CNET Surges 17% on Strong Revenue
The stock in ChinaNet Online Holdings, Inc. (Nasdaq: CNET) soared 17% to $1.09 per American depositary share in early trading Wednesday after announcing strong revenue for the full year 2019.
The Beijing-based online advertiser said in a statement today that its revenues in the twelve months through December hit $58.1 million, up 2% year-over-year. Net loss narrowed to $1.27 million compared to $14.13 million in 2018.
CNET attributed the growth to its Internet advertising and data service revenues, which reached $14.8 million, representing a year-over-year increase of 54%.
Despite today's big gain, it has been a rough go for CNET in the stock market in the last couple of months. Before the middle of last week, CNET went 10 consecutive weeks failing to close above $1 per share. The company has yet to announce that it has received a letter from Nasdaq regarding its failure to meet the minimum bid price.
Operating since 2003, CNET provides "learning-based" precision advertising and marketing SaaS services to SMEs. According to CNET, it has more than 500 employees and caters to 3,000 SME customers. It operates in Beijing, Shanghai, Guangzhou, Wuhan, Hong Kong, Taiwan, and North America.
After ending 2019 with $1.6 million in cash and cash equivalents, CNET is expecting to open its new Guangzhou headquarters in June or July. It is also working on launching a free "simple" blockchain-powered web application against Covid-19, which is designed to help people determine if they have symptoms and decide to stay home or go to work.
While CNET did not provide first-quarter guidance, it remains optimistic going forward.
"In light of the Chinese government's favorable policy towards the development of blockchain technology, we will continue to focus on developing and promoting our blockchain-based platform services and products in the second half of 2020 as planned," Handong Cheng, the chairman, president, and chief executive officer of ChinaNet, said in a statement today.
He added, "We anticipant that this will help us to not only cultivate more sources of recurring revenue, but also bolster our preparations for the expansion into the Southeast Asian market in the near future."
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