VS MEDIA Announces Fiscal Year 2023 Financial Results
VS Media Holdings (NASDAQ: VSME) announced its fiscal year 2023 financial results, reporting a full-year revenue of $7.99 million. Campaign-based marketing services revenue grew by 12.7% year-over-year to $4.40 million, with Hong Kong SAR revenue growing by 105.7% to $2.16 million. The company expects a 20% revenue increase in FY24, driven by cross-regional brand partnerships, AI-enabled digital content, and a recovery in social commerce. VS Media also introduced a share repurchase program authorizing the purchase of up to 500,000 Class A Ordinary Shares.
Expecting a 20% revenue increase in FY24 due to cross-regional brand partnerships, AI-enabled digital content, and social commerce recovery.
Introducing a share repurchase program to buy up to 500,000 Class A Ordinary Shares, demonstrating confidence in business fundamentals and commitment to shareholders.
Strategic investments in Los Angeles-based creative venture studio MeeshQ and partnerships with global companies like The Pinkfong Company and King Parrot Group to expand market reach and create commercial opportunities.
Experienced a decrease in revenue from Optimization-Based Marketing Services and Social Commerce businesses in FY23 due to weakened market sentiment and internal resource reallocation.
Net loss of $6.59 million in FY23, primarily attributed to listing-related one-time expenses.
Gross profit decreased to $1.64 million in FY23 compared to $2.28 million in the previous year, with a gross margin of 20.5%.
Insights
The report indicates that VS Media's revenue showed a decrease from $9.03 million to $7.99 million year-on-year, highlighting a potential concern for investors regarding the company's economic health. Key financial indicators, such as a gross profit drop from $2.28 million to $1.64 million and an increased net loss from $3.52 million to $6.59 million, suggest underlying struggles within the business model or market conditions. Despite this, the positive operating cash flow growth from $2.05 million to $7.24 million may reflect effective capital management and provides a silver lining amidst the otherwise grim financial performance.
The share repurchase program represents a strategic move by the company to instill confidence among investors, signaling that the leadership believes the stock is undervalued. However, share buybacks can also indicate a lack of profitable investment opportunities within the company. Investors should weigh the potential for earnings per share enhancement against the opportunity cost of not investing this capital back into the business for growth.
The emphasis on the 105.7% growth in campaign-based marketing services revenue in Hong Kong suggests a shift in focus towards high-margin services, which could be a strategic maneuver allowing for better allocation of resources and improved profitability in the long term. The company's outlook for a 20% revenue increase in FY24 indicates management's expectation of a rebound driven by cross-regional brand partnerships, AI-enhanced digital content and a recovery in social commerce.
The strategic partnership with MeeshQ and the launch of the VS Lounge in Hong Kong are forward-thinking moves toward business diversification, indicating an intent to innovate and capture new market segments. However, the ability of these ventures to meaningfully contribute to the bottom line will be important to monitor going forward.
Full year revenue of
Campaign-based marketing services revenue grew
Revenue of campaign-based marketing services in HK SAR grew
Expects FY24 revenue to increase by
Announces share repurchase program with authorization to purchase up to 500,000 of the Company’s Class A Ordinary Shares
HONG KONG, April 30, 2024 (GLOBE NEWSWIRE) -- VS Media Holdings Limited (NASDAQ:VSME) ("VS Media" or the "Company") today announced its financial results for the fiscal year ended December 31, 2023.
“Fiscal 2023 was a challenging year as our business was negatively impacted by weakened market sentiment, decrease in client spending and the temporary suspension of our social commerce business,” said Ivy Wong, Founder and CEO of VS Media. “That said, we believe the worst is behind us. As 2024 continues to unfold, we expect strong growth in our top line and profit margin driven by cross-regional brand partnership, AI-enabled digital content, and recovery in social commerce. We are confident that some of the strategic partnerships and new market entry that we have announced recently will start to pay off commercially this year.”
2023 Financial Summary
- Revenue was
$7.99 million , compared to$9.03 million in the prior year; - Overall campaign-based marketing services revenue grew
12.7% yoy to$4.40 million ; - Revenue of campaign-based marketing services in Hong Kong grew by
105.7% to$2.16 million as compared to$1.05 million in the prior year; - Gross profit was
$1.64 million , compared to$2.28 million in the prior year; - Net loss was
$6.59 million , compared to$3.52 million in the prior year; and - Operating cash flow was
$7.24 million , compared to$2.05 million in the prior year.
During fiscal year 2023, VS Media recorded revenue of
Gross Profit for the year was
The Company reported a net loss of
2024 Financial Guidance
- VSME expects its business activities to recover due to cross-regional brand partnership, artificial intelligence -enabled digital content, and resumption of social commerce business in mid-year.
- As a result, the management expects revenue to growth by
20% year-over-year compared to the fiscal year 2023 and to achieve positive net margin.
Share Repurchase Program
VS Media today announces that its Board of Directors approved a 10b-18 share repurchase program with authorization to purchase up to 500,000 of the Company’s Class A Ordinary Shares. This plan is effective immediately for up to a one-year period.
Under the share repurchase program, the Company may repurchase its Class A Ordinary Shares from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans, intended to qualify under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.
The timing, manner, price, and total amount of any share repurchases under the share repurchase program are determined by the Company at its discretion through various factors, including but not limited to business, economic and market conditions, corporate, legal and regulatory requirements, prevailing stock prices, trading volume, and other considerations. The share repurchase program may be modified, suspended or discontinued at any time and the Company is not obligated to acquire any amount of stock. The Company expects to utilize its existing cash and cash equivalents to fund any repurchases under the share repurchase program.
“As market sentiment stabilizes in 2024, I am pleased with the momentum that we’ve seen across our business segments so far and will remain hyper focused on adding value between brands and creators to grow our marketing services on the one hand and resuming our social commerce business on the other. The announcement of share buyback demonstrates confidence in our business fundamentals and our commitment to shareholders,”
“VS Media continues to leverage our extensive capabilities in digital marketing and content creation. We are well-positioned to capitalize on emerging trends and opportunities related to digital marketing. In addition, VS Media's commitment to fostering talent and empowering content creators positions us as a catalyst for innovation and creativity in the digital space. By cultivating partnerships and investing in leading technologies, we are poised to drive growth, expand reach, and unlock new revenue potential in the years to come,” said VS Media CEO Ivy Wong.
Recent Developments
In February 2024, VS Media entered into a strategic investment in Los Angeles-based creative venture studio MeeshQ. The investment comes as part of a partnership connecting MeeshQ's globally renowned talents and creators with VSME’s emerging local brands in Asia Pacific. The partnership brings future opportunities for brand sponsorship, product venture and other commercial opportunities, as well as helping talents launch their own products in the Asia Pacific region. MeeshQ and VSME plan to launch a number of global ventures in 2024 with high-profile American contemporary talents such as Mike Tyson and Dennis Rodman in Asia Pacific. VS Media will be MeeshQ's exclusive partner in the region.
Additionally, in February 2024, VS Media partnered with global entertainment company The Pinkfong Company and fine dining provider King Parrot Group to launch a VS Lounge in Hong Kong's Central Waterfront. The event series successfully ran from February 2, 2024through February 25, 2024, at the Central Waterfront, spanning across the Lunar New Year and Valentine's Day as an all-day family-oriented event. The event demonstrated the Company’s ability in collaborating with top tier content creators with customers in online and offline settings.
In October 2023, VS Media announced its expansion into Macau, further solidifying its presence in the Asian market. The strategic move into Macau allows VS Media to leverage its vast experience in digital marketing, influencer engagement, and content creation to support Macau businesses in promoting their offerings to a global audience. With a robust network of talented content creators, VS Media consistently delivers impactful campaigns that resonate with target audiences, driving brand awareness and engagement.
About VS Media
VS Media Holdings Limited (NASDAQ:VSME) manages a network of leading digital creators across Asia Pacific that powers content-driven social commerce and offers local and effective marketing services to brands. Founded in 2013, VSME partners with over 1,500 creators and over 1,000 brands to promote and merchandise their products and services. The Company is currently growing internationally across Hong Kong, China, Taiwan, Singapore, and beyond. For more information, visit https://www.vs-media.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, for example, statements about potential activity under share repurchase plan. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are also based on assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Contact information:
VS Media Holdings Limited
| VS MEDIA HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS (Currency expressed in United States Dollars (“US$”), except for number of shares) | ||||||||
| As of December 31, | ||||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and equivalents | $ | 1,500,148 | $ | 820,570 | ||||
| Accounts receivable, net | 2,131,371 | 1,917,732 | ||||||
| Deposits, prepayments and other receivables, net | 6,358,344 | 4,545,591 | ||||||
| Due from related parties | 1,799 | 7,254 | ||||||
| Total current assets | 9,991,662 | 7,291,147 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Plant and equipment, net | 19,609 | 27,123 | ||||||
| Intangible assets, net | 37,333 | 57,865 | ||||||
| Deposit paid for acquisition of intangible assets | - | 115,601 | ||||||
| Right-of-use assets, net | 34,143 | 100,589 | ||||||
| Total non-current assets | 91,085 | 301,178 | ||||||
| TOTAL ASSETS | $ | 10,082,747 | $ | 7,592,325 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Bank loans - current | $ | 1,587,680 | $ | 1,628,048 | ||||
| Other borrowings - current | 432,241 | - | ||||||
| Accounts payable | 1,837,795 | 1,036,790 | ||||||
| Due to related parties | 90,589 | 504,837 | ||||||
| Loan – related parties | 1,295,287 | 1,231,327 | ||||||
| Receipt in advance | 139,341 | 59,069 | ||||||
| Lease liabilities | 34,143 | 66,604 | ||||||
| Accruals and other payables | 264,532 | 779,840 | ||||||
| Total current liabilities | 5,681,608 | 5,306,515 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Other borrowings – non-current | 208,116 | 632,737 | ||||||
| Lease liabilities – non-current | - | 33,985 | ||||||
| Total non-current liabilities | 208,116 | 666,722 | ||||||
| TOTAL LIABILITIES | 5,889,724 | 5,973,237 | ||||||
| Commitments and contingencies | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A ordinary shares, unlimited authorized shares, no par value, 20,000,000 shares and nil issued and outstanding as of December 31, 2023 and 2022, respectively | 8,047,695 | - | ||||||
| Class B ordinary shares, unlimited authorized shares, no par value, 2,000,000 shares and nil issued and outstanding as of December 31, 2023 and 2022, respectively | - | - | ||||||
| Ordinary shares, no par value, nil and 20,000,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively | - | 20 | ||||||
| Additional paid in capital | 17,075,568 | 16,213,997 | ||||||
| Accumulated other comprehensive income | 277,912 | 18,781 | ||||||
| Accumulated deficit | (21,208,152 | ) | (14,613,710 | ) | ||||
| Total shareholders’ equity | 4,193,023 | 1,619,088 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 10,082,747 | $ | 7,592,325 | ||||
| VS MEDIA HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Currency expressed in United States Dollars (“US$”), except for number of shares) | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| Revenue, net | $ | 7,991,103 | $ | 9,028,187 | $ | 10,944,753 | ||||||
| Cost of revenue | 6,351,394 | 6,743,205 | 8,662,313 | |||||||||
| Gross profit | 1,639,709 | 2,284,982 | 2,282,440 | |||||||||
| Operating expenses | ||||||||||||
| Marketing expenses | 218,895 | 70,154 | 189,033 | |||||||||
| General and administrative expenses | 6,973,526 | 3,858,561 | 2,164,206 | |||||||||
| Total operating expenses | 7,192,421 | 3,928,715 | 2,353,239 | |||||||||
| Loss from operations | (5,552,712 | ) | (1,643,733 | ) | (70,799 | ) | ||||||
| Other income (expense) | ||||||||||||
| Share-based compensation | (861,551 | ) | - | - | ||||||||
| Other income | 103,006 | 43,342 | 53,159 | |||||||||
| Interest income | 7,560 | 2 | - | |||||||||
| Interest expense | (290,745 | ) | (206,842 | ) | (193,738 | ) | ||||||
| Total other expense, net | (1,041,730 | ) | (163,498 | ) | (140,579 | ) | ||||||
| Loss before income tax | (6,594,442 | ) | (1,807,231 | ) | (211,378 | ) | ||||||
| Provision for income taxes | - | - | - | |||||||||
| Loss from continuing operations | (6,594,442 | ) | (1,807,231 | ) | (211,378 | ) | ||||||
| Discontinued operations: | ||||||||||||
| Loss from discontinued operations | - | (11,798 | ) | (21,246 | ) | |||||||
| Gain on disposal | - | 5,344,229 | - | |||||||||
| NET (LOSS) INCOME | $ | (6,594,442 | ) | $ | 3,525,200 | $ | (232,624 | ) | ||||
| Other comprehensive (loss) income | ||||||||||||
| Foreign currency translation adjustment | 259,131 | 591,294 | (123,182 | ) | ||||||||
| Total comprehensive (loss) income | $ | (6,335,311 | ) | $ | 4,116,494 | $ | (355,806 | ) | ||||
| Loss per share from continuing operations - Basic and diluted | $ | (0.33 | ) | $ | (0.09 | ) | $ | (0.01 | ) | |||
| Income (loss) per share from discontinued operations – Basic and diluted | $ | - | $ | 0.27 | $ | (0.00 | ) | |||||
| (Loss) income per share – Basic and diluted | $ | (0.33 | ) | $ | 0.18 | $ | (0.01 | ) | ||||
| Weighted average number of ordinary shares outstanding - basic and diluted | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||
| VS MEDIA HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Currency expressed in United States Dollars (“US$”)) | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| (Restated) | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Loss from continuing operations | $ | (6,594,442 | ) | $ | (1,807,231 | ) | $ | (211,378 | ) | |||
| Loss from discontinued operations | - | (11,798 | ) | (21,246 | ) | |||||||
| Share-based compensation | 861,551 | - | - | |||||||||
| Depreciation and amortization | 97,263 | 94,599 | 76,022 | |||||||||
| Write off accounts receivable | - | 5,321 | - | |||||||||
| Write off inventories | - | 369 | 1,713 | |||||||||
| Expected credit loss allowance | - | 204,000 | 57,000 | |||||||||
| Inventories | - | 8,778 | 65,386 | |||||||||
| Accounts receivable | (213,639 | ) | 479,236 | (295,850 | ) | |||||||
| Deposits, prepayments and other receivables | (1,812,753 | ) | (1,130,984 | ) | (75,220 | ) | ||||||
| Deposit paid for acquisition of intangible assets | 115,601 | (114,938 | ) | - | ||||||||
| Receipt in advance | 80,272 | 9,748 | (663,709 | ) | ||||||||
| Accounts payable | 801,005 | (247,422 | ) | 47,352 | ||||||||
| Accruals and other payables | (515,308 | ) | 557,662 | (303,978 | ) | |||||||
| Operating lease liabilities | (66,446 | ) | (66,683 | ) | (50,568 | ) | ||||||
| Net cash used in operating activities – continuing operations | (7,246,896 | ) | (2,019,343 | ) | (1,374,476 | ) | ||||||
| Net cash (used in) provided by operating activities – discontinued operations | - | (27,614 | ) | 5,510 | ||||||||
| Net cash used in operating activities | (7,246,896 | ) | (2,046,957 | ) | (1,368,966 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchase of plant and equipment | (2,810 | ) | - | (40,586 | ) | |||||||
| Proceeds from disposal of subsidiaries | - | 2,174,025 | - | |||||||||
| Net cash (used in) provided by investing activities | (2,810 | ) | 2,174,025 | (40,586 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from short-term bank loans | - | 383,127 | 601,479 | |||||||||
| Repayment of short-term bank loans | (40,368 | ) | - | - | ||||||||
| Proceeds from other borrowings | - | 629,109 | - | |||||||||
| Proceeds from IPO offering | 8,047,695 | - | - | |||||||||
| Promissory notes payable | - | (1,584,735 | ) | 115,483 | ||||||||
| Loan from a shareholder | - | 71,716 | 71,716 | |||||||||
| Proceeds from allotment of ordinary shares | - | 500,000 | - | |||||||||
| Repayments (to) from related parties | (350,288 | ) | (379,093 | ) | 27,835 | |||||||
| Advances from related parties | 5,455 | - | 668,287 | |||||||||
| Net cash provided by (used in) financing activities – continuing operations | 7,662,494 | (379,876 | ) | 1,484,800 | ||||||||
| Net cash provided by (used in) financing activities – discontinued operations | - | 6,993 | (15,403 | ) | ||||||||
| Net cash provided by (used in) financing activities | 7,662,494 | (372,883 | ) | 1,469,397 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 412,788 | (245,815 | ) | 59,845 | ||||||||
| Effect of foreign currency translation on cash and cash equivalents | 266,790 | 280,796 | (127,759 | ) | ||||||||
| Cash and cash equivalents, beginning of year | 820,570 | 785,589 | 853,503 | |||||||||
| Cash and cash equivalents, end of year | $ | 1,500,148 | $ | 820,570 | $ | 785,589 | ||||||
| Supplemental cash flow information: | ||||||||||||
| Interest income received | $ | 7,560 | $ | 2 | $ | - | ||||||
| Interest paid | $ | 290,745 | $ | 206,842 | $ | 193,738 | ||||||
| Listing fee paid | $ | 185,799 | $ | 1,031,485 | $ | - | ||||||
FAQ
What was VS Media's revenue in fiscal year 2023?
What is the expected revenue growth for VS Media in FY24?
What is VS Media's share repurchase program about?
What strategic partnerships did VS Media enter into recently?
