AiAdvertising Reports First Quarter 2024 Financial Results
AiAdvertising, Inc. (OTC: AIAD) reported its Q1 2024 financial results, highlighting a 32% increase in Campaign Performance Platform License Revenue. Despite overall revenue decreasing to $2.0 million from $2.2 million in Q1 2023, the company saw significant growth in specific segments:
- Platform License revenues increased 32.0% to $147,849
- Creative Services revenues grew 75.6% to $0.5 million
- Customer retention rate remained strong at 94% year-over-year
However, the company faced challenges with a net loss of ($1.9) million and decreased gross profit margin of 11.1% compared to 23.9% in Q1 2023. AiAdvertising completed a strategic investment of $2.5 million and projects FY 2024 revenue to be in the $9 to $10 million range, driven by high customer retention, increased digital marketing budgets, and new customer wins.
AiAdvertising, Inc. (OTC: AIAD) ha riportato i risultati finanziari del primo trimestre del 2024, evidenziando un aumento del 32% delle entrate dal licenziamento della Campagna Performance Platform. Nonostante le entrate complessive siano scese a $2,0 milioni rispetto ai $2,2 milioni del primo trimestre del 2023, l'azienda ha registrato una crescita significativa in segmenti specifici:
- Le entrate da licenze della piattaforma sono aumentate del 32,0% a $147.849
- Le entrate dai servizi creativi sono cresciute del 75,6% a $0,5 milioni
- Il tasso di retention dei clienti è rimasto forte al 94% su base annua
Tuttavia, l'azienda ha affrontato sfide con una perdita netta di ($1,9) milioni e una diminuzione del margine di profitto lordo dell'11,1% rispetto al 23,9% del primo trimestre del 2023. AiAdvertising ha completato un investimento strategico di $2,5 milioni e prevede che le entrate per l'anno fiscale 2024 si aggireranno tra i $9 e i $10 milioni, sostenute da un'elevata retention dei clienti, un aumento dei budget di marketing digitale e nuovi clienti acquisiti.
AiAdvertising, Inc. (OTC: AIAD) reportó sus resultados financieros del primer trimestre de 2024, destacando un aumento del 32% en los ingresos por licencia de la Plataforma de Rendimiento de Campañas. A pesar de que los ingresos totales disminuyeron a $2.0 millones desde $2.2 millones en el primer trimestre de 2023, la compañía vio un crecimiento significativo en segmentos específicos:
- Los ingresos por licencias de la plataforma aumentaron un 32,0% a $147,849
- Los ingresos por servicios creativos crecieron un 75,6% a $0,5 millones
- La tasa de retención de clientes se mantuvo fuerte en el 94% en comparación interanual
Sin embargo, la compañía enfrentó desafíos con una pérdida neta de ($1,9) millones y una disminución del margen de beneficio bruto del 11,1% en comparación con el 23,9% del primer trimestre de 2023. AiAdvertising completó una inversión estratégica de $2,5 millones y proyecta que los ingresos del año fiscal 2024 se encuentren en el rango de $9 a $10 millones, impulsados por una alta retención de clientes, el aumento de los presupuestos de marketing digital y la adquisición de nuevos clientes.
AiAdvertising, Inc. (OTC: AIAD)는 2024년 1분기 재무 결과를 발표하며 캠페인 성과 플랫폼 라이센스 수익이 32% 증가했다고 강조했습니다. 전체 수익이 2023년 1분기 $2.2백만에서 $2.0백만으로 감소했음에도 불구하고, 회사는 특정 세그먼트에서 상당한 성장을 보였습니다:
- 플랫폼 라이센스 수익이 32.0% 증가하여 $147,849에 도달
- 창의적인 서비스 수익이 75.6% 증가하여 $0.5백만에 도달
- 고객 유지율은 전년 대비 94%로 강하게 유지되었습니다
그러나, 이 회사는 순손실이 ($1.9) 백만에 이르렀고 2023년 1분기 23.9%에서 11.1%로 총 이익률이 감소하는 어려움에 직면했습니다. AiAdvertising는 $2.5백만의 전략적 투자를 완료했으며, 2024 회계연도 매출이 $9백만에서 $10백만 사이에 이를 것으로 예상하고 있습니다. 이는 높은 고객 유지율, 증가하는 디지털 마케팅 예산, 신규 고객 유치에 의해 추진됩니다.
