AiAdvertising, Inc. reported its financial results for the first quarter of 2024, revealing a decline in revenue and an increase in net losses compared to the same period in 2023. The company generated revenue of $2.02 million for Q1 2024, down from $2.17 million in Q1 2023. This decrease was attributed to a decline in digital marketing revenue, which fell to $1.39 million from $1.76 million year-over-year. In contrast, revenue from design services increased to $484,310 from $275,790, and platform license revenue rose to $147,849 from $111,979.

Gross profit also saw a significant decline, totaling $224,050 in Q1 2024 compared to $519,303 in the prior year. Total operating expenses surged to $2.08 million, up from $1.40 million, primarily driven by a substantial increase in sales, general, and administrative expenses, which rose to $2.06 million from $1.40 million. As a result, the company reported a loss from operations of $1.86 million, compared to a loss of $883,293 in Q1 2023.

The net loss for the quarter was $1.86 million, reflecting an increase of $977,521 from the net loss of $883,288 reported in the same quarter last year. Cash used in operating activities also increased significantly to $1.42 million from $611,081, attributed to a higher net loss and faster vendor payments.

On the balance sheet, AiAdvertising reported total current assets of $1.85 million as of March 31, 2024, a substantial increase from $687,225 at the end of 2023. Cash reserves rose dramatically to $1.19 million from $110,899. Total liabilities decreased to $1.90 million from $2.18 million, resulting in total shareholders' equity improving to $55,442 from a deficit of $1.36 million.

The company recorded an impairment of $20,202 related to the non-renewal of the domain name "CLOUDCOMMERCE.COM." Additionally, it reported a negative working capital of $50,160, although this was an improvement from a deficit of $1.49 million at the end of 2023.

In terms of financing, AiAdvertising raised $2.5 million through preferred stock sales, a significant increase from $556,006 in the previous year. The company continues to face challenges, including negative cash flows from operations and reliance on capital raises to sustain its operations. Management has indicated that current cash flow may not be sufficient for the next 12 months without additional financing.