Revenue Increased by 22.2% and Net Loss Reduced by Nearly 70% year-on-year
In the first half of 2024, Xuan Wu Cloud achieved total revenue of RMB 647.5 million, reflecting steady growth of 22.2% compared to the same period last year. Net loss was significantly reduced by 69.5% to RMB 6.1 million.
The Company's operating expense ratio decreased by 6.7 percentage points year-on-year, demonstrating significant results in cost reduction and efficiency enhancement.
The Company served a cumulative total of 2,406 clients during the reporting period, our Average Revenue Per User contributed by core clients reached RMB1.9 million,with core clients' net revenue retention rate has further increased to 98.4%.
Revenue from SaaS operations amounted to RMB 365.1 million, representing a year-on-year growth of 39.6%. The revenue percentage of SaaS business surpassed 50% for the first time, reaching 56.4%.
The Marketing Cloud segment reported revenue of RMB 306.5 million, reflecting a year-on-year increase of 41.1%, driven by advanced product capabilities and strong customer acquisition.
Leveraging its leadership in AI technology and a deep understanding of large-scale consumer business scenarios, Xuan Wu Cloud has enhanced customer retention. The Sales Cloud's Annual Recurring Revenue (ARR) reached RMB 21.7 million, up 22.4% year-on-year.
GUANGZHOU, China, Aug. 27, 2024 /PRNewswire/ -- Xuan Wu Cloud Technology Holdings Limited (hereinafter referred to as "Xuan Wu Cloud" or "the Company," stock code: 2392.HK), a leading local intelligent CRM services provider in China, announced its interim results for the six months ended June 30, 2024, on August 27.
During the reporting period, the Company achieved steady growth by implementing its dual-driven strategy of technology and business. Revenue increased by over 20% year-on-year. Additionally, the Company made significant progress in reducing net losses through careful expense management and effective cost-control measures.
Revenue Up 22.2% year-on-year and SaaS Revenue Percentage Surpasses 50% for the First Time
The announcement reveals that during the reporting period, Xuan Wu Cloud continued its steady progress by expanding its customer base while retaining existing clients. For the first half of 2024, the Company achieved revenue of RMB 647.5 million, representing a year-on-year increase of 22.2%. Notably, revenue from the SaaS segment reached RMB 365.1 million, up 39.6% from the previous year. This is the first time that SaaS revenue has surpassed 50% of total revenue for the first time, reaching 56.4%, highlighting the Company's strategic focus on CRM SaaS.
Additionally, Xuan Wu Cloud maintained its commitment to prudent expense management throughout the period. Following an update to its organizational structure at the end of last year, the Company significantly reduced its net losses, which narrowed by 69.5% to RMB 6.1 million.
During the reporting period, Xuan Wu Cloud, committed to driving digital transformation, served a total of 2,406 clients across four key industries—finance, fast-moving consumer goods (FMCG), public utility and government-related sectors, and TMT. The Company delivered these services through its CRM SaaS products, including the "Three Clouds" (Marketing Cloud, Sales Cloud, Customer Service Cloud), as well as its aPaaS and cPaaS platforms.
Thanks to a long-standing focus on superior service and continuous product improvement, the average revenue per core client reached RMB 1.9 million. Core client revenue accounted for 95.3% of the total client revenue, and the core client net revenue retention rate was 98.4%. In the SaaS segment specifically, the number of clients increased to 1,705, representing a year-on-year growth of 9.9%. Additionally, the ARPU for SaaS client reached RMB 1.5 million, up 14.2% from the previous year. In addition, our SaaS core clients' net revenue retention rate reached 106.1%
The Dual-Driven Strategy of Technology and Business Accelerates Expansion of SaaS Standardized Products
Reflecting on the market trends of the first half of the year, the digital economy has emerged as a central theme, driving the development of new productive capabilities and supporting high-quality economic growth. In this context, Xuan Wu Cloud has continued to implement its dual-driven strategy of technology and business. By the end of the reporting period, the Company had been granted 172 patents and 196 computer software copyrights, with 36 new patents and software copyrights awarded during the first half of the year. In terms of product innovation and service, Xuan Wu Cloud has focused on the digital transformation needs of industry clients, enhancing their business scenarios through intelligent upgrades and supporting their growth. Notably, during the reporting period, the Company intensified its efforts in developing standardized SaaS products, aiming to reduce project costs and expand its ...