AiAdvertising, Inc. (OTC: AIAD) a publié ses résultats financiers du premier trimestre 2024, mettant en évidence une augmentation de 32% des revenus des licences de la plateforme Performances des Campagnes. Bien que les revenus globaux aient diminué à 2,0 millions de dollars contre 2,2 millions de dollars au premier trimestre 2023, l'entreprise a connu une croissance significative dans des segments spécifiques :
- Les revenus de licences de la plateforme ont augmenté de 32,0% pour atteindre 147 849 $
- Les revenus des services créatifs ont crû de 75,6% pour atteindre 0,5 million de dollars
- Le taux de fidélisation des clients est resté fort à 94% par rapport à l'année précédente
Cependant, l'entreprise a fait face à des défis avec une perte nette de ($1,9) million et une diminution de la marge brute de 11,1% contre 23,9% au premier trimestre 2023. AiAdvertising a complété un investissement stratégique de 2,5 millions de dollars et prévoit que le chiffre d'affaires pour l'exercice 2024 se situera entre 9 et 10 millions de dollars, soutenu par une forte fidélisation des clients, des budgets de marketing numérique en hausse et de nouvelles acquisitions de clients.
AiAdvertising, Inc. (OTC: AIAD) hat seine finanziellen Ergebnisse für das erste Quartal 2024 veröffentlicht und hebt ein Wachstum von 32% bei den Lizenzgebühren der Campaign Performance Platform hervor. Trotz eines Rückgangs der Gesamteinnahmen auf 2,0 Millionen Dollar von 2,2 Millionen Dollar im ersten Quartal 2023 verzeichnete das Unternehmen ein signifikantes Wachstum in bestimmten Segmenten:
- Die Plattformlizenzgebühren stiegen um 32,0% auf 147.849 Dollar
- Die Einnahmen aus kreativen Dienstleistungen wuchsen um 75,6% auf 0,5 Millionen Dollar
- Die Kundenbindungsrate blieb mit 94% im Jahresvergleich stabil
Das Unternehmen sah sich jedoch mit Herausforderungen konfrontiert, darunter ein Nettoverlust von ($1,9) Millionen und eine Verringerung der Bruttogewinnmarge von 11,1% im Vergleich zu 23,9% im ersten Quartal 2023. AiAdvertising hat eine strategische Investition von 2,5 Millionen Dollar abgeschlossen und rechnet damit, dass die Einnahmen für das Geschäftsjahr 2024 im Bereich von 9 bis 10 Millionen Dollar liegen werden, angetrieben durch hohe Kundenbindung, erhöhte Budgets für digitales Marketing und die Akquisition neuer Kunden.
