AcuityAds Reports Record First Quarter 2019 Results
TORONTO, ON; NEW YORK, NY, May 27, 2019
Generated $27.9 million in Revenue and $1.0 million in Adjusted EBITDA
AcuityAds Holdings Inc. (TSXV:AT) (“AcuityAds” or “Company”), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across digital advertising campaigns, today announced its financial results for the first quarter ended March 31, 2019.
“We are very pleased that the momentum we saw during Q4 of 2018 has continued into 2019 as we realized significant year-over-year growth in revenues and Adjusted EBITDA in Q1 2019. Moreover, on a trailing twelve-month basis, the Company has generated revenues in excess of $90 million and Adjusted EBITDA of approximately $6 million,” said Tal Hayek, CEO of AcuityAds. “We firmly believe that the significant growth we are achieving is a direct result of both the investments we have made in our latest AI technology release and the overall strength of the global Acuity team. Together, these two factors have led to a marked increase in existing customer spend, as well as a significant uptick of new clients, with both larger and longer-term contracts.”
Mr. Hayek continued, “As previously disclosed, Acuity received a $7 million contract in the quarter representing the largest customer contract in the Company’s history. The vast majority of this campaign ran in the first quarter and as expected, at a lower gross margin, resulting in a lower overall margin in the quarter. We expect margins to increase in Q2 and throughout the remainder of the year.”
First Quarter 2019 Highlights
- Total revenue for the three months ended March 31, 2019 was $27.9 million compared to $8.0 million for the same period in 2018, an increase of 247%.
- Revenue less media costs (gross margin) was 45% for Q1 2019 compared to 52% for Q1 2018. Adjusting for the previously noted $7.0 million contract with a global financial services company, the gross margin for the quarter would have been approximately 50%.
- The average campaign size increased 160% in Q1 2019 as compared to the same period in 2018.
- Total Self-Serve revenue for the three months ended March 31, 2018 increased 145% to $6.3 million, compared to $2.6 million for the same period in 2018.
- The Company’s Adjusted EBITDA was $1.0 million for the three months ended March 31, 2019 compared to an Adjusted EBITDA loss of $2.0 million for the same period in 2018.
- The Company continued to invest in its global sales team and its industry-leading technology including its updated AI platform and its product & usability teams
- Net loss for the three months ended March 31, 2019 was $2.5 million compared to a net loss of $2.8 million for the same period in 2018.
- As at March 31, 2019 the Company’s cash and restricted cash balance was $6.8 million
- On May 22, 2019, the Company completed a bought deal offering of 5.94 million common shares for total gross proceeds of $9.2 million, including the full exercise of the overallotment option by the underwriters.
The following table presents a reconciliation of Net Loss to Adjusted EBITDA for the periods ended:
The Company will be holding a conference call to discuss the first quarter 2019 financial results on Tuesday May 28that 8 am Eastern.
Conference Call Details:
Date: Tuesday, May 28th, 2019
Time: 8:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 90789254
Recording Playback Numbers:
Local – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 789254 #
Expiry Date: Tuesday, June 4th, 2019 11:59 PM
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.
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.