For Kidoz, Q2 2023 was yet another quarter with record sales, according to Jason Williams, CEO of the company. Two business pillars that demonstrated noticeable improvement and helped the company reach new heights were operations and technology, which both received ongoing investment. First, by investing in the software development of our programmatic technology, we were able to secure and deliver more than $250,000. This is a 274% increase over the first quarter of 2016. Second, we were able to dramatically raise our operating margins from 39% in the second quarter of 2022 to 44% in the second quarter of 2023 through investments in data analytics and operational processes. The management of Kidoz made the right choice to raise investments to guarantee that our technology and operations are superior to those of the competitors and that our growth is assured.
As the adolescents and adults divisions of our business continue to expand with the youngsters, the company also seen a boost in the growth of Prado campaigns during the second quarter. But one of the most thrilling achievements of the quarter was the release of an effective “AAA” Game-Ad made in association with McDonald’s and Disney. The interactive element, whichvideo game team. Disney and McDonald’s were able to significantly increase interest in the release of their movie Elementals because more than 35% of impressions interacted with the game advertisement for an average of more than one minute. Leading brands interested in AAA Game-Ads created just for them by the Company’s internal studio are establishing a number of new prospects with Kidoz and Prado. was intended to entice consumers to play the gamified advertisement, was the most effective of all the commercials created by Kidoz.
Kidoz is in an ideal position to set records for the next two quarters and the entire year after six months of operations in 2023. Kidoz often reports that 43% of annual revenue occurs in the fourth quarter alone, with the second half of the year accounting for 68% of total revenue. The management of Kidoz is confident that records set in 2022 will be broken because the technical, operational, and commercial teams are all properly coordinated.
In this press release, the term “Adjusted EBITDA” is used, which is a non-GAAP financial metric without a standardised definition established by GAAP. Adjusted EBITDA may not be comparable to non-GAAP measurements used by other businesses and is not presented in conjunction with or as an alternative to GAAP financial measures. Financial measurements calculated in accordance with generally accepted accounting principles (GAAP) should not be regarded superior to or a replacement for certain non-GAAP measures.
US generally accepted accounting standards (“GAAP”). To help them analyse, comprehend, and compare our performance, we invite investors to carefully analyse the GAAP financial measurements presented in our annual Management Discussion and Analysis and our Form 20-F.
We utilise Adjusted EBITDA internally to assess our performance and make financial and operational decisions that are either supplemented by our GAAP measurements or are presented in a way that differs from their comparable GAAP measures. According to our definition, modified EBITDA is EBITDA (Net Income (Loss) + Depreciation and Amortisation, Interest, Stock-Based Compensation, and Goodwill Impairment), further modified to exclude certain Non-Cash Expenses and Other Adjustments. Because we use Adjusted EBITDA instead of Since Adjusted EBITDA excludes particular financial factors from our results that have no influence on our core operating performance, we feel it more clearly demonstrates business trends that may not otherwise be obvious when relying only on GAAP financial measures.