Executive Summary

Q4 2022 revenue was approximately $0.276M, down 42.8% sequentially versus Q3 ($0.482M) and down 67.7% year over year versus Q4 2021 ($0.855M), driven by reduced volumes from a major customer offset partially by MediaCrossing-acquired contracts .
Adjusted EBITDA loss widened to about $5.54M in Q4 (derived from FY less 9M), reflecting a sparse top line against fixed costs despite prior cost actions; cash ended FY at $14.74M providing strategic flexibility .
Management emphasized KAI 2.0 and the USPTO-issued patent as strategic differentiators, highlighting AI speed (25 algorithms <10ms), IPv6 support, and enhanced CTV/audio capabilities; they see potential for commercialization and M&A optionality rather than immediate near-term top-line lift .
No formal guidance was provided; management focused commentary on cash conservation, macro caution in ad budgets, and opportunistic inorganic growth; consensus estimates via S&P Global were unavailable for KBNT, so beat/miss cannot be determined .

What Went Well and What Went Wrong

What Went Well

KAI patent issuance and launch of KAI 2.0 with performance and format enhancements (25 AI algorithms <10ms, IPv6, CTV/audio support) position Kubient as a differentiated ad-fraud prevention technology provider .
KAI Dashboard continued to show 20%+ average revenue uplift for publishers, validating ROI-oriented use cases amid tighter CMO scrutiny on spend effectiveness .
Strong year-end cash of ~$14.7M and low burn framework underpinned management’s M&A optionality and resilience amid higher rates and macro uncertainty .

What Went Wrong

Material revenue contraction: Q4 revenue of ~$0.276M versus Q3 $0.482M and Q4 2021 ~$0.855M; management cited loss of a major customer as the primary driver (only partially offset by MediaCrossing contracts) .
Adjusted EBITDA loss significantly deeper in Q4 (~~$5.54M) versus Q3 (~~$1.52M), reflecting limited quarterly sales against operating costs despite prior cost actions .
Macro headwinds and liquidity constraints across ad-tech dampened near-term demand; management flagged cautious ad spend, the SVB episode (no expected losses), and broader market consolidation, all of which constrained top-line momentum .

Financial Results

Metric	Q2 2022	Q3 2022	Q4 2022
Revenue ($USD Millions)	$0.400	$0.482	$0.276 (derived: FY $2.403 − 9M $2.127)
GAAP Net Loss ($USD Millions)	$(5.810)	$(1.674)	$(2.508) (derived: FY $(13.620) − 9M $(11.112))
GAAP EPS ($USD)	$(0.41)	$(0.12)	N/A (company did not disclose quarterly EPS)
Adjusted EBITDA ($USD Millions)	$(2.236)	$(1.521)	$(5.540) (derived: FY $(12.918) − 9M $(7.378))
Adjusted EBITDA Margin (%)	−558.6% (=$2.236/$0.400)	−315.6% (=$1.521/$0.482)	−2008.0% (=$5.540/$0.276)
Cash and Cash Equivalents ($USD Millions)	$17.684	$16.898	$14.739

Notes:

Q4 revenue, net loss, and adjusted EBITDA derived from FY 2022 and nine-month 2022 disclosures. Citations show source figures used in derivation .
Company did not disclose quarterly EPS for Q4 2022 in press release or call .

Segment breakdown: Not disclosed; management referenced Audience Cloud, Managed Services, and KAI solutions without quantitative segment reporting .

KPIs:

KPI	Q2 2022	Q3 2022	Q4 2022
KAI Dashboard Publisher Revenue Uplift (%)	—	“20%+” reported benefit (indicative)	“20%+ average increase maintained”

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2022	None provided	None provided	Maintained (no guidance)
Margins (EBITDA/Adj. EBITDA)	FY/Q4 2022	None provided	None provided	Maintained (no guidance)
OpEx	FY/Q4 2022	None provided	Cost-cut focus reiterated (qualitative)	N/A (no numeric guidance)
Other (OI&E, tax, dividends)	FY/Q4 2022	None provided	None provided	Maintained (no guidance)

