Market Overreaction to Q2 Presents Attractive Entry Points

Published: 8/26/2024

Author: FRC Analysts

Thumbnail of the report Market Overreaction to Q2 Presents Attractive Entry Points

*This report and research coverage is paid for and commissioned by Kidoz Inc. - See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.

Sector: AdTech | Industry: Advertising

Ticker Symbols:KIDZ.V - TSX 🔹KDOZF - NASDAQ 🔹

Rating and Key Data

Metrics	Value
Current Price	CAD $0.12
Fair Value	CAD $0.65
Risk	4
52 Week Range	CAD $0.10-0.36
Shares O/S (M)	131
Market Cap. (M)	CAD $16
Current Yield (%)	N/A
P/E (forward)	N/A
P/B	2.6

Already a subscriber?

Want to know the fair value of the stock?

Subscribe for free to get exclusive insights and data.

Report Highlights

Q2 revenue fell 12% YoY, missing our estimate by 10% due to lower-than-expected ad spending. Despite lower revenue, EPS improved YoY, driven by higher gross margins and lower G&A expenses.
In Q2, major digital ad platforms experienced slower YoY spending growth relative to the previous quarter. For instance, YouTube (NASDAQ: GOOGL) and Meta (NASDAQ: META) saw their ad revenue growth decelerate to 13% and 22% YoY, respectively, down from 20% and 27% in Q1.

That said, ad spending is expected to rise in Q4, amid cooling inflation and proposed rate cuts by central banks. eMarketer forecasts global digital ad spending will grow by

Rating and Key Data

Metrics	Value
Current Price	CAD $0.12
Fair Value	CAD $0.65
Risk	4
52 Week Range	CAD $0.10-0.36
Shares O/S (M)	131
Market Cap. (M)	CAD $16
Current Yield (%)	N/A
P/E (forward)	N/A
P/B	2.6