Kidoz Inc.
Efficiency Outweighs Revenue Headwinds
Published: 11/22/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: AdTech | Industry: Advertising
Ticker Symbols:
KIDZ.V - TSX 🔹
KDOZF - NASDAQ 🔹
- Q3 revenue fell 19% YoY, missing our estimate by 9% due to lower-than-expected ad sales. Despite lower revenue, EPS improved YoY, driven by higher gross margins, and lower G&A expenses.
- In Q3, major digital ad platforms experienced slower YoY spending growth relative to the first half of the year, primarily driven by economic uncertainty, and stricter data privacy laws. For instance, YouTube (NASDAQ: GOOGL) and Meta (NASDAQ: META) saw their ad revenue growth slow to 12% and 19% YoY, respectively, down from 17% and 23% in H1.
- We anticipate global ad spending growth to rise in the coming quarters amid cooling inflation, and central bank rate cuts.
- We believe KIDZ is poised to benefit from the stricte