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KBNT OTCM· Kubient Inc.
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KBNT OTCM· Kubient Inc.
Earnings report Q2 2023

KBNT Reports Decrease in Net Revenues for Latest Quarter

Segments of revenue

For the three months ended June 30, 2023, KBNT reported a decrease in net revenues by $412,071, or 103%, to $(11,720) from $400,351 for the same period in 2022. This decline was primarily attributed to the loss of certain customers that were acquired in connection with the acquisition of MediaCrossing Inc. Additionally, the company faced certain continuing fixed costs of revenue.

Strengths

Despite the decrease in net revenues, KBNT managed to decrease its sales and marketing expenses by $746,487, or 71%, to $303,936 from $1,050,423 for the three months ended June 30, 2022. This reduction was mainly due to a decrease in sales team headcount costs of approximately $708,000 and a decrease in consulting expenses of approximately $13,000. The company's management has successfully implemented cost-cutting measures in these areas, which have positively impacted their financial performance.

Challenges

KBNT faced challenges in the form of a decrease in net revenues and an increase in general and administrative expenses. The loss of certain customers acquired through the MediaCrossing Inc. acquisition contributed to the decline in net revenues. Additionally, the company experienced an increase in professional services costs of approximately $777,000 and an increase in software subscriptions of approximately $3,000. These factors led to a $471,486, or 31%, increase in general and administrative expenses.

Noteworthy

KBNT has filed a Form 12b-25, indicating that it was unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, within the prescribed time period. The delay in filing is due to the auditor's ongoing review of the Form 10-Q. The company anticipates filing the report, including the relevant interim financial statements, within the five calendar days following the prescribed due date.

Summary

KBNT reported a decrease in net revenues for the latest quarter, primarily attributed to the loss of certain customers acquired through a previous acquisition and continuing fixed costs of revenue. However, the company managed to reduce its sales and marketing expenses through cost-cutting measures. On the other hand, general and administrative expenses increased due to higher professional services costs and software subscriptions. The delay in filing the Quarterly Report on Form 10-Q is due to the ongoing review by the auditor. Overall, KBNT faces challenges in revenue generation and managing expenses, but the company's cost-cutting measures demonstrate management's efforts to improve financial performance.

Source documents

Form NT 10-Q  filed on Aug 15, 2023
14 pages scanned

Reference data

Company financials Q2 revenue 11.7k
Analyst estimates Q2 EPS missed by -0.00%
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