SHENZHEN, China, April 25,
2024 /PRNewswire/ -- Taoping Inc. (Nasdaq: TAOP, the
"Company"), a developer of innovative smart cloud platform services
and solutions, new media and artificial intelligence solutions,
today reported 59.4% revenue growth for the year ended December 31, 2023, and anticipated continued
growth for the full year 2024. The Company expects to file its
annual report on Form 20-F for the year ended on December 31, 2023 with the U.S. Securities and
Exchange Commission ("SEC") on or about April 25, 2024.
Mr. Lin Jianghuai, Chairman and CEO of Taoping, commented, "In
2023, we experienced remarkable growth in revenue, with sales
surging 59.4% compared to 2022. Alongside this growth, we made
significant strides in profitability and came close to breaking
even. Our success was fueled by increased demand for our
cutting-edge Smart City products and solutions. The strategic
investments we've made in our integrated ecosystem solutions have
facilitated seamlessly integration of our robust technology
platform, resource exchange mechanisms, and big data services. This
seamless, powerful integration offers substantial benefits,
empowering our clients to enhance operational efficiency, reduce
labor costs, optimize asset utilization rates, and boost
revenue."
"Looking ahead to 2024, we anticipate sustained growth driven by
several pivotal factors, including a macroeconomic recovery,
increased customer demand, rising urbanization, and widespread
adoption of AI, cloud, and mobile technologies. These trends
present significant growth opportunities and new revenue streams
for Taoping, strategically positioning us for both short and
long-term success."
"The decisions we made to deliberately engineer our solution
with scalability, availability, and flexibility have positioned us
advantageously in the market. By leveraging the latest AI and
cloud-computing technology, our system is optimally designed to
effortlessly accommodate the increasing volume of data as our
network of display terminals expands. Importantly, owning the
entire stack of cloud infrastructure technology and terminals
provides us the flexibility to seamlessly introduce new
enhancements to our platform while ensuring a high level of
security. This strategic advantage bolsters our competitiveness and
positions Taoping to continue delivering value to shareholders as
we persist with our execution plans."
Select Financial Results for the Year Ended December 31, 2023
Revenue for the year ended December 31,
2023 was $38.6 million,
compared to $24.2 million for the
year ended December 31, 2022, an
increase of $14.4 million, or 59.4%.
Growth was primarily due to an increase of $12.0 million in revenue from products, and an
increase of $4.0 million in software
revenue. The Company expects that revenue for the full year 2024
will increase compared to the full year 2023 as a result of the
steady growth of its product sales and digital advertising, as well
as the additions of its new cloud-based intelligent products and
solutions.
Cost of revenue increased by $12.8
million to $29.8 million for
the year ended December 31, 2023,
primarily due to increases in cost of products of $10.3 million and cost of software of
$3.5 million, from $17.0 million for the year ended December 31, 2022. As a percentage of revenue,
our cost of revenue increased to 77.1% for the year ended
December 31, 2023, from 70.2% for the
year ended December 31, 2022.
Gross profit as a percentage of revenue decreased to 22.9% for
the year ended December 31, 2023 from
29.8% for the year ended December 31,
2022. The decrease in the overall gross margin primarily
resulted from lower margin of software and advertising. The Company
believes it can expand its gross margin over the coming quarters as
it benefits from an increased contribution of higher margin sales,
including its Smart City solutions, AI-related products, and
innovative off-grid wastewater treatment solutions.
Net loss from discontinued operations for the year ended
December 31, 2023 was approximately
$0.5 million, compared to a net loss
from discontinued operations of approximately $6.5 million in 2022. Reflecting the higher sales
noted above and a reduced net loss from discontinued operations,
the Company reported a net loss attributable to the Company of
$0.7 million for the year ended
December 31, 2023, substantially
improved from a net loss attributable to the Company of
$7.1 million for the year ended
December 31, 2022.
About Taoping Inc.
Taoping Inc. (Nasdaq: TAOP) has a long history of successfully
leveraging technology in the development of innovative solutions to
help customers in both the private and public sectors to more
effectively communicate and market to their desired targets. The
Company has built a far-reaching city partner ecosystem and
comprehensive portfolio of high-value, high-traffic areas for its
products, which are aligned together with Taoping's smart cloud
platform, cloud services and solutions, new media and artificial
intelligence. For more information about Taoping, please
visit www.taop.com. You can also follow us on X.
Safe Harbor Statement
This press release contains "forward-looking statements" that
involve substantial risks and uncertainties. All statements other
than statements of historical facts contained in this press
release, such as statements regarding our estimated future results
of operations and financial position, our strategy and plans, and
our objectives or goals, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
We have attempted to identify forward-looking statements by
terminology including "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "intends," "may," "plans,"
"potential," "predicts," "should," or "will" or the negative of
these terms or other comparable terminology. Our actual results may
differ materially or perhaps significantly from those discussed
herein, or implied by, these forward-looking statements. There are
a significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: our potential inability to achieve or sustain
profitability or reasonably predict our future results due to our
limited operating history of providing smart cloud services, the
effects of the global Covid-19 pandemic, the emergence of
additional competing technologies, changes in domestic and foreign
laws, regulations and taxes, uncertainties related to China's legal system and economic, political
and social events in China, the
volatility of the securities markets; and other risks including,
but not limited to, those that we discussed or referred to in the
Company's disclosure documents filed with the SEC available on the
SEC's website at www.sec.gov, including the Company's most recent
Annual Report on Form 20-F as well as in our other reports filed or
furnished from time to time with the SEC. The forward-looking
statements included in this press release are made as of the date
of this press release and the Company undertakes no obligation to
publicly update or revise any forward-looking statements, other
than as required by applicable law.
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SOURCE Taoping Inc.