Kidoz Inc. (TSX-V:KIDZ) has reported record revenue for its 2022 fiscal year as it continued to expand its kid-safe ad solutions platform, with its entry into the teen market expected to boost future revenue.
The mobile advertising technology company and owner of the KIDOZ Safe Ad Network grew revenue by 21% to $15.1 million in the year to December 31, 2022. Direct Ad Tech advertising revenue rose 18% to $14.4 million, while Programmatic Ad Tech advertising revenue soared 518% to $361,394.
"Kidoz is the market leader in safe mobile media and our investments into our technology and sales teams continue to deliver results," Kidoz CEO Jason Williams said in an earnings 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 outperformed the Ad Tech market in 2022 by securing strong growth in a weak market and maintaining positive free cash flow."
Sales and marketing expenses rose 65% to $1.04 million for the year as the company continued to expand its platform, while non-capitalized research and development (R&D) costs increased by 49% to $2.5 million. It reported a net loss after tax of $1.35 million, up from $190,321 in fiscal 2021, and an adjusted underlying loss (EBITDA) of $231,395 from an adjusted EBITDA of $1.5 million a year earlier.
The company ended the year with cash of $2.36 million and working capital of $4.15 million, compared to cash of $2.08 million and working capital of $4.5 million as of December 31, 2021.
Prudent approach to 2023
Kidoz said it has begun its 2023 year “prudently” after identifying continued weakness in the global advertising market. While it anticipates lower revenues in the first half of the year, it expects to continue its rate of growth for the full year.
“Kidoz's reputation with leading advertisers is strong and we are building channels to larger deals than we have ever received in the past,” Williams added.
Part of its expansion includes the recent launch of Prado to complete its media offering, targeting the family segment of advertisers trying to reach teen markets and parents.
“The Kidoz team has high expectations for Prado as the advertising market in this segment is over 100 times larger than the market for advertising to children,” Williams explained. “However, with a larger market comes increased competition and the Prado commercial team needs time to position itself in the market and build trust and relationships.
“We have the knowledge that our technology for delivering high-performance in-app media is strong and believe that it is only a matter of time before Prado's market position is secure and our revenue growth is enhanced."
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