Kidoz Inc. said it has adjusted its 2022 revenue forecast to $16-18 million, representing about 35% year-over-year growth, amid macroeconomic challenges, including risk heightened recession, persistently high inflation, rising interest rates, and a general contraction in advertising demand, particularly in the North American market.
The global adtech company said it expects 2022 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to remain positive for the third consecutive year.
“We believe this effect is temporary,” the company said in a trade update spurred by the TSX Venture Exchange’s recent approval of its normal course issuer bid, a process in which it may, in certain circumstances, repurchase up to 5% or 6,579,074 of its issued and outstanding common shares for cancellation.
READ: Kidoz reveals plans to conduct normal course issuer bid to buy up to 6.6 million shares
Kidoz said the state of California’s announcement to raise the regulatory age for advertisers to market to minors without data targeting to 17 is “very important” for the company in the short to medium term.
He said the regulatory change significantly increases the size of Kidoz’s addressable market, as he expects adoption of its secure advertising technology by app publishers to increase given that children and teens represent a large percentage of users in all online games.
The landmark new ruling expands protections for children under 13 to 17 online, with many seeing it as a model for other US states and international countries to follow.
Kidoz said it continues to grow its network and has more than doubled the adoption of its software development kit (SDK) app compared to its closest direct mobile ads competitor.
The Company Continues to Build Value and Trust with Advertisers by Facilitating Market-Leading Performance, Services and Technology in the High-Growth COPPA Media Landscape, While Providing Contextual App List Planning pre-campaign, live campaign optimizations, and detailed post-campaign reporting and analytics. .
It continues to add new app publishers, helping it secure a larger share of the global mobile advertising market, which is expected to grow from $144 billion in 2022 to over $600 billion by 2029. .
“With the rapidly changing macroeconomic environment currently underway around the world, we plan to expand our successful business partnership model with a North American direct sales force focused on increasing Kidoz’s growth and visibility. with our North American partners,” he added.
Kidoz said the company’s management and board of directors believe that its shares are trading at a substantial discount to its net asset value and do not reflect its underlying value.
For this reason, the company will continue to work with Agoracom and Proactive on its corporate outreach program, in particular to generate exposure related to its normal course issuer bid.
Kidoz will make an initial cash payment of C$20,000 and pay a total of C$80,000 in four installments of C$20,000 in stock to Agoracom over the next 12 months. The price of the securities to be issued will be determined after services have been provided to the Company in accordance with TSX Venture Exchange Policy 4.3 (Section 6.1) and calculated using the closing price on each of the payment dates, subject to a four-month detention period.
Additionally, Kidoz renewed its partnership with Proactive through May 30, 2023, allowing unlimited editorial and video coverage of Kidoz news and other company developments for CA$21,600. All content is published on Proactive’s websites and presented through Proactive’s network of syndication partners.
“We expect to generate additional new exposure through our continued presence on Proactive’s sites and through its global advertising presence in the growing ad-tech market. Proactive is one of the world’s fastest growing financial media portals, providing breaking news, commentary and analysis on hundreds of listed companies around the world, 24/7. 7,” the company added.
Kidoz has the first COPPA and GDPR compliant contextual mobile advertising network that securely reaches hundreds of millions of children, teens and families every month. Google Certified and Apple Approved, Kidoz provides an essential suite of advertising technologies that unites brands, content publishers and families.
The Kidoz contextual advertising network does not use location data tracking or PII commonly used in digital advertising. Instead, Kidoz has developed advanced contextual targeting tools to allow brands to safely reach their customers. Provider of targeted AdTech solutions, the Kidoz SDK and the Kidoz Programmatic network have become essential products in the digital advertising ecosystem.
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