Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 115

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 115
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 a suitable prospect, our sales team works diligently
to close the deal. Subsequently, our account management team takes over after the client signs a master services agreement. They facilitate
kickoff meetings to introduce our team members, including the customer success team, initiating a seamless onboarding process. The account
management team remains the primary point of contact, ensuring a cohesive and collaborative relationship with our clients. This approach
fosters a client-centric environment and sets the foundation for successful, long-term partnerships.

For the six months ending
June 30, 2024 and 2023, our revenue was derived from 30 and 27 customers, with the top five customers contributing approximately 86.1%
and 85.2% of the total revenue, respectively. For the fiscal year ending December 31, 2023, our revenue was derived from 29 customers,
with the top five customers contributing approximately 81.3% of the total revenue. In the subsequent year ending December 31, 2022, our
customer base was 45, with the top five customers contributing approximately 53.6% of the total revenue. Although our customer base decreased,
this reduction aligns with our strategic focus on ICP-matching customers. For the last two years, we have embarked on the initiative
to evaluate new and existing customers against our ICP profile so that we are channeling our resources towards serving and retaining
such ICP-matching customers. We monitored and observed that customers who fit our ICP are committing to longer contract terms and make
more extensive use of our XPO platform as our value propositions directly appeal to them. This is evident from the marked increase in
average revenue per customer from US$140,364 to US$300,890, an approximate 114.4% rise from December 31, 2022. We expect to see growth
in our customer count going forward as we have concluded our customer review. We believe this initiative will positively impact our long-term
success by driving stronger financial stability and growth. By focusing on profitable ICP-matching customers, we anticipate increased
revenue and larger contract size, with higher lifetime value per customer as they commit to longer and bigger contracts, thus providing
us predictable growth and repeat business. The resulting trust and loyalty will enhance customer retention and satisfaction. Concentrating
on such customers allows for better resource allocation, reduced costs, and improved operational efficiency through better forecasting
and planning. Prioritizing such profitable, long-term customers align