Infobird Co., Ltd (“Infobird”, or the “Company”), a software-as-a-service (“SaaS”) provider of AI-powered customer engagement solutions in China, announces that it has filed its interim report for the six months ended June 30, 2021, with the U.S. Securities and Exchange Commission (the “SEC”). The interim report, which contains Infobird’s unaudited consolidated financial statements ended June 30, 2021.
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2021 marks a key transition year for Infobird as the Company is under the transforming process from mainly providing customized cloud-based services to standard cloud-based services. With a successful standardized SaaS transition, the Company believes that it will be able to expand the market much quicker on a large scale and at a relatively low cost, which it believes will greatly increase the market penetration of customer engagement for the Company. Due to the expiration of the contract from its past largest client and the needed time it takes for the standardization transition, its total revenue for six months ended June 30, 2021 decreased by approximately $1.7 million, or 28.0%, compared with the total revenue for the six months ended June 30, 2020. The Company also experienced a net loss for the six months ended June 30, 2021 because of the increase in operating expenses. The largest portion of the increase in operating expense comes from the long-lived asset impairment which is approximately $2.4 million as a result of the delay of construction progress from the Company’s subsidiary Guiyang Infobird. Approximately $0.2 million of the increase was from the professional fees to become a publicly listed company on the Nasdaq Capital Market. There was an approximate $0.3 million, or 44.4%, increase in sales and marketing expenses and approximately $1.0 million, or 149.5%, increase in research and development expenses as the Company was expanding its sales and marketing and upgrading its products.
The Company has also made positive progress in terms of the expansion of its standardized services. For the six months ended June 30, 2021, the standard cloud-based services revenue increased by approximately 28.1%, and its average revenue per user account increased by approximately 40.2% compared with the same period in 2020. In addition, the company has also been utilizing organization structures to better focus on strategic vertical industries as well as increasing effective spending in sales and marketing for the first half-year of 2021, especially after the success of IPO on April 20, 2021. Its client base for the dental industry was approximately twelve times of the client base as of January 30, 2021. For the consumer product and retail industry, Infobird has also successfully engaged with several leading consumer product and retail clients, including SaSa, which is a leading cosmetic brand based in Hong Kong, and Zulijian, which is a leading footwear brand for the elders in China. The Company expects that these successful client cases will help to set sound foundations for future expansion in the related industries. Very recently, the Company acquired a major stake in Shanghai Qishuo technology Inc (“Qishuo”), which is a provider of consumer product and retail store digitalization solutions in the retail footwear industry and leading clothing brands. Infobird expects that Qishuo’s deep understanding and its SaaS solution in the consumer product and retail industry will greatly contribute to Infobird’s current product portfolio and set a stronger foothold to expand in this industry.
Yimin Wu, chief executive officer and chairman of the Infobird board of directors commented, “We strongly believe that our transition to standard cloud-based services will greatly benefit our clients and us at the same time. It not only can empower our clients, from SMBs to large enterprises, to quickly benefit from the high-quality customer engagement services but it also provides us with the possibilities to scale up faster in terms of revenue across industries with our services. This is a very crucial period for us since we were still in a relatively early stage of the transition for the first half of 2021 and we have been allocating our resources to better enable us to make the transition happen. We are excited to see that our teams are ready for this change and we have set some sound foundations both in our horizontal industry as well as in our strategic vertical industries to further expand our standard cloud-based services. Very importantly, we intend to continue to upgrade our products in customer engagement to bring more add-on business values to our clients so that they can benefit from our services. As we move forward with our transition, we believe that our revenue for standard cloud-based services will continue to increase for the full year of 2021 and beyond.”
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