Kidoz Inc. (TSX-V:KIDZ) has told investors its software platform for reaching kids and families on mobile devices continues to experience strong growth despite overall negative market turbulence after the collapse of the Silicon Valley Bank and Signature Bank, to which it has no exposure.
Releasing additional detail regarding its unaudited financial results and providing further clarity on its financial reporting as a federal Canadian business, Kidoz CEO Jason Williams stated: "The recent collapse of the Silicon Valley Bank has caused great concern in the public markets, and Kidoz management felt it would be wise to present its current financial situation and its business philosophy.”
The company said its management believes its innovative sales strategy and proprietary stack of advertising technology, combined with the dominance of mobile entertainment as consumers' preferred choice, will continue to have a profound effect on its results.
READ: Kidoz reports strong revenue growth in 4Q 2022 and fiscal year 2022
Additionally, as a result of powerful advertiser and user growth on its market-leading mobile platform, the company said its unaudited financial results for the fourth quarter ended December 31, 2022, continued to show record revenue and a strong balance sheet heading into a challenging fiscal 2023.
"Kidoz Inc operates worldwide and had working capital of $4,110,785 at year-end after recording record revenues of $15,054,490 and generating free cash flow of $433,745 through fiscal 2022. Kidoz has no deposits in banks in the United States, and maintains its cash deposits in several different large banks throughout the world,” Williams added. "We intend to release our audited financial statements in mid-April 2023, ahead of the regulated deadline of April 30, now that we have successfully completed our transition from being an Anguillian-based company to being a federally regulated Canadian business corporation.
Kidoz said its management is pleased with the company's strong growth in 2022 despite the ongoing weakness in the wider advertising market. This weakness is expected to continue in the first half of fiscal 2023 but early macro indicators show a return to normalcy expected to commence in the second half of fiscal 2023. As a result, it said management believes that the growth in 2022 will place the company in a strong position to benefit and that its full fiscal 2023 results will be greater than fiscal 2022.
"We intend to continue our focus on growing the business as rapidly as possible, without a focus on quarterly earnings, by continuing to develop our extensive technology and expanding our global sales performance as demonstrated by the fact that over half of our revenues were generated outside of North America in fiscal 2022,” 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, 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 stephen.gunnion@proactiveinvestors.com