Kidoz Inc. (TSX-V:KIDZ) said it recorded strong revenue growth in the fourth quarter of 2022 and in the fiscal year 2022 despite difficult trading conditions in the advertising market.
The company said unaudited total revenue in the fourth quarter was $6,751,091, a 92% increase from the previous quarter. Profit stood at $373,962, an increase of $687,736 from the loss seen in the previous quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, stood at $693,898, a steep growth from $4,435 in Q3 2022.
For fiscal 2022, unaudited total revenue was $15,054,490, a 21% rise over fiscal 2021, while net loss was at $1,392,531, compared to a fiscal 2021 net loss of $190,321.
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The company said management is pleased with the strong growth in 2022 despite the ongoing weakness in the wider advertising market, adding that this weakness is expected to continue into the first half of fiscal 2023. Still, early macro indicators show a return to normalcy in the second half of fiscal 2023, it noted.
"Kidoz continues to extend its market leadership position as the premier provider of safe contextual mobile advertising," said Jason Williams, Kidoz CEO in the results statement.
"2022 was executed as we planned, building a business and technology platform that will complement and compete with the global leaders in advertising technology. We significantly increased our investments into sales and marketing and research and development while maintaining positive free cash flow thus adding strength to our balance sheet. Advertising demand was consistently strong for Kidoz Media during 2022, although we did see some weakness in the final month of Q4. Management is therefore acting prudently as 2023 begins with a softer market.
“Nevertheless, we continue to build and expand a robust advertising technology platform that has the capacity to scale to new heights and has the flexibility to service advertisers' needs in new and creative ways. Kidoz' reputation with leading advertisers is strong and we are building channels to larger deals than we have ever received in the past. Advertisers are looking for brand-safe media with the widest reach and Kidoz is their solution," he added further.
Network growth highlights in fiscal 2022 over fiscal 2021 include:
- 2.105 billion paid impressions were delivered during fiscal 2022, recording 46% growth over the 1.441 billion paid impressions delivered in fiscal 2021;
- 1.142 billion video views were delivered during fiscal 2022, representing a 60% increase over the 713 million video views delivered in fiscal 2021;
- Over 648 million rich media ads were played in fiscal 2022, for 8.5% growth over the 597 million played in fiscal 2021;
- Paid App Installs from the Kidoz App Promotion campaigns business line grew by 41% in fiscal 2022 over fiscal 2021.
Network Growth highlights Q4 2022 over Q3 2022, include:
- 870 million paid impressions were delivered during the fourth quarter of 2022, recording 73% growth over the 503 million paid impressions delivered in the third quarter of 2022;
- 567 million video views were delivered during the fourth quarter, representing a 122% increase over the 255 million video views delivered in the third quarter of 2022;
- Over 195 million rich media ads were played in the fourth quarter of 2022, for 15% growth over the 170 million played in the third quarter of 2022;
- Paid App Installs from the Kidoz App Promotion campaigns business line declined by 20% in the fourth quarter of 2022, versus the third quarter of 2022.
"Kidoz operates its core, child-directed, media business, along with newly launched products that service teens, parents, performance marketing advertisers, and safe-programmatic advertising via the Kidoz Connect solution. As our software continues to be refined and expands further into the global advertising technology market, we are able to increase our rate of growth and build new revenue streams from within the enormous $400 billion digital advertising market,” CEO Williams concluded.
Kidoz owns the leading COPPA & GDPR-compliant contextual mobile advertising network that safely reaches hundreds of millions of kids, teens, and families every month.
Google-certified and Apple-approved, Kidoz provides an essential suite of advertising technology that unites brands, content publishers and families. Trusted by Disney, Hasbro (NASDAQ:HAS), Lego and more, the Kidoz Contextual Ad Network helps the world's largest brands to safely reach and engage kids across thousands of mobile apps, websites and video channels.
Contact the author at jon.hopkins@proactiveinvestors.com