Digital Ad Spending Surge: KIDOZ Inc. Positioned for Profitability.
The digital advertising landscape is booming! Major platforms like YouTube and Meta reported significant ad revenue growth, rising by 20% and 27% YoY, respectively. Amid this vibrant market, Kidoz Inc. (TSXV: KIDZ) is making strategic moves, reflected in their latest performance report.
Recent Performance:
- Q1 revenue was up 7% YoY.
- Gross margins increased by 13 percentage points YoY to 53%, primarily driven by higher direct vs. reseller sales. Consequently, EBITDA and EPS improved YoY and significantly exceeded our expectations.
Market Context:
- We expect stronger revenue growth for the rest of the year given the anticipated growth in global digital ad spending.
- According to eMarketer, global digital ad spending will grow by 13.2% this year, up from 10.7% in 2023, and 9.1% in 2022.
Financial Outlook:
- While we have revised our 2024 revenue growth forecast downward from 16% to 13%, we now anticipate EPS turning positive this year.
- Kidoz maintains a healthy balance sheet with no debt.
- Kidoz's forward EV/R is 1.6x versus the sector average of 3.3x, indicating a 50% discount.
Disclaimer: FRC provides issuer-paid coverage. Past performance is not indicative of future results.