AcuityAds Provides Shareholder Update Related to COVID-19
TORONTO and NEW YORK, April 1, 2020
AcuityAds Holdings Inc. (TSX:AT, OTCQX:ACUIF) (“AcuityAds” or “Company”), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across all digital advertising channels, today provided a shareholder update regarding the actions the Company has taken in light of the COVID-19 virus.
“As the coronavirus pandemic continues to unfold into a global crisis, our top priorities are the health and well-being of our employees and the continuation of high-quality service for our customers, as well as the effective management of our expenses and cash flow,” said Tal Hayek, AcuityAd’s Co-Founder and Chief Executive Officer. “We have provided all the necessary support to allow our team to continue to provide the full range of services for our customers from the comfort and safety of their own homes. Additionally, we have continued to reduce expenses to ensure the business is in the best possible position regardless of the economic environment.”
- The Company has successfully transitioned to a remote working environment for all employees.
- The Company has seen a number of campaigns reduced or paused in line with overall industry trends
- The Company has deferred or eliminated all discretionary spending and reduced other fixed and variable SG&A expenses, including all senior personnel accepting a temporary 20% reduction in base pay.
- The Company currently has approximately $10 million in cash and availability under its credit facility.
Despite the reduction in consumer demand and advertising budgets across the industry, and as a result of actions proactively taken by the Company prior to the Covid-19 crisis, the Company is guiding that its Adjusted EBITDA for the first quarter of 2020 is expected to be ahead of the first quarter of 2019.
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 Artificial Intelligence 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.
For further information, please contact:
Chief Executive Officer AcuityAds Holdings Inc.
Chief Financial Officer
AcuityAds Holdings Inc.
Virtus Advisory Group Inc.
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.
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including Adjusted EBITDA. Adjusted EBITDA refers to net income (loss) after adjusting for finance costs, impairment loss, fair value gain, income taxes, foreign exchange gain (loss), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses and adjustments to the carrying value of investment tax credits receivable. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and also prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.