AiAdvertising, Inc. (OTC: AIAD) is a next-generation AdTech company focused on harnessing the power of artificial intelligence (AI) and machine learning (ML) to eliminate waste and maximize return on digital advertising spend, has reported its financial and operating results for the third quarter ended September 30, 2022.
Key highlights and business updates for Q3 2022 and beyond
- 3Q22 revenue was $1.9 million, up 4% from 3Q21 and 19% from 2Q22.
- For the nine months ended September 30, 2022, platform licensing (SaaS) revenue grew 817% to $0.5 million.
- Signed a multi-million dollar agreement with GloriFi, a pro-American, mission-driven technology company.
- BioHarvest Sciences’ first commercial blood flow superfood supplement, VINIA, has seen early success, with AiAdvertising delivering a return on advertising spend (ROAS) of 48%.
- Announcing early successes to help drive the expansion phase of Act!! CRM that drives thousands of new qualified leads
- Appointment of Jerry Hug, a finance and technology industry veteran and the driving force behind the formation of CPP, as Chairman and CEO
- MZ Group Hired to Lead Strategic Investor Relations and Shareholder Communications Program
- Rebranded as a next-generation advertising technology company that develops proprietary software.
- Successful launch of V1 of our flagship solution – Campaign Performance Platform – the industry’s first cloud-hosted campaign management solution leveraging artificial intelligence and machine learning
- Apply for a provisional patent to protect the uniqueness of our invention
Jerry Hug, Chairman and CEO of AiAdvertising, said: “During the third quarter of 2022, we continued to make significant progress transitioning from an agency with erratic and unpredictable revenue to one with scalable and predictable monthly recurring revenue. SaaS platform solution.” . “Since the beginning of the year, we have signed two new platform licensing agreements, totaling 11, and now total annualized revenue in excess of $750,000. We believe AiAdvertising can continue to expand through direct-to-consumer brands Our platform, brands looking to deploy at scale with big budgets without adding headcount.As the industry begins to shift to solutions that leverage artificial intelligence, we see growing demand for our campaign performance platform (CPP).
“The highlight of the quarter was the signing of GloriFi’s largest multi-million dollar contract to date to support its launch. In Q1 2023, GloriFi will leverage our CPP to build on its very successful soft launch “This partnership is an ideal opportunity for us to demonstrate the efficiency of our platform to direct-to-consumer brands looking to leverage our proprietary platform to deploy significant budgets as companies prepare to scale. Additionally, VINIA’s initial performance has led to BioHarvest’s The budget grew sequentially and helped drive triple-digit revenue growth in VINIA sales in the third quarter. Our recent announcement of initial success in helping drive the expansion phase of Act! Software. Act! is another success story illustrating our How to become the platform of choice for performance-driven CMOs, delivering end-to-end solutions that harness the power of AI.
“To support the growth of AiAdvertising, we announced a rebranding plan, including the launch of a new corporate website, emphasizing the strength of our innovative brand in the advertising technology industry. This new brand and evolving positioning perfectly illustrate our ongoing growth ambitions, and this move will help us continue to scale. This plan includes an upcoming update to the Investor Relations section of our website to better reflect our message and better communicate with the investment community. Additionally, during the quarter, I am honored to be named Chairman and Chief Executive Officer.
“As a key part of these initiatives, we have hired global IR firm MZ Group to lead a comprehensive strategic investor relations and financial communications program in all major markets to communicate the potential of our revolutionary event performance platform and help build long-term value for our shareholders.
“Looking ahead, we have a huge opportunity in front of us to leverage artificial intelligence and machine learning to develop integrated solutions that marketers can rely on. We have solidified our position as one of the most innovative, efficient and advanced position, and as the clear market leader in the rapidly emerging SaaS category in the AdTech category. We will continue to work hard to position the company for long-term growth and refocus our efforts on SaaS, which we believe will provide our shareholders with Long-term value,” concluded Hug.
Third Quarter 2022 Financial Results
Revenues of $1.9 million for the three months ended September 30, 2022 and $1.8 million for the three months ended September 30, 2021, an increase of 4% from $1.6 million for the three months ended June 30, 2022 19% increase. Revenues for the nine months ended September 30, 2022 and 2021 were $4.7 million and $5.3, respectively, a 12% decline. The decrease was primarily due to the sale of the company’s non-core web hosting business. For the nine months ended September 30, 2022, platform licensing segment revenues increased 817% to $0.5 million.
Gross profit was $0.1 million, or 3% of revenue, in the third quarter of 2022, compared to $0.4 million, or 22% of revenue, in the year-ago quarter. The decrease in gross profit was primarily due to costs related to building our sales force.
Total operating expenses for the three months ended September 30, 2022 were $2.1 million, compared to $1.1 million for the same period last year.
Continuing operations used net cash of $4.2 million in operating activities for the nine months ended September 30, 2022 compared to $3.3 million in net cash used in continuing operations for the nine months ended September 30, 2021 cash.
Net loss for the quarter ended September 30, 2022 was $2 million, compared to net income of $0.4 million for 2021. Third quarter net loss increased from the same period last year primarily due to stock option assessment credit adjustments for interest expense related to common stock issuance for the year ended December 31, 2021, changes in revenue, partially driven by increases in payroll and SG&A expenses and offset by amortization.
Cash and cash equivalents totaled $0.2 million at September 30, 2022, compared to $3.4 million at September 30, 2021.
Jerry Hug added: “As of November 15, 2022, we believe our cash on hand, along with short-term receivables of $1.1 million and $9.2 million currently in our 1000 with GHS Investments LLC (“GHS”) remains available under the $10,000 equity credit facility) will be sufficient to meet our anticipated capital requirements to fund planned operations.”