Executive Summary

Q3 2022 revenue increased 4% year over year to $1.85M and 19% sequentially, with gross profit turning positive amid a continued pivot from agency services to SaaS platform licensing .
Operating expenses rose materially (SG&A and salaries), driving a net loss of $2.02M; EPS was $0.00 (basic/diluted) given rounding and anti-dilution, consistent with prior quarters .
Management highlighted strategic wins (multi‑million GloriFi contract; VINIA ROAS +48%; Act! CRM expansion) and 11 platform license deals YTD (~$0.75M annualized), reinforcing SaaS traction .
No formal financial guidance or Wall Street consensus estimates were available; coverage appears limited for AIAD (S&P Global consensus not available). This limits benchmark comparisons and suggests the story is driven by execution milestones rather than estimate beats/misses .

What Went Well and What Went Wrong

What Went Well

Signed largest contract to date (multi‑million dollar GloriFi) to showcase CPP scalability: “This partnership represents the ideal opportunity…to deploy large budgets when companies are ready to scale.” — Jerry Hug, CEO .
Demonstrated measurable performance for VINIA (BioHarvest) with 48% higher ROAS, and drove “thousands of new qualified leads” for Act! CRM, evidencing platform efficacy in DTC and B2B contexts .
Platform licensing momentum: 11 agreements YTD, totaling >$0.75M annualized revenue; SaaS license revenue for 9M 2022 grew 817% to ~$0.5M, supporting the transition to predictable recurring revenue .

What Went Wrong

Profitability pressure: gross margin fell vs prior year; Q3 gross profit was $0.06M and 3% of revenue (down from 22% YoY) due to sales team build-out and higher platform/digital ad costs .
Expense growth: total operating expenses rose to $2.09M in Q3 (vs $1.10M prior year), compressing operating income and sustaining losses as the company invests in SaaS scaling .
Liquidity tightened: cash declined to $0.19M, with operating cash use of $4.18M year‑to‑date; reliance on an equity line (GHS) and short‑term receivables to meet capital needs elevates financing risk .

Financial Results

Metric	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD)	$1,779,848	$1,199,662	$1,618,626	$1,850,456
Gross Profit ($USD)	$398,236	-$336,170	-$9,162	$61,972
Gross Profit Margin %	22.4%	—	—	3.0%
Total Operating Expenses ($USD)	$1,098,163	$2,288,382	$2,007,618	$2,085,006
Net Income/(Loss) ($USD)	$419,868	-$2,599,355	-$2,016,780	-$2,023,034
Diluted EPS ($USD)	$0.00	$0.00	$0.00	$0.00
Consensus Revenue (S&P Global)	N/A	N/A	N/A	N/A
Consensus EPS (S&P Global)	N/A	N/A	N/A	N/A

Notes: Wall Street consensus estimates via S&P Global are unavailable for AIAD; no benchmark comparisons provided.

Segment/disaggregated revenue (9M view):

Segment ($USD)	9M 2021	9M 2022
Design	$1,547,936	$1,110,185
Development	$214,743	$33,869
Digital Advertising	$3,514,597	$3,062,541
Platform License (SaaS)	$50,372	$462,149
Total	$5,327,648	$4,668,744

KPIs and balance highlights:

KPI	Value
Platform license agreements YTD and annualized revenue	11 agreements; >$0.75M annualized
SaaS license revenue growth (9M)	+817% to ~$0.5M
VINIA ROAS improvement	+48%
Cash and Equivalents (9/30/22)	$194,576
Accounts Receivable (9/30/22)	$652,318
Deferred Revenue & Customer Deposits (9/30/22)	$788,064
Operating Cash Flow (9M 2022)	-$4,179,026