- Campaign Performance Platform License Revenue increased by 32% in Q1 2024
- Creative Services revenues grew by 75.6% to $0.5 million
- Strong customer retention rate of 94% year-over-year
- Completed a strategic investment of $2.5 million
- Projected FY 2024 revenue expected to be in the $9 to $10 million range
- Overall revenue decreased by 7% to $2.0 million in Q1 2024
- Gross profit margin declined to 11.1% from 23.9% in Q1 2023
- Net loss increased to ($1.9) million in Q1 2024 from ($0.9) million in Q1 2023
- Digital Marketing revenues decreased by 21.2% to $1.4 million
- Net cash used in operating activities increased to $1.4 million from $0.6 million in the previous year
Campaign Performance Platform License Revenue up
Key First Quarter and Subsequent 2024 Highlights and Business Update
-
Revenue for Q1 2024 was
, compared to$2.0 million in Q1 2023.$2.2 million -
Gross profit margin of
11.1% in Q1 2024, compared to23.9% in the same year ago period. -
Platform License revenues for Q1 2024 increased
32.0% to due to a business model shift.$147,849 -
Creative Services revenues for Q1 2024 increased by
75.6% to due to customer wins in the second half of 2023.$0.5 million -
Digital Marketing revenues for Q1 2024 decreased by
21.2% to .$1.4 million -
Net Loss for Q1 2024 was
( .$1.9) million -
Net Cash used in operating activities for the three months ended March 31, 2024, was
, compared to cash used of$1.4 million the year ago period as the company paid down outstanding payables.$0.6 million -
Completed the second tranche of its securities purchase agreement with Hexagon Partners, Ltd., a
Texas -based investment company, for a strategic investment of .$2.5 million -
Customer retention rate was a strong
94% year-over-year as of March 31, 2024. -
First half 2024 revenue expected to be in the
to$4.1 range and FY 2024 revenue expected to be in the$4.3 million to$9 range on continued strong momentum driven by high customer retention, increased digital marketing budgets, and new customer wins.$10 million
Management Commentary
"The first quarter of 2024 was highlighted by strong revenue and growth momentum in our Campaign Performance Platform segment as its targeting capabilities and benefits continued to garner interest among clients,” said Jerry Hug, Chairman and CEO of AiAdvertising. “Our branding and creative design services, which we believe sets apart our clients from their competitors and establishes them in their specific markets, also drove results for the quarter with a
“The Campaign Performance Platform applies AI and ML technologies to marketing and advertising solutions, a key benefit as cookie-based tracking becomes more in doubt. Our AI-powered AdTech software and optimization services allow advertisers to eliminate guesswork, predict creative, and prove performance. We expect continued adoption as we continue to scale our platform and the industry shifts toward solutions leveraging AI.
“Looking ahead, we are focused on further development and scale of our AI-powered targeting solutions to generate more engaging, higher-impact campaigns that drive superior results for new and current clients. We are investing in sales efforts and executing on our revenue backlog, and believe our strategy will enable us to reach cashflow breakeven in the near term. We continue to expect first half 2024 revenue to be in the
Q1 2024 Financial Results
Revenue for the quarter ended March 31, 2024, and 2023 was
Gross profit in the first quarter of 2024 was
Total operating expenses for the quarter ended March 31, 2024, were
Operating activities for continuing operations used
Net loss for the quarter ended March 31, 2024, was
Cash and cash equivalents totaled
About AiAdvertising
AiAdvertising is an AI-powered solutions leader employing the industry’s most scientifically advanced, patent-pending AI targeting process. Transforming marketing and customer experiences, allowing marketers to personify client data and scientifically target their ideal customers with hyper-personalized campaigns. By harnessing artificial intelligence (AI) and machine learning (ML), we empower brands to easily target, predict, create, scale, measure campaign performance and reduce waste. Our clients gain the intelligence they need to prove advertising’s impact on the bottom line. This means more engaging, higher-impact campaigns that drive conversions and results.
For more information about the Company, please visit www.AiAdvertising.com or our LinkedIn or Twitter pages.
Forward-Looking Statements
This press release may contain "forward-looking statements." Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are included in our filings with the Securities and Exchange Commission, including the "Risk Factors" section of our annual report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as may be required under applicable law.
