Kidoz Inc.
Client Delays Impact Revenue; Sector Outlook Remains Strong
Published: 12/7/2023
Author: Sid Rajeev, B.Tech, CFA, MBA
Sector: AdTech | Industry: Advertising
| Metrics | Value |
|---|---|
| Current Price | US $0.21 |
| Fair Value | US $0.82 |
| Risk | 4 |
| 52 Week Range | US $0.14-0.44 |
| Shares O/S (M) | 131 |
| Market Cap. (M) | US $27 |
| Current Yield (%) | n/a |
| P/E (forward) | n/a |
| P/B | 4.0x |
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Report Highlights
Highlights
In Q3, revenue dropped 20% YoY, falling 18% below our estimate due to clients delaying ad campaigns. We were disappointed with the revenue decline, especially considering the upward trend in global digital ad spending. Major digital ad platforms, YouTube (NASDAQ: GOOGL), and Meta (NASDAQ: META), reported revenue growth of 12% YoY and 24% YoY, respectively.
Another contributing factor to the decline in revenue is KIDZ's shift in sales strategy within the U.S. Instead of relying exclusively on resellers, the company expanded its sales team to prioritize direct sales; a strategy management believes will be more successful in boosting revenue, and margins.
KIDZ's ad network spans 5,000+ apps, reaching 400M kids. Prominent brands such as McDonald's (NYSE: MCD), Disney (NYSE: DIS), Lego, Kellogg's (NYSE: K), and Nintendo
