Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 95

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 95
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 and acquire more customers who fit our ICP, they are committing to longer contract terms and make more extensive use of our XPO platform. In the year ended December 31, 2023, we intensified our focus on serving ICP-matching customers, leading to a more targeted customer base. This resulted in a decrease in customer count of approximately 35.6%, from 45 as of December 31, 2022, to 29 by December 31, 2023. Meanwhile, the average revenue per customer has increased significantly from US$140,364 to US$300,890, an approximate 114.4% rise during the same period. 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.

Cost of revenue.Our cost of revenue increased by 22.0% from US$4.5 million for the year ended December 31, 2022 to US$5.5 million for the year ended December 31, 2023, primarily due to the increase in purchase and usage of advertisement media sources, advertisement data sources and advertisement related technology features. The increase is consistent with the revenue increase of our platform services.

Gross profit. As a result of the foregoing, we recorded a gross profit of US$3.2 million for the year ended December 31, 2023, as compared to US$1.8 million for the year ended December 31, 2022.

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Operating expenses.Our total operating expenses increased by 35.7% from US$8.2 million for the year ended December 31, 2022 to US$11.2 million for the year ended December 31, 2023, primarily due to the increase of US$0.4 million in platform operations expenses, the increase of US$1.0 million in sales and marketing expenses, the increase of US$0.9 million in technology and development expenses, the increase of US$0.6 million in general and administrative expenses.

| ● | Platform                                                                                                                              
 operations expenses. Our platform operations expenses increased by 14.6% from US$3.1 million for the year ended December 31,          
 2022 to US$3.6 million for the year ended December 31, 2023, primarily due to the