China Finance Online (JRJC) Reports Q3 Loss of $0.09

China Finance Online (NASDAQ: JRJC) reported Q3 EPS of ($0.09), versus ($0.26) reported last year. Revenue for the quarter came in at $8.1 million, versus $8.6 million reported last year.

Third Quarter 2019 Financial Highlights

• Net revenues were $8.1 million.
• Revenues from advertising grew 41.4% year-over-year.
• Gross margin was 62.3%.
• Net loss attributable to China Finance Online was $2.1 million, compared with a net loss of $6.0 million in the third quarter of 2018.
• The Company's operational metrics continued to improve and operational efficiency continued to increase.
• The Company's continued investment in fintech started to show results.

Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online, commented that "During the third quarter of 2019, our bottom-line loss was significantly reduced. The weak Hong Kong markets and the falling investor confidence in the third quarter of 2019 led to a revenue decline in our brokerage business in Hong Kong. With the improvement of our business model and higher operation efficiency, our gross margin was also strengthened from the same period of last year."

"Similar to the transition of brokerage services in the US, Chinese financial institutions are moving away from a trading commission-oriented business model to holistic financial services encompassing wealth management, investor education, and asset allocation advisory. Our dedication to leveraging technologies to empower wealth managers and improve customer loyalty has bought us closer to many financial institutions. This paradigm shift in the financial industry also set the stage for us to change the revenue model from one-off project services to annual retainers. Our Genius Zhisheng has received such standard annual contracts from brokerage firms. Our institutional business is showing good indications."

"After a weak second quarter, the Chinese stock markets continued to soften during the third quarter and the Shanghai Composite Index dropped from 2979 to 2905. However, the traffic to our flagship website, 'JRJ.com.cn,' continued to rise, reaching No. 150 in Alexa\'s Global Ranking and No. 35 in China, respectively. We remain one of the most trusted financial news hubs with our proprietary content, fact-based journalism, breaking news coverage and analysis on market trends. Growing traffic attracted not only more readers but also more advertisers. As a result, our advertising business is growing rapidly."

"Looking into 2020, we will continue to optimize and upgrade our services and products, and also remain confident to leverage our fintech capabilities to add value to our institutional customers and grow our market share and earning power," Mr. Zhao concluded.

For earnings history and earnings-related data on China Finance Online (JRJC) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c
• Pro Diversity Network (IPDN) Reports Q2 Loss of $0.15