Kidoz Inc. Revenue of US$2,808,354 in Q3 2023

Vancouver, B.C. Canada, November 28, 2023 – Kidoz Inc. (TSXV:KIDZ) (the “Company”), mobile AdTech developer and owner of the market leading Kidoz Contextual Ad Network (www.kidoz.net); and the Kidoz Publisher SDK, announced today its unaudited condensed interim financial results for the quarter ended September 30, 2023.  All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.

“In Q3 2023, we recorded revenue of $2,808,354, a figure that reflects our resilient performance amidst a challenging global economic landscape,” stated Jason Williams, Kidoz CEO. “This period witnessed a cautious trend in digital media spending, influenced by global market uncertainties and fluctuating interest and inflation rates putting pressure on consumer spending. Despite these factors, Kidoz has effectively managed its operations, maintaining strong relationships with our clients. While some anticipated campaigns were rescheduled, we see these not as missed opportunities but as potential growth avenues for 2024” said Williams.

“Furthermore, 2023 marked a significant strategic evolution for Kidoz, as we transitioned towards a more robust, direct in-house sales model in America, advancing from our previous agency sales representation strategy. This strategic progression represents a significant investment in our long-term vision. While such a transition naturally unfolds over time, the early indications are highly encouraging. Our team is now engaging with an unprecedented number of brands and agencies, demonstrating the strength and potential of our new approach. We are confident that this refined sales strategy in North America will usher in a period of growth and an enhanced market footprint for Kidoz starting in 2024.”

“Kidoz is the leader in COPPA media. We are the technical backbone of the industry for kid-safe in-app media.  When the company was under agency representation agreements, it was more difficult to communicate the advantages of our platform as we did not have deep relationships with important brands.  In 2023, as a result of these better relationships with leading brands, they now have a better understanding of our role as the critical path for COPPA compliance. This, combined with our improved technical capabilities derived from our significant investment in research and development over the past three years, we are in a strong position to see these investments provide positive returns in the coming quarters.”

“Additionally, our Prado offering of advertising to teens and parents commenced in 2023.  In the third quarter of fiscal 2023 we have had a record number of new campaigns on the Prado system.  Whilst campaigns in tier one countries, with larger budget allocations, remain elusive to Prado, we have had high demand in smaller countries for our Prado offering.  We will continue to invest in expanding the Prado brand in 2024 and expect to attract more brands in larger jurisdictions in 2024.”

“It is managements opinion that the Kidoz and Prado media platforms are robust and our proprietary systems are capable of generating many multiples of higher revenue as the industry begins to embrace more in-app media for brands.  Management remains more confident than ever in our ability to secure large budget allocations from both large and small brands, world-wide, and return the Company to record growth.”

“Unfortunately, our share price does not reflect the value of the Company, however we continue to believe our focus on the longer term, and careful cash management, rather than quarter over quarter performance is the correct sustainable strategy, especially in these turbulent times. The Company’s cash and working capital positions remain strong and even though our revenue was down, by focusing on our margins we provided $98,877 to our cash generated by operations during the quarter.”

Kidoz Inc. Q3 2023 Financial Highlights:

• Total Revenue of $2,808,354, a slight decrease compared to Q2 2023 Total Revenue of $2,814,239 and a decrease compared to Q3 2022 Total Revenue of $3,514,149
• Direct AdTech revenue of $2,492,058, a slight decrease compared to Q2 2023 Direct AdTech Revenue of $2,495,469 and compared to Q3 2022 Direct AdTech Revenue of $3,410,874.
• Programmatic Ad Tech Revenue of $248,546, a slight decrease compared to Q2 2023 Programmatic Revenue of $254,776 and an increase compared to Q3 2022 Programmatic Revenue of $52,287
• Sales and Marketing expenditure of $312,791, an increase compared to Q2 2023 Sales and Marketing expenditures $306,561 and an increase from $222,379 in Q3 2022
• Non-Capitalized R&D expenditures of $720,076, a decrease compared to Q2 2023 Non-Capitalized R&D expenditures of $755,397 and an increase from $613,196 in Q3 2022
• Q3 2023 Gross Profit of $1,053,814 a decrease compared to Q2 2023 Gross Profit of $1,239,580 and a decrease compared to Q3 2022 Gross Profit of $1,245,570
• Q3 2023 Net Loss of ($764,337) an increase from a Q2 2023 loss of ($509,424) and an increase from a Net Loss of ($313,774) in Q3 2022.
• Q3 2023 Adjusted EBITDA loss of ($471,051) from a Q2 2023 Adjusted EBITDA loss of ($214,770 and a Q3 2022 Adjusted EBITDA profit of $4,435.
• Cash of $1,468,955 and working capital of $2,615,610 as at September 30, 2023.
• Cash provided by operations in Q3 2023 of $98,877 compared to cash provided in operations in Q3 2022 of $113,749.