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS |
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March 31,
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December 31,
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(Unaudited) |
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ASSETS |
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Current assets: |
|
|
|
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Cash |
|
$ |
1,187,895 |
|
|
$ |
110,899 |
|
Accounts receivable, net |
|
|
647,940 |
|
|
|
517,344 |
|
Prepaid and other current Assets |
|
|
15,577 |
|
|
|
58,982 |
|
Total current assets |
|
|
1,851,412 |
|
|
|
687,225 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
65,643 |
|
|
|
72,948 |
|
Right-of-Use assets |
|
|
134,269 |
|
|
|
147,480 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Lease deposit |
|
|
10,369 |
|
|
|
8,939 |
|
Goodwill and other intangible assets, net |
|
|
- |
|
|
|
20,202 |
|
Total other assets |
|
|
10,369 |
|
|
|
29,141 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
2,061,693 |
|
|
|
936,794 |
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS' DEFICIT |
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Current liabilities: |
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|
|
|
|
|
|
|
Accounts payable |
|
|
1,088,156 |
|
|
|
1,567,751 |
|
Accrued expenses |
|
|
38,798 |
|
|
|
46,430 |
|
Operating lease liability |
|
|
34,922 |
|
|
|
33,572 |
|
Deferred revenue and customer deposit |
|
|
739,696 |
|
|
|
533,386 |
|
Total current liabilities |
|
|
1,901,572 |
|
|
|
2,181,139 |
|
|
|
|
|
|
|
|
|
|
Operating lease obligation, net of current portion |
|
|
104,679 |
|
|
|
113,907 |
|
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|
|
|
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|
|
|
|
Total liabilities |
|
|
2,006,251 |
|
|
|
2,295,046 |
|
|
|
|
|
|
|
|
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|
Shareholders' deficit: |
|
|
|
|
|
|
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|
Preferred stock, |
|
|
|
|
|
|
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|
Series A Preferred stock; 10,000 authorized; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series B Preferred stock; 25,000 authorized; 18,025 shares issued and outstanding |
|
|
18 |
|
|
|
18 |
|
Series C Preferred stock; 25,000 authorized; 14,425 shares issued and outstanding |
|
|
14 |
|
|
|
14 |
|
Series D Preferred stock; 90,000 authorized; 86,021 shares issued and outstanding |
|
|
86 |
|
|
|
86 |
|
Series E Preferred stock; 10,000 authorized; 10,000 shares issued and outstanding |
|
|
10 |
|
|
|
10 |
|
Series F Preferred stock; 800,000 authorized; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series G Preferred stock; 2,600 authorized; 2,597 shares issued and outstanding |
|
|
3 |
|
|
|
3 |
|
Series H Preferred stock; 1,000 authorized; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series I Preferred stock; 3,000,000 authorized; 2,272,727 shares issued and outstanding |
|
|
2,273 |
|
|
|
2,273 |
|
Series J Preferred stock; 700 authorized; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series K Preferred stock; 1,000 authorized; 1,000 and zero shares issued and outstanding |
|
|
1 |
|
|
|
- |
|
Common stock, |
|
|
1,334,415 |
|
|
|
1,334,415 |
|
Additional paid in capital |
|
|
57,640,463 |
|
|
|
56,865,961 |
|
Preferred stock payable, consisting of 892,857 shares of Series I Preferred stock valued at |
|
|
2,500,000 |
|
|
|
- |
|
Common stock payable, consisting of 5,000,000 shares valued at |
|
|
564,000 |
|
|
|
564,000 |
|
|
|
|
|
|
|
|
|
|
Accumulated deficit |
|
|
(61,985,841 |
) |
|
|
(60,125,032 |
) |
|
|
|
|
|
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TOTAL SHAREHOLDERS' EQUITY (DEFICIT) |
|
|
55,442 |
|
|
|
(1,358,252 |
) |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
|
$ |
2,061,693 |
|
|
$ |
936,794 |
|
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
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Three Months Ended
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2024 |
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2023 |
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(Unaudited) |
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Revenue |
|
$ |
2,019,323 |
|
|
$ |
2,174,752 |
|
|
|
|
|
|
|
|
||
Cost of Revenue |
|
|
1,795,273 |
|
|
|
1,655,449 |
|
Gross Profit |
|
|
224,050 |
|
|
|
519,303 |
|
|
|
|
|
|
|
|
||
Sales, general, and administrative expenses |
|
|
2,064,657 |
|
|
|
1,402,596 |
|
Impairment of intangible assets |
|
|
20,202 |
|
|
|
- |
|
Total operating expenses |
|
|
2,084,859 |
|
|
|
1,402,596 |
|
|
|
|
|
|
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|
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Loss from operations |
|
|
(1,860,809 |
) |
|
|
(883,293 |
) |
