AiAdvertising Reports Second Quarter 2024 Financial Results
Momentum Across Business Segments Drives 45% Revenue Growth in Second Quarter to
Key Second Quarter and Subsequent 2024 Highlights and Business Update
-
Revenue for Q2 2024 was
$2.3 million , compared to$1.6 million in Q2 2023, an increase of 45%. - Gross loss margin of (6.6%) in Q2 2024, compared to (22.6%) in the same year ago period.
-
Platform License revenues for Q2 2024 increased 77% to
$0.3 million due to our continued sales efforts towards platform license customers. -
Creative Services revenues for Q2 2024 increased by 43% to
$0.4 million due to customer wins from the second half of 2023. -
Digital Marketing revenues for Q2 2024 increased by 41% to
$1.6 million due to increased budgets from customers over last year. -
Q2 2024 Total Operating Expenses of
$1.3 million decreased 37% sequentially from Q1 2024. -
Net Loss for Q2 2024 was
($1.5) million . -
Net Cash used in operating activities for the six months endedJune 30, 2024 , was$2.1 million , compared to cash used of$3.2 million the year ago due to changes in the components of working capital. -
FY 2024 revenue expected to be in the
$9 to$10 million range on continued strong momentum driven by high customer retention, increased digital marketing budgets, and new customer wins.
Management Commentary
"The second quarter of 2024 was highlighted by increased revenue across our business segments, and an improved bottom line as we focused on efforts to reduce costs across all expense categories, while maintaining momentum,” said
“Operationally, during the second quarter we focused on improving efficiencies across the organization including efforts to reduce costs across all expense categories, including payroll, promotion, and research and development. These measures are aimed at increasing efficiency and improving scalability while continuing to invest in our AI and ML technologies, and marketing, without sacrificing growth.
“Looking ahead, we are building revenue and executing on our backlog while managing costs efficiently. We believe our strategy will enable us to reach cashflow breakeven in the near term. We are focused on the further development and scale of our AI-powered targeting solutions, and sales and marketing efforts that highlight how our platform generates more engaging, higher-impact campaigns that drive superior results. We continue to expect FY 2024 revenue to be in the
Q2 2024 Financial Results
Revenue for the quarter ended
Gross loss in the second quarter of 2024 was
Total operating expenses for the quarter ended
Net loss for the quarter ended
Operating activities for continuing operations used
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
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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ASSETS |
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||||
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Current assets: |
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|
|
||||
|
Cash |
|
$ |
465,957 |
|
|
$ |
110,899 |
|
|
Accounts receivable, net |
|
|
504,827 |
|
|
|
517,344 |
|
|
Prepaid and other current Assets |
|
|
104,379 |
|
|
|
58,982 |
|
|
Total current assets |
|
|
1,075,163 |
|
|
|
687,225 |
|
|
|
|
|
|
|
|
|
||
|
Property and equipment, net |
|
|
58,776 |
|
|
|
72,948 |
|
|
Right-of-Use assets |
|
|
125,692 |
|
|
|
147,480 |
|
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|
|
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|
|
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|
Other assets: |
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|
||
|
Lease deposit |
|
|
10,369 |
|
|
|
8,939 |
|
|
|
|
|
- |
|
|
|
20,202 |
|
|
Total other assets |
|
|
10,369 |
|
|
|
29,141 |
|
|
|
|
|
|
|
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|
Total assets |
|
|
1,270,000 |
|
|
|
936,794 |
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LIABILITIES AND SHAREHOLDERS’ DEFICIT |
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Current liabilities: |
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||
|
Accounts payable |
|
|
1,245,529 |
|
|
|
1,567,751 |
|
|
Accrued expenses |
|
|
216,652 |
|
|
|
46,430 |
|
|
Operating lease liability |
|
|
37,657 |
|
|
|
33,572 |
|
|
Deferred revenue and customer deposit |
|
|
781,399 |
|
|
|
533,386 |
|
|
Total current liabilities |
|
|
2,281,237 |
|
|
|
2,181,139 |
|
|
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|
Operating lease obligation, net of current portion |
|
|
93,868 |
|
|
|
113,907 |
|
|
|
|
|
|
|
|
|
||
|
Total liabilities |
|
|
2,375,105 |
|
|
|
2,295,046 |
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Shareholders’ deficit: |
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Preferred stock, |
|
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|
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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 and 90,000 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; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock, |
|
|
1,344,238 |
|
|
|
1,334,415 |
|
|
Additional paid in capital |
|
|
57,933,119 |
|
|
|
56,865,961 |
|
|
Common stock payable, consisting of 5,000,000 shares valued at |
|
|
564,000 |
|
|
|
564,000 |
|
|
Preferred stock payable, consisting of 892,857 shares of Series I Preferred stock valued at |
|
|
2,500,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
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Accumulated deficit |
|
|
(63,448,866 |
) |
|
|
(60,125,032 |
) |
|
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|
|
|
|
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TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) |