CAUTION REGARDING NON-GAAP FINANCIAL MEASURES

This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by GAAP.  Adjusted EBITDA is not presented in accordance with, or as an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”). We encourage investors to review the GAAP financial measures included in our annual Management Discussion and Analysis and our Form 20-F, to aid in their analysis and understanding of our performance and in making comparisons.

We use Adjusted EBITDA internally to evaluate our performance and make financial and operational decisions that are presented in a manner that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures.  Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus depreciation expense, amortization expense, interest, stock-based compensation and impairment of goodwill), further adjusted to exclude certain non-cash expenses and other adjustments.  We use Adjusted EBITDA because we believe it more clearly highlights business trends that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.

Our Adjusted EBITDA is reconciled as follows:

About Kidoz Inc.

Kidoz Inc. (TSXV:KIDZ) (www.kidoz.net) owns the leading COPPA & GDPR compliant contextual mobile advertising network that safely reaches hundreds of millions of kids, teens, and families every month.  Google certified, and Apple approved, Kidoz provides an essential suite of advertising technology that unites brands, content publishers and families.  Trusted by Disney, Hasbro, Lego and more, the Kidoz Contextual Ad Network helps the world’s largest brands to safely reach and engage kids across thousands of mobile apps, websites and video channels.  The Kidoz network does not use location or PII data tracking commonly used in digital advertising.  Instead, Kidoz has developed advanced contextual targeting tools to enable brands to reach their ideal customers with complete brand safety.  A focused AdTech solution provider, the Kidoz SDK and Kidoz Programmatic network have become essential products in the digital advertising ecosystem.

The Prado (www.prado.co) technology provides a leading mobile SSP (Supply-side Platform), DSP (Demand-side Platform) and Ad Exchange programmatically to the entire Ad Tech universe.  By activating high-performance programmatic campaigns across thousands of apps on their network, Prado makes digital advertising more efficient and effective by simplifying the process across a connected technology platform.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements.  Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company.  Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company.  For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission.  Specifically, readers should read the Company’s Annual Report on Form 20-F, filed with the SEC and the Annual Financial Statements and Management Discussion & Analysis filed on SEDAR on April 19, 2023, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company’s financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Kidoz Inc.

For more information contact:

Henry Bromley
CFO
ir@kidoz.net
(888) 374-2163

Dear Friends

We hope this message finds you strong and unified during these unimaginably trying times. We wish to address the tragic and horrendous events that transpired in our founding nation, Israel, on October 7th, 2023.

Our deepest condolences, thoughts, and prayers extend to the families affected by this brutal act of violence, the lives unjustly taken, and all those injured and traumatized. Our heart aches with yours, and we stand firmly with our team, partners, and the wider community in Israel.

Although Kidoz has expanded globally and merged with a Canadian entity, our roots remain in Israel, and our connection to its people is unwavering. Despite our geographical expansion, the spirit and resilience of Israel continue to inspire our values and guide our path.

We are grateful for the outpouring of international support and commend all the global leaders that stand with Israel in this dark hour.

Business Continuity

While our emotions are heavy, we assure you that our commitment to our mission remains steadfast. Kidoz will continue its operations unimpeded from Israel, and globally, ensuring that our initiatives, particularly those safeguarding children and families, persist without disruption. Our teams around the world are safe and are working harmoniously to maintain the service and support you have come to expect from us.

Supporting Our Team and Community

During this time, we emphasize our full support to our Israeli team, ensuring they have the resources and time they need to navigate through these traumatic events. Our priority is the mental and physical wellbeing of our team and the wider community, and we will stand beside them, providing the necessary support every step of the way.