Management did not issue formal quantitative guidance in the Q4 release or call; focus remained on cost discipline and strategic optionality .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2022)	Previous Mentions (Q3 2022)	Current Period (Q4 2022)	Trend
AI/Technology (KAI)	Optimization; KAI as centerpiece for strategy and M&A attractiveness	KAI Dashboard launched; Notice of Allowance; 20%+ revenue lift for publishers	KAI patent issued; KAI 2.0 released (25 AI algos <10ms, IPv6, CTV/audio)	Improving/differentiated
Macro/Ad Budget	Cost cutting; low-burn model; cautious advertiser spend post-COVID	Brands still cautious; publishers seek efficiency; continued cost discipline	CMO ROI scrutiny persists; SVB commentary but no expected losses; macro uncertainty	Ongoing headwind
M&A Strategy	Inorganic opportunities explored; attractive public vehicle with KAI	Continued exploration; shelf eligibility, balance sheet cited	“Aggressive” M&A initiative; meaningful discussions, timing difficult; optionality emphasized	Increasing focus
CTV/Product Performance	New integration; clean data rooms concept; KAI role in decisioning	CTV monetization errors; KAI Dashboard addresses; publishers seeing +20% revenue	Enhanced CTV support in KAI 2.0; continued publisher benefits	Positive adoption
Regulatory/Legal	—	Patent Notice of Allowance	Patent issuance (USPTO); SVB bank closure addressed	Resolved/managed
R&D/Execution	Maintain core tech, streamline ops, expand KAI capability	Hiring engineers to expand KAI features	KAI 2.0 shipped; dashboard impact reiterated	Execution delivered

Management Commentary

“We transformed Kubient into an efficient and well-balanced technology organization with an emphasis on improving KAI… receiving the KAI patent… with KAI 2.0… one of the more dynamic technologies in the ad-tech industry” — Paul Roberts, CEO .
“KAI 2.0… expanded real-time AI with 25 algorithms running in under 10 milliseconds… IPv6… enhanced support for new CTV and audio formats… emphasis on bringing AI to the forefront of advertising” .
“With a healthy balance sheet holding approximately $14.7 million in cash as of the end of Q4 2022, we are primed… to add immediate value… in M&A” .
“We do not anticipate any losses… arising as a result of the winding down of our account at SVB… we moved the majority of our funds… to other banks” — Josh Weiss, CFO .

Q&A Highlights

Commercialization of KAI patent/KAI 2.0: Management expects increased strategic and commercial interest; near-term focus is on discussions and optionality rather than immediate revenue inflection .
Cash deployment and burn: Emphasis on conserving capital to enhance M&A value; limited organic investments until strategic paths crystallize .
Macro/advertising market: CMOs demanding quantifiable ROI; KAI positioned to show “money back into your budget” via fraud avoidance and optimization .
Industry consolidation: Expect more M&A in ad-tech; Kubient sees itself well-positioned given patent, cash, and public vehicle .

Estimates Context

Wall Street consensus estimates via S&P Global (EPS, revenue, EBITDA, target price, recommendation) were unavailable for KBNT at the time of analysis; therefore, we cannot assess beat/miss against consensus. Values retrieved from S&P Global were unavailable for this ticker due to missing mapping in SPGI systems.

Key Takeaways for Investors

Q4 showed a sharp revenue decline (~~$0.276M) and deep adjusted EBITDA loss (~~$5.54M), spotlighting the need for either commercial acceleration or strategic action to leverage KAI assets .
The patent issuance and KAI 2.0 enhancements strengthen Kubient’s moat and potential valuation in strategic discussions; investors should watch for commercial wins or M&A developments leveraging KAI differentiation in CTV and fraud prevention .
Cash of $14.74M provides runway and negotiating leverage amid tight capital markets; management prioritizes capital preservation to maximize optionality .
Near-term trading is likely narrative-driven (patent/KAI 2.0/M&A optionality) rather than fundamentals, given limited quarterly sales; headline M&A or commercialization updates could be catalysts .
Medium term, the thesis hinges on converting KAI/CTV capabilities into recurring, scaled revenue or consummating accretive inorganic deals; monitor publisher adoption metrics (20%+ uplift) for proof points .
Lack of guidance and absent Street coverage increase uncertainty; investors should focus on cash trends, customer concentration risk, and signs of pipeline conversion .
Macro caution in ad spend persists; Kubient’s ROI-centric value proposition (fraud avoidance, optimization) is aligned with the environment but requires better distribution and customer traction to impact topline .

Appendix: Prior Quarters Reference

Q3 2022: Revenue $0.482M; GAAP net loss $(1.674)M; Adjusted EBITDA $(1.521)M; Cash $16.898M. Management cited decreased revenue from a major customer and promoted KAI Dashboard with 20%+ publisher uplift; Notice of Allowance for KAI patent .
Q2 2022: Revenue $0.400M; GAAP net loss $(5.810)M (included large impairments); Adjusted EBITDA $(2.236)M; Cash $17.684M. Management executed cost cuts and positioned KAI/M&A optionality .

All figures and statements are sourced from Kubient’s 8-K earnings press releases and earnings call transcripts for Q2–Q4 2022 with citations as provided.

Kubient, Inc. (KBNT)·Q4 2022 Earnings Summary