2022 Revenue Increases to $7.1 Million on New Customer Agreements and SaaS Platform Solution
Q4 Revenue of $2.4 million Increases 33% Sequentially from $1.8 million in Q3
Platform License Revenues Increased 561% from Q1 to Q4 2022
Company Anticipates Reaching Cash Flow Break in Q1 2023
SAN ANTONIO–(BUSINESS WIRE)–AiAdvertising, Inc. (OTC: AIAD), a next-generation AdTech company focused on harnessing the power of artificial intelligence (AI) and machine learning (ML) to build software for today’s marketing leaders, has released a letter to its shareholders from CEO Jerry Hug including preliminary select financial results for the year ended December 31, 2022.
Dear Fellow Shareholders,
2022 was a pivotal year for AiAdvertising and for our business, punctuated by the transition from operating as an agency with inconsistent and unpredictable revenue to a SaaS platform solution with scalable and predictable, monthly recurring revenue. Driving our performance is our proprietary software the Campaign Performance Platform (CPP), the industry’s first cloud-hosted ad management solution that leverages AI and connects marketing investments to sales revenue. Over the past 12 months, we have cemented our status as one of the most innovative, efficient, and advanced solutions and as a clear market leader in the rapidly emerging AI-as-a-Service (AIaaS) in the AdTech category.
Our CPP is giving marketers the ability to leverage intelligent automation to make predictions at scale, bridging the gap between CRM and AdTech. CPP uses AI to reduce what would typically take 24,000 man hours into 36 hours of marketer plus machine hours. The CPP includes services such as: organization of disparate CRM and customer data, automation of persona development, predict and render dynamic creative assets, look-a-like audience curation, omni-channel activation, and real-time performance management. CPP first helps to prioritize client goals and objectives and connects, organizes, and cleans customer data, transformed into actionable insights. Its AI dynamically identifies behavioral insights in days, not months at a fraction of the cost of traditional methods.
We began 2022 with early signs that advertisers were embracing our AIaaS platform solution, signing nine new platform license agreements at the beginning of the year which totaled more than $5 million in annualized revenue. An additional strategic relationship and licensing agreement with Campaign Nucleus validated what we believe to be a game-changing technology in the $21 billion marketing and advertising category. As the year progressed, we added two more Caterpillar dealers, bringing our total to 4 of the 39 independent dealers across the US and Canada, and added several new clients across various categories. By the end of the third quarter, we had signed a total of 11 platform license agreements since the beginning of the year, totaling more than $0.75 million in annualized revenue.
Our customers quickly began to see momentum with CPP, leveraging AI in the platform to drive their performances. BioHarvest Sciences achieved early success using CPP, with initial positive results of over 180% increase in revenue from their Google spend and a 48% higher Return on Ad Spend (ROAS). AiAdvertising played a critical role in scaling BioHarvest’s platform advertising. As of the third quarter, AiAdvertising had seen further improved results, and BioHarvest’s overall ROAS since April 2022 increased by 90%. We also saw early success in helping drive the expansion stage of the Act! CRM and Marketing Automation Platform. Our program contributed significantly to its lead volume and at a lower cost per lead. This has led directly to thousands of new prospects being introduced to the upgraded Act! product portfolio.
Operationally, 2022 saw numerous changes as our growth accelerated. I was privileged to be appointed CEO and given the opportunity to lead AiAdvertising into its next exciting phase. We underwent a comprehensive rebrand with a focus on our AI-Driven Campaign Performance Platform. This included a new corporate image and identity reflective of our forward-thinking approach to advertising technology, while challenging the status quo. This also included a new corporate website and next generation investor relations website. To complement our ongoing efforts to enhance communications with the investment community, we engaged MZ Group to lead our strategic investor relations and shareholder communications program.
Taken together, our focus on new customers and our SaaS platform solution culminated in preliminary, unaudited 2022 revenue of $7.0 million, a 3% improvement from the prior year, and a significant sequential increase of 33% from $1.8 million in the third quarter to $2.4 million in the fourth quarter of 2022. However, Platform License (SaaS) revenues increased 561% from the first to fourth quarters of 2022 and the contribution to revenue increased over 200% to 12% as our CPP platform continues to gain significant traction, including a 48% increase from the third to fourth quarters. Perhaps more importantly, we believe we will achieve cash flow break even from operations in the first quarter of 2023.
Looking ahead, we are excited by the initial results of our customers’ success using CPP and believe we are well-positioned to grow the value of our technology and customer base in a wide range of industries including finance, specialty retail, hospitality and leisure and industrial. We will continue to scale our platform with direct-to-consumer brands that are looking to deploy large budgets at scale without having to add headcount. We remain highly focused on executing on our sales roadmap to grow recurring revenues and driving gross profit margin. Thank you to all our shareholders, partners, and staff for your support on our journey. I look forward to another exceptional year at AiAdvertising.
Chief Executive Officer
AiAdvertising, Inc. (OTC: AIAD) is a next-generation AdTech company that is harnessing the power of artificial intelligence (AI) and machine learning (ML) to build software for today’s marketing leaders. We are focused on eliminating waste and maximizing the return on digital ad spend.
Our flagship product, the Campaign Performance Platform, is a subscription-based, end-to-end Ad Management solution. The platform empowers brands and agencies to easily target, predict, create, scale, and measure hyper-personalized campaigns.
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, 2020. 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.