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 forward	Not provided	Not provided	Maintained (no formal guidance)
Margins	FY/Q4 forward	Not provided	Not provided	Maintained (no formal guidance)
OpEx	FY/Q4 forward	Not provided	Not provided	Maintained (no formal guidance)
Other (tax, OI&E, dividends)	FY/Q4 forward	Not provided	Not provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q3 2022 earnings call transcript was found in filings; thematic analysis is based on press release and 10‑Q disclosures.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2022)	Trend
AI/Technology initiatives (CPP)	Pivot to SaaS; launch of centrally hosted licensing; emphasis on persona‑driven targeting and predictive creative	CPP V1 launched; rebranding as next‑gen AdTech; filed provisional patents	Increasing emphasis
Revenue model shift (SaaS)	SaaS licensing introduced; platform license revenue building; design/dev/digital advertising declining YoY	11 platform license deals; SaaS revenues +817% (9M); >$0.75M annualized licenses	Strengthening
Macro/financing	Negative monthly operating cash flows; reliance on equity financing arrangements; working capital swings	Cash down to $0.19M; reliance on $10M equity line (amended pricing, removed $0.01 floor)	Mixed (financing flexibility up; liquidity tight)
Customer concentration	45–46% of revenue concentrated among few customers; AR concentrations 58–64%	Continued concentration; DTC wins (VINIA) and new partners (Act!, GloriFi) to diversify	Gradual diversification
Regulatory/legal	None material disclosed	None material disclosed	Stable
R&D/product execution	R&D spend initiated and rising; platform feature enhancements	Continued enhancement; IR engagement (MZ Group) and brand refresh supporting go‑to‑market	Ongoing execution

Management Commentary

“We continued to make significant progress in our transition from operating as an agency…to a SaaS platform solution with scalable and predictable, monthly recurring revenue.” — Jerry Hug, Chairman & CEO .
“The quarter was highlighted by a multi‑million dollar and largest contract to date with GloriFi…represent[s] the ideal opportunity for us to showcase the efficiencies of our platform.” — Jerry Hug .
“Initial performance with VINIA have led to a month‑over‑month increase in BioHarvest’s budget and has helped drive triple digit revenue growth for VINIA sales in the third quarter.” — Jerry Hug .
“We have cemented our status as one of the most innovative…solutions and as a clear market leader in the rapidly emerging SaaS in the AdTech category.” — Jerry Hug .

Q&A Highlights

No Q3 2022 earnings call transcript was available in company filings; therefore, no Q&A themes or clarifications can be provided for this quarter [ListDocuments result; none found].

Estimates Context

Wall Street consensus estimates (S&P Global) for AIAD’s Q3 2022 revenue and EPS were unavailable; the company appears to have limited analyst coverage. As a result, no beat/miss analysis vs Street can be conducted this quarter .

Key Takeaways for Investors

Execution over estimates: With no consensus coverage, the stock’s near‑term narrative hinges on landing and expanding SaaS licenses (11 YTD; >$0.75M annualized), proof points like VINIA’s +48% ROAS, and onboarding large DTC partners (GloriFi) .
Margin rebuild underway: Gross profit turned positive in Q3 with 3% margin, but remains below prior year due to scaling costs; watch mix shift toward higher‑margin platform licensing to improve unit economics .
Liquidity watch: Cash sat at $0.19M at quarter‑end; operating cash burn of ~$4.18M (9M) necessitates ongoing use of the GHS equity line and receivables collections—monitor dilution and capital needs into 2023 .
Segmentation: 9M data shows SaaS license growth offset by declines in legacy design/development; sustained platform adoption is key to durable revenue and margin improvement .
Organizational alignment: CEO appointment, rebranding, patents, and IR program (MZ Group) support institutional engagement and commercialization messaging—important for PMs tracking potential re‑rating catalysts .
Concentration risks: High customer concentration persists; continued onboarding of diversified DTC/B2B clients (Act!, VINIA, GloriFi) can mitigate revenue volatility .
Short‑term trading implication: Headlines on contract wins, SaaS logos, and CPP performance case studies likely drive sentiment; absence of guidance/coverage means prints and announced wins can be outsized catalysts .

Citations:

Q3 2022 8‑K press release and financials
Q3 2022 10‑Q
Q2 2022 10‑Q
Q1 2022 10‑Q
GHS equity line amendment
CEO appointment 8‑K and press release

AiAdvertising, Inc. (AIAD)·Q3 2022 Earnings Summary