.

Despite the revenue decline, the company reported a reduced loss from operations of $3.22 million for the nine months ended September 30, 2024, compared to a loss of $4.25 million in the same period of 2023. The net loss for the nine months was $2.99 million, down from $4.07 million in the prior year. The basic and diluted loss per share improved to $(1.65) from $(2.26) year-over-year.

In terms of strategic developments, ZW Data Action Technologies acquired a 51% equity interest in Yi En (Beijing) Technology Co., Ltd. for a nominal cash consideration and subsequently sold this equity interest for the same amount during the third quarter. The company also reported a reverse stock split at a ratio of 1-for-4, effective September 30, 2024, which reduced the number of authorized shares from 50 million to 12.5 million.

Financially, the company saw an increase in cash and cash equivalents to $1.12 million as of September 30, 2024, up from $0.82 million at the end of 2023. Total current assets rose to $9.86 million, while total liabilities increased to $6.11 million, leading to a decrease in stockholders' equity to $4.84 million. The accumulated deficit also widened to $(62.67 million) from $(59.69 million) at the end of 2023.

The company has been focusing on optimizing its internet resources and improving its gross profit margins. It plans to enhance accounts receivable collection management and negotiate better payment terms with suppliers to improve cash flows. Additionally, ZW Data Action Technologies aims to expand its blockchain-based SaaS applications and its core internet advertising business through potential acquisitions.