Kidoz (KIDZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2.29M, down 19% year-over-year, with a 47% reduction in net loss to $406K.

• Gross profit increased 15% to $1.21M despite lower revenue, reflecting improved operational efficiency.

• Management expects record Q4 revenue and profitability, aiming for full-year profitability in 2024.

Financial highlights

• Direct Ad Tech Advertising revenue fell 16% to $2.10M; Programmatic Ad Tech revenue dropped 29% to $175K year-over-year.

• Adjusted EBITDA loss improved to $(257)K from $(471)K in Q3 2023.

• Free cash flow was $(293)K, down from $100K in Q3 2023; cash balance at quarter-end was $443K.

• Current ratio improved to 2.29 from 1.70 at year-end 2023.

Outlook and guidance

• Management anticipates a significant portion of annual revenue in Q4, driven by direct brand relationships and platform upgrades.

• Regulatory changes (COPPA 2.0) expected to expand the addressable market.