Company: KNRX
Filing Date: 2025-08-21
Form Type: F-1/A
Source: 0001641172-25-025066
Chunk: 88

Company: KNOREX LTD.
Filing Date: 2025-08-21
Form: F-1/A
Chunk 88
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 the year ended December 31, 2023 to US$10.8 million for the year ended December 31, 2024, primarily due to the increase of US$2.0 million in our revenue generated from our U.S. operation from US$8.4 million in 2023 to US$10.4 million in 2024, which is also attributed by the increase of approximately US$0.1 million of our revenue generated from our international operation from approximately US$0.3 million in 2023 to approximately US$0.4 million in 2024 as we have channeled our focus and our resources to the U.S. market since 2020, and as we continue to sharpen our focus on prospects and customers who fit to our Ideal Customer Profile (ICP).

The increase in our U.S. revenues is mainly due to the increased demand and our strong adoption in the U.S. market, which is our key market of focus while we continue to streamline our customer base in terms of their fit to our ICP. Our data indicates that customers fitting our ICP have significantly increased their usage and advertising spending on our platform, resulting in higher revenue. Additionally, they expand their usage of our platform services when we upsell to them.

As we retain and acquire more customers who fit our ICP, they are committing to longer contract terms and make more extensive use of our XPO platform. Since 2023, we intensified our focus on serving ICP-matching customers, leading to a more targeted customer base. Customer count was 29 as of December 31, 2023 and this has increased to 37 by December 31, 2024. Average revenue per customer was US$300,890 and US$292,187 for the years ended December 31, 2023 and 2024, respectively. This initiative has enabled us to better utilize our resources while bolstering our interaction with customers. We have also expanded our range of customers across diversified industry sectors, including automotive, healthcare, e-commerce, business-to-business, retail, consumer packaged goods, travel, and hospitality.

We expect our revenue to be impacted in 2025 as compared to 2024 due to one of our major customers’ customer being affected by the uncertainty of the U.S. import tariffs. It has significantly impacted their business in the first half of 2025, causing their shrinkage in their marketing spend with us.

Cost of revenue.Our cost of revenue increased by 14.6