Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 99

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 99
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 which we receive subscription fees, a percentage of their advertising spend as they use the platform services and service fees, enabling us to grow as our customers increase their digital advertisement spending and as we integrate into new channels and platforms.

Our comprehensive one-stop service
business model, in-depth know-how and strong customer base have enabled us to generate strong growth in recent years. Our revenue increased
by 24.0% from US$8.7 million for the year ended December 31, 2023 to US$10.8 million for the year ended December
31, 2024, primarily due to increased adoption of our platform given the strong demand from customers to pursue automation and
scaling efficiency. Our gross profit increased by 40.0% from US$3.2 million for the year ended December 31, 2023
to US$4.5 million for the year ended December 31, 2024. Our net loss decreased by 26.1% from US$8.0
million for the year ended December 31, 2023 to US$5.9 million for the year ended December 31, 2024, primarily due
to increases in revenue and decreases in operating expenses.

Our Industry

We believe the following are key trends and factors shaping the advertising industry we are in:

Growing opportunity from the shift in media consumption.According to eMarketer, a market research company that provides trends and insights of the digital advertising market, the global advertising spend (digital and traditional media) is expected to reach US$1,180 billion in 2027 as marketers continue to shift their advertising spend online from traditional media. Global digital advertising is expected to hit approximately US$871 billion by 2027. We believe that this secular transition towards digital advertising will continue, driven by several industry trends including the consumers’ evolving media consumption habits, the continued technology innovation and breakthroughs and so on, providing us a significant market opportunity.

Proliferation of digital media and fragmentation.There has been a rapid proliferation of digital media and platforms as consumers and businesses increase their time and attention online. The onset of COVID-19 pandemic has catalyzed the pace of digital adoption even further. In response to this paradigm shift, marketers have substantially increased their advertising budget allocation towards digital media. Today’s digital landscape demands a cross-platform, cross-channel approach for connecting with consumers. Marketers must be able to advertise across multiple platforms into diverse ad channels covering both the Open Internet and the Walled Gardens to achieve optimal marketing