Kidoz Inc. (TSX-V:KIDZ), a leader in the kids-safe advertising market, has announced record revenue for the third quarter of 2022 and retained its full-year guidance for 35% revenue growth.
The mobile AdTech developer and owner of the market-leading Kidoz Contextual Ad Network and the Kidoz Publisher SDK revealed total revenue of $3,505,812 for the three months to September 30, 2022, a rise of 25% on the same period of 2021 and up 39% from the second quarter this year.
AdTech revenue grew to $3,454,824 from $2,484,799 in the second quarter.
WATCH: Kidoz reports strong rise in 3Q revenue as its model remains resilient in a tough market
Gross profit came in at $1,245,570 compared to $971,966 in the previous three months, while the loss for the period narrowed to $343,774 from $721,677.
Kidoz ended the third quarter with cash of $1,830,262 and working capital of $3,770,593.
The company reiterated its full-year 2022 revenue guidance of US$16 million to $18 million, up 35% on 2021.
The number of active campaigns live on Kidoz has increased substantially over the past 18 months and the company has recruited hundreds of new apps and developers that focus on a wide range of audience segments.
As a result of this rapid growth, the company is now able to expand beyond its core advertising audience of children and begin to contextually target teens and parents for its brand partners.
“Extending our media offering beyond children is the first step we are taking as our sales and agency partners are interested in accessing these related segments of our traffic,” the company said in its earnings statement.
“Kidoz is experiencing a period of rapid growth and we are extending our business model in ways that will fill our huge available inventory with safe and high performing media.”
The company said revenue growth was driven by strong underlying system growth for both users and publishers that are accessing the Kidoz technology, as media budgets continue to shift from linear TV to digital platforms like Kidoz.
“Building on our performance in 2021, we have continued our successful growth strategies this year and will be doing the same in 2023,” the company said, adding that its sales, product, and operational strategies are “custom fit to match the favourable regulatory, consumer, and technological trends occurring in the market”.
It said it intends to explore expanding in the “bountiful” mobile advertising ecosystem, either through additional uses of its new technology platforms for the entire mobile advertising market, or via synergistic M&A.
Contact the author at jon.hopkins@proactiveinvestors.com