Revenue was $7.99 million, compared to $9.03 million in the prior year; Overall campaign-based marketing services revenue grew 12.7% year-over-year to $4.40 million; Revenue of campaign-based marketing services in Hong Kong grew by 105.7% to $2.16 million compared to $1.05 million in the prior year; Gross profit was $1.64 million, compared to $2.28 million in the prior year; Net loss was $6.59 million, compared to $3.52 million in the prior year; and Operating cash flow was $7.24 million, compared to $2.05 million in the prior year.
During fiscal year 2023, VS Media recorded revenue of $7.99 million compared to revenue of $9.03 million in the prior year. The decrease in revenue was mainly attributable to decreased revenue from the Company’s Optimization-Based Marketing Services and Social Commerce businesses. The decrease was a result of weakened market sentiment, change in service mix as the company recalibrated internal resource to focus on higher margined Campaign-based marketing services in Hong Kong and the Company’s strategy to temporarily suspend its Social Commerce business to optimize resources allocation.
Gross Profit for the year was $1.64 million compared to $2.28 million in the prior year. The overall decrease in gross margin to 20.5% was due to the abovementioned factors. The Company reported a net loss of $6.59 million for the year, mainly due to listing related one-time expenses.
VSME expects its business activities to recover due to cross-regional brand partnership, artificial intelligence -enabled digital content, and resumption of social commerce business in mid-year.As a result, the management expects revenue to growth by 20% year-over-year compared to the fiscal year 2023 and to achieve positive net margin.
VS Media today announces that its Board of Directors approved a 10b-18 share repurchase program with authorization to purchase up to 500,000 of the Company’s Class A Ordinary Shares. This plan is effective immediately for up to a one-year period.