AiAdvertising, Inc. (OTC: AIAD), an industry leader in AI-powered advertising solutions, has reported its financial and operational results for the third quarter ended September 30, 2023. Key Third Qu...
Nine Month 2023 Revenue up 26% to $5.9 Million Driven by Platform Licensing and Digital Marketing
SAN ANTONIO: AiAdvertising, Inc. (OTC: AIAD), an industry leader in AI-powered advertising solutions, has reported its financial and operational results for the third quarter ended September 30, 2023.
Key Third Quarter and Subsequent 2023 Highlights and Business Update
“The nine months of 2023 delivered ongoing revenue growth and bottom line improvement, highlighted by a 26% increase in revenue from 2022 and 35% decrease in net loss,” said Jerry Hug, Chairman and CEO of AiAdvertising. “The third quarter also saw a 13% growth in revenue, driven by strong client activity in Digital Marketing.
“During the quarter we continued to focus on further development of our Campaign Performance Platform, applying AI and ML technologies to marketing and advertising solutions. Our AI-powered AdTech software and optimization services allow advertisers to eliminate guesswork, predict creative, and prove performance. A recent white paper we published in partnership with the Marketing Artificial Intelligence Institute outlined how brands and advertisers can leverage artificial intelligence (AI) to optimize ad campaigns, save budget, and boost results. We continue to see interest from direct-to-consumer brands that are looking to deploy large budgets at scale without having to add headcount. We are also evaluating feedback from prospective customers on how to better serve them with customized solutions at a budget that best suits their needs with the most advanced targeting solution in the market using AI, data science, and behavioral science.
“Looking ahead, we believe AiAdvertising can continue to scale our platform as the industry shifts toward solutions leveraging AI. AI-driven advertising eliminates guesswork, enables hyper-personalization at scale, and equips teams to maximize return on ad spend. We are highly focused on delivering superior results to our clients and executing on our revenue backlog. We expect to provide updates on new business initiatives and new business traction in the near future as we continue to build shareholder value,” concluded Hug.
Third Quarter 2023 Financial Results
Revenue for the quarter ended September 30, 2023, and 2022 was $2.1 million and $1.9 million, respectively, an increase of 13%. The increase was primarily due to strong client activity in Digital Marketing. The Platform License segment revenues for the quarter ended September 30, 2023, decreased by 39% to $0.1 million from the prior year. Digital Marketing revenues for the quarter ended September 30, 2023, increased 16% to $1.5 million.
Revenue for the nine months ended September 30, 2023, and 2022 was $5.9 million and $4.7 million, respectively, an increase of 26%. The increase was primarily due to strong client activity in Digital Marketing. The Platform License segment revenues for the nine months ended September 30, 2023, decreased by 17% to $0.4 million from the prior year. Digital Marketing revenues for the nine months ended September 30, 2023, increased 43% to $4.4 million.
Total operating expenses for the quarter ended September 30, 2023, were $1.6 million, compared to $2.1 million in the prior year. Total operating expenses for the nine months ended September 30, 2023, were $5.0 million, compared to $6.4 million in the prior year.
Operating activities for continuing operations used $4.9 million in net cash for the nine months ended September 30, 2023, compared to $4.2 million for the nine months ended September 30, 2022. Our increased revenue has caused an increased accounts receivables balance. Simultaneously, our stronger cash position has allowed us to continue to pay down the accounts payables balance faster. Net of working capital efficiency improvements, cash used by operating activities was $3.1 million in for the nine months ended September 30, 2023, compared to $4.2 million for the nine months ended September 30, 2022.
Net loss for the quarter ended September 30, 2023, was ($1.5) million, as compared to a net loss of ($2.0) million in 2022. Net loss for the nine months ended September 30, 2023, was ($4.3) million, as compared to a net loss of ($6.6) million in 2022.
Cash and cash equivalents totaled $0.7 million at September 30, 2023, as compared to $0.1 million at December 31, 2022.
John C. Small, Chief Financial Officer of AiAdvertising, added, “As of today, we believe that our existing cash, together with the strategic investment of $5.0 million from Hexagon Partners and $0.9 million in account receivables, will be sufficient to meet our anticipated capital requirements to fund planned operations.”
AiAdvertising is an AI-powered solutions provider 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.
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, 2022. 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
Accounts receivable, net
Prepaid and other current Assets
Total current assets
Property and equipment, net
Goodwill and other intangible assets, net
Total other assets
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Accounts payable, related party
Operating lease liability
Deferred revenue and customer deposit
Total current liabilities
Operating lease obligation, net of current portion
Preferred stock, $0.001 par value; 5,000,000 Authorized shares:
Series A Preferred stock; 10,000 authorized, zero and 10,000 shares issued and outstanding;
Series B Preferred stock; 25,000 authorized, 18,025 shares issued and outstanding;
Series C Preferred stock; 25,000 authorized, 14,425 shares issued and outstanding;
Series D Preferred stock; 90,000 authorized, 86,021 and 90,000 shares issued and outstanding;
Series E Preferred stock; 10,000 authorized, 10,000 shares issued and outstanding;
Series F Preferred stock; 800,000 authorized, zero and zero shares issued and outstanding;
Series G Preferred stock; 2,600 authorized, 2,597 shares issued and outstanding;
Series H Preferred stock; 1,000 authorized, zero and zero shares issued and outstanding;
Series I Preferred stock; 3,000,000 authorized, 2,272,727 and zero shares issued and outstanding;
Series J Preferred stock; 700 authorized, zero and zero shares issued and outstanding;
Common stock, $0.001 par value; 10,000,000,000 and 2,000,000,000 authorized shares; 1,334,408,773 and 1,175,324,203 shares issued and outstanding, respectively
Additional paid in capital
Common stock payable, consisting of 5,000,000 shares valued at $0.1128
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
AIADVERTISING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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