We share in the sorrow of those who have lost loved ones and extend our wishes for a swift recovery to the injured and return of the captives. We assure you that Kidoz, grounded in the protection of children and families, will further its endeavours to provide a safe digital environment for our global family.

Thank you for standing with us, for your ongoing support, and for keeping the spirit of unity and resilience alive during such pivotal moments. Our collective strength will guide us through, and together, we will emerge stronger, ensuring safety and wellbeing for all.

Warm regards,

‍Jason Williams, CEO, London, UK
‍Eldad Ben Tora, Founder and President, Israel
‍Tarrnie Williams, Chairman, Vancouver, Canada

Kidoz Inc. Record Revenue of US$2,814,239 Continues in Q2 2023

Vancouver, B.C. Canada, August 23, 2023 – Kidoz Inc. (TSXV:KIDZ) (the “Company”), mobile AdTech developer and owner of the market leading Kidoz Contextual Ad Network (www.kidoz.net); and the Kidoz Publisher SDK, announced today its unaudited condensed interim financial results for the quarter ended June 30, 2023.  All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.

Recent Kidoz Inc. Q2 2023 highlights include:

• Total Revenue of $2,814,239, an increase of 12% compared to Q2 2022 Total Revenue of $2,518,137 and an increase of 68% compared to Q1 2023 Total Revenue of $1,673,685
• Direct AdTech revenue of $2,495,469 an increase of 2% compared to Q2 2022 Direct AdTech Revenue of $2,458,351 and an increase of 62% compared to Q1 2023 Direct AdTech Revenue of $1,538,046.
• Programmatic Ad Tech Revenue of $254,776, an increase of 723% compared to Q2 2022 Programmatic Revenue of $30,972 and an increase of 274% compared to Q1 2023 Programmatic Revenue of $68,070.
• Sales and Marketing expenditure of $306,561, an increase of 22% from $251,788 in Q2 2022 and a decrease of 6% compared to Q1 2023 Sales and Marketing expenditures $327,522.
• Non-Capitalized R&D expenditures of $755,397, an increase of 17% from $644,054 in Q2 2022 and an increase of 1% compared to Q1 2023 Non-Capitalized R&D expenditures of $744,333.
• Q2 2023 Gross Profit of $1,239,580, an increase of 28% compared to Q2 2022 Gross Profit of $971,965 and an increase of 85% compared to Q1 2023 Gross Profit of $669,969.
• Q2 2023 Net Loss of ($509,424) a 29% reduction from a Net Loss of ($721,677) in Q2 2022 and a 52% reduction from a Q1 2023 loss of ($1,066,612).
• Q2 2023 Adjusted EBITDA loss of ($214,770) a reduction of 46% from a Q2 2022 Adjusted EBITDA loss of ($397,378) and a 73% reduction from a Q1 2023 Adjusted EBITDA loss of ($796,915).
• Cash of $1,380,740 and working capital of $3,099,985 as at June 30, 2023.
• Cash used in operations in Q2 2023 of ($912,510) compared to cash used in operations in Q2 2022 of ($337,428).

“Q2 2023 was another quarter of record revenue for Kidoz,” stated Jason Williams Kidoz CEO.  “Through continued investments in technology and operations, two pillars of the business showed marked improvement and helped to propel the Company to new heights.  First, our investment in the software development of our programmatic technologies helped us to secure and deliver more than $250,000 in programmatic ad campaigns representing 274% growth over the first quarter of 2023.  Second, through investments in data analytics and operational processes we were able to significantly improve our operating margins to 44% in the second quarter of 2023 from 39% in the second quarter of 2022.  Kidoz management’s decision to increase investments to ensure our technology and operation surpass the competition was correct and our growth was secured.

During the second quarter, the Company also saw an increase in the growth of Prado campaigns as the teens and adults segments of our business continues to grow along with the kids.  However, one of the most exciting milestones achieved during the quarter was the launch of a successful “AAA” Game-Ad in collaboration with McDonald’s and Disney.  Designed to engage users into playing the gamified ad, the interactive unit was the most successful of all ads produced by the Kidoz Game-Ad team.  With more than 35% of impressions engaging with the Game Ad for more than 1 minute on average, McDonald’s and Disney were able to generate significant interest in Disney’s Elementals movie release.  Kidoz and Prado are developing a number of new opportunities with leading brands interested in custom AAA Game-Ads from the Company’s in-house studio.

