Kidoz Inc. (TSX-V:KIDZ) has reported record annual revenue and profitability for fiscal 2021 amid growing demand for safe mobile advertising.
The 75% increase in total revenue to $12.5 million was the result of growing its publisher reach and advertising customers increasing their advertising budgets with the Kidoz safe mobile network, the company said in a statement.
Ad tech advertising revenue rose 81% to $12.2 million for the year to December 31, 2021, while adjusted underlying earnings (EBITDA) was $1.51 million compared with adjusted EBITDA of $771,236 in fiscal 2020.
READ: Kidoz reports strong fourth-quarter 2021 network activity
"The company's continued and increasing pace of growth is attributed to potent market and consumer forces both from the wider digital economy and also specific to the Kidoz niche of private, safe and contextual advertising,” co-CEO Jason Williams said in a statement.
“One of the key factors driving growth is the ever-increasing dominance of mobile usage and mobile entertainment across all age groups. Mobile is consumers' preferred choice for entertainment and Kidoz provides a safe and high-performance platform to reach hundreds of millions of consumers on their mobile devices,” Williams added.
The company reported net income before tax of $26,346 and a net loss after deferred tax of $190,321. It ended the year with $2.08 million of cash and working capital of $4.54 million after increasing non-capitalized research and development (R&D) expenditures by 46% to $1.68 million.
Kidoz noted that its commitment to children's privacy and safety has created one of the fastest-growing mobile networks in the world.
The Kidoz network now boasts more than double the SDK (software development kit) app adoption than its closest direct mobile ad competitor, the company added, saying the success of its strategy and technology increases the pace of its technology investments and creates further opportunities to accelerate the speed of its growth as it refines its software and systems.
"We continue to invest heavily into our systems and technology to increase our network reach and solidify our position as the market leader," added co-CEO Eldad Ben Tora.
"The latest Kidoz technology that was released in 2021 has the power to further increase our growth rate and fill the billions of impressions exposed monthly on the Kidoz network. The most powerful new product is Kidoz's COPPA-compliant programmatic technology solution: Kidoz Connect.”
Kidoz Connect creates a safe pipeline of advertising sources to be connected to the Kidoz Contextual ad network and funneled to the thousands of apps currently utilizing Kidoz monetization technology.
Kidoz said it has also developed new tools for enabling the growth of performance campaigns and the company has now expanded its offering to include both the teens and parents markets.
“Kidoz finished 2021 with exception growth, and we've carried that momentum into 2022 as we look to expand our market share and increase our rate of growth in 2022,” Ben Tora concluded.
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 through advanced contextual targeting tools that enable brands to reach their ideal customers with complete brand safety.
Contact the author at stephen.gunnion@proactiveinvestors.com