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AcuityAds Reports Second Quarter 2018 Financial Results

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AcuityAds Reports Second Quarter 2018 Financial Results

Canada NewsWire

Sequential quarterly revenue growth of 50% and positive EBITDA

TORONTO and NEW YORK, Aug. 14, 2018 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT) ("AcuityAds" or the "Company"), a technology leader that provides targeted digital media solutions by leveraging its proprietary AI technology to enable advertisers to connect intelligently with audiences across video, mobile, social and online display advertising campaigns, today announced its financial results for the second quarter ended June 30, 2018.

"We are very pleased with our second quarter results as we exceeded our expectations and the guidance that we provided earlier this year in terms of both revenue and EBITDA," said Tal Hayek, CEO of AcuityAds. "We grew our gross revenue by 50% and net revenue by 55%, saw an increase in Self-Serve revenue of 42%, and improved our Adjusted EBITDA by $2.4 million, all compared sequentially to the previous quarter. Furthermore, with the launch of our next-generation AI programmatic marketing platform, our gross margins continue to be positively impacted."

Mr. Hayek continued, "We continue to focus on increasing our revenues through our realigned US sales team, the addition of ADman Media and our commitment to technology enhancements. Going forward, we continue to focus on increasing our revenue while further improving our operational efficiency to enhance margins and overall profitability."

Key Items in the Quarter:

  • Closed the acquisition of ADman Media and commenced their integration into our AI platform and pursuit of global cross-selling opportunities
  • Closed the $4.6 million bought-deal financing as well as secured a new $7.3 million term loan
  • SoCast, a newly signed Self-Serve partner, launched a new digital advertising solution for radio clients powered by AcuityAds

Q2 2018 Financial Highlights:

  • Total revenue for the three months ended June 30, 2018 was $11,964,920 compared to $17,265,803 for the same period in 2017. The decrease in year over year revenue is primarily related to the removed partners previously disclosed. Compared to Q1 2018, total revenue grew 50%.
  • Revenue less media costs (gross margin) was 53% for Q2 2018 compared to 50% for Q2 2017.
  • Revenue less media costs (gross margin) increased 1% sequentially from Q1 2018.
  • Total Self-Serve revenue for the three months ended June 30, 2018 increased 42% to $3,642,106 compared to $2,565,784 in the previous quarter.
  • From an SG&A perspective, the Company is on track to meet its previously announced objective of $4 million in annualized cost savings from the Visible Measures integration completed in Q2 2018.
  • The Company posted Adjusted EBITDA of $417,835 for the three months ended June 30, 2018 compared to Adjusted EBITDA of $589,786 in the same period last year.
  • Net and comprehensive loss for the three months ended June 30, 2018 was $2,244,217 compared to a net and comprehensive loss of $1,063,628 for the same period in 2017.
  • As at June 30, 2018, the Company's cash balance was $5,884,081.

The Company will be holding a conference call to discuss the Q2 2018 financial results on Wednesday August 15th, 2018.

Conference Call Details:

Date: Wednesday, August 15th, 2018
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 89403139

Recording Playback Numbers:
Local – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 403139
Expiry Date: Wednesday, August 22nd, 2018 11:59 PM

About AcuityAds:

AcuityAds is a leading technology company that provides marketers a powerful and holistic solution for digital advertising across all ad formats and screens to amplify reach and Share of Attention® throughout the customer journey. Via its unique, data-driven insights, real-time analytics and industry-leading activation platform based on proprietary machine learning technology, AcuityAds leverages an integrated ecosystem of partners for data, inventory, brand safety and fraud prevention, offering unparalleled, trusted solutions that the most demanding marketers require to be successful in the digital era.

AcuityAds is headquartered in Toronto with offices throughout the U.S., Europe and Latin America. For more information, visit AcuityAds.com.

The following table presents a reconciliation of Adjusted EBITDA to Income (Loss) for the periods then ended:


Three months ended
June 30, 2018

Three months ended
June 30, 2017




Net income (loss) for the period

$

(2,034,140)

$

(1,478,455)

Adjustments:




Finance costs

516,308

404,499


Foreign exchange (gain) loss

49,785

206,674


Depreciation and amortization

916,346

593,984


Income taxes

7,148

31,198


Share-based compensation

256,163

426,065


Acquisition costs 

513,454

89,805


Severance expenses

192,771

316,016

Adjusted EBITDA

$

417,835

$

589,786

 

Disclaimer in regards to Forward-looking Statements

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, AcuityAds does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE AcuityAds Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2018/14/c3358.html

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