After six months of operations in 2023, Kidoz is perfectly positioned to achieve records for the remaining two quarters and the full year.  Kidoz historically reports 68% of yearly revenue in the second half of the year with 43% occurring in the fourth quarter alone.  With the Kidoz technical, operational, and commercial teams all perfectly aligned, management believes that the records set in 2022 will fall.”

CAUTION REGARDING NON-GAAP FINANCIAL MEASURES

This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by GAAP.  Adjusted EBITDA is not presented in accordance with, or as an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”). We encourage investors to review the GAAP financial measures included in our annual Management Discussion and Analysis and our Form 20-F, to aid in their analysis and understanding of our performance and in making comparisons.

We use Adjusted EBITDA internally to evaluate our performance and make financial and operational decisions that are presented in a manner that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures.  Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus depreciation expense, amortization expense, interest, stock-based compensation and impairment of goodwill), further adjusted to exclude certain non-cash expenses and other adjustments.  We use Adjusted EBITDA because we believe it more clearly highlights business trends that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.

Our Adjusted EBITDA is reconciled as follows:

About Kidoz Inc.

Kidoz Inc. (TSXV:KIDZ) (www.kidoz.net) owns the leading COPPA & GDPR compliant contextual mobile advertising network that safely reaches hundreds of millions of kids, teens, and families every month.  Google certified, and Apple approved, Kidoz provides an essential suite of advertising technology that unites brands, content publishers and families.  Trusted by Disney, Hasbro, Lego and more, the Kidoz Contextual Ad Network helps the world’s largest brands to safely reach and engage kids across thousands of mobile apps, websites and video channels.  The Kidoz network does not use location or PII data tracking commonly used in digital advertising.  Instead, Kidoz has developed advanced contextual targeting tools to enable brands to reach their ideal customers with complete brand safety.  A focused AdTech solution provider, the Kidoz SDK and Kidoz Programmatic network have become essential products in the digital advertising ecosystem.

The Prado (www.prado.co) technology provides a leading mobile SSP (Supply-side Platform), DSP (Demand-side Platform) and Ad Exchange programmatically to the entire Ad Tech universe.  By activating high-performance programmatic campaigns across thousands of apps on their network, Prado makes digital advertising more efficient and effective by simplifying the process across a connected technology platform.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements.  Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company.  Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company.  For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission.  Specifically, readers should read the Company’s Annual Report on Form 20-F, filed with the SEC and the Annual Financial Statements and Management Discussion & Analysis filed on SEDAR on April 19, 2023, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company’s financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Kidoz Inc.

For more information contact:

Henry Bromley
CFO
ir@kidoz.net
(888) 374-2163

Kidoz Inc. Announces Continued Network Growth in Q2

COPPA Compliant Mobile Network Reaches Kids Worldwide in Complete Privacy

VANCOUVER, BC, Canada. July 11 2023, – Kidoz Inc. (TSXV:KIDZ) (the “Company”), mobile AdTech developer and owner of the market leading Kidoz Contextual Ad Network (www.kidoz.net) and the Kidoz Publisher SDK, announced today its Q2 2023 network growth and corporate update.

Network Growth highlights Q2 2023 over Q1 2023 include:

• 350 million monetized impressions were delivered during the second quarter of 2023 recording 36.1% growth over the 257 million paid impressions delivered in the first quarter of 2023;
• 230 million video views were delivered during the quarter representing a 38.5% increase over the 166 million video views in the first quarter of 2023;
• Over 90 Million rich media ads were played in the second quarter of 2023 for 30.4% growth over the 69 million in the first quarter of 2023;
• Retains 2023 Revenue guidance of US$16.5M to US$18.5M, representing approximately 15% year over year growth over 2022.
• Fiscal Q2 financial reports to be released prior to the end of August 2023.

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Kidoz Inc. Announces First Quarter Total Revenue of $1,673,685

Vancouver, B.C. Canada, May 25, 2023 – Kidoz Inc. (TSXV:KIDZ) (the “Company”), mobile AdTech developer and owner of the market leading Kidoz Contextual Ad Network (www.kidoz.net); and the Kidoz Publisher SDK, announced today its unaudited condensed interim financial results for the quarter ended March 31, 2023. All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.

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