Kubient, Inc. (KBNT) Reports Q2 Loss of $0.42

Kubient, Inc. (NASDAQ: KBNT) reported Q2 EPS of ($0.42), versus ($0.32) reported last year.

Second Quarter 2020 Financial Results

• Net revenues increased to $92,000 from $49,000 in the same period last year. The increase in net revenues was primarily from one customer, partially offset by a decrease from another customer during the period.
• Total operating expenses increased 16% to $1.2 million from $1.0 million in the same period last year. The increase in operating expense was primarily due to higher technology expenses, offset by a decrease in general and administrative expenses.
• Net loss was $1.5 million, or $(0.42) per share, compared to $1.1 million, or $(0.32) per share, in the same year-ago period.
• As of June 30, 2020, the Company had cash and cash equivalents of $45,000. As of August 14, 2020, after giving effect to the sale of units in the Company's IPO and the gross proceeds of approximately $12.5 million and net proceeds of approximately $10.7 million received therefrom, the Company had $11.0 million in cash and cash equivalents, $435,000 of debt and 7.6 million common shares outstanding.

Management Commentary

"Our operational and financial performance in the first half of 2020 was encouraging despite the challenges we encountered due to the ongoing global pandemic," said Kubient CEO Peter Bordes. "Most notably, we generated $1.3 million of net revenue from successful beta tests with two large enterprise clients for our high-margin, SaaS-based KAI ad fraud detection platform. The testing provided critical validation and future reference points for our platform's ability to ingest vast amounts of data and then analyze it using our proprietary machine learning technology.

"Similar to many companies in the tech industry and beyond, Kubient's operations were impacted by COVID-19 in Q2 as several of our customers and prospects temporarily decreased their advertising budgets. On a positive note, we have seen a steady increase in advertising budgets in the current quarter compared to Q2, which reinforces our belief that companies are adapting their businesses and marketing strategies to the current environment. In fact, at the end of June ad opportunities for Audience Cloud increased approximately 213% compared to just the end of March, which is a testament to our technology and growing base of publishers. With the proceeds from our IPO, we are expanding our sales and marketing team to both accelerate the number of ad opportunities and stimulate greater demand from advertisers. We believe that facilitating a greater pool of opportunities for publishers and advertisers will not only create more liquidity for our clients, but also help us better realize the full benefits of our scalable technology and robust business model.

"In the past few months, we believe we've generated clear operating momentum and, as a result of our recent IPO, have a solidified balance sheet to better capitalize on the potential expansive opportunities on the horizon. Our continued focus and successful execution in the near-term should position Kubient to realize its long-term mission, which is to transform the multi-billion-dollar, global advertising industry by enabling a highly efficient and liquid marketplace for advertisers and publishers."

For earnings history and earnings-related data on Kubient, Inc. (KBNT) click here.

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