Mr. Grant Schuetrumpf reports

YANGAROO ANNOUNCES Q4'2022 RESULTS

Yangaroo Inc. has released its financial results for the fourth quarter and year ended Dec. 31, 2022. The full text of the financial statements and management's discussion and analysis is available at the Yangaroo website and at SEDAR. Please note that all currency in this press release is denominated in U.S. dollars, unless otherwise noted.

In 2022, Yangaroo faced significant challenges that had a negative impact on its fiscal year results. It experienced a secular decline in advertising activity across the business community, which affected its revenue streams. Despite these challenges, its dedicated team worked tirelessly throughout the year to address these issues and minimize their operational and financial impact. Through strategic efforts, it stabilized its revenue by the end of the fourth quarter. It also undertook key measures such as rationalizing its work force, restructuring its bank facilities and raising additional capital through subordinated debt to ensure the long-term sustainability of the business.

Business update

The advertising division faced challenges in the first half of 2022 due to market instability, resulting in reduced advertising volumes and revenue for the first nine months of the year. The fourth quarter of 2022, in contrast, experienced higher volumes and produced higher revenue across the company's advertising customers. The increased volumes were attributed to the typical seasonality of television advertising, along with a noticeable uplift in creative television campaigns across all market sectors. This development is encouraging as advertising volumes in Q4 2022, normalized for seasonality, exceeded those of the first three quarters of 2022, indicating an overall improvement in the industry.

The entertainment group, made up of its music and awards divisions, maintained steady customer volumes and revenue throughout the year, with no significant volatility during the year. Both the music and awards divisions aim to benefit from its investment in technology and platforms for future growth opportunities.

The company continued to invest in its technology in 2022 as Yangaroo remains focused on key feature improvements for its music platform and rebuilding its awards platform. It is also focused on improving the usability of its advertising platform with integrations for connected television (CTV) and free ad-supported streaming television (FAST) workflows and finalizing its television legal clearance platform. These developments remain on time and within budget, with the completion of its new awards platform expected in mid-2023.

In the face of the challenges encountered by the company in early 2022, Grant Schuetrumpf, chief executive officer, said: "Yangaroo was pro-active in its response in reducing overhead spending. To this end, the company implemented cost control measures throughout the first half of the year, and this, in combination with one-time employment tax credits, resulted in a substantial increase in our [earnings before interest, taxes, depreciation and amortization] generation for the fourth quarter of 2022."

Finally, during the fourth quarter of 2022, the company amended its term loan facility after breaching certain conditions of the agreement in the first half of 2022. As a result of the amendment, Yangaroo is in good standing with respect to its obligations with its senior lender. The company also strengthened its cash and balance sheet positions with the closing of a non-brokered, unsecured, convertible debenture in the amount of $500,000 (see press release dated Dec. 13, 2022, for further details on the amendment and convertible debenture financing).

Q4 2022 highlights:

• Advertising division:
  • Experienced higher volumes and produced higher revenue across the company's advertising customers;
  • Increased volumes were attributed to the typical seasonality of television advertising, along with a noticeable uplift in creative television campaigns across all market sectors;
• Entertainment group (music and awards divisions):
  • Maintained steady customer volumes and revenue throughout the year;
• Technology:
  • Advertising: user interface redesign of its single player application to improve the look and feel of its order creation process to reduce the friction required for a release to be processed; additional updates include the automation of analytic dashboards, analytic data and various administrative workflow improvements;
  • Awards: continued development of its new Judge 3.0 platform, as well as critical updates on the existing awards platform to make it highly scalable to drive efficiency and its competitiveness;
• Finance:
  • Completed certain staff rationalizations and cost control initiatives;
  • Completed term loan facility amendment;
  • Issued $500,000 of unsecured convertible debenture.

Looking into 2023, Yangaroo remains focused on executing its growth strategy, expanding its customer base and continuing to invest in its platform. While the advertising and entertainment markets remain unstable and uncertain, the company is well positioned to capitalize on organic and non-organic growth opportunities.

About Yangaroo Inc.

Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content. Yangaroo's digital media distribution system (DMDS) platform is a patented cloud-based platform that provides customers with a centralized and fully integrated workflow directly connecting radio and television broadcasters, digital display networks, and video publishers for centralized digital asset management, delivery and promotion. DMDS is used across the advertising, music and entertainment awards show markets.

Yangaroo has offices in Toronto, New York and Los Angeles. Yangaroo trades on the TSX Venture Exchange under the symbol YOO and in the United States on the OTC Pink under the symbol YOOIF.

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