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|
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|
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Other income (expense) |
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Other expense |
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|
- |
|
|
|
(5 |
) |
Total other income (expense) |
|
|
- |
|
|
|
(5 |
) |
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|
|
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|
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||
Loss from operations before income taxes |
|
|
(1,860,809 |
) |
|
|
(883,288 |
) |
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Provision for income taxes |
|
|
- |
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|
- |
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|
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Net Loss |
|
|
(1,860,809 |
) |
|
|
(883,288 |
) |
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Dividends on preferred stock |
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|
- |
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- |
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Net loss attributable to common shareholders |
|
$ |
(1,860,809 |
) |
|
$ |
(883,288 |
) |
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Net loss per share: |
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Basic |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
Diluted |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
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||
Weighted-average common shares outstanding: |
|
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|
|
|
|
||
Basic |
|
|
1,339,408,773 |
|
|
|
1,231,401,433 |
|
Diluted |
|
|
1,339,408,773 |
|
|
|
1,231,401,433 |
|
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
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For the |
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For the |
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Three Months
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|
Three Months
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|
|
March 31, |
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March 31, |
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|
2024 |
|
2023 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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|
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Net Loss |
|
$ |
(1,860,809 |
) |
|
$ |
(883,288 |
) |
Adjustment to reconcile net (loss) income to net cash used in operating activities: |
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Loss on impairment of intangible asset |
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|
20,202 |
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|
- |
|
Depreciation and amortization |
|
|
7,305 |
|
|
|
8,050 |
|
Stock based compensation |
|
|
774,503 |
|
|
|
462,163 |
|
Changes in assets and liabilities: |
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|
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|
||
Accounts receivable |
|
|
(130,596 |
) |
|
|
(784,769 |
) |
Amortization of ROU asset |
|
|
13,211 |
|
|
|
- |
|
Prepaid expenses and other assets |
|
|
41,975 |
|
|
|
11,076 |
|
Accounts payable |
|
|
(479,595 |
) |
|
|
(34,714 |
) |
Accrued expenses |
|
|
(7,632 |
) |
|
|
117,315 |
|
Customer deposit |
|
|
- |
|
|
|
493,086 |
|
Operating lease liability |
|
|
(7,878 |
) |
|
|
- |
|
Deferred revenue |
|
|
206,310 |
|
|
|
- |
|
Net cash (used in) provided by operating activities |
|
|
(1,423,004 |
) |
|
|
(611,081 |
) |
|
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|
|
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INVESTING ACTIVITIES |
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|
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|
||
Net cash provided by (used in) financing activities |
|
|
- |
|
|
|
- |
|
|
|
|
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||
FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from sale of common stock, net |
|
|
- |
|
|
|
556,006 |
|
Cash received for Preferred stock payable |
|
|
2,500,000 |
|
|
|
- |
|
Net cash provided by (used in) financing activities |
|
|
2,500,000 |
|
|
|
556,006 |
|
|
|
|
|
|
|
|
||
Net increase in cash and cash equivalents |
|
|
1,076,996 |
|
|
|
(55,075 |
) |
|
|
|
|
|
|
|
||
Cash and cash equivalents at beginning of period |
|
|
110,899 |
|
|
|
55,831 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents at end of period |
|
$ |
1,187,895 |
|
|
$ |
756 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
- |
|
|
$ |
- |
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017881639/en/
Investor Contact:
Larry Holub/Chris Tyson
312-261-6412
AIAD@mzgroup.us
www.mzgroup.us
Source: AiAdvertising, Inc.
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