Kidoz Inc. (TSX-V:KIDZ), the mobile AdTech developer, has reported strong growth in first-quarter revenue, driven by a substantial increase in volume due to the ongoing shift from television to mobile advertising.
The company said revenue for the three months ended March 31, 2022, rose 47% to $2,283,974, with AdTech revenue jumping 45% to $2,178,311. It attributed the performance to strong demand for kid-safe contextual advertising and the growth of its Performance business segment.
"We're pleased with the first quarter of 2022," said Jason Williams, Kidoz CEO. "Our revenue grew greater than 40% compared to Q1 2021. This was driven by a substantial increase in volume through our leading kids-safe ad network."
READ: Kidoz streamlines management team as it prepares to release 1Q earnings; launches new website
Gross profit for the quarter improved by 21% to $830,895, while its adjusted underlying loss (EBITDA) widened to $427,284, as the company continued to invest in software development, marketing, and operations staff to raise its profit and enhance the technical and operational founding of the new Performance and Programmatic growth initiatives.
"While these investments were a slight drag on our profitability in the first quarter, we are confident that these investments will help maintain our rapid growth and return to profitability later on in the year,” Williams added. “Our visibility into revenue and EBITDA going forward is good, therefore, we are prepared to communicate 2022 revenue guidance of $19 million to $21 million, which represents approximately 60% year over year growth, and we expect 2022 adjusted EBITDA to be positive and maintain our profitable adjusted EBITDA for the third year in a row.”
The company said it ended the quarter with cash of $2,080,470 and working capital of $4,099,272.
"The company is building in an incredible way," said Eldad Ben Tora, president and general manager for Europe, the Middle East and Africa. "We have become a leader in safe mobile advertising and the variety of opportunities in this area are immense as mobile continues to grow and become the dominant entertainment medium.”
Kidoz said hundreds of millions of kids are consuming mobile content on a daily basis, and it helps to ensure their experience is safe, data-free and compliant while being performant for the mobile platforms.
“We are expanding our technology through as many platforms and channels as are available to reach and engage audiences globally,” Ben Tora concluded. “We believe 2022 will be another great year for Kidoz.”
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