VS Media Holdings Limited (NASDAQ:) announced its financial results for the fiscal year ended December 31, 2023. “Fiscal 2023 was challenging as our business was negatively impacted by weakened market sentiment, decreased 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, 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.”

Revenue was $7.99 million, compared to $9.03 million in the prior year; Overall campaign-based marketing services revenue grew 12.7% year-over-year to $4.40 million; Revenue of campaign-based marketing services in Hong Kong grew by 105.7% to $2.16 million 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 $7.99 million compared to revenue of $9.03 million in the prior year. The decrease in revenue was mainly attributable to decreased revenue from the Company’s Optimization-Based Marketing Services and Social Commerce businesses. The decrease was a result of weakened market sentiment, change in service mix as the company recalibrated internal resource to focus on higher margined Campaign-based marketing services in Hong Kong and the Company’s strategy to temporarily suspend its Social Commerce business to optimize resources allocation.

Gross Profit for the year was $1.64 million compared to $2.28 million in the prior year. The overall decrease in gross margin to 20.5% was due to the abovementioned factors. The Company reported a net loss of $6.59 million for the year, mainly due to listing related one-time expenses.

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.

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.