|
|
(1,105,105 |
) |
|
|
(1,358,252 |
) |
|
|
|
|
|
|
|
|
||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
|
$ |
1,270,000 |
|
|
$ |
936,794 |
|
|
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(UNAUDITED) |
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Three Months Ended |
|
Six Months Ended |
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|
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|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
(Unaudited) |
|
(Unaudited) |
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|
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|
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|
|
|
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|
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|
Revenue |
|
$ |
2,307,729 |
|
|
$ |
1,594,041 |
|
|
$ |
4,327,052 |
|
|
$ |
3,768,793 |
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|
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||||
|
Cost of Revenue |
|
|
2,459,866 |
|
|
|
1,953,936 |
|
|
|
4,255,139 |
|
|
|
3,609,385 |
|
|
Gross Profit (loss) |
|
|
(152,137 |
) |
|
|
(359,895 |
) |
|
|
71,913 |
|
|
|
159,408 |
|
|
|
|
|
|
|
|
|
|
|
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|
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|
||||
|
Sales, general, and administrative expenses |
|
|
1,306,990 |
|
|
|
1,965,349 |
|
|
|
3,371,647 |
|
|
|
3,367,945 |
|
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
20,202 |
|
|
|
- |
|
|
Total operating expenses |
|
|
1,306,990 |
|
|
|
1,965,349 |
|
|
|
3,391,849 |
|
|
|
3,367,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss from operations |
|
|
(1,459,127 |
) |
|
|
(2,325,244 |
) |
|
|
(3,319,936 |
) |
|
|
(3,208,537 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other income (expense) |
|
|
(3,898 |
) |
|
|
435,021 |
|
|
|
(3,898 |
) |
|
|
435,026 |
|
|
Total other income (expense) |
|
|
(3,898 |
) |
|
|
435,021 |
|
|
|
(3,898 |
) |
|
|
435,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss from operations before income taxes |
|
|
(1,463,025 |
) |
|
|
(1,890,223 |
) |
|
|
(3,323,834 |
) |
|
|
(2,773,511 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net Loss |
|
|
(1,463,025 |
) |
|
|
(1,890,223 |
) |
|
|
(3,323,834 |
) |
|
|
(2,773,511 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividends on preferred stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss attributable to common shareholders |
|
$ |
(1,463,025 |
) |
|
$ |
(1,890,223 |
) |
|
$ |
(3,323,834 |
) |
|
$ |
(2,773,511 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
Diluted |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
1,348,367,967 |
|
|
|
1,329,921,400 |
|
|
|
1,343,888,370 |
|
|
|
1,281,214,213 |
|
|
Diluted |
|
|
1,348,367,967 |
|
|
|
1,329,921,400 |
|
|
|
1,343,888,370 |
|
|
|
1,281,214,213 |
|
|
|
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|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(UNAUDITED) |
||||||||
|
|
|
For the Six |
|
For the Six |
||||
|
|
|
Months Ended |
|
Months Ended |
||||
|
|
|
|
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|
||||
|
|
|
2024 |
|
|
2023 |
|
||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
|
Net Loss |
|
$ |
(3,323,834 |
) |
|
$ |
(2,773,511 |
) |
|
Adjustment to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
|
Loss on impairment of intangible asset |
|
|
20,202 |
|
|
|
- |
|
|
Depreciation and amortization |
|
|
14,172 |
|
|
|
16,099 |
|
|
Stock based compensation |
|
|
1,076,982 |
|
|
|
836,261 |
|
|
Provision for doubtful accounts |
|
|
(80,469 |
) |
|
|
- |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
92,986 |
|
|
|
(632,632 |
) |
|
Amortization of ROU asset |
|
|
21,788 |
|
|
|
- |
|
|
Prepaid expenses and other assets |
|
|
(46,827 |
) |
|
|
(97,783 |
) |
|
Accounts payable |
|
|
(322,222 |
) |
|
|
(624,520 |
) |
|
Accrued expenses |
|
|
170,222 |
|
|
|
(15,688 |
) |
|
Customer deposit |
|
|
- |
|
|
|
46,162 |
|
|
Operating lease liability |
|
|
(15,954 |
) |
|
|
- |
|
|
Deferred revenue |
|
|
248,013 |
|
|
|
- |
|
|
Net cash used in operating activities |
|
|
(2,144,941 |
) |
|
|
(3,245,612 |
) |
|
|
|
|
|
|
|
|
||
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
||
|
Cash paid for fixed assets |
|
|
- |
|
|
|
- |
|
|
Proceeds from sale of discontinued operations |
|
|
- |
|
|
|
- |
|
|
Net cash provided by (used in) investing activities |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
||
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
||
|
Proceeds from sale of common stock, net |
|
|
- |
|
|
|
599,427 |
|
|
Proceeds from sale of preferred stock |
|
|
2,500,000 |
|
|
|
5,000,000 |
|
|
Redemption of Series K Preferred stock |
|
|
(1 |
) |
|
|
- |
|
|
Net cash provided by financing activities |
|
|
2,499,999 |
|
|
|
5,599,427 |
|
|
|
|
|
|
|
|
|
||
|
Net increase in cash and cash equivalents |
|
|
355,058 |
|
|
|
2,353,815 |
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents at beginning of period |
|
|
110,899 |
|
|
|
55,831 |
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents at end of period |
|
$ |
465,957 |
|
|
$ |
2,409,646 |
|
|
|
|
|
|
|
|
|
||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
|
Interest paid |
|
$ |
- |
|
|
$ |
- |
|
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
||
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
|
Right of use asset exchanged for lease liability |
|
$ |
- |
|
|
$ |
6,655 |
|
|
Exercise of stock options |
|
$ |
9,823 |
|
|
$ |
3,931 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112791485/en/
Investor Contact:
312-261-6412
AIAD@mzgroup.us
www.mzgroup.us